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Transition Reports (1977) - Commerce Department: Budget FY 1978 (2)
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7773974
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Transition Reports (1977) - Commerce Department: Budget FY 1978 (2)
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John O. Marsh Files (Ford Administration)
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The original documents are located in Box 33, folder "Transition Reports (1977) - Commerce Department: Budget FY 1978 (2)" of the John Marsh 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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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. 4 DEPARTMENT OF COMMERCE 1977 SUPPLEMENTALS REQUESTED (In thousands of dollars) BUDGET AUTHORITY OUTLAYS Bureau of the Census: Development of social indicators $659 $627 Bureau of Economic Analysis: Develop qualitative measures in Gross National Product 274 267 National Oceanic and Atmospheric Administration: Operations research and facilities: Weather Modification 850 835 Coastal Zone Management: Additional Grants 31,150 14,835 Coastal Energy Impact Fund 146,000 71,450 National Fire Prevention and Control Administration: Facilities 5,000 3,000 Total, Department of Commerce 183,933 91,014 FORD DEPARTMENT OF COMMERCE 1978 Budget Mandatory Program Increases (Dollars in thousands) 1978 Increases Perm. Pos. Amount General Administration: Privacy Act Recordkeeping responsibilities 7 $134 Bureau of the Census: Develop statistical requirements for the Trade Act of 1974 13 293 1977 Economic censuses 9,483 1978 Census of Agriculture 31 5,116 1980 Decennial census 12,000 Data processing equipment 6,119 General administration associated with the above 2 1,105 Other capital outlays 360 Subtotal, Bureau of the Census 46 34,476 Bureau of Economic Analysis: Computer replacement 261 Domestic and International Business Administration: Establish energy material allocation system pursuant to Sections 102 and 104 of the Energy Policy and Conservation Act 12 310 National Oceanic and Atmospheric Administration: Relocate Southeast Utilization Research Center 894 Environmental Satellite Program: TIROS-N procurement and launch 8,914 GOES procurement and launch 3,205 GOES data collection units 202 Payment to NASA for increased launch costs 1,689 Subtotal, Environmental Satellite Program 14,010 First GARP global experiment ... 699 Great Lakes Laboratory 1,846 Implement extended jurisdiction legislation 29 7,188 Subtotal, National Oceanic and Atmospheric Adminis 29 24,637 National Fire Prevention and Control Administration: Data analysis and computer support for new States added to the Fire Information System in 1977 1 275 Patent and Trademark Office: Implement Patent Cooperation Treaty 21 478 Additional patent examining staff 1,278 Subtotal, Patent and Trademark Office 21 1,756 National Bureau of Standards: Equipment depreciation payment 163 Maritime Administration: Ship construction subsidies 68,000 Operating differential subsidies +9,928 Subtotal, Maritime Administration 77,928 Total, mandatory increases 116 139,940 DEPARTMENT OF COMMERCE 1978 BUDGET REQUEST TO OMB SUMMARY OF OTHER THAN MANDATORY PROGRAM INCREASES (In thousands of dollars) PERM. POS. AMOUNT General Administration: Energy and environmental policy research 2 $640 Personnel management evaluation system enhancements 6 165 ADP resource management improvements 3 80 Arab boycott reporting and other work load requirements of the Office of General Counsel 4 75 Foreign investment data collection program 3 77 International commodities policy development 2 49 Local public works program evaluation 310 Total, General Administration 20 1,396 Bureau of the Census: Inventory data improvements 16 510 Data on Government finances 11 235 Methods test panel for population statistics 11 457 Monthly issue of status 115 General Administration of above 5 Total, Bureau of the Census 38 1,322 Bureau of Economic Analysis: Environmental studies program expansion 14 331 Balance of payment methodology and statistical supplement 6 154 Total, Bureau of Economic Analysis 20 485 2 PERM. POS. AMOUNT Economic Development Administration: Supplemental grants to states $20,000 Local public works program evaluation 3,121 Total, Economic Development Administration 23,121 Domestic and International Business Administration: Foreign Buyers Program 7 115 Energy conservation industry association program 8 173 Administrative support 24 Total, Domestic and International Business Administration 15 312 United States Travel Service: Coast increases due to inflation 279 National Oceanic and Atmospheric Administration: Weather and climate programs 138 10,421 Ocean programs 147 23,941 Sand Point Facilities construction 2 15,500 Coastal zone management grants 21,950 Energy impact fund 39,000 Other 44 6,071 Total, National Oceanic and Atmospheric Administration 322 116,883 3 PERM. POS. AMOUNT National Fire Prevention and Control Administration: Education and training 22 $2,035 National fire data center 1 320 Research and development 1 553 General administration 9 283 Total, National Fire Prevention and Control Administration 33 3,191 Patent and Trademark Office: Replacement of computer system 5 836 Science and Technical Research: National Bureau of Standards: Development of new basic measurement techniques, standard reference materials and applied measurement services tc insure safeguarding and accountability of nuclear materials 13 1,000 Development of standards calibration methods and measurement procedures for six most widely-used methods of nondestructive evaluation 4 300 Initiation of operational voluntary laboratory accreditation program 13 750 Development of guidelines and standards for access control, security auditing and data integrity in Federal computer systems 2 450 Modification of general purpose laboratory space to insure safety of employees 1,422 Continuation of program to upgrade and moderize NBS equipment 432 Total, National Bureau of Standards 32 4,354 National Technical Information Service: Government patents program 170 Engineering and design study of NTIS operations and equipment 175 Total, National Technical Information Service 345 4 PERM. POS. AMOUNT Office of Telecommunications: Development of measurement techniques to determine signal unitting characteristics of mircrowave antennas 3 $200 Continuation of feasibility studies on use of small earth station satellite networks in U.S 1 50 Total, Office of Telecommunications 4 250 Maritime Administration: Ship construction for two liquified gas carriers (LNG's) 67,000 Research and development 2,035 Development of waterborne transportation systems 8 1,309 National security support capability 13 412 Merchant marine academy 3 2,044 State marine schools 750 Use of waterborne transportation systems -2 236 General administration -4 131 Total, Maritime Administration 18 73,917 Total, Department of Commerce 516 226,691 DEPARTMENT OF COMMERCE FY 1978 Program Reductions (Dollars in thousands) Curtailment Completion Bureau or Elimination Productivity Financing of Work Total General Administration: Office of the Chief Economist $10 $10 Office of the General Counsel 28 28 Office of Policy Development 44 44 Office of Audits 40 40 Office of Personnel 16 16 Office of Environmental Affairs 17 17 Office of International Economic Policy and Research 124 ... 124 Subtotal, General Administration 279 279 Bureau of the Census: 1974 Census of agriculture $1,965 1,965 1977 Census of governments 2,372 2,372 Registration and Voting Survey 1,652 1,172 2,824 Reduce frequency of reports 427 427 Statistical assistance to State and local governments 110 110 Bilateral reconciliation of foreign trade statistics 210 210 Economic census improvements 250 ... 250 Productivity $423 423 Subtotal, Bureau of the Census 2,649 423 5,509 8,581 Bureau of Economic Analysis 100 100 Economic Development Administration: Public Works 66,050 66,050 Business development 7,500 7,500 Planning 1,000 1,000 Technical assistance 4,500 4,500 Research 500 500 2 Curtailment Completion Bureau or Elimination Productivity Financing of Work Total Economic Development Administration: (cont'd) Grants to States $20,000 ... ... $20,000 Economic adjustment 32,000 32,000 Administration 1,995 1,995 Subtotal, Economic Development Administration 133,545 ... 133,545 Regional Action Planning Commissions: Coastal Plains 3,372 3,372 Four Corners 3,528 3,528 New England 2,727 ... 2,727 Old West 2,972 ... 2,972 Ozarks 4,963 4,963 Pacific Northwest 1,598 1,598 Upper Great Lakes 1,140 1,140 Offset for new commissions -1,000 ... -1,000 Subtotal, Regional Action Planning Commissions 19,300 19,300 Domestic and International Business Administration: Close Sydney Trade Center 425 425 Reduce Invest in USA program 58 58 Strategic Planning 49 49 International Program Support (BDC) 89 89 Reduce CAGNE Trade fairs 160 160 Curtail in-store promotion program. 173 173 Eliminate foreign class property programs. 55 55 Curtail business and technical services 125 125 Reduce overhead $26 ... 26 Subtotal, Domestic and International Business Administration 1,134 26 ... 1,160 Minority Business Enterprise: Program development and management 250 250 United States Travel Service: Eliminate multilingual receptionist program 307 307 3 Curtailment Completion Bureau or Elimination Productivity Financing of Work Total National Oceanic and Atmospheric Administration: Reduce capital funding for computers $1,500 $1,500 ITOS-I launch $6,200 1,619 7,819 TIROS-N launch vehicle 2,764 2,764 GOES launch service 2,490 2,490 CARP Atlantic Tropical Experiment 699 699 Complete International Field Year for the Great Lakes 1,846 1,846 Discontinue fish hatchery pollution abatement program 500 500 Reduce educational funding support for the Pribilof Islands 420 420 Close Port Aransas Fishery laboratory 196 196 Close Atmospheric Physics and Chemistry Laboratory 1,000 1,000 Discontinue rocketsonde publications 100 100 Discontinue Rhode Island fishery activity. 500 500 Discontinue National Climate Research 100 100 Discontinue extended juristiction boundary services 1,500 1,500 Dispose of OREGON 395 395 Dispose of BOWERS 143 143 Reduce Deepwater Ports activities 300 300 Stretch out World Weather program. 1,000 1,000 Subtotal, National Oceanic and Atmospheric Administration 12,354 10,918 23,272 National Fire Prevention and Control Administration: Management research and policy 421 421 Patent and Trademark Office: Reduce patent printing costs $1,658 1,658 Finance customer services by fees $6,649 6,649 Subtotal, Patent and Trademark Office 1,658 6,649 8,307 4 Curtailment Completion Bureau or Elimination Productivity Financing of Work Total National Bureau of Standards: Terminate flow measurements $580 $580 Terminate dimensional meteorology program. 378 378 Terminate humidity measurements program. 363 363 Reduce electromagnetic measurements program 480 480 Reduce metallurgical materials program. 500 500 Reduce polymeric materials program 300 300 Reduce building science and technology program 500 500 Subtotal, National Bureau of Standards 3,101 3,101 Maritime Administration: Reduction in Russian Grain purchases 32,170 32,170 Elimination of passenger ship subsidv 9,900 9,900 Increase idle ship years 4,530 4,530 Eliminate competitive nuclear ship program 575 575 Reduce exploratory research projects 35 35 Eliminate SOIS program 700 700 Transfer shipbuilding automation systems management to industry 300 300 Decrease advanced ship machinery projects. 200 200 Reduced satellite technical services 300 300 Reduced level of navigation projects 100 100 Research and development administration 45 45 Improve ODS administration $45 45 Subtotal, Maritime Administration 48,855 45 48,900 Total, Department of Commerce 221,945 2,502 6,649 16,427 247,523 PERSONNEL CEILING REQUIREMENTS FY 1977 Employment Ceiling General Administration Although Congress desired new funding to carry out the Secretarial Representative program in FY 1977, the Secretary feels strongly enough about the value of the program that we intend to continue funding the program as we did in FY 1976 through the Secretary's Reserve. There is no net change in the number of positions required for GA in 1977; the increase and decrease merely represent a change in financing. Bureau of the Census A total of 23 position are associated with the proposed supplemental, 18 for the production of STATUS and 5 for developing a series of social indicators. The need for these positions is fully discussed in the supplemental justification. Bureau of Economic Analysis A total of 10 positions are requested to carry out the BEA portion of the Quality of Life initiative, also discussed in detail in the supplemental justification. Economic Development Administration Fifteen positions are requested for compliance with Civil Service Commission requirements that persons be switched from temporary to permanent positions which more correctly represent their employment status. In addition, 109 positions are requested to carry out the 1977 program, 69 associated with administering the Congressional add-on and 40 to correct longer term deficiencies in program 2 review and monitoring. These latter positions will be funded by reprogramming within the Administration appropriation, and are distributed functionally as follows: public works -- 12, business development -- 1, planning, technical assistance and research -- 11, grants to States -- 2, economic adjust- ment -- 5, and executive direction and support -- 6. Project monitoring in all major program areas has been conducted at a marginal level only. Public works construction management and review of planning grant performance are two of the major areas which will require increased attention in 1977. There has also been increased pressure on existing staff to conduct monitoring activity related to the new programs which were added in 1975. These programs were only implemented late in the year in 1975; the volume of approved projects remained relatively low in 1976, with additional approvals late in the year; but now the volume of projects in progress has reached a significant level and requires significant monitoring of activity. (1) In 1975, $38 million was approved for Title IX projects; in 1976, an additional $77 million was approved; the same amount is planned for 1977. A total of almost $200 million of Title IX projects will have been approved by the end of this year. (2) Section 304 grants to States project activity is beginning to build up significantly. Processing of 304 projects requires roughly the same level of activity as our 3 regular program. This in effect represents a deferred requirement, in that funds were approved in 1975 and 1976, with relatively little project activity at that time. (3) Section 302 planning grants to States and cities have now been in place for more than a year, and now require significantly increased follow-up activity. These requirements will continue in 1978. Regional Action Planning Commissions A total of 29 positions are requested for the regional programs. Fourteen of the positions are required for the offices of the Federal Cochairman for the two new commissions assumed to be designated in 1977. The remaining 15 will be distributed among the offices of the Federal Cochairman of the existing commissions. While these positions are nominally associated with the Congressional add-on, we are proposing that they be retained in 1978 in order to provide increased planning, evaluation and regional coordination. Domestic and International Business Administration Our 1977 request to Congress proposed closing 2 trade centers (-29 positions) and reprogramming resources to meet export licensing work load (+24 positions) and expand studies of foreign investment in the U.S. (+5 positions). Since Congress refused to allow the trade center closing but had no objection to the foreign investment reprogramming, DIBA needs five additional positions to carry out the latter. 4 The request for seven additional positions for reimbursable programs is associated with the reestablishment of the National Business Council for Consumer Affairs. An executive order setting up the Council is currently under review at OMB. These seven positions will provide staff support to the Council and will be financed by the Secretary's Reserve. United States Travel Service A total of eight positions have been identified as associated with the Congressional add-on of $750,000 for international tourism. However, since we are proposing to rescind $500,000 of that am it, the net change in personnel requested for 1977 is five / two for the Special markets program, two for international congress sales and one for state and local matching funds. Similarly, although ten positions are identified for the domestic tourism add-on, we are only requesting six positions to carry out the $1,000,000 program remaining after the proposed rescission. Maritime Administration Fourteen positions are requested to carry out preservation and security work on the GLOMAR EXPLORER on a reimbursable basis from the Navy. The request was discussed in the September 24 memo from Kasputys to Kearney. National Oceanic and Atmospheric Administration FY 1977 -- An additional 1215 end-of-year permanent positions are requested for NOAA. Of this request, 995 represent ceiling shortages which accumulated from the time NOAA was established in 1970 through the end of FY 1976. This number consists of 338 temporary employees who are now performing permanent duties and need to be converted into permanent employees and the remaining permanent position shortage of 657 needed to properly carry out NOAA responsi- bilities. These 995 positions are described in NOAA's August 1, 1976 Personnel Study which has been transmitted to OMB. The remainder of the 1977 request, 220 permanent positions, is needed to support program increases appropriated or pending in 1977. These include the following: Budget increases +23 MARMAP surveys and analysis (+9) -- Porpoise population surveys (+3) Ocean dumpsite evaluations (+3) TIROS N satellite data acquisition (+5) SEASAT A development (+3) Budgeted decreases -131* Non-recurring programs (-67) (1) DOMES I (-10) (2) Weather programs (-57) Lake Survey Center closing (-15) NOAA Weather Wire Service (-49) Congressional add ons +19 Milford shellfish aquaculture (+3) Marine weather and environmental services (+3) -- OCEAN LAB (+4) Sea grant (+2) 0 Extended jurisdiction budget amendment +246 MARMAP (+36) Environmental impact analysis (+8) - International fisheries activities (+9) -- State Federal fisheries management (+44) -- Enforcement and surveillance (+31) -- Economics and consumer fisheries statistics (+46) -- Marine recreational fishing (+2) "200 mile" boundary surveys (+6) Ship support (+31) EXAD (+33) Coastal Zone Management amendment -167 Deferral of OCEAN LAB until 1978 -4 Does not include the transfer of 12 positions from OPR direct Federal Ship Financing Fund administrative costs to reimbursable. Patent and Trademark Office FY 1977 -- An increase of 48 in the 1977 permanent end-of-year employment coiling is needed for the Patent and Trademark Office in order to maintain patent examining output at a level which will permit achievement of the 18-month average pendency goal. Due to ceiling restrictions in recent years, new permanent positions which have been authorized for examination of patents have not been filled, nor have vacancies in existing positions been fully replaced. The situation is now such that, at current workload and productivity levels, the Office will not be able to maintain average pendency at its 1976 level of 19.5 months. Further, without additional ceiling, pendency will increase to an estimated 25 months by 1981. Adequate funding is available within the Office to pay for additional people, and an increase of 48 in permanent ceiling is proposed for 1977. A further increase of 50 is proposed for 1978, as described in the budget justification. National Bureau of Standards FY 1977 - The requested personnel ceiling of 3088 will provide for an additional 18 positions to work on two reimbursable programs carried on by NBS. An additional 3 positions will work on the expanded fire safety engineering program that deals with building design concepts leading to increased safety in residences, which is sponsored by the NFPCA. The remaining 15 positions will be used to continue support to FEA for the appliance energy labeling program mandated by the Energy Policy and Conservation Act of 1975. Ceiling for this program was provided, in 1976, but only on a one-time basis, while the program is a continuing one. FY 1978 - The requested personnel ceiling of 3141 includes an additional 53 positions that will be used to work on the reimbursable programs of NBS. Specifically the 53 will be used in the following areas: An additional 9 positions in the nondestructive evaluation area to work on projects supported by ARPA and DOT; An additional 10 positions to work on environmental pollution measurement projects in response to EPA requests for additional Standard Reference Materials; An additional 24 positions to work on HUD and ERDA sponsored activities to provide technology assessments, data analyses, and standards development in response to solar energy legislation; An additional 6 positions to evaluate energy-related inventions for ERDA; and An additional 4 positions to support HUD and OSHA reimbursable projects dealing with the behavior of fires originating in basements, endurance of floor constructions, and key elements of emergency escape requirements. National Technical Information Service FY 1977 -- An additional 42 end-of-year permanent positions are requested for the Trust Fund operations of the National Technical Information Service. From 1974 to 1976 the annual number of technical reports added to the NTIS system has risen from 59,001 to 74,006. During this same period, the annual number of copies of documents sold has risen from 2,356,000 to 3,081,799. In 1977, 74,200 new documents are expected to be added to the system and 3,244,000 documents are expected to be sold. Additional personnel are required to handle this increase in workload. Funding for these positions will be through receipts and reimbursements to the Trust Fund. FY J.978 -- Based on recent workload trends, further increases are anticipated in all areas of NTIS sales and services during 1978. As shown in the table on page STR-123 of the justification, 83,500 new documents are expected to be added to the system and 3,427,000 copies of documents will be sold. Further, increases are projected in NTIS subscription and search services. An additional 16 positions are requested to process this additional workload. Office of Telecommunications FY 1977 --- An additional 49 positions in permanent end-of-year employment is requested for OT. Of these, 29 will be conversions to permanent from other than permanent positions, and 20 result from increased reimbursable work. In both cases, OTP funding will be used to pay for the positions. A separate memorandum is being provided with additional details in regard to this request. FY 1978 EMPLOYMENT CEILING Maritime Administration An additional 13 reimbursable positions are requested for administration of the Federal Ship Financing Guarantee program. The ceiling on the maximum amount of aggregate obligations guaranteed by the program was raised from $5 billion to $7 billion pursuant to P.L. 94-127, November 13, 1975. The success of the program as reflected by the rising level of obligations guaranteed has resulted in a continuously increasing work load. It is expected that by the end of 1978, the application approval work load will additionally increase by one-third and that the total Title XI debt outstanding will be approaching the $7 billion ceiling. MARAD has in prior years reprogrammed positions in order to attain the current base of 63 man-years for 1978. However, other programs cannot be further reduced because of additional manpower requirements for small but critical program increases. Although manpower productivity has roughly doubled since the program's inception, the expected work load increase for 1978 cannot be entirely offset by foresecable future productivity gains. COMPARISON OF DEPARTMENT OF COMMERCE BUDGETS WITH END-OF-YEAR EMPLOYMENT 1970 - 1978 Earlier we provided information on the growth of the Department's budget relative to our growth in permanent employ- ment. The total budget of the Department increased for the period 1970-1978 by $1.2 million, or 106.5%. In terms of constant dollars, our budget increased 35% over 1970. Our 1978 employment ceiling request of 30,863, on the other hand, represents an increase of 3,551 or 13% over 1970. We have completed a more detailed analysis of the salaries and expenses portion of the Department's budget. This analysis tends to support our earlier conclusions: (1) program growth from 1970-1976 outpaced employment growth, and (2) employment increases requested in 1977 and 1978 are related to increased program responsibilities. The Department's "Salaries and Expenses" budget has been defined to include all accounts charged with personnel compen- sation costs. The total obligations in each of these accounts have been reduced by the amount of obligations for grants, subsidies and contributions. In the case of OMBE, only the administrative portion of their budget is included. As shown on the attachment, NOAA's obligations for direct programs (in constant dollars) have increased by 74.18 while employment has increased by 23.6%. The years 1973-1976 show the greatest difference between the growth of obligations and FORD is LIBRARY 2 employment. If ceiling relief is granted, the 1977 and 1978 differences will be similar to the 1970-1972 differences. NOAA'S reimbursable program has not been used to divert employ- ment from its direct programs. Obligations have increased 13.9% while employment has decreased 51.4% The relationship of salaries and expenses budgets to employment for direct programs of the remainder of the Department is distorted due to the conduct of the 19th decennial census during 1970. The aberration caused by the 19th decennial census shows clearly in the Attachment which separately identified the changes attributable to the periodic program of the Bureau of the Census. The base year, 1970, includes $126 million for the 19th decennial census. Of this amount, $87 million relates to personnel compensation for other than permanent employment. As a result, employment has increased slightly even though obligations have decreased by more than half. The remainder of the Department's direct programs (excluding NOAA and periodic programs) show a great difference between increases in obligations and increases in employment in 1974-1975, with the difference partially made up in 1976. The Department's reimbursable programs (exclusing NOAA) is distorted because of the Vessel Operations Revolving Fund of the Maritime Administration. This account had obligations of $61, 575, 000 in 1970 and $3,653,000 in 1971 and nothing thereafter FORD is LIBRARY QERALD 3 involving personnel. If 1971 is used as a base year instead of 1970 to eliminate this factor, obligations rose by 14.10 and employment decreased by 7.9%. Again, this indicates that reimbursable work has not drained employment away from direct programs. The summary data indicates that the growth in the Depart- ment's reimbursable programs in terms of both constant dollars and employment is less than in the direct program of the Department. Page of 6 DEPARTMENT OF COMMERCE COMPARISON OF SALARIES AND EXPENSES BUDGET WITH END-OF-YEAR EMPLOYMENT PERCENT CHANGE CONSTANT DOLLARS PERMANENT EMPLOYMENT Direct Direct Programs Programs NOAS Total: 1 Reimbursables Total: 1 NOAA Total Reimbursable Total 1970 ... ... ... ... 1971 18.6 12.4 -29.7 -0.2 8.3 6.1 -3.0 4.3 1972 26.3 17.9 -39.1 0.6 10.9 6.6 -6.6 4.2 1973 28.0 21.3 -32.3 5.3 9.1 7.3 -10.6 3.8 1974 35.0 26.1 -31.3 8.9 S.7 7.7 -7.0 5.0 1975 51.7 35.5 -24.8 17.5 10.8 6.2 1.5 5.2 1976 52.2 38.6 -14.3 22.8 10.6 8.6 -5.5 5.8 1977 est 58.3 40.6 -18.5 23.0 20.9 16.7 -12.4 11.2 1978 est 74.1 48.8 -14.4 45.3 23.6 18.7 -10.8 13.1 1/ Excludes periodic programs of the Bureau of the Census. 10-18-76 Page 2056 DEPARTMENT OF COMMERCE COMPARISON OF SALARIES AND EXPENSES BUDGET WITH END-OF-YEAR EMPLOYMENT FISCAL YEARS 1970-1978 (Dollar amounts in thousands) Direct Programs for the REMAINDER OF DEPARTMENT NOAA Direct Programs EXCEPT PERIODIC PROGRAMS Obligations in Permanent Obligations in Permanent Actual Constant Dollars Employment Actual Constant Dollars Employment Coligations Amount % Change Number 0 Change Obligations Amount % Change Number 2. Change 1970 221,132 249,867 10,417 217,922 246,240 11,057 1971 278,849 296,333 18.6 11,280 8.3 246,068 261,496 6.2 11,497 4.0 1972 315,644 315,644 26.3 11,555 10.9 269,492 269,492 9.4 11,328 2.4 1973 337,405 319,815 28.0 11,369 9.1 297,575 282,062 14.5 11,677 5.6 1974 379,377 337,224 35.0 11,325 8.7 324,350 288,311 17.1 11,795 6.7 1975 458,257 379,038 51.7 11,543 10.8 354,731 293,409 19.2 11,255 1.8 1976 484,591 380,370 52.2 11,518 10.6 391,162 307,034 24.7 11,796 6.7 1977 est 534,856 395,604 58.3 12,591 20.9 408,462 302,117 22.7 12,477 12.8 1978 est 588,306 435,138 74.1 12,881 23.6 409,419 302,825 23.0 12,609 14.0 Page 3 of 6 DEPARTMENT OF COMMERCE COMPARISON OF SALARIES AND EXPENSES BUDGET WITH END-OF-YEAR EMPLOYMENT FISCAL YEARS 1970-1978 (Dollar amounts in thousands) Subtotal Periodic Programs Obligations in Permanent Obligations in Permanent Actual Constant Dollars Employment Actual Constant Dollars Employment Obligations Amount % Change Number : Change Obligations Amount % Change Number % Change 1970 439,054 496,107 21,474 130,765 147,757 529 1971 524,917 557,829 12.4 22,777 6.1 54,358 57,766 -60.9 543 2.6 1972 585,136 585,136 17.9 22,883 6.6 28,017 28,017 -81.0 543 2.6 1973 634,980 601,877 21.3 23,046 7.3 27,622 26,182 -82.3 543 2.6 1974 703,727 625,535 26.1 23,120 7.7 17,416 15,481 -89.5 470 -11.2 1975 812,983 672,447 35.5 22,798 6.2 22,663 18,745 -87.3 526 -0.6 1976 875,753 687,404 38.6 23,314 8.6 31,055 24,376 -83.5 540 2.1 1977 est 943,318 697,721 40.6 25,068 16.7 52,181 38,595 -73.9 569 7.6 1978 est.... 997,725 737,963 48.8 25,490 18.7 73,955 54,700 -63.0 569 7.6 Page of £ 6 DEPARTMENT OF COMMERCE COMPARISON OF SALARIES AND EXPENSES BUDGET WITH END-OF-YEAR EMPLOYMENT FISCAL YEARS 1970-1978 (Dollar amounts in thousands) Total Direct Program NOAA Reimbursable Obligations in Permanent Obligations in Permanent Actual Constant Dollars Employment Actual Constant Dollars Employment Coligations Amount % Change Number = Change Obligations Amount = Change Number 0 Change 1970 569,819 643,863 22,003 ... 42,629 48,168 ... 2,456 ... 1971 579,275 615,595 -4.6 23,320 6.0 35,979 38,234 -20.4 1,307 -46.8 1972 613,153 613,153 -4.8 23,426 6.5 37,363 37,363 -22.4 1,120 -54.4 1973 662,602 628,059 -2.5 23,589 7.2 44,731 42,399 -11.9 1,102 -55.1 1974 721,143 641,016 -0.4 23,656 7.5 45,632 40,562 -15.8 1,180 -52.0 1975 835,651 691,192 7.4 23,324 6.0 52,304 43,262 -10.2 1,003 -59.2 1976 906,803 711,780 10.5 23,854 8.4 74,280 58,304 21.0 1,112 -54.7 1977 est... 995,499 736,316 14.4 25,707 16.8 74,153 54,846 13.9 1,194 -51.4 1978 est... 1,071,680 792,663 23.1 26,129 18.8 74,151 54,845 13.9 1,194 -51.4 Page 5 of 6 DEPARTMENT OF COMMERCE COMPARISON OF SALARIES AND EXPENSES BUDGET WITH END-OF-YEAR EMPLOYMENT FISCAL YEARS 1970-1973 (Dollar amounts in thousands) Other Reimbursable Total Reimbursable Obligations in Permanent Obligations in Permanent Actual Constant Dollars Employment Actual Constant Dollars Employment Obligations Amount S; Change Number & Change Obligations Amount & Change Number % Change 1970 144,514 163,293 ... 2,853 ... 187,143 211,461 ... 5,309 ... 1971 103,954 110,473 -32.4 3,844 34.7 139,933 148,707 -29.7 5,151 -3.0 1972 89,723 89,723 -45.1 3,837 34.5 127,036 127,086 -39.1 4,957 -6.6 1973 106,367 100,822 -38.3 3,642 27.6 151,098 143,221 -32.3 4,744 -10.6 1974 117,871 104,774 -35.8 3,756 31.6 163,503 145,336 -31.3 4,936 -7.0 1975 139,727 115,572 -29.2 4,384 15.4 192,031 158,834 -24.8 5,387 1.5 1976 156,662 122,969 -24.7 3,903 36.8 230,942 181,273 -14.3 5,015 -5.5 1977 est... 158,991 117,598 -28.0 3,458 21.2 233,144 172,444 -18.5 4,652 -12.4 1978 cst 170,478 126,093 -22.8 3,540 24.1 244,629 180,938 -14.4 4,734 -10.8 Page 6 of 6 DEPARTMENT 07 COMMERCE COMPARISON OF SALARIES AND EXPENSES BUDGET WITH END-OF-YEAR EMPLOYMENT FISCAL YEARS 1970-1978 (Dollar amounts in thousands) Total Commerce Without Periodic Programs Total Commerce Obligations in Permanent Obligations in Permanent Actual Constant Dollars Employment Actual Constant Dollars Employment Obligations Amount & Change Number 0 Change Obligations Amount 03 Change Number S Change 1970 626,197 707,567 26,783 ... 756,962 855,324 27,312 ... 1971 664,850 706,536 -0.2 27,928 4.3 719,208 764,302 -10.6 28,471 4.2 1972 712,222 712,222 0.6 27,910 4.2 740,239 740,239 -13.5 28,453 4.2 1973 786,078 745,098 5.3 27,790 3.8 813,700 771,280 -9.3 28,333 3.7 1974 867,230 770,871 S.9 28,122 5.0 884,646 786,352 -8.1 28,592 4.7 1975 1,005,019 331,281 17.5 28,185 5.2 1,027,682 850,026 -0.6 28,711 5.1 1976 1,106,695 868,677 22.8 28,329 5.8 1,137,750 893,053 4.4 28,869 5.7 1977 est 1,176,462 870,165 23.0 29,790 11.2 1,228,643 908,760 6.2 30,359 11.2 1978 est 1,242,354 1,028,301 45.3 30,294 13.1 1,316,309 973,601 13.6 30,863 13.0 APPENDIX I DEPARTMENT OF COMMERCE WEIGHTED PRICE INDEX - Assume costs split 75% -- Salaries ]. benefits, 25% - other - Salary index based on GS pay increases - Other object index based on implicit price deflators for GNP for Federal Government purchases of goods and services, survey of current business (SCB) (A) (B) (758A & 25%B) Year Salary Index SCB Index Weighted Average FY 1970 89.2 86.4 88.5 1971 94.6 92.6 94.1 1972 100.0 100.0 100.0 1973 105.3 106.1 105.5 1974 111.0 117.1 112.5 1975 117.8 130.0 120.9 1976 123.9 137.7 (p) 127.4 1977 131.5 146.1 (e) 135.2 (p) = Preliminary (e) :: Estimate based on same increase over 1976 as pay ... SCB index not available for the year. FORD is LIBRARY OERALD 9 EDA/RAPC Authorization ($000) FY 1977 FY 1978 Full Title Appropriation Request Authorization I $146,000 $89,950 $425,000 II Regular 36,000 27,750 200,000 204 Revolving funds 125,000 III 35,500 29,500 75,000 304 Supplemental grants. 20,000 20,000 75,000 IV 25,500 16,250 70,000 V Existing commissions 62,500 42,200 250,000 New commissions 1,000 2,000 5,000 IX. 77,000 45,000 100,000 X 325,000 Subtotal, PWEDA 403,500 272,650 1,650,000 Trade Act 20,000 20,000 3/ Total, EDA/RAPC 423,500 292,650 1,650,000 1/ New section 304 for provision of interest free loans to designated areas for purposes of setting up revolving loan fund to carry out wide range of economic redevelopment projects. 2/ Authorized at $81,250,000 per quarter during which national unemploy- ment rate is equal to or exceeds 7%. 3/ No specific authorization. Assumptions Used to Develop 1977 Supplemental and 1978 Request for the Coastal Zone Management Programs and the Coastal Energy Impact Fund I Coastal Zone Management Program A. Program Development Grants (Section 305) (1977 - $20,000,000; 1978 - $15,750,000) 1. It was assumed the full authorized amount for program development grants would be needed in 1977 because: Some States have made slower progress in developing their programs requiring a fourth year grant to successfully complete their coastal zone management plans. Some States will take advantage of the 305-1/2 option to stay in the planning phase longer in order to do a more complete job of developing their program and to begin administration of their programs pending Secretarial approval. All States require an additional 10% in funding to cover additional planning requirements under the amended Coastal Zone Management Act amendments. The increase from 66-2/3% to 80% matching share is warrented because previously States were having difficulty providing sufficient funds to develop their coastal zone plans. 2. Less funding is required in 1978 to the extent States successfully enter the program administration stage. 3. All States will complete planning in 1979. B. Program Administration Grants (Section 306) (1977 - $9,152,000; 1978 - $22,250,000) 1. Program administration grant funding requirements are a function of the estimated number of States that will FORD LIBRARY 's BERRID have completed and had approved their coastal zone management programs. Delay or acceleration of planning would alter the requirements. 2. Program administration grants will generally be greater than program development grants for the same State because of increased administration, enforcement and education costs. 2 3. The need for continued support of the program administra- tion grant program will be evaluated in 1979 and 1980. C. Interstate grants (Section 309) (1977 - ; 1978 - $150,000) 1. No funding for this authorization is needed in 1977 pending receipt and evaluation of applications. 2. The 1978 request assumes three grants of $50,000 each and will be sufficient to support interstate activities which may develop. D. Energy Impact Formula Grants (Section 308 (b)) (1977 - $15,000,000; 1978 - $25,500,000) 1. The requested amount for 1977 and 1978 is based on the best estimates of OCS oil and gas activity available. 2. The request is calculated using the Congressionally mandated formula as modified by the following principles: The upper limit to be available in any of the eight years of authorization is 1/8 of the total $400 million authorized or $50,000,000. The entire $50,000,000 will be requested only when the levels of the four formulas factors identified by Congress are at their peak over the eight year life of the authorization. In other years, an amount should be sought relative to the peak for each of the four areas by comparing the years activities against the peak. E.. Research and technical assistance (Section 310) (1977 - $2,550,000; 1978 - $3,442,000) 1. These funds will be required to insure effective coastal zone management plans are developed. 2. This will be accomplished through support of national and State research with funds for economic studies, management/institutional studies, training of State and local officials, and provision of educational materials. 3 3. The average state grant will be $75,000, the cost of conducting one study. 4. Funds requested are to be used on the basis of 50% for 80% Federal share State grants. F. Reach Access Grants (Section 310 (b)) (1977 - ; 1978 - $2,400,000) 1. Funds are not required in 1977 due to the long lead time required to promulgate regulations. 2. The program should be funded in 1978, 1979, and 1980 as an adjunct to the program administration phase of the coastal zone management program to allow states to acquire protection of and access to public beaches and other coastal areas of value. 3. Other Federal sources of funding are insufficient for this purpose. 4. States are very interested in this program. G. Program Management (1977 - $4,208,000; 1978 - $4,008,000) 1. Staffing requests are based on the principle of maximum latitude in State and local use of the funds provided through the program. 2. Use of contract funds in 1977 and 1978 greatly reduce the need for additional personnel. 3. Funding will be available in the second quarter of 1977 to support the use of a 25% lapse rate. II Coastal Energy Impact Fund A. Planning Grants (Section 308(d)) (1977 -- $3,500,000; 1978 -- $3,500,000) 1. Energy development activities which are eligible for grant support will occur in all 30 coastal States in 1977 and 1978. OCS related activities that can be funded using planning grants will occur in ten States. 2. Planning grants are the primary source of funding for state coastal energy related projects under the Act. 4 3. If planning grants are insufficient for these purposes, formula grants (Section 308 (b) may be used. 4. States receiving Section 306 grants will not be eligible for planning grants under Section 308 (c) B. Environmental Grants (Section 308 (d) (4)) (1977 - $1,500,000; 1978 - $1,500,000) 1. States with no entitlement to formula grants based on OCS development will require funding support to reduce or ameliorate unavoidable loss of environmental or recreational resources from coastal energy activities. 2. It is estimated three such grants of $500,000 will be required in 1977 and 1978. C. Coastal Energy Impact Fund (Section 308(d) (1977 - $141,000,000; 1978 - $180,000,000) 1. The 1977 and 1978 requests assume all funds will be used for loans or guarantees. No repayment assistance is expected prior to 1979. 2. All assistance to be provided through the fund is requested to be appropriated on a dollar for dollar basis in order to set the upper limit of the fund, allow states the choice of requesting the form of assistance they desire, and insure sufficient funding is available for public facilities and services without tapping formula grant funds for that purpose. 3. The amount requested is based on the new employment and related population growth resulting from new or expanded coastal energy activities, and standardized unit costs, by regions, of required public facilities and services. 4. The population multiplier used is 4.2. This is based on .68 secondary growth in employment for each new energy related job. The 1.68 job factor is multiplied by 2.5 as the average family size to yield the 4.2 population multiplier. 5. The standardized unit cost is $5,000 per individual based on an April 1974 CEQ, HUD and EPA report, The Cost of Sprawl, inflated to June 1976 dollars. SORD LIBRARY 5 6. The request is based on the policy that the program should be "front located" in order to make the credit assistance available as soon as possible to offset energy impacts as they occur. 7. The total eight hundred million authorization would be reached in 1980; however, the request is not based on reaching the authorized level. The estimated population growth related to coastal energy development will require that much credit assistance by 1980 in order that public facilities and services will be available in a timely manner 8. For the purposes of determining outlays, it is assumed 60% of the fund will be used for direct loans and 40% for guarantees. However, the actual split will only be determined by the requests made by the states themselves. 9. The interest rate for the loans will be set by the Secretary and will be no more than the current average market rate for United States obligations of comparable maturity at the time of the calculation. The interest rate will be calculated every three months. The Department will develop policies relating to the setting of the interest rate by November 15, 1976. 10. The Federal role in providing credit assistance is considered to be supplemental or secondary to the States and localities primary responsibility to provide public facilities and services. 11. The Federal government assumes some risks in providing public facilities and services under the provisions of the Act because of the national benefits derived from energy development. 12. Funds will be available only where needed to avoid both shortfalls and windfalls. 13. Funds should be available when needed, i.e., ahead of the impacts, but cut off after the impacts. 14. Funds should be limited to the appropriate uses and amounts defined by the Act. 6 15. State and local governments should retain maximum descretion and control to assure the program is administratively simple. 16. Use of the funds is linked to successful progress towards or management of the states coastal zone management program. 17. Unemployment rates were considered in developing the population multiplier. 18. Population growth based on OCS oil and gas development has lag factors built in to spread the impacts over the life of the developments. DEPARTMENT OF COMMERCE 1977 Supplemental and 1978 Budget Request Coassel Zone Management and Coastal Energy Impact Fund (Dollars in thousands) 1977 1977 1977 1978 Program Supplemental Revised 1978 1978 Inc. (+) 02 Appropriation/Activity/Subactivity Level Requested Estimate Base Request Dec. (-) Coastal Zone Management: Coastal Zone Management: Program development $9,200 +$10,800 $20,000 $20,000 $15,750 -$4,250 Program administration 9,152 ... 9,152 9,152 22,250 +13,093 Interstate grants ... 150 +150 Energy Impact Formula Grants ... +15,000 15,000 15,000 25,500 +10,500 Estuarine sanctuaries 2,140 ... 2,140 2,140 1,500 -640 Beach access acquisitions 2,400 +2,400 Research and technical assistance +2,550 2,550 2,550 3,442 +892 Program management 1,408 +2,800 4,203 4,208 4,008 --200 Subtotal, Coastal Zone Management 21,900 +31,150 53,050 53,050 75,0.00 +21,950 Less: Financing from prior year appropriations -3,850 -3,850 Total, Budget Authority required $18,050 +$31,150 $49,200 $53,050 $75,000 +$21,950 Outlays $15,252 +$14,835 $30,087 $30,087 $50,000 +$19,913 Permanent employment 39 +67 106 106 105 ... stal Energy Impact Fund: Coastal energy impact fund: Planning grants +3,500 3,500 3,500 3,500 ... Environmental grants +1,500 1,500 1,500 1,500 Loans, guarantees and repayment assistance +141,000 141,000 141,000 180,000 +39,000 Total, Coastal energy impact fund Budget Authority +$146,000 $146,000 $146,000 $185,000 +$39,000 Outlays +371,450 $71,450 $71,450 $125,000 +$53,550 Permanent employment