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The original documents are located in Box 10, folder "FY 1977 - 11/24/75, HEW, USDA
Feeding Programs, Small Agencies (2)" of the White House Special Files Unit Files at the
Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 10 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library
1977 PRESIDENTIAL
REVIEW
Agriculture-Feeding
Programs
Small Agencies
Ag. - -Feeding
Programs
FRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
SECUTIVE
STATE
WASHINGTON, D.C. 20503
ACTION
GERALD FORD LIBRARY
MEMORANDUM FOR:
THE PRESIDENT
FROM:
James T. Lynn
SUBJECT:
1977 Budget decisions: Department
of Agriculture - Feeding Programs
The agency request and my recommendations with respect to
1977 budget amounts for the Department of Agriculture
feeding programs are presented in the tabulation attached
(Tab A). These amounts are included in the summary tables
for the entire Department of Agriculture which is contained
in a separate memorandum with issues relating to non-feeding
programs. My recommendation for food stamps funding reflects
your recent legislative proposal to achieve savings of $1.3
billion on an annual basis.
Two key issues have been identified for your consideration
(additional detail at Tab B).
I. Block grants for feeding needy children.
USDA requested $3.1 billion in 1977 to fund the National
School Lunch Act and Child Nutrition Act Amendments of 1975
(P.L. 94-105) The Department has proposed one legislative
change which would limit reimbursement under the Special
Milk program to children not provided milk with meals
under other feeding programs.
OMB recommends a revised program of block grants for
feeding needy children which would be administered by the
states. This block grant would cost $1.9 billion in 1977
and limit eligibility consistent with the poverty guidelines
in your proposed Food Stamp Reform legislation. You should
note that John Rhodes in a recent letter (Tab C) to you said
that "hearings or further consideration of school lunch are
not likely until the two year extension expires, and I cannot
-2-
see anything to be gained by dumping in a moot bill at this
point
the legislation would be viewed with ridicule by
the school lunch groups and would be politically detrimental."
Decision:
Approve agency recommendation
Approve OMB recommendation
II. Special Milk program.
USDA requests a $67 million 1976 supplemental appropri-
ation for the Special Milk program which is an entitlement
program. The enacted appropriation of $84 million will
fund costs only through January 1976. If a supplemental
is not requested, a law suit requiring the continuation of
the program could be successful. OMB recommends that no
supplemental funds be requested.
Decision:
Transmit supplemental
Do not transmit supplemental
Attachment
j LARY
TAB
LIBRARY
if 938839
DEPARTMENT OF AGRICULTURE
1977 Budget
Summary Data
Food and Nutrition Service
(In millions)
Employment, end-of-year
Budget
Full-time
Authority
Outlays
Permanent
Total
1975 actual
6,819
6,643
2,359
2,595
1976 February budget (as amended)
8,382
8,304
2,575
2,811
enacted
5,448
5,802
2,575
2,811
supplementals recommended
505
527
XXX
XXX
agency request
7,891
8,428
2,855
3,013
OMB recommendation
9,089
8,569
2,422
2,522
OMB employment ceiling * /
XXX
XXX
2,575
2,811
TQ February budget (as amended)
2,127
2,386
XXX
XXX
enacted
1,342
1,554
supplementals recommended
22
22
XXX
XXX
OMB recommendation
2,091
1,946
XXX
XXX
1977 planning target
8,819
8,819
XXX
XXX
reduction target
XXX
7,194
XXX
XXX
agency request
9,093
9,059
2,842
3,000
OMB recommendation (includes Block Grant proposal)
5,733
7,161
2,422
2,522
1978 OMB estimate
7,490
7,490
2,300
2,400
* USDA Feeding programs. Part of the USDA total.
GERALS
OHOI
LIDERAT
TAB B
Issue Paper
Department of Agriculture
1977 Budget
Issue #1: Block Grants for Feeding Needy Children
Statement of Issue
Should the Administration renew the proposal for block grants for child food
assistance to replace the existing array of child feeding programs?
Background
The Administration proposed to substitute block grants for the existing child
feeding programs in the 1976 Budget. Congress did not consider the proposal, which
was transmitted after the House markup, and enacted the School Lunch/Child Nutrition
amendments on October 7, 1975, over your veto by a vote of 397 to 18 in the House and
79 to 13 in the Senate. The enacted amendments substantially expanded the existing
categorical programs; provided higher subsidies to more non-needy individuals; and
limited the flexibility of the states and institutions.
The block grant proposal would provide Federal funds to states, based on the
number of meals to be served to needy children and infants, and replace the existing
child feeding programs which subsidize meals for both needy and non-needy children.
Under the block grant proposal, Federal funds will enable states to provide at least
one-third of the total Recommended Dietary Allowance (RDA) to all poor children.
Consistent with the Food Stamp Reform legislation, a child's eligibility would
be based on the family's income and its relationship to the income poverty guidelines.
GERALD
P.
FORD
LIBRARY
-2-
Alternatives
#1. Fund the existing child feeding programs, and restrict the Special Milk pro-
gram to children not receiving benefits under the other school feeding
programs (USDA rec.)
#2. Fund the existing child feeding programs, but limit increases in dis-
cretionary program areas and restrict the Special Milk program to
children not receiving benefits under the other school feeding programs.
#3. Substitute block grants to states for the existing child feeding programs,
limiting eligibility for free meals to children from poor families (OMB rec.).
#4. Retain the basic structure of the existing programs and limit eligibility
to 150% of the income poverty guidelines (USDA reduction proposal).
Analysis
July 1 - Sept.
1975
1976
30, 1976
1977
1978
Budget Authority/Outlays
BA
O
BA
O
BA
O
BA
O
BA
O
($ millions)
Alt. #1 (USDA rec. - existing pro-
grams and limit Special Milk)
2,075
2,170
2,762
2,739
282
565
3,107
3,106
3,324
3,324
Alt. #2 (existing mandatory pro-
grams only and limit Special
Milk)
2,075
2,170
2,664
2,628
282
565
3,032
3,043
3,210
3,210
Alt. #3 (OMB rec. - Block Grant)
2,075
2,170
2,664
2,628
282
565
1,932
1,861
1,990
1,990
Alt. #4 (USDA reduction - existing
programs limited to near-needy
and needy)
2,075 2,170 2,664 2,628 282
565 2,141 2,140 2,358 2,358
GERALD
R.
FORD
LIBRARY
-3-
USDA Recommendation: Alternative #1 - Continue the existing programs but limit Special Milk
The Department does not recommend a major legislative initiative at this time.
They believe congressional enactment of the block grant proposal is highly unlikely.
USDA recommends limiting the Special Milk program to children who are not receiving
benefits from the other school feeding programs. To limit 1977 outlays below their
budget request, USDA offered a reduction proposal to limit benefits to near-needy
and needy children within the existing programs; that is, limit eligibility to 150%
of the income poverty guidelines.
OMB Recommendation: Alternative #3 - Block grants
Under the proposal, a single Federal grant to the states would be provided to
feed poor children in the most appropriate manner: meals or combination of meals,
snacks and/or milk or otherwise--that would meet local preferences and requirements.
As states now provide modest matching funds to non-needy children under
section 4 of the National School Lunch Act, a shift in Federal emphasis to the needy
would still permit states to continue support of non-needy children.
If we do not propose block grants, administrative problems and benefit duplica-
tion issues would not be addressed. Block grants to states for feeding needy children
would provide states with maximum flexibility in developing the necessary programs,
limit Federal support to needy children, and reduce the Federal burden of administering
multiple programs.
BERAUD
FOR
1969811
Recommended Action/Consistent with the Block Grant Proposal (Alt. #3)
1975
1976
1976
1977
Budget
Current
Budget
Existing Programs
Actual
(Block Grants)
Estimate
(Block Grants)
(Outlays in millions)
School Lunch Program/Basic: 12.25¢ reimbursement for all meals
served to children in schools and residential child care
institutions.
481
-0-
521
-0-
School Lunch Program/Special Assistance: Additional reimburse-
ment of 54.5¢ and 44.5¢ for meals served to near-needy and needy
children respectively. Includes children in schools and
residential child care institutions.
751
-0-
950
-0-
Non-Food Assistance: Grants for equipment to schools from areas
with poor economic conditions. Includes schools and residential
child care institutions.
24
-0-
28
-0-
School Breakfast: Average reimbursement of 32¢ for meals served
to all children. Includes additional supplements for near-needy
and needy, and also includes children in schools and residential
child care institutions.
86
-0-
116
-0-
Special Milk: Average reimbursement of 5.5¢ for each half-pint
of milk served to all children in addition to milk served in
the Breakfast and Lunch programs. Includes children in schools
and residential child care institutions.
123
-0-
137
-0-
Commodity Distribution: Provision of 11¢ of commodities to
schools for each meal served to all children. Includes children
in schools and residential child care institutions as well as
children in summer feeding and day care programs. Includes cash
in lieu of commodities.
361
-0-
501
-0-
Reimbursement rates as of July 1, 1975
GERALD
FORD
1975
1976
1976
1977
Budget
Current
Budget
Actual
(Block Grants)
Estimate
(Block Grants)
Supplemental Food for Women, Infants, and Children (WIC) : Cash
assistance to pregnant or lactating women and infants who are
residents of areas with poor economic conditions, and who are
determined to be at nutritional risk due to inadequate nutrition
or income.
83
-0-
180
(83)
2/
Summer Food Program: Provides reimbursement for meals served
to all children participating in summer feeding programs in
areas with poor economic conditions. Includes children
attending summer camps.
52
-0-
94
-0-
Child Care Food Program: Provides reimbursement for meals
served to children in day-care programs.
49
-0-
93
-0-
Other: State Administrative Expenses, Federal Operating
Expenses, Nutritional Training and Surveys, and
Adjustment
15
-0-
56
-0-
Proposed Legislation
Block Grants for Child Feeding
-0-
1,722
-0-
1,861
TOTAL
2,025
1,722
2,676
1,861
2/ $83 million will be requested in order to supplement the food stamp allotment for pregnant and lactating women.
SERALE
FORD
LIBRARY
Issue Paper
Department of Agriculture
1977 Budget
Issue #2: Special Milk Program - 1976 Supplemental
Statement of Issue
Should we request a 1976 supplemental ($67 million) for the Special Milk program?
Background
The Administration did not request funds for the Special Milk program in the 1976
Budget. Legislation was proposed to substitute a block grant program for this and other
child nutrition programs.
Congress did not consider the Administration's legislative proposal and enacted
appropriations based on the School Lunch/Child Nutrition amendments. To avoid large
increases over your budget request, Congress appropriated funds for the period from
July 1, 1975 to January 31, 1976. Additional funds will be necessary if the program
is to continue after January 31.
Although no funding was requested for the Special Milk program in the 1976 Budget,
OMB General Counsel advice is that the Special Milk program is an entitlement program
and federal liability would be found if considered by the courts.
(BA in millions)
President's Budget - 1976
-0-
Appropriation (for the period July 1, 1975
through January 31, 1976
$ 84
Implicit agency supplemental request - 1976
$ 67
Full-year cost - 1976
$151
YORD
LIGARA
-2
Alternatives
#1. Do not request a supplemental (OMB rec.).
#2. Request a supplemental of $67 million (Implicit agency req. ) .
Analysis
The Administration has expressed strong opposition to the duplication of benefits
between the Special Milk program and the other child feeding programs.
Although we believe that $67 million will be necessary for the Special Milk program
after January 31, 1976, we do not recommend that you request a supplemental appropriation.
We believe that the Administration should reiterate its strong opposition to the recently
expanded child feeding programs and force the Congress to add the necessary funds.
0 TAB
JOHN J. RHODES
for DISTRICT, ARIZONA
Office of the Minority Leader
WASHINGTON OFFICE:
H-232, THE CAPITOL
RAYBURN HOUSE OFFICE BUILDING
United States Douse of Representatives
WASHINGTON, D.C.
WASHINGTON, D.C. 20515
dashington, D.C. 20515
JOHN J. WILLIAMS
ALMA A. ALKIRE
DENNIS J. TAYLOR
RICHARD ROBERTS
J. BRIAN SMITH
CLARA POSEY
November 10, 1975
DISTRICT OFFICE:
6040 FEDERAL BUILDING
PHOENIX, ARIZONA 85023
ROBERT J. SCANLAN
NOV 11 1975'
The President
GERALD FORD LIBRARY
The White House
Washington, D. C.
Dear Mr. President:
For some time I have been concerned over the events surrounding
H.R. 4222, the School Lunch bill which became P.L. 94-105 over your
veto. At the time the House considered your veto of the bill I
expressed my support for your block grant approach, however I was
frankly disappointed at the way in which the Administration handled
your legislative proposal and the "budget shuffling" involved in the
veto.
To begin with, there was no timely effort to gain support from
interest groups or appropriate Members for the Administration's block
grant approach. The Administration proposal was not transmitted to
Congress until June 9, 1975, after both Houses had held hearings on
their own versions, after the House had passed H.R. 4222, and well
beyond any time when there was meaningful opportunity for House
Republicans to influence the direction of the legislation.
In an emotional and sensitive area such as this, your proposal
should have come much earlier and should not have been relegated to
an announcement through the ordinary budget process. With advance
planning a Presidential message -- perhaps even on television --
could have placed the issue in perspective, enlisted public support
and minimized opposition by school food service lobbyists. In addition,
Republicans in Congress could have introduced the proposal. As it was,
no viable alternative to H.R. 4222 was available during its consideration,
and any Member venturing to introduce your proposal when it came up
would have been marked for special electoral attention by interest
groups locked into H.R. 4222.
-2-
I feel an obligation to see that Administration legislative
proposals are at least introduced, and considered introducing your
legislation after committee Republicans in both the House and Senate
declined to do SO. Quite candidly, hearings or further consideration
of school lunch are not likely until the two year extension expires,
and I cannot see anything to be gained by dumping in a moot bill at
this point.
In fact, informal discussions with Administration officials
indicate they do not now want me to introduce the legislation. Aside
from being moot, the legislation would be viewed with ridicule by the
school lunch groups and would be politically detrimental.
In addition, many Members did not buy, and in fact resented, the
budget sleight of hand used to oppose H.R. 4222. The real figures of
the budget were ignored and OMB persisted -- even in the veto message --
in basing its budget estimates on the cost figures of the block grant
proposal rather than on the actual program costs or actual budget
figures. As a result, the amount claimed in the veto message as being
over the budget was really only the amount over the cost projections
of the block grant proposal. This type of eleventh hour budget gimmickery
just did not generate confidence or support in light of the momentum
behind H.R. 4222.
It is difficult for Republicans to sustain a veto or become
enthusiastic under these kinds of circumstances. Late transmittals
of the proposal, lack of proper groundwork, and the absence of Congressional
input accounted for the dismal vote of 397 to 18 in overriding the veto.
My earnest hope is that on future issues and subsequent consideration
of this topic we can develop a closer rapport and coordination of efforts.
Sincerely,
John D. Rhodes, M. C.
Minority Leader
JJR/tp
GERALD FORD LIBRACY
Small
Agencies
1977 Presidential Review
Small Agencies
Table of Contents
*Community Services Administration
*Legal Services Corporation
*National Foundation on the Arts and the Humanities
Consumer Product Safety Commission
National Labor Relations Board
*Federal Mediation and Conciliation Service
National Mediation Board
Occupational Safety and Health Review Commission
*National Commission on Libraries and Information
Science
Committee for the Purchase of Products and Services
from the Blind and Other Severely Handicapped
Railroad Retirement Board
*ACTION
*Equal Employment Opportunity Commission
Appalachian Regional Commission
*Office of Telecommunications Policy
GEBALO FORD LIBRARY
Commission of Fine Arts
American Revolution Bicentennial Administration
Advisory Commission on Intergovernmental Relations
*Commission on Civil Rights
National Capital Planning Commission
Federal Home Loan Bank Board
*Corporation for Public Broadcasting
Privacy Protection Study Commission
Pennsylvania Avenue Development Corporation
* Issue paper, agency appeal letter, or background
paper follows summary.
Community
Services
Administration
COMMUNITY SERVICES ADMINISTRATION
Comments
Agency request is based on the FY 1976 Continuing
Resolution with increases for inflation and pro-
grams not covered by the Continuing Resolution,
including new migrants and rural housing activities.
OMB mark would continue the 1976 Budget strategy by
further reducing community action funding to reflect
the lower FY 1977 Federal matching rate.
Budget
Full-time
authority
Outlays
permanent
(In thousands of dollars)
employment
975 actual
499.4
476.5
1,006
976 current estimate
435.7
520.0
960
1976 OMB employment ceiling
XXXX
XXXX.
960
Transition quarter current
estimate
105.0
140.0
XXXX
1977:
Alternative A - Agency
request
508.2
497.4
1,006
Alternative B - Delivery
system support strategy
466.0
435.0
950
Alternative C - 1976
Budget strategy
324.0
355.0
900
(OMB recommendation)
Effect of OMB recommenda-
tion on agency request
-184.2
-142.4
-106
1978 estimate
324.0
350.0
900
FORD LIBRARY & GERALD
COMMUNITY SERVICES ADMINISTRATION
Background
The Community Services Administration (CSA), formerly the Office of Economic Opportunity
(OEO), was created January 4, 1975, by the Community Services Act of 1974 (P.L. 93-644)
The Agency's primary activity is support of 889. community action agencies (CAA's) which
employ an estimated 100,000 people who administer $1.2 billion of programs, most of
which are federally funded by agencies other than CSA.
Under the Community Services Act, you may propose a reorganization plan to transfer
Community Action programs to HEW and Community Economic Deyelopment programs to
Commerce. The plan could be rejected by the Congress. The Act also provides for
gradually increasing the non-Federal share to match Federal monies granted to CAA's.
The non-Federal share requirement changes as follows:
Local Initiative
Non-Federal Matching Rate
CAA's Federal
% of
Funding Level
CAA's
FY75
FY76
FY77
$300,000 or less
75%
20%
25%
30%
over $300,000
25%
20%
30%
40%
In signing the Act you strongly supported the shift toward non-Federal funding. CAA's
oppose the higher requirement and support a House bill returning the non-Federal share
to 20%. CSA advises us that passage of the bill is likely. The FY76 Budget reduced
CAA administrative support from $330 to $295 million to reflect the higher non-Federal
share, but the House and Senate restored the $330 million level in the Labor-HEW
GERALD
FORD
LIBRARY
2
Appropriations Bill. CSA estimates that about 95% of the non-Federal share is "soft"
in-kind contributions. In seeking this increase, CAA's argued that the higher, "soft"
non-Federal contributions could not replace the "hard" cash Federal share and there-
fore a reduction in Federal funds would cut back CAA employment and administrative
capability.
In FY74, FY75, and FY76, there has been growing disparity between the President's
Budget and congressional appropriation action. Since the attempted dismantling of
OEO in 1973, the budget has consistently recommended reduced funding for Community
Action programs. Congress has continually increased CSA's appropriation level. The
FY76 Continuing Resolution is over 30% higher than the FY76 Budget level. Congres-
sional increases have been prompted primarily by intense lobbying of CSA grantees
(community action agencies and community development corporations), bolstered by
recent support from State and local governments. The congressional add-ons have
largely centered on categorical programs concerned with the elderly poor, nutrition,
and home winterization. The FY76 appropriation may include new programs for veterans,
migrants, and rural housing.
Alternative A - CSA Request (BA $508.2 million; O $497.4 million) -- CSA bases its
request on the FY76 Continuing Resolution level of $474.4 million with increases for:
(1) a 5% inflation increase for three of its larger Community Action programs; (2)
funding for the summer youth programs not in the Continuing Resolution; (3) new
migrants and rural housing programs; and (4) new efforts to train grantees' staff
and evaluate Federal poverty programs. Funding is not requested for CSA's current
energy conservation program consistent with the Administration position to fund this
activity in FEA. The CSA request alternative supports and expands CSA categorical
programs and would enhance CSA's stature as an independent agency. A significantly
higher funding level than previously proposed by the President could also signal a
larger CSA role in poverty related efforts.
Alternative B - Delivery System Support (BA $466.0 million; O $435.0 million) -- All
categorical programs are eliminated except the non-duplicative summer youth programs.
One million dollars is provided to promote technical assistance for grantees' staff
BENALD
R.
FORD
LIBRARY
3
to improve CAA's accountability (financial and evaluation reporting) to CSA. Community
Economic Development programs are held to the FY75 level. Budget authority for CAA
administrative funds would be increased by $50 million over the FY76 Continuing
Resolution level to restore forward funding for smaller CAA's (75% of CSA grantees).
This increase in budget authority would not affect outlays and would not be continued
after FY77. Currently, CSA funds all of its grantees on a quarterly basis. Added
budget authority would relieve the administrative burden of quarterly funding on CSA
and the grantees. This action would be viewed positively by CAA's and exhibit support
of CAA's as a delivery system for Federal assistance to the poor. However, this
option would still preserve the option to submit a reorganization plan.
Alternative C - 1976 Budget Strategy (BA $323.7 million; O $355.0 million) -- The FY76
Budget proposed elimination of all categorical programs. Community Economic Develop-
ment was held to the FY75 Budget level of $39 million. Administrative funding for
CAA's was reduced to reflect the decrease in the Federal share requirement.
Alternative C is a continuation of the FY76 Budget strategy. It holds Community
Economic Development to the FY75 level and further reduces CAA funding for the
continuing decrease in the Federal matching rate. Employment is reduced due to less
Federal support for CAA programs. Although this approach may stiffen opposition to
a reorganization plan, OMB recommends Alternative C to emphasize the Administration's
current position that Community Action programs must depend upon local financial sup-
port rather than increased Federal funding.
Legal Services
Corporation
LEGAL SERVICES CORPORATION
Comments
Agency requested increases to improve its program
capability and geographically expand the delivery
of legal services. OMB mark would hold funding
to the FY 1976 appropriation of $88 million, an
increase of $16.5 million over the FY 1975 level,
and require the agency to sponsor its FY 1977
initiatives within its current resource level. A
background paper is attached.
Budget
authority
Outlays
(In thousands of dollars)
1975 actual
71.5
72.6
1976 current estimate
88.0
78.0
Transition quarter current estimate
24.6
24.0
1977 agency request
140.8
127.3
1977 OMB recommendation
88.0
85.0
Effect of OMB recommendation on
agency request
-52.8
-42.3
1978 estimate
88.0
87.0
Legal Services Corporation
The Legal Services Corporation (LSC), a private nonmembership, nonprofit corporation
established by the Legal Services Corporation Act of 1974, provides legal assistance
in noncriminal matters for low-income persons through grants to 269 legal services
centers.
In FY 1976, LSC requested, independent of the Administration, a $25 million budget
increase to fund higher grantee attorney salaries, new attorneys, and rising administrative
costs. The Legal Services Corporation Act of 1974 provides that OMB may review and
submit comments upon LSC's budget request at the time it is transmitted to the Congress.
After reviewing the Corporation's FY 1976 budget request, OMB recommended to the Congress
a resource allocation of $71.5 million, the same level as the continuing resolution.
The Congress approved an $88 million FY 1976 appropriation. The FY 1977 LSC request--a
$52.8 million increase--seeks to: (1) further raise attorney salaries and hire
additional staff ($15 million) ; (2) expand the programs' geographic coverage ($26 million) ;
(3) fund legal services centers currently supported by the Department of Labor and
the Community Services Administration ($2 million) ; and (4) conduct evaluations and
demonstrate other methods for improving the delivery of legal services ($8 million).
LSC has not evaluated any of its existing legal services centers. OMB recommends that
evaluation of current activities, development of new policies and guidelines, and
restructuring existing activities be undertaken in advance of increased funding for
program growth. Since LSC received an FY 1976 increase of $16.5 million, OMB believes
LSC has sufficient funds at the FY 1976 level to maintain an adequate legal services
program in FY 1977 as well as conduct the necessary evaluations and demonstration
projects to improve the delivery of legal services.
GERALD
P
FORD
LIBRARY
National Founda-
tion on the Arts
and the Humanities
National Foundation on the Arts and the Humanities
Comments
Foundation request would provide an increase
of $100 million in operating funds above the
FY 1976 request level of $190 million. OMB
FY 1977 mark would hold to the 1976 budget
level, or at the congressional level, which-
ever is less. A backup paper is attached.
The Foundation has not been informed of the
OMB recommendation.
GERALD FORD LIBRARY
Budget
Full-time
authority
Outlays
permanent
(In millions of dollars)
employment
1975 actual
173.3
128.1
356
1976 current estimate
190.0
183.0
387
1976 OMB employment ceiling
XXX
XXX
387
Transition quarter current
estimate
59.9
57.0
XXX
1977 agency request
290.4
280.0
608
1977 OMB recommendation
190.0 1/
183.0
387
Effect of OMB recommendation
on agency request
-100.4
-97.0
-221
1978 estimate
190.0
185.0
387
1/
House action has reduced the Foundation by some $5 million. Senate
action is pending. The OMB recommendation would be either the FY 1976
request or congressional action, whichever is less.
National Foundation on the
Arts and the Humanities
1977 Budget
There are four options available for consideration:
Option- #1: Agency Request
($ in millions)
President's
Agency
FY 1976 Budget
FY 1977 Request
BA
0
BA
0
190
183
290
280
Personnel
FORD & LIBRARY GERALD
FY 1976 Budget
1977 Agency Request
FTP
Total
FTP
Total
387
557
608
858
-- This request represents nearly full funding of the
authorization request currently pending before the Congress.
-- It represents a continued commitment to growth in the
Foundation's budget.
Option #2: Provide for an increase of $25 million in 1977 above
the FY 1976 request of $190 million. Total - $215 million.
-- This is the planning figure that was given to the Foundation.
-- Would represent a continuation of growth, possibly leading
to further growth in later years.
Option #3: OMB recommendation Provide for the current FY 1976
level to be continued in FY 1977: $190 million in BA and some $183
million in outlays (President's budget request; Congress may provide
$5 million to $10 million less).
2
-- This would provide continuation of the congressionally
approved level of support for the Foundation.
Option #4:
President's Budget
for FY 1976
Option #4
BA
0
BA
0
190
183
130
156
Personnel
FY 1976 Budget
Option #4
FTP
Total
FTP
Total
GLRATO FORD LIBRARY
387
557
387
557
-- Represents a reduction in the Foundation's budget in
accord with the need to control expenditures.
-- Foundation participation in the Bicentennial is in
excess of $50 million in FY 1976. The Foundation
maintains that these are regular activities that are
a part of their normal program that can be classified
as Bicentennial in nature. However, past increases
have been justified by the Foundation upon the need for
Bicentennial efforts.
-- Personnel would remain constant and the Foundation
would be directed to seek ways to reduce operating
costs and staffing requirements through a reexamination
of current activities: technical assistance, travel,
equipment, etc.
Consumer Product
Safety
Commission
CONSUMER PRODUCT SAFETY COMMISSION (CPSC)
Comments
CPSC requests accepting congressional
add-ons of $5 million above the Admin-
istration's request of $37 million in
1976, and a further increase of $13
million in 1977 to expand all program
activities and increase the output
of standards. OMB mark would rescind
the congressional add-on in 1976
and hold CPSC to the 1976 level of
$37 million in 1977. CPSC has been
informed of the 1976 decisions but
not of the 1977 decisions.
GERALD FORD LIBRARY
Budget
Full-time
authority
Outlays
permanent
(In thousands of dollars)
employment
1975 actual
37,454
34,213
884
1976 current estimate
36,595
43,400
890
1976 OMB employment ceiling
XXXX
XXXX
890
Transition quarter current
estimate
9,148
7,982
890
1977 agency request
54,858
50,445
1,226
1977 OMB recommendation
37,000
34,000
890
Effect of OMB recommendation
on agency request
-17,858
-16,445
-336
1978 estimate
37,000
40,000
890
National Labor
Relations
Board
NATIONAL LABOR RELATIONS BOARD
Comment
NLRB requested increases to maintain pace
with a rising caseload and to reduce back-
logs causing significant delays in deciding
cases. OMB mark would permit processing of
most intake on a current basis and some
backlog reduction. NLRB did not appeal the
OMB Mark.
Budget
Outlays
Full-time
authority
permanent
(In thousands of dollars)
employment
1975 actual
62,458
60,889
2,349
1976 current estimate
67,849
70,059
2,588
1976 OMB employment
ceiling
XXX
XXX
2,600
Transition quarter
current estimate
16,902
15,550
XXX
FORD LIBRARY & GERALD
1977 agency request
78,579
77,588
2,978
1977 OMB recommendation
74,780
73,800
2,825
Effect of OMB recommen-
dation on agency request -3,799
-3,788
-153
1978 estimate
78,900
78,900
2,825
Federal Mediation
and Conciliation
Service
FEDERAL MEDIATION AND CONCILIATION SERVICE
Comment
FMCS requested staff and resource increases
to meet anticipated mediation workload in-
creases in the health care and construction
industries and in the public sector. OMB
mark recognizes discretionary nature of
FMCS workload and reflects a level program
in FY 1977. FMCS has appealed the OMB mark.
GERALO FORD LIBRARY
An issue paper is attached.
Full-time
Budget
Outlays
permanent
authority
employment
(In thousands of dollars)
1975 actual
16,245
15,498
490
1976 current estimate.
17,904
17,350
550
1976 OMB employment
ceiling
XXX
XXX
575
Transition quarter
current estimate
4,476
4,909
XXX
1977 agency request
23,545
22,135
693
1977 OMB recommendation
19,114
19,114
550
Effect of OMB recommen-
dation on agency request -4,431
-3,021
-143
1978 estimate
20,074
20,074
550
Discussion of Recommendations
Personnel Increases
FMCS has requested $2,455,000 for 143 additional positions to provide increased mediation,
management, and administrative support to meet expected workload increases in the health
care and construction industries and the public sector. The Service feels the additional
manpower and funds are essential if FMCS is to provide the services needed to maintain
labor-management peace, thereby contributing to a stable economy. Assuming acceptance of
the Senate version of the 1976 appropriation bill (an increase of 51 positions), FMCS will
have increased its staff by 106 (25%) since 1974. The Service has actively increased its
involvement in intrastate and non-Federal public sector disputes as well as in disputes
involving fewer than 100 workers. The latter activity now comprises about one-third of
the mediators' workload. Program statistics do not show a substantial increase in mediator
workload, and ample opportunity exists for reassigning the current on-board mediator staff
as priorities change. OMB believes FMCS can accomplish all necessary activities without
further staff increases.
Rental, Communications, and Utilities
FMCS expenses in these areas have increased more than 400 percent between 1974 and 1976.
The major expense is in spiraling rent cost occasioned by the upgrading of 31 field offices
and increased square footage to accommodate increased staff and provide more conference
space. OMB believes that current offices are larger than needed for the particular nature
of the work, which is primarily in the field, and that present conference space is more
than adequate. Accordingly, OMB recommends reducing the requested increase from $1,175,000
to $456,000. OMB continues to recommend that FMCS utilize interagency conference space to
absorb any increased rental costs in the field.
GERALD
agot
LIBERAY
Other Services
FMCS is requesting a $1,065,000 increase to expand its arbitration, technical services,
and research activities. There is no evidence that the current staff cannot handle
adequately the Service's responsibility to provide panels of arbitrators from an auto-
mated roster to the private and public sectors for arbitration of disputes arising
under collective bargaining agreements. The technical services and research activities
duplicate in many respects research and evaluation undertaken by the Department of Labor
as well as professional associations and institutions of higher education. OMB does not
see any need to increase activities in these areas.
Alternative Action Costs
In January 1975, the President restored 76 of the positions requested by FMCS for
FY 1976. The House reduced this number to 40, while the Senate provided 51. OMB
estimates that it would add approximately $390,000 (full year basis) to its recommendation
to restore in FY 1977 the full complement of staff recommended by the President for
FY 1976.
GERALD
B.
FORD
LIBRARY
National
Mediation
Board
NATIONAL MEDIATION BOARD
Comments
Agency requested ceiling increase in order
to hire 5 more mediators. OMB recommends
3 to handle increasing number of airline
disputes. Agency is not appealing, but
may be back with a supplemental request if
workload and complexity of disputes con-
FORD LIBRARY & CERALD
tinue to increase.
Budget
Outlays
Full-time
authority
permanent
(In thousands of dollars)
employment
1975 actual
3,224
3,107
71
1976 current estimate
3,387
3,382
74
1976 OMB employment
ceiling
XXX
XXX
74
Transition quarter
current estimate
845
840
XXX
1977 agency request
3,622
3,617
76
1977 OMB recommendation
3,471
3,465
74
Effect of OMB recommen-
dation on agency request -151
-151
-2
1978 estimate
3,471
3,465
74
ccupational Safety
nd Health Review
ommission
OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION
Comment
The Commission requested legal staff and
administrative law judges increases to
adjudicate increased numbers of Department
of Labor occupational safety and health
inspections. OMB recommends a personnel
level sufficient to handle DOL inspections
provided in the 1977 OMB mark for DOL.
The Commission did not appeal the OMB
recommendation
Budget
Full-time
authority
Outlays
permanent
(in thousands of dollars)
employment
1975 actual
5,512
5,292
164
1976 current estimate
5,638
5,731
175
1976 OMB employment ceiling
XXX
XXX
175
Transition quarter
current estimate
1,418
1,504
XXX
1977 agency request
9,633
9,537
264
1977 OMB recommendation
6,280
6,280
181
Effect of OMB recommenda-
tion on agency request
-3,353
-3,257
-83
1978 estimate
6,280
6,280
181
National Commission
on Libraries and
Information Science
National Commission on Libraries and Information Science
Comments
Agency requested a $3.5 million 1976
supplemental for the White House Confer-
ence on Libraries and Information
Sciences. For 1977, it requested in-
creases for five staff, travel, overhead
and use of consultants. The OMB mark
would not provide funds for the Conference.
The mark would provide additional in-house
research capability and would provide the
Commission sufficient resources- in order
to complete their national program plan.
The Commission has not been informed of
GERALO FORD LIBRARY
the OMB recommendation. A backup paper is
attached.
Budget
Full-time
authority
Outlays
permanent
(In thousands of dollars)
employment
1975 actual
409
449
3
1976 current estimate
468
419
5
1976 OMB employment ceiling
XXX
XXX
9
Transition quarter current
estimate
117
114
XX
1977 agency request
750
624
10
1977 OMB recommendation
502
450
8
Effect of OMB recommendation
on agency request
-248
-174
-2
1978 estimate
502
490
8
National Commission on Librarios and Information Science
1977 Budget
Issue #1: White House Conference on Libraries and
LIBRARY
Information Services
FORD
Statement of Issue
+
CERALD
Should the Administration approve a funding request for the White House Conference on Libraries
and Information Services?
Background
On December 31, 1974, the President signed S.J. Res. 40 (P.L. 93-568) which authorized up to $3.5 million
for and requested the President to call a White House Conference on Library and Information Services not
later than 1978. Appropriations for S.J. Res. 40 were not included in the Labor/HEW Supplemental Appropriations
Bill for 1975. Neither the FY 1975 nor FY 1976 Presidential budgets included funds for the Conformace. Che
National Comission on Librarios and Information Science, designated administrator for the Conference, submitted
a supplomental appropriation request for FY 1975. The Administration rejected the request indicating that it
would entertain the proposal in concert with FY 1977 hudget deliberations. The Scnate included $3.5 million in
the regular FY 1976 Appropriation Act, but the full amount WIS deloted in conference. The Conference Report
stated that if a budget request for the White House Conference were to be submitted, it would be considered in
connection with a supplemental appropriations bill. A 1976 supplemental appropriations request was also denied
in favor of consideration during the regular budget process for FY 1977.
In the interim, 13 members of the 28 member Advisory Committee of the Conference have been appointed;
5 each by the Speaker of the House and President pro tempore of the Senate, and 3 by the Chairman of the NOLIS.
The President may appoint not more than 15 persons.
Alternatives
#1. Approve funding for the Conference as a January 1976 supplemental.
#2. Disapprove funding for the Conference.
#3. Approve funding for the Conference as part of the FY 1977 budget:
LIBRARY
FORD
2
Analysis:
GERALD
July 1-
1975
1976
Sept. 30, 1976
1977
1978
1979
1980
1981
Budget Authority/Outlays
BA
0
BA
0
BA
0
BA
0
BA
0
BA
O
BA
0
EA
($ Millions)
White House Conference:
Alt. #1 (Agency req.)
3.5
1.0
---
1.3
--
--
---
--
--
1.2
--
--
-
--
Alt. #2 (OMB rec.)
--
--
--
---
--
-
Alt. #3
--
--
--
3.5
2.3
-
1.2
--
-
-
--
Arguments for Alternatives #1 and #3.
---- The Conference must be called not later than 1978. The process for holding a conference-of this size
:
could take up to 35 months (as claimed by the NCLIS) or perhaps be completed in 27 months.
--
The White Conference is an essentail vehicle to rally support for the NCLIS program.
Arguments for Alternative #2:
-- Forums already exist for the identification and discussion of library and information service
ideas including the NCLIS planning process.
-- Holding the Conference would acknowledge a Federal responsibility for library programs and provide as
national forum for recommending a major expansion in Federal support.
--
A White House Conference would be in conflict with the Administration's current legislative and
budgetary posture which seeks to phase down Federal support of library programs.
--
The Library Partnership Act first proposed in the 1975 Budget and continued as a $20 million 1976
Budget proposal has been submitted to the Congress recomending focused Federal support of libraries
in the areas of resource sharing and information networking demonstrations.
-- S.J. Res. 40 was an authorization, not a mandate to hold a Conference.
3
--
In considering the authorization, OMB recommended signing contingent upon resistance to any
attempt to fund the White House Conference. HEW also indicated in its enrolled bill letter that
it did not plan to request funds in light of present fiscal constraints.
Irjency Request: Alternative #1. The Commission believes that a White House Conference is essential
:0 retivate the library and information service communities to adopt the NCLIS national program of information
networking.
GB Recommndation. Alternative #2. Disapprove funding for the Conforence. The costs of holding the
Conference in terms of negating the Administration's legislative proposal and budgetary strategy for
library programs, outweigh any possible benefits from promoting a dialogue and encouraging State leadership.
Committee for
the Blind
Committee for Purchase from the Blind
and Other Severely Handicapped
Comments
Agency requested three more employees
to meet increased workload in adding
items to the list of products and
services that are suitable for Govern-
ment procurement, and in changing
prices for such products and services.
OMB recommendation for two more em-
ployees would provide for increased
activity in these two areas. Agency
does not appeal the OMB recommendation.
Budget
Full-time
authority
Outlays
permanent
(In thousands of dollars)
employment
1975 actual
252
237
8
1976 current estimate
255
251
8
1976 OMB employment ceiling
XXX
XXX
8
Transition quarter current
estimate
64
68
XX
1977 agency request
341
327
11
1977 OMB recommendation
307
293
10
Effect of OMB recommendation
on agency request
-34
-34
-1
1978 estimate
307
293
10
FORD
"y
GERALD
LEBRARY
Railroad
Retirement
Board
RAILROAD RETIREMENT BOARD
COMMENTS
The railroad retirement benefit is composed of two tiers.
The first tier is equivalent to social security, while
the second is equivalent to a staff pension. If there
is a cap on social security cost-of-living increases, it
will also apply to the first tier of the railroad retire-
ment benefit, and the agency outlay figures will be
adjusted accordingly. RRB requested $68. 5M for regional
rail protective payments to workers adversely affected by
the Northeast rail reorganization. OMB mark holds these
payments to $40M, essentially the 1976 level, as there is
yet no basis upon which to estimate these payments, since
the Final Systems Plan has not yet gone into effect.
Employment remains at the 1976 level in 1977 although
recent law substantially increases the workload and its
complexity.
Budget
Full-time
authority
Outlays
permanent
(In thousands of dollars)
employment
1975 actual
2,782
3,081
1,900
1976 current estimate
3,431
3,680
1,900
1976 OMB employment ceiling
XXX
XXX
1,900
Transition quarter current
estimate
327
897
XXX
1977 agency request
3,934
3,926
1,900
1977 OMB recommendation
3,905
3,897
1,900
Effect of OMB recommendation
on agency request
-29
-29
0
1978 estimate
4,068
4,019
1,900
FORD
GERALD
LIBRARY
ACTION
ACTION
Comments
Agency requested increase of $57M
for overall expansion of nearly
all volunteer programs with the
largest increases, $33M, requested
for the Older Americans Volunteer
Programs. OMB mark provides re-
ductions of $38M from FY 1976
level for decreased Federal
support for full-time volunteer
programs (VISTA, Peace Corps,
University Year for ACTION)
Appeal from agency is attached.
Background paper discussing OMB
position and agency appeal is
attached.
Budget
Full-time
authority
Outlays
permanent
(In millions of dollars) employment
1975 actual
178
178
1,639
1976 current estimate
:
182
186
1,784
Transition quarter
current estimate
...
47
60
XX
1977 agency request
....
239
194
1,897
1977 OMB recommendation
144
151
1,557
Effect of OMB recommenda-
tion on agency request
-95
-43
-340
1978 estimate
144
151
1,557
FORD LIBRARY y GERALD
ACTION
Background
ACTION, the Federal volunteer agency, was created to bring together a number of
volunteer programs including VISTA, Peace Corps, Foster Grandparents, and Retired
Senior Volunteer program. In 1973, the Domestic Services Volunteer Act was
enacted, thereby, giving the agency expanded authority to conduct a wide range of
demonstration volunteer activities.
OMB and the agency agree that the fundamental issue underlying review of ACTION's
FY 1977 budget request centers on a determination of the appropriate role for the
Federal Government in voluntarism. The agency is firmly committed to a strong
Federal role which would include complete support for full-time, stipended "volun-
teers," part-time non-stipended programs, and support for private and public
non-profit volunteer efforts as well. The agency has submitted draft legislation
for FY's 1977, 1978, and 1979 which would enable them to carry out an even greater
range of volunteer activities. No decision has yet been made, however, on the
appropriateness of this expanded Federal role.
OMB Position
The recommended OMB mark of $144M would force the agency to reduce its present
funding for most of its programs below the FY 1976 level. The OMB mark is prem-
mised on the belief that the Federal Government should not take a strong role in
the field of voluntarism where private resources are sufficient without Federal
contribution. Recent census data shows that ACTION volunteers account for less
than 1% of all volunteers in the United States. The OMB level would have the effect
of causing the agency to emphasize activities that would build upon State, local,
and private institutional support and de-emphasize high-cost, full-time, federally
supported volunteer programs such as Peace Corps and VISTA which are estimated to
cost approximately $15,000 and $8,000 respectively, per volunteer year in FY 1977.
GERALD
R.
0891
LIBRARY
2
The OMB mark includes $70.8M for the Peace Corps, a reduction of $10M from the
FY 1976 level. This level was presented as a floor to the agency so that the
agency would not increase funding for domestic programs by further reductions in
the Peace Corps program thereby, jeopardizing foreign relations. The mark,
however, will force the agency to take a combined approach to reducing Peace Corps
costs which will include selective phase-out of marginal countries and no new
country entries, decreased use of high cost recruitment programs, reductions in
support costs, reductions in trainee input, and some reduction in volunteer levels
below the FY 1976 level. The Peace Corps program is already operating below the
FY 1976 level due to FY 1975 reductions by the Appropriations Committees which are at
the present continuing resolution level.
Depending on the agency's distribution of the OMB recommended reductions, the Older
Americans Volunteer Programs may or may not remain at their FY 1976 level although
there is sufficient flexibility in the OMB mark to keep these programs constant if
reductions are taken in other domestic programs. The OMB recommendation also
includes a reduction of 5% from June 30, 1975, actual employment to reflect the
recommended program reductions.
Agency Position and Appeal
The agency's original FY 1977 request was for $239M, an increase of $57M over the
FY 1976 budget level. This increase was requested to provide expansion for nearly
all of ACTION's programs with the greatest increase, $33M, for the Older Americans
Volunteer Programs (Retired Senior Volunteer Program, Foster Grandparents, Senior
Companions).
In a written appeal (copy attached) the agency has asked that the FY 1977 funding
level be restored to $190M, an increase of $8M over the FY 1976 level, and that the
floor on the Peace Corps budget be removed to allow the agency flexibility to make
their own allocations within the overall level. The agency did not specify how the
$190M would be allocated among their programs. The appeal was based on the agency's
GERALD
R.
belief that small amounts of Federal money can produce substantial, inexpensive
FORD
BRAKY
3
talent to deal with social problems. In the appeal, the agency also reaffirmed
their commitment to creating a focal point for voluntarism within the Federal
Government and their concern that a hard look be taken at the role of the agency.
The agency did not include a specific appeal from employment reductions but can be
expected to do so to match any restorations in program funds.
Recommendation
In view of the agency appeal, the OMB position remains unchanged. The OMB
recommended mark of $144M will force the agency to fund the most cost-efficient
of their programs while reducing support for the higher cost full-time volunteer
programs. OMB also recommends that the funding floor for Peace Corps be retained.
Informally, the agency has indicated their intent to further reduce Peace Corps
funding below the $10M reduction recommended by OMB. A further reduction may
create problems for the State Department which has indicated their concern that
agency management not be allowed to precipitously withdraw from Peace Corps countries.
The OMB recommended level of $70.8M for the Peace Corps program will force the agency
to reduce country programs on the basis of considerations of cost-efficiency and
programmatic and foreign policy priorities without creating foreign relations problems
for the Department of State.
BERALD
FORD
November 20, 1975
Honorable James T. Lynn
Director
Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Dear Mr. Lynn:
I have been informed of the 40% reduction proposed by your staff in
ACTION's proposed Fiscal Year 1977 budget and wish to be heard with
respect to that proposal before any final determination is made by
the President.
In the face of all the indications that voluntarism is a growing force
in the country-in the world for that matter--and that very small
amounts of Federal money can bring forth a great amount of relatively
inexpensive talent to deal with many of our social ills, I am at a loss
to understand the lack of perception on the part of OMB. For several
months now we have attempted to open a dialogue with OMB on the role of
the Federal government in the marshaling of volunteer resources. We
have been unsuccessful. The Congress seems to have a better grasp of the
potential in voluntarism and I fear it is the Congress which will take
the initiative.
Be that as it may, let me deal with specific concerns:
1. The total reduction of 40% is made worse because OMB has chosen
to put a floor under the Peace Corps side of our business--thus the Peace
Corps is cut 20% while the Domestic programs receive a crippling 50%
reduction. I do not believe that the problems of this country are that
much lower in priority than those of the rest of the world.
2. The recommended funding levels will inevitably lead to a decision
to abandon VISTA, a program which has had strong Congressional support
and after many years of doubtful value, has begun to make some meaningful
contribution to the solution of social problems all over the country.
3. The Older American Programs, particularly the Foster Grandparent
Program, which has been so successful in dealing with handicapped children,
will be stopped in their tracks at a time when the growth potential is so
great. These programs are working, as evidenced by their growth and
accomplishments--and they are dirt cheap. The modest growth planned for
Fiscal Year 1977 would have permitted the states to reach a few more
children, but there are so many more out there in need of the love and
care that the Foster Grandparent Program brings.
As was pointed out in the course of our discussions with OMB staff, the
funds required to finance growth in these programs can be obtained from
related savings in the Supplemental Security Income program. The President
knows the Foster Grandparent Program, the dollars involved are few, the
rewards are great, but the emotionalism is extremely high. Unquestionably,
Congress will expand this program next spring--with or without Administration
support.
4. The OMB proposal reduces ACTION's funding level to less than the
level which existed when the agency formed in 1971 (since then volunteers
supported by ACTION programs have increased from 20,000 to 180,000) and
makes it almost impossible to do much in the way of experimental programming.
This calls into question whether or not there should even be such an agency
of the Federal government. I believe that a focal point for volunteer
efforts is needed, but I think the President and his advisors should take
a hard look and decide. If we intend to provide nothing more than a half-
hearted maintenance effort, the remaining discrete programs can be administered
by other parts of the Federal establishment, the agency abolished and, perhaps,
some overhead saved.
I would point out that in two years this little agency has done more to
create a grass roots approach to problem solving than many of the great
Cabinet departments. You will recall that on June 10, 1975 before the
President, Vice President and the entire Cabinet, I stated ACTION's
greatest problem is that it is under-utilized by the Executive branch of
the government. I further stated that ACTION has unlimited potential, and
that such potential should be recognized, but that without such recognition
the agency should be abolished.
Assuming then that the President decides to keep ACTION alive, I suggest
the following:
1. Restore the agency fund level to the anticipated Fiscal Year 1976
Congressional level of $190 million (a 21% reduction from our Fiscal Year
1977 request).
2. Permit ACTION to make necessary allocations of funds and priorities
between the Peace Corps and Domestic programs, after consulting the State
Department.
- 2 -
As you know, ACTION and its managers will support the President in any
decision, but before a decision is made, we ask that potential for voluntarism,
the Agency and its track record, all be recognized.
Sincerely,
Michael Michael l P. Balyano Ji.
Equal Employment
Opportunity
Commission
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
Comments
Agency requested a 22% increase over
1976 for general expansion of on-
going programs. OMB mark assumes
disallowance of 200 position
increase in 1976 which the Congress
added within the requested 1976
totals. Filling these positions
in 1976 would require a supplemental
appropriation in the Transition
Quarter. In 1977, OMB mark will
cause the backlog to grow approxi-
mately 13%. The real issue,
however, is whether an increase of
$11 million (17% increase), to
reduce the backlog by only 10%
(12,800 charges) is worth the in-
vestment.
A background paper is attached.
Budget
Full-time
authority
Outlays
permanent
(In millions of dollars)
employment
1975 actual
55.08
56.13
2,127
1976 current estimate
63.04
62.99
2,384
Transition Quarter
current estimate
18.29
17.27
2,384
1977 agency request
76.84
74.78
3,136
1977 OMB recommendation
65.76
63.79
2,398
Effect of OMB recommenda-
tion on agency request
-11.08
-10.99
-738
1978 estimate
65.88
63.90
2,398
Assumes disallowance of 200 position congressional
"I
increase.
3
year. In addition, the Commission contemplates having no training program avail-
able until early 1977. These positions would all be allocated to the field offices.
Although Chairman Perry is publicly committed to mobilizing these new resources and
therefore is highly disturbed about the prospect of having to forego them, it is
highly questionable whether the Commission can effectively absorb such a large amount
of new personnel at this point in time.
1977
Chairman Perry has also requested full restoration for 1977--an increase of $11
million and an additional 738 positions. There is little programmatic merit to
this increase. The increase in output in 1976, after factoring in a substantial
lapse reduction, does not seem to keep pace with the growth in resources. To con-
tinue substantial infusions of resources to keep up with a growing backlog does not
make sense. There is no question that larger resources produce more absolute results,
but the law of diminishing returns is clearly in evidence in the Commission's own
projections--a 300% increase in the backlog by 1981 given constant resources of $77
million. Development of a new strategy to handle the backlog, as well as management
consolidation and improvement, should be the real focus of the Commission, not more
resources.
Recommendation
OMB feels that restoration for both 1976 and 1977 is programmatically unwarranted.
Restoration of the 200 positions in 1976, however, would probably satisfy Chairman
Perry and make him more agreeable to holding the line in 1977. Since Congress is
unlikely to approve a request to resubstitute State and local contract operations
for these 200 positions and since the attempt to turn back the 200 positions might
be misinterpreted as a lack of Administration commitment for civil rights enforcement,
approving the 1976 positions may represent the best compromise position. Should the
200 positions be restored, we would still recommend holding the line in 1977.
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
Background
The Commission is the largest and best known Federal civil rights agency. It
receives considerable public attention and is generally regarded as a bell weather
in the civil rights enforcement area. A significant reduction in this agency
could send wrong signals to the civil rights community as to the commitment of this
Administration to enforcement of civil rights activities. The real issue in a tight
budgetary situation is whether the requested 17% increase in resources that the
Commission seeks can be justified, given the small benefit from the restoration of
200 positions in 1976 and of $11 million in 1977. Regardless of the amount requested
by EEOC, a substantial backlog would still exist.
Discussion
The Commission has grown rapidly in size and scope since 1964. Congress has enacted
a 1976 appropriation which authorizes 2,584 full-time employees and $63.4 million.
This provided 200 more positions than requested in the 1976 budget but reduced state
and local agencies by $2 million to cover the increase. Despite substantial manage-
ment assistance, OMB and GAO note continuing management and program problems. In
particular, productivity gains remain elusive. For example, the Commission's
current plan shows that restoration of the 200 positions in 1976 which would require
a supplemental appropriation for the Transition Quarter buys only an additional
2,500 charge resolutions for the 15-month period, thereby reducing the backlog from
129,600 charges to 127,100 charges.
Chairman Perry in a written appeal has expressed his strong concern about the OMB
recommendation. His particular concern is the proposal to disallow the 200 addi-
tional positions that Congress added. In fact, if he were granted restoration of
these 200 positions in 1976, he probably would withdraw his appeal of the 1977 mark
The general thrust of his appeal is that decisive action must be taken now to get at
the backlog. By the Commission's own justification though, even a full restoration
would not accomplish that. The other points he makes in his letter are:
2
--projected charge receipts will continue to increase but Commission
productivity increases will plateau in 1977 leading to continuing
growth in the backlog if additional resources are not forthcoming
in future years. " with level funding [$76.08 million] the inven-
tory will reach three hundred thousand charges by 1981--more than
a three hundred percent increase over the current inventory." "
-courts have held that the Commission should process charges within
a reasonable period of time. The Commission currently is not meeting
this prescription and a growing backlog would exacerbate the situation.
Ultimately, if processing delays are not shortened, courts might force
the Commission to process all charges within 180 days, a very costly
possibility.
new strategies depend in some part on increased resources since the
portion the Commission devotes to the backlog must remain at least
constant. Also morale would suffer should resources not be substan-
tially increased.
the Commission now questions the capacity of State and local fair
employment practices agencies to absorb the $8 million originally
requested for contract operation. It feels these contracts should be
left at the $6 million level Congress authorized with the remaining
$2 million devoted, as Congress suggested, to 200 additional positions
to work on the backlog.
1976
Restoration of the 200 positions in 1976, as the Commission requests, would not
cost anything in 1976 but would require a supplemental appropriation of $1 million
in the Transition Quarter. An additional $1.2 million would be required in 1977
to annualize these positions. Since the Commission has only 2,077 positions
currently filled, restoration of the 200 positions means that the Commission has to
hire 507 full-time permanent employees in the remaining seven months of the fiscal
Appalachian
Regional
Commission
APPALACHIAN REGIONAL COMMISSION
Comments
Agency requested major increase in
appropriations for construction of the
Appalachian Developmental Highway
System which consists of 2,700 corridor
highway miles in 11 of the 13 states
comprising the region. OMB mark
provides for half of the requested
increase, offset by reductions in the
non-highway area development programs
and reductions in research, technical
assistance and general administrative
funding. Overall, appropriations for
FY 1977 are $3M below the FY 1976 level.
The agency has accepted the OMB
recommendation and does not intend to
appeal.
Budget
authority
Outlays
(In millions of dollars) FTP
1975 actual
320
313
10
1976 current estimate
320
340
10
Transition quarter current
estimate
13
96
XX
1977 agency request
318
340
10
1977 OMB recommendation
292
320
10
Effect of OMB recommendation
on agency request
-26
-20
0
1978 estimate
292
340
10
GERALD FORD LIBRARY
Includes highway contract authority not made available
due to congressional obligation ceilings
Office of Tele-
communications
Policy
OFFICE OF TELECOMMUNICATIONS POLICY
Comments
Agency requested increases to expand
effective government management of radio
spectrum and initiate several additional
policy research activities. OMB mark
allows 15% increase in spectrum manage-
ment program; but, it requires stricter
setting of priorities for policy studies
by reducing FY 1976 amount by 8.% and
restraining outlays. OMB and OTP agree
support should stop for Domestic Council
Committee on the Right of Privacy. A
background paper is attached.
Budget
Full-time
authority
Outlays
permanent
(In thousands of dollars)
employment
1975 actual
8,450
7,753
61
1976 actual
8,500
9,152
48
1976 OMB employment
ceiling
XXX
XXX
48
Transition quarter
actual
2,100
2,478
XXX
1977 agency request.
9,984
10,106
67
1977 OMB recommenda-
tion
8,200
8,100
48
Effect of OMB
FORD
&
recommendation on
agency request
-1,784
-2,006
-19
GERALD
1978 estimate
8,200
8,100
(48)
OFFICE OF TELECOMMUNICATIONS POLICY
The Office of Telecommunications Policy (OTP) in the Executive Office of the
President, manages the government's use of the radio spectrum (by delegation of
Presidential power) and serves as policy advisor on telecommunications matters.
To keep the Executive Office staff small, OTP pays for reimbursable work in the
Commerce Department's Office of Telecommunications (OT), which conducts approxi-
mately 95% of the spectrum management work and 30% of the policy development work.
OTP Activities
After five years in existence, OTP's advisory and operating role remains undirected.
OTP recommends a comprehensive review of its role and the ill-defined Executive
Branch organization for dealing with telecommunications issues. In the interim
OTP requests additional funds in FY 1977 to undertake several new policy research
initiatives. OMB and OTP believe that an organizational review of Telecommunica-
tions in the Executive Branch is appropriate and that it can go forward quickly on
the basis of existing knowledge. (In FY 1976, after consideration of transfer to
the Commerce Department, it was decided to retain OTP in the Executive Office.)
Therefore, OMB recommends restraining the level of OTP activity pending conclusion
of this review. OMB believes that careful management of these resources will
guarantee adequate activity in FY 1977.
Privacy Committee
Since FY 1975, OTP has supported the staff of the Domestic Council Committee on the
Right of Privacy, which now numbers 12 (not included in the OTP ceiling). In
FY 1976, OTP received $328,000 for this Committee, chaired by the Vice President,
and created in support of the 1974 short-term privacy initiatives, i.e. proposing
Executive orders, studying government privacy issues, legislation, etc. OMB
believes--and OTP concurs--that the need for an independent Committee is over and
that all future work planned can be handled by an ad hoc group of various agencies'
personnel meeting under the aegis of the Domestic Council. In addition, the man-
date to the Privacy Protection Study Commission--at an FY 1977 recommended level of
GERALD
2
$750K - - is to serve both the Executive and Legislative Branches in identifying
issues for further study, which seems to be the sole activity of the Committee
staff at present. The OMB mark eliminates support for this staff.
BERALD
R.
FORD
Commission of
Fine Arts
COMMISSION OF FINE ARTS
Comments
Agency requested an increase of
$10,000 for 1977 to cover a sub-
stantial jump in the costs of
support services (photo-processing,
stenotyping, and layout work) for
its activities. Economies in these
areas are unfortunately almost
impossible to capture. In addition,
there are some deferred development
costs for two publications to fund
and a need to replenish inventory
of some popular books that the
agency sells. OMB recommends an
increase of $10,000 but from the
current estimate which is a lower
base than the agency used. The
decrease of $2,000 will not affect
operations significantly and has been
accepted by the agency.
Budget
authority
Outlays
(In thousands of dollars) FTP
1975 actual
176
175
6
1976 current estimate
200
190
7
Transition quarter current
estimate
45
43
XX
1977 agency request
210
213
7
1977 OMB recommendation
208
211
7
Effect of OMB recommendation
on agency request
-2
-2
0
1978 estimate
204
194
7
GERALD in FORD
American Revolution
Bicentennial
Administration
AMERICAN REVOLUTION BICENTENNIAL ADMINISTRATION (ARBA)
Comments
Agency requested funds to carry grant
and field operations through August
1976. ARBA plans phase out of staff
and program activities, after that
time and agency termination by
June 30, 1977. OMB mark reflects
scrutiny of actual personnel costs
against a phase-out plan and assumes
some program funding support will
remain available from continuing
revenue flow from sales of commemora-
tive items. (Figures below do not
include estimated annual $3.5M in
net revenues used for grants and
program purposes.) Archival and
exhibit materials will be transferred
to other agencies as appropriate.
Agency will not appeal.
Budget
authority
Outlays
(In thousands of dollars)
FTP
1975 actual
9,686
11,899
140
1976 current estimate
10,000
21,717*
173
Transition quarter current
estimate
1,876
3,676*
XXX
1977 agency request
2,332
10,000
XXX
1977 OMB recommendation
1,965
2,165
XXX
Effect of OMB recommendation
on agency request
-367
-7,835*
XXX
1978 estimate (agency
terminated)
--
--
*OMB working with ARBA to outlay states grants funds (in
GERALD FORD LIBRARY
FY 1976) faster so they are useful during Bicentennial
year.
Advisory Commission
on Intergovernmental
Relations
ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS
Comments
ACIR requested increases to maintain
the current level of activity; no
additional projects or staff were
proposed. The OMB recommendation
would allow for normal vacancies in
ACIR employment. ACIR would also be
told to secure funding from other
levels of government represented on
the Commission, or face cutbacks in
1978.
Budget
Full-time
authority
Outlays
permanent
(In thousands of dollars)
employment
1975 actual
1,186
660
34
1976 current estimate
1,204
1,818
37
1976 OMB employment ceiling
XXXX
XXXX
37
Transition quarter current
estimate
300
300
XX
1977 ACIR request
1,392
1,392
37
1977 OMB recommendation
1,367
1,367
37
Effect of OMB recommendation
on ACIR request
-25
-25
-
1978 estimate
1,367
1,367
37
FORD LIBRARY & CERALD
Commission on
Civil Rights
COMMISSION ON CIVIL RIGHTS
Comments
Agency requested an increase of 30%
in budget authority to $10 million
and 330 full-time permanent positions.
OMB mark provides no new positions
although it does permit a small
programmatic increase. Agency appealed
by letter of November 10, 1975, re-
questing restoration of $.7 million.
An analysis of this appeal is attached.
Budget
authority
Outlays
(In thousands of dollars)
FTP
1975 actual
7,000
6,914
239
1976 current estimate
7,700
7,737
280
Transition quarter current
estimate
1,925
2,194
280
1977 agency request
10,005
10,238
330
1977 OMB recommendation
8,413
8,455
280
Effect of OMB recommendation
on agency request
-1,592
-1,783
- - 50
1978 estimate
8,413
8,305
280
FORD
&
GERALD
COMMISSION ON CIVIL RIGHTS
The Commission is requesting a restoration of $700,000 and 20 permanent positions for
1977.
An additional $295,000 and 8 positions would provide for five more hearing days and
permit greater use of the subpoena power. The direct costs of funding the extra
hearing days, however, total less than $150,000 and are fully absorbable within
current ceilings. There is flexibility within the Commission's current workplan and,
therefore, all additional hearing days could reflect reassigned staff rather than
new resources.
The remaining $405,000 and 12 positions "are needed to carry on the traditional
activities" of the Commission. OMB disagrees. The Commission shows no signs of
conducting its business under constrained circumstances. Its General Counsel's
position has been vacant for two years. Four senior level employees have recently
been detailed for lengthy assignments elsewhere. The Commissioners have begun to
question some of the staff travel and there certainly have been space improvements
that were not required. In short, there is no evidence to support the Commission's
appeal nor that the mark would really prevent them from carrying out business in
an orderly manner.
OMB recommends that the appeal be rejected.
BERALD
R.
FORD
National Capital
Planning
Commission
NATIONAL CAPITAL PLANNING COMMISSION (NCPC)
Comments
Agency requested staff and funding
increases for general purpose
activity. OMB mark reflects the
fact that, under Home Rule, the
District Government has assumed all
responsibility for local planning
matters. Mark does not recommend
decrease in NCPC staff because of
workload increases ahead due to
D.C. highway and road changes and
urban redevelopment projects re-
quiring timely NCPC action. Total
increase represents GSA rent
increase on existing space.
Agency does not intend to appeal.
Budget
authority
Outlays
(In thousands of dollars)
FTP
1975 actual
1,777
1,711
58
1976 current estimate
1,876
1,876
64
Transition quarter current
estimate
419
419
XX
1977 agency request
1,998
1,998
67
1977 OMB recommendation
1,909
1,909
64
Effect of OMB recommendation
on agency request
-89
-89
-3
1978 estimate
1,909
1,909
64
GERALD
Federal Home
Loan Bank Board
FEDERAL HOME LOAN BANK BOARD
Comments
Disbursements under the Forward Commitment
Program will be completed in 1976 putting
the Board in a more normal receipt pattern
in 1977. The estimates below assume repay-
ment of the Treasury loan over a 20-year
period rather than from a single repayment.
The Board's request for 1977 includes a
4.7-percent increase for expenses, but no
staff increase. OMB recommends approval of
that request based on the expanded regula-
tory duties of the Board. The Board does
not require any appropriated funds, meeting
all expenses from fees and insurance
premiums collected from the members of the
Federal Home Loan Bank System.
Budget
Full-time
Authority
Outlays
Permanent
(In thousands of dollars)
Employment
1975 actual
2,000,000
924,200
1,361
1976 current estimate
-2,000,000
-40,778
1,385
1976 OMB employment ceiling.
XXXX
XXXX
1,385
Transition quarter current
estimate
---
-98,547
XXXX
1977 agency request
---
-378,377
1,385
1977 OMB recommendation
---
-378,377
1,385
Effect of OMB recommendation
on agency request
---
---
----
1978 estimate
---
-428,058
1,385
07WH3D
Corporation for
Public Broad-
casting
CORPORATION FOR PUBLIC BROADCASTING (CPB)
Comments
Agency requested increase for
general expansion of ongoing
programs and to cover slight man-
datory cost increases for
television and radio networking.
OMB mark provides no increase in
belief that it would have little
short-term effect on level and
quality of existing public broad-
casting activities. OMB mark at
variance with Administration back-
door spending proposal for CPB
long-range funding. A background
paper is attached.
Budget
authority
Outlays
(In thousands of dollars)
1975 actual
62,000
62,000
1976 current estimate
70,000
70,000
Transition quarter current
estimate
17,500
17,500
1977 agency request
103,000
103,000
1977 OMB recommendation
70,000
70,000
Effect of OMB recommendation
on agency request
-33,000
-33,000
1978 estimate
70,000
70,000
CERALD
CORPORATION FOR PUBLIC BROADCASTING (CPB)
CPB is an independent non-profit corporation chartered by Congress, which serves as
the main conduit for Federal funds to the public broadcasting system. At $70M, it
provides approximately 23% of annual system revenues.
The Administration sponsored a five-year funding bill, authorizing and appropriating
a maximum of $70-100M in FY 1976-80, based on a match of one Federal dollar to each
$2.50 in non-Federal system income. At this ratio, CPB estimates that the Federal
contribution should be $88-160M, if the match provision is to be fully operative
and provide a real incentive for non-Federal contributors. In order to get Adminis-
tration backing for backdoor five-year funding which is politically "insulated" from
the annual appropriations process, CPB agreed to support a legislated pass-through to
public broadcasting stations of approximately 50% of each year's appropriation, but
declined to accept Administration ceilings.
House and Senate Committees have rejected five-year appropriations, but have reported
out five-year authorizations at the higher CPB ceilings and with the match provision.
The latter means that once a level of funding is appropriated, CPB must certify the
system's amount of non-Federal income in order to claim the appropriate amount. Floor
action is expected by mid-November.
Since its inception, CPB resources have increased in the following manner: FY 1969 -
$5M; FY 1970 - $15M; FY 1971 - $23M; FY 1972 - $35M; FY 1973 - $35M; FY 1974 - $50M;
FY 1975 - $62M; recommended FY 1976 - $70M. CPB traditionally submits a budget
request to OMB and requests Congress to approve that level. CPB negotiates its
annual budget allocations with members of the public broadcasting industry and feels
few Federal programmatic restraints beyond the appropriation level itself--and none
from the Executive Branch.
OMB believes that this rapid growth should stop in FY 1977 and that the Budget should
reflect this position. OMB believes there is great flexibility within the mark
despite some cost increases in networking and program production costs which CPB
GERALD
1080
2
must share with local stations and production centers. This flexibility is en-
hanced by the fact that CPB has operated on continuing resolution levels through
the first half of most fiscal years.
The OMB mark will constrain expansion of networked television and radio hours;
but, it should not significantly affect the numbers or quality of new productions
because: 1) private foundation support will continue at a healthy level in
FY 1976-77; 2) CPB has already instituted the policy of stopping its financial
support of programs after two years; and 3) public broadcasting stations will
receive the same level of CPB grant support as in FY 1976 to be used at local dis-
cretion. The mark is inconsistent with the Administration's long-range funding
bill to the extent that the bill had assumed automatic appropriation of increasing
amounts over the next five years. In addition, retention of the match provision
means that if Congress appropriates funds in FY 1976 for this year and two years in
advance (FY 1977-78) at amounts higher than the Administration's proposal, a
recission will be required to reach the OMB recommendation. Insofar as this was
recommended solely with the purpose of "insulating" public broadcasting from
political actions, and because this concept has been soundly rejected by Congress,
the OMB mark reflects a constraint on CPB in the same manner as other recommended
reductions in FY 1977. Unfortunately, time will not permit an amendment to the
pending bill.
GERALD
R.
FORD
LIBRARY
Privacy Protec-
tion Study
Commission
PRIVACY PROTECTION STUDY COMMISSION
Comments
Agency requested their full
authorization of $750,000 for
FY 1977 in order to carry out
the following mandates of the
Privacy Act of 1974: (1) to
study non-Federal data banks and
information systems to ascertain
what procedures are in place for
ensuring personal privacy; and,
(2) to recommend to the President
and to Congress the extent to which
Federal privacy standards should be
extended to non-Federal systems.
The OMB mark provides for the full
amount of the Commission's request.
CERALD R.FCKO LISBARY
Budget
authority
Outlays
(In thousands of dollars)
FTP
1975 actual
0
0
1976 current estimate
548
451
(14)
Transition quarter current
estimate
200
237
1977 agency request
750
765
(25)
1977 OMB recommendation
750
765
(25)
Effect of OMB recommendation
on agency request
0
0
1978 estimate
0
45
(25)
Commission expires by statute on July 10, 1977.
2/ These positions do not fit the strict A-11 definitions
(e.g., none of the "permanent" type positions will be
filled for a full 12 months in FY 1976) but represent the
Commission's best estimates of total staff needs in basically
permanent type positions and in expert/consultant positions
by June 30, and September 30, 1976.
Pennsylvania Ave-
nue Development
Corporation
PENNSYLVANIA AVENUE DEVELOPMENT CORPORATION (PADC)
Comments
Agency requested appropriation in FY 1977 of
all financial authority to begin implementa-
tion of Pennsylvania Avenue redevelopment
plan. Legislation authorizing Treasury
borrowing authority and use of appropriated
funds to carry out the 12-14 year plan is in
the final OMB clearance process, per your
earlier decision to proceed. Although the
plan represents joint Federal-private con-
struction starts, the OMB mark recommends
proceeding because the plan--which is the
third in 14 years of planning activity--has
been approved by the Congress and the
Administration. But, the mark allows start-
up and implementation only on a step-by-step
basis, with review of progress and Federal
costs annually. OMB and PADC feel that the
only sensible alternative at this date if we
don't proceed is to abolish PADC and repeal
the enabling act.
Budget
Full-time
authority
Outlays
permanent
(In thousands of dollars) employment
1975 actual
824
824
17
1976 current estimate
1,256
1,231
27
Transition quarter
current estimate
314
484
XXX
1977 agency request
331,479
24,889
33
1977 OMB recommendation
37,875
24,835
33
Effect of OMB recommenda-
tion on agency request
-293,604
-54
:
1978 estimate
46,500
24,500
33
GERALD