Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
1535112
label
1976/03/26 - Economic Policy Board
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
1535112
sourceUrl
contentType
document
title
1976/03/26 - Economic Policy Board
citationUrl
collections
James M. Cannon Files (Ford Administration)
James Cannon's Meetings Files
subjects
Aeronautics, Commercial
Legislation
Regulatory reform
iiifBase
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
1535112
coverageEndDate
logicalDate
1976-03-31
month
3
year
1976
coverageStartDate
logicalDate
1976-03-01
month
3
year
1976
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
url
mediaId
d494d7f4944ba9ad
ocrText
The original documents are located in Box 57, folder "1976/03/26 - Economic Policy Board"
of the James M. Cannon 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 57 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
ECONOMIC POLICY BOARD
EXECUTIVE COMMITTEE MEETING
AGENDA
March 26, 1976 - 8:30 a.m.
Roosevelt Room
1.
Proposed Amendments to the Aviation Act
OMB
2.
Administration Policy on the Use of Government
Sponsored Loans in Leveraged Leases
OMB
3.
Task Force proposal for improving agency
regulations
Schmults
THE WHITE HOUSE
WASHINGTON
March 24, 1976
TO EPB EXECUTIVE COMMITTEE MEMBERS
The attached paper will be discussed at the Friday,
March 26, 1976, Executive Committee meeting.
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF management AND BUDGET
WASHINGTON, D.C. 20503
MAR 2 1 1976
MEMORANDUM FOR: ECONOMIC POLICY BOARD
FROM:
PAUL H. O'NEILL
Ohion
SUBJECT:
Proposed Amendment to the Aviation Act
Last October, the President sent to Congress the Aviation
Act of 1975 which calls for the reform and modernization of
Civil Aeronautics Board (CAB) regulation of the airline
industry. Both the Senate and the House have scheduled
hearings in early April.
In preparation for these hearings, the Department of Trans-
portation has discussed the bill with a number of interested
parties, including Congressional staff, representatives of
the air carriers, and the communities they serve. A major
concern that has been raised repeatedly in these discussions
is the fear that small communities will lose service as a
result of our bill.
DOT has done extensive research in this area and believes
strongly that the issue is much more emotional than real.
Their research indicates that in the past, when a small
community has lost service from a certificated airline,
commuter carriers have generally come in to provide replace-
ment services. They estimate that the risk of losing all
air service will be limited to about 30 points and that
based on past trends in commuter service, this estimate is
probably high.
On the other hand, DOT is convinced that the loss of service
issue, albeit unfounded, will be a major issue in the upcoming
Congressional debate. They believe, as do other members of
the Domestic Council Review Group on Regulatory Reform, that
unless action is taken to allay small communities' fears,
we stand little chance of getting an air bill enacted this
year. Accordingly, DOT has developed a proposed amendment
to the Administration's bill which would permit the Civil
Aeronautics Board to contract with commuter carriers to
provide essential replacement services to small communities
at minimal cost.
3
The budget impact of the proposed amendment is expected to
be very small. In the short run, it will have little or
no effect on the existing subsidy program. In the long
run, the proposed payments to commuter carriers would
inherently be more efficient. For example, by abandoning
unprofitable points under the liberalized provisions of
the Administration's bill, local service carriers will improve
their financial positions and reduce their own need for
subsidy. Also, subsidizing commuter carriers which are
operationally more efficient than the larger local service
aircraft would be less costly. Funding for the proposed
program would be accomplished within the existing "payments
to air carriers" account in the CAB's budget.
The proposed amendment has been through the normal OMB
legislative clearance process. Except for minor technical
changes in legislative language, all agencies agreed with
the proposed amendment. However, prior to giving DOT final
approval, the proposal is submitted for EPB consideration.
DOT SUBSIDY PROPOSAL
Section 406(c) is redesignated section 406(c)(1) and is further
amended to add the following sentence:
An air carrier is not eligible to receive payments
pursuant to clause (e) of subsection (b) of this
section unless that carrier was actually receiving
payments pursuant to that clause on June 30, 1975.
Renumber proposed section 401(j)(4) of the Aviation Act of 1975
as section 401(j)(5) and insert the following as 401(j),(4):
4(a) The Board shall ensure that each point receiving
interstate scheduled air transportation on January 1, 1976 by an
air carrier holding a certificate of public convenience and
necessity issued pursuant to section 401(d)(1) of the Act and
named in such certificate shall receive essential air transportation
until January 1, 1986 in accordance with the following conditions:
(1) Within 180 days of the enactment of this
paragraph, the Board shall determine by
rulemaking general definitions of "essential
service", including maximum and minimum
levels of such service and procedures to be
used with respect to this paragraph.
2
(ii) Any community referred to in this paragraph
may apply to the Board for assistance if that
community believes it will not receive essential
air transportation without assistance pursuant to
this paragraph. Within a reasonable time of application
the Board shall determine what is "essential" air
transportation for the purpose of this paragraph for
the applicant, after considering the general
definition of essential air transportation, the needs
of the community, the availability and practicality
of alternative means of transportation to the
community, the frequency of service and type of
equipment economically appropriate to the routes,
the cost of such service, and the integration of
such service with the air transportation system.
In determining essential air transportation the
Board shall consult with the community, the State
and the Secretary of Transportation.
3.
(iii) If the Board determines that an applicant will not
receive essential air transportation the Board shall
enter into a service agreement for a period no
longer than three years with an air carrier to provide
essential service pursuant to this paragraph. In any
negotiation pursuant to this section no preference shall
be given to a carrier because of prior service under
this paragraph.
4
(iv)
The service agreement shall specify the maximum
rates, type of service, frequency, schedules and
equipment to be used in providing the service.
(v)
Agreements entered into pursuant to this paragraph
shall be in accordance with the provisions of the
Federal Property and Administrative Services Act
of 1949, as amended, except those provisions of
such Act the Board determines are not consistent
with the purposes of this paragraph. ,No increase
in an agreement price may be made for the benefit
of an air carrier, except for increases in costs
attributable to governmental action. The Board
shall require in each agreement reasonable assurance
of reimbursement in the event of default by the
air carrier, including reimbursement for the cost
of obtaining another air carrier to provide the air
service which the defaulting carrier undertook to provide.
(vi)
The Board shall pay the costs of the agreements
entered into pursuant to this paragraph except as
indicated in clause (vii) below.
5
(vii)
No less than annually, the Board shall determine
the average daily enplanements of points receiving
assistance pursuant to this paragraph. If the
Board determines that any point has not enplaned
on average more than five passengers per day in
the preceding six months period, the Board may
not, after two years from the date of such determination,
pay more than 50 percent of the agreement cost
of providing service pursuant to this paragraph.
If the Board does not receive sufficient assurance
that the remaining agreement costs will be supplied
by any person (including State or local governments)
other than the Board, the Board's obligation to
provide service under this paragraph shall cease.
(viii) Air transportation provided pursuant to this
paragraph shall be subsidized only as provided in
this paragraph, and shall not be eligible for mail
subsidy payments pursuant to section 406(b)(3).
(b)
The Board may provide air service required by this
paragraph with any air carrier the Board finds to be fit, willing
and able to perform the service. The Board may not require such
carrier to obtain a certificate of public convenience and necessity from
the Board as a condition of providing such service.
6.
(c) The Board shall not inhibit the provision of non-subsidized
services nor shall the Board extend, negotiate or renew contracts
for service to communities where essential air transportation
will otherwise be available.
(d) Scheduled air service provided pursuant to this paragraph
may be discontinued by the Board prior to 1985 only in exceptional
circumstances if continued operation is not practical or the need
for the service has declined to the point that continued operation
is not in the public interest.
(e) It is the objective of this paragraph to phase out all
payments pursuant to clause (3) of subsection (b) of section 406 by
January 1, 1986. By December 31, 1981, the Secretary of
Transportation shall report to Congress on the progress in
meeting this objective, with recommendations for appropriate
legislative action if needed.
(f) $
is authorized fer
fiscal years
for the purposes of this paragraph.
EYES ONLY
MINUTES OF THE
ECONOMIC POLICY BOARD
EXECUTIVE COMMITTEE MEETING
March 24, 1976
Attendees:
Messrs. Simon, Seidman, Greenspan, Robinson, Baker,
Dunn, O'Neill, Malkiel, Penner, Jones, Gorog, Porter,
Hughes, Perritt
1.
Review of Current Economic Outlook
Troika II presented an update of the economic forecast and an
assessment of the current economic outlook. The discussion
focused on an analysis of the most recent unemployment,
industrial production, WPI, CPI, retail sales, personal income
and housing statistics as well as the forecast for real GNP, the
GNP deflator, unemployment, business fixed investment, and
the outlook for net exports.
Decision
The Executive Committee approved preparation of a memorandum
to the President summarizing the analysis of the current economic
situation and the forecast to serve as the basis for a discussion of
the economy with the President.
EYES ONLY
RBP
March 19, 1976
ECONOMIC POLICY BOARD
EXECUTIVE COMMITTEE
Proposed Agenda
Monday, March 22, 1976
1. Monthly Status Report on Trade Policy
STR
2. New York City Financial Condition
Treasury
3. Report of Task Force on Banking Regulation
Treasury
Tuesday, March 23, 1976
1. Administration Policy on the Use of Government
Sponsored Loans in Leveraged Leases
OMB
2. Task Force Proposal for Improving Agency
Regulations
Schmults
3. Report on International Monetary Situation
Treasury
Wednesday, March 24, 1976 - Principals Only
1. Review of the Current Economic Outlook
Troika II
Thursday, March 25, 1976
1. Meeting of Council on Wage and Price Stability
Friday, March 26, 1976
1. Report of Labor Negotiations Committee
Labor
2. Pension Plans and the Employment Retirement
Income Security Act of 1974
Labor
3. Small Business
Seidman
SERALD FORD