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    "title": "1975/05/28 HR4481 Emergency Employment Appropriation Act 1975 (vetoed) (1)",
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    "ocrText": "The original documents are located in Box 25, folder \"5/28/75 HR4481 Emergency\nEmployment Appropriation Act 1975 (vetoed) (1)\" of the White House Records Office:\nLegislation Case Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nExact duplicates within this folder were not digitized.\nDigitized from Box 25 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library\nVETOED 5/28/75 Clack\n0/27\nTHE WHITE HOUSE.\nACTION\nWASHINGTON\nLast Day: June 2\nto 5/29/75\nMay 26, 1975\nMEMORANDUM FOR\nTHE PRESIDENT\nFROM:\nJIM CANNON\nJane\nSUBJECT:\nEnrolled Bill H.R. 4481\nEmergency Employment\nAppropriation Act, 1975\nAttached for your consideration is H.R. 4481, sponsored\nby Representative Mahon, which appropriates:\n-- $4,729 million in budget authority,\n-- $485 million in direct and insured loan authority,\nand\n-- $92 million in appropriations to liquidate contract\nauthority for the Departments of Agriculture,\nCommerce, Interior and Labor, the Corps of Engineers,\nGeneral Services Administration, the Small Business\nAdministration and other agencies.\nThe appropriations and loan authority provided by this\nenrolled bill are $3.3 billion above your request of\n$2,043 million for emergency employment.\nA discussion of the features of the enrolled bill is provided\nin OMB's enrolled bill report at Tab A.\nOMB recommends that you veto H.R. 4481 and issue the attached\nveto message. Bill Seidman, Max Friedersdorf, Phil Buchen\n(Lazarus) and I concur in OMB's recommendation. Marsh concurs.\nRECOMMENDATION\nThat you sign the veto message at Tab B, which has been\ncleared by Paul Theis.\nApprove\nMR7\nDisapprove\nveto message\nveto message\nGERALD\n- 5/29/75\nHold - Check on timing\nDate 5/28/75 -\nper MyR Linder - -\nand deliver at 3 pm\non 5/29/75\nC FORD\nOFFICE OF THE PRESIDENT STATES UNITED\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nMAY 21 1975\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 4481 - Emergency Employment Appropriation\nAct, 1975\nSponsor - - Representative Mahon (D), Texas\nLast Day for Action:\nJune 2,1975 1975\n- Transmittal of a veto message prior to the\nCongressional recess for Memorial Day is\nrecommended\nAdministration\nEnrolled\nCongressional\nAppropriations:\nRequest\nBill\nIncrease\n(In millions)\nNew budget authority\n$ 2,043\n$ 4,729\n$ 2,686\nDirect and insured loans\n--\n485\n485\nLiquidation of contract authority\n--\n92\n92\nOutlay Increases: FY 1975: $ 684 million\nFY 1976: $1,540 million\nHighlights:\n- With the exception of your requests of $1.6 billion for temporary\nemployment assistance, $413 million for summer youth employment, and\n$5 million for the U.S. Railway Association, all appropriations in\nthis bill were unrequested.\n- Almost half of the $3.3 billion provided by this bill over your request\nwould be spent in fiscal year 1976, making the $60 billion deficit\nline difficult to hold.\n- The bill contains a conglomeration of increases, some of which are\nunneeded, or more costly than necessary, or will not produce immediate\nemployment, or will set new program levels which will be difficult to\nreduce later.\nRecommendation\nI recommend that you veto the bill and issue a veto message before the\nCongress recesses for Memorial Day.\nJan Director James T. Lynn Lbg\nFORD & LIBRARY GERALD\nAttachment\nEN SERVICE STATE\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nMAY 2 1 1975\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 4481 - Emergency Employment\nAppropriation Act, 1975\nSponsor - Representative Mahon (D), Texas\nLast Day for Action\nJaine 2, 1975 1975 Monday\nBecause the House plans to recess\nat the end of business on May 22 and the Senate the following\nday, transmittal of the veto message by May 22 is recommended.\nPurpose\nAppropriates a total of $4,729 million in budget authority,\n$485 million in direct and insured loan authority, and $92 mil-\nlion in appropriations to liquidate contract authority for the\nDepartments of Agriculture, Commerce, Interior, and Labor; the\nCorps of Engineers; the General Services Administration; the\nSmall Business Administration; and other agencies.\nAgency Recommendations\nOffice of Management and Budget\nDisapproval (veto\nstatement attached)\nDiscussion\nThe economic and budgetary pressures the enrolled bill would\ngenerate if it were approved are the bases for our veto\nrecommendation:\nThe appropriations and loan authority provided by the\nenrolled bill are $3.3 billion above your request of\n$2,043 million for emergency employment. Almost half of\nthe $3.3 billion of increased expenditures provided by\nthe bill over your request would be spent in fiscal year\n1976, making the $60 billion deficit line difficult to\nhold. Spending would continue in 1977 and later years\nand would increase the projected deficits for those years.\nFORD i LIBRARY GERALD\n2\nThe increased deficits resulting from this additional\nspending would lead to excessive Federal demands on finan-\ncial markets, making borrowing more difficult and driving\ninterest rates up. Thus, this bill could reverse the very\neconomic growth that the Congress intended to help stimulate.\nMany of the additional amounts in the bill for existing\nprograms will not quickly improve employment, but will\nproduce spending levels that will be difficult to reduce\nlater after the economic situation has improved. Spending\nunder the bill cannot occur soon enough to accelerate\nthe economic recovery that is expected to be well underway\nby the end of this year, but it could occur late enough\ninto the recovery to fuel again the inflationary pressures\nthat are just now subsiding.\nIn addition to the $1.6 billion for public service employment,\nthe $413 million (increased by the Congress to $458 million)\nfor summer youth employment and the $5 million for the U.S.\nRailway Association which you requested, the enrolled bill\ncontains appropriations of:\n-- $642 million for the Farmer's Home Administration.\nAlthough studies by the Department of Agriculture indi-\ncate a demand for program assistance in excess of current\nfunding levels, the loan and grant programs increased\nby the enrolled bill often require long lead times to\nget underway and will therefore not provide immediate\nemployment assistance.\n-- $506 million for the General Services Administration.\nIncluded in this amount is $440 million for the Federal\nBuildings Fund. This appropriation would violate the\nbasic premise of the Federal Buildings Fund: to operate\non a businesslike basis and finance real property\nexpenses out of proceeds of rental receipts. Language\nincluded will exempt GSA from the requirement of repay-\nment with interest of appropriations to this Fund.\nFurther, it is doubtful that GSA could effectively use\nthe additional amounts. The remaining $66 million for\nthe General Supply Fund would purchase 18 thousand\nvehicles, which would be used to replace approximately\none-fourth of the entire motor pool fleet. The appro-\npriation would be uneconomical and wasteful, because\nvehicle purchases are normally financed through agency\nuser charges and at a slightly lower rate.\n$479 million for the Department of Commerce. Of this\namount, $375 million would be used in the Job Opportunities\nFORD is LIBRARY GERALD\nProgram of the Economic Development Administration. It is\n3\nnot yet known whether the $125 million provided for this\nprogram in the Urgent Supplemental Appropriations Act\nof December, 1974, can be effectively used, let alone\nanother $375 million. Experience to date, however, has\nshown that the program is extremely difficult and time\nconsuming to administer. The remaining $104 million\nwould be used to accelerate the programs of the Economic\nDevelopment Administration and the Regional Action\nPlanning Commissions. Previous efforts to utilize long-\nrange development programs as anti-recession tools have\nnot been successful. Funds have not been utilized in\na timely enough manner to significantly shorten the period\nof recession, assistance often has not greatly benefited\nthose areas most in need, and costs of generating temporary\nemployment through such mechanisms have been high.\n-- $385 million for Small Business Administration loan pro-\ngrams. The recent tax reduction legislation, which\nincluded reductions in both corporate and personal income\ntaxes and increased investment tax credits, provides the\nfinancial stimulus to allow small businesses to recover\nfrom the recent drop in the economy. Federal Reserve\nefforts to expand the growth of the money supply are\ncausing a resurgence in the availability of capital for\nsmall businesses. Further, there is the question of\nwhether the Federal government should--and can effectively--\nassume a large role in making individual credit allocation\ndecisions for small business financing. It has been the\nAdministration's position that the principal responsibility\nfor such decisions should be left with the private sector.\n-- $333 million for public works projects of the Corps of\nEngineers and Bureau of Reclamation. These funds are to\nbe used to accelerate completion of projects now underway.\nIn addition to providing additional funds, approving the\nbill would give added weight to an undesirable statement\nof congressional intent contained in the conference report.\nThe report states that recreation development at projects\nauthorized prior to 1965 should be 100 per cent Federally-\nfunded. This is inconsistent both with the Administration's\ncost-sharing policy on water resource projects in general\nand with the law covering cost-sharing on projects auth-\norized after 1965.\n-- $190 million for higher education and work incentives\nunder the Department of Health, Education, and Welfare.\nThe increase of $120 million for college work-study grants\nis unnecessary at this time, given the student assistance\nfunds already appropriated and the expected 1976 funding\nlevel. The funds for work incentives ($70 million) restore\na congressional reduction in last year's appropriation request.\nFORD & LIBRARY GERALD\n4\n- $143 million for the Forest Service. These funds are\nprimarily for low priority items and may result in\ncompletion of some projects (i.e., forest roads and trails\nconstruction) in advance of need.\n-- $115 million for the Soil Conservation Service of the\nDepartment of Agriculture. Of the amount appropriated,\n$106 million is to assist in the reduction of backlogs\nin the watershed and flood prevention program.\n-- $100 million for payment to the U.S. Postal Service. Under\nthe Postal Reorganization Act of 1970, Federal subsidies\nare provided to the Postal Service for three specific\npurposes: to cover public service costs, reimburse the\nPostal Service for revenue foregone when carrying particu-\nlar classes of mail at reduced rates, and for covering\nliabilities of the former Post Office Department. To\nprovide funds as recommended in the bill would not conform\nto the above statutory authorizations. Provision of these\nfunds would once more inject the legislative branch into\nPostal decisionmaking and affect Postal management's\nlong-range planning efforts. It would once more subject\nthe Postal Service to the vagaries of the appropriation\nprocess and establish a precedent for providing additional\nforms of subsidy to assist the Postal Service in areas\nnot envisioned by the Reorganization Act. More importantly,\nprovision of this $100 million would shift a substantial\namount of postal costs from the users of the Postal Service\nonto the general taxpayer.\n-- $30 million for Community Service Employment for Older\nAmericans, that not only duplicates comprehensive manpower\nassistance activities, but may actually reduce the amount of\nmanpower services State and local governments provide older\nworkers.\nIn sum, the bill contains a conglomeration of increases, some of\nwhich are unneeded, more costly than necessary, will not produce\nimmediate employment, or will set new program levels which will\nbe difficult to reduce later.\nRecommendation\nYou have warned that this bill would be vetoed if the enrolled\nversion coming to you for signature did not represent a significant\nreduction from both the House and Senate versions. This enrolled\nbill does not represent such a reduction. I recommend that you\nveto the bill and issue a veto message (draft attached) before\nthe Congress recesses for Memorial Day.\nFORD i LIBRARY GERALD\nJan Director T. T.Kg Lynn\nAttachment\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: May 21\nTime:\n500pm\nFOR ACTION: Paul Leach\nCC (for information): Jim Cavanaggh\nMax Friedersdorfy oreveto\nRoger Semerad\nJack Marsh\nRobert Hartmann\nBill\nPaul Theis commits\ntoo too long\nFROM THE STAFF SECRETARY\nDUE: Date: May 21\nTime: asap\nSUBJECT:\nEnrolled Bill H.R. 4481 - Emergency Employment\nAppropriation Act, 1975\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPleassereturn to Judy Johnston, Ground Floor West Wing\nGERALD, p ANNUSIT FORD\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nK. R. COLE, JR.\ntelephone the Staff Secretary immediately.\nFor the President\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: May 21\nTime:\n500pm\nFOR ACTION: Paul Leach\nCC (for information):\nRoger Semerad\nJim Cavanaugh\nJack Marsh\nMax Friedersdorf\nBill Seidman\nRobert Hartmann\nPaul Theis\nFROM THE STAFF SECRETARY\nDUE: Date: May 21\nTime: asap\nSUBJECT:\nRec. 5:40 pm\n5/21/75\nEnrolled Bill H.R. 4481 - Emergency Employment\nAppropriation Act, 1975\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPropare Agenda and B.H.F\nDrafi Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nagee on veto\nVoto message overlong X\nGRAND R.HORD ЛАВКИТ\nRAA\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you unticipate a\ndelay in submitting the required material, please\nJemes H. Cavanoug)\nielephone the Staff Secretary immediately.\nFor the President\nOFFICE OF THE PRESIDENT STATES $12 UNITED\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nMAY 22 1975\nMEMORANDUM FOR:\nJERRY H. JONES\nFROM:\nDale R. McOmber\nSUBJECT:\nVeto Message on the Emergency Employment\nAppropriations Bill (H.R. 4481)\nFor each bill the President vetoes primarily on the grounds\nof fiscal restraint, Director Lynn suggests that the veto\nmessage include a statement on the effect of Congressional\naction (or inaction) on the deficit to date.\nAccordingly, the third paragraph of the OMB draft veto\nmessage on the Emergency Employment Appropriations Bill\nshould be revised to read as follows:\nFirst, it will exacerbate budgetary and\neconomic pressures. In my address to the Nation\non March 29, announcing my decision to sign the\nTax Reduction Act, I stressed the need to keep\nthe 1976 deficit at or below $60 billion. This\nbill is one of many being considered by the\nCongress that, together, would increase the\ndeficit to $100 billion or more. Congressional\nactions and inactions have already added\n$7.3 billion to the 1975 deficit and $4.4 billion\nto the 1976 deficit. This bill authorizes spending\nof a further $3.3 billion above my budget requests,\nwith almost half of this added spending occurring\nin fiscal year 1976. In addition to its impact\non 1976, this bill--and the others making their way\nthrough the Congress--would add substantially to\nspending and to Federal deficits in 1977 and later\nyears.\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: May 21\nTime:\n500pm\nFOR ACTION:\nPaul Leach\nCC (for information):\nRoger Semerad\nJim Cavanaugh\nJack Marsh\nMax Friedersdorf\nBill Seidman\nRobert Hartmann\nPaul Theis\nFROM THE STAFF SECRETARY\nDUE: Date:\nMay 21\nTime\nasap\nSUBJECT:\nEnrolled Bill H.R. 4481 - Emergency Employment\nAppropriation Act, 1975\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPropare Agenda and Brief\nDraft Regly\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nNo objection. The vote on final passage in the Senate\nwas 53-13-31; a review of the absentees would indicate\nthat there is a good chance to sustain the veto in this\nchamber. In the House, the vote was 313-113-7; a base\nof 113 in the House would appear to be a realistic one\nupon which to build support to sustain the veto.\nKEN LAZARUS 5/21/75\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or If you anticipate 0\ndelay in submitting the required material, please\nJames H. Cavanaugi\ntelephone the Statf Scoretary immediately.\nFor the President\n3\nTHE WHITE HOUSE\nACTION MEMORANDUM\nLOG NO.: 5/24 p.m.\nRecd Saturday\nWASHINGTON\nDate: May 23, 1975\nTime: 5:40pm\nFOR ACTION: Paul Leach\ncc (for information):\nMax Friedersdorf\nJim Cavanaugh\nKen Lazarus\nRobert Hartmann\nPaul Theis\nJack Marsh\nJim Lynn\nFROM THE STAFF SECRETARY\nDUE: Date: May 26\nTime:\n12:30p.m.\nSUBJECT:\nRevised and shortened veto message - H.R. 4481\nEmergency Employment Appropriation Act, 1975\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\n52 EN 2 to\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the rustined material. please\ntelephone the Staff Secretory homedicialy.\nCovanaugh\nthe\nProcident\nAW\nTO THE HOUSE OF REPRESENTATIVES:\noh\nI return without my approval, H.R. 4481, the\nC9\np876\nEmergency Employment Appropriation Act.\nThis bill is not an effective response to the\nunemployment problem. We must reduce unemployment,\n/ But this bill is the wrong approach to the problem\nfor a number of reasons.\nIt would exacerbate budgetary and economic pressures.\non\nIn my address to the Nation on March 29, announcing my\ndecision to sign the Tax Reduction Act, I stressed the\nCQ\non\np696\nneed to keep the 1976 deficit below $60 billion. This\non\nbill is one of many being considered by the Congress that,\ncombined, would increase the deficit to $100 billion or\nVegislating\nok\nour Memo\nmore. This bill authorizes spending of $3.3 billion\nabove my budget requests. Almost half of this added\non\nspending would occur in fiscal year 1976. In addition\nto its impact on 1976, this bill -- and the others\nmaking their way through the Congress --- would add\nsubstantially to spending and to Federal deficits in\n1977 and later years.\n- 2 -\nH. R. 4481, by increasing Federal deficit borrowing,\nwould contribute to choking off the very economic growth\nthat it is intended to stimulate. Further, it is unlikely\nthat spending under this bill could occur soon enough to\naccelerate the economic recovery that is generally\nexpected to be well underway by the end of this year. The\nheaviest impact that this bill would have on employment\nis not likely to occur until well into 1976\nAn\nappreciable\namount of spending would continue in calendar year 1977.\nProjects initiated under this bill will be very difficult\nto stop. This additional spending comes at the wrong\ntime and would run the risk of fueling inflationary\npressures that are now subsiding.\nH.R. 4481 is the result of a process whereby the\nCongress has taken a simple, straightforward, specific\nAdministration proposal for extending public service jobs\nand providing summer youth employment and turned it into\na bill containing a host of provisions of extremely\nuneven merit.\nTo help overcome the recession and high unemployment,\nI proposed, and the Congress enacted, a major tax cut. I\nhave also proposed an extension of unemployment compensa-\ntion benefits, together with increases, which are included\nin this bill for public service jobs and summer employment.\n- 3 -\nFurther stimulus is now counter-productive. I am\ndetermined to hold the line on the deficit for 1976 at\n$60 billion.\nThe Nation does need a bill that will provide the\nfunds I recommended for immediate and temporary employ-\nment through public sector jobs and summer youth employment.\nStudent summer vacations are close at hand and I urge\nthe Congress to pass such a bill promptly.\nTherefore, I must veto this bill.\nFORD LIBRARY & CERALD\nTO THE HOUSE OF REPRESENTATIVES:\nI return without my approval, H.R. 4481, the\nEmergency Employment Appropriation Act.\nThis bill is not an effective response to the\nunemployment problem. We must reduce unemployment.\nBut this bill is the wrong approach to the problem\nfor a number of reasons.\nIt would exacerbate budgetary and economic pressures.\nIn my address to the Nation on March 29, announcing my\ndecision to sign the Tax Reduction Act, I stressed the\nneed to keep the 1976 deficit below $60 billion. This\nbill is one of many being donsidered by the Congress that,\ncombined, would increase the deficit to $100 billion or\nmore. This bill authorizes brother spending of $3.3 billion\nabove my budget requests. Almost half of this added\nspending would occur in fiscal year 1976. In addition\nto its impact on 1976, this bill -- and the others\nmaking their way through the Congress -- would add\nsubstantially to spending and to Federal deficits in\n1977 and later years.\nFORD i LIBRARY GERALD\nCongressional actions and inactions have already\nadded 3 billion to the 1975 deficit and 4.4 6t.\nbillion to the 1976 deficit.\n- 2 -\nH. R. 4481, by increasing Federal deficit borrowing,\nwould contribute to choking off the very economic growth\nthat it is intended to stimulate. Further, it is unlikely\nthat spending under this bill could occur soon enough to\naccelerate the economic recovery that is generally\nexpected to be well underway by the end of this year. The\nheaviest impact that this bill would have on employment\nis not likely to occur until well into 1976. An appreciable\nN.)\namount of spending would continue in calendar year 1977.\nProjects initiated under this bill will be very difficult\nto stop. This additional spending comes at the wrong\ntime and would run the risk of fueling inflationary\npressures that are now subsiding.\nthis legislation\nH.R. 4481 is the result of a process whereby the\nCongress has taken a simple, straightforward, specific\nAdministration proposal for extending public service jobs\nand providing summer ycuth employment and turned it into\na bill containing a host of provisions of extremely questionsble\nuneven morit.\nTo help overcome the recession and high unemployment,\nI proposed, and the Congress passed enacted, a major tax cut. / I\nhave also proposed an extension of unemployment compensa-\ntion benefits, together with increases, which are included\nin this bill for public service jobs and summer employment.\nFORD & LIBRARY 07W33\n- 3 -\nFurther stimulus is now r counter-productive. I am\ndetermined to hold the line on the deficit for 1976 at\n$60 billion.\nThe Nation does need a bill that will provide the\nfunds I recommended for immediate and temporary employ-\nment through public sector jobs and summer youth employment.\nStudent summer vacations are close at hand and I urge\nthe Congress to pass such a bill promptly.\nTherefore, I must H valo this bill e\nthat Bind of a bill, tailered to meet the\nproblems at hand, is one on which the\nCongress and I can agree\nFORD & LIBRARY GERALD\nTHE WHITE HOUSE\nWASHINGTON\nMay 22, 1975\nMEMORANDUM FOR JAMES H. CAVANAUGH\nFROM:\nROGER B. PORTER\nRBP\nSUBJECT:\nDRAFT VETO MESSAGE ON H.R. 4481\nMr. Seidman has asked me to convey to you three specific\nsuggestions on the draft veto message on the Emergency\nEmployment Appropriation Act in addition to his general\nfeeling that the message is too long.\nFirst, we should make the argument that H.R. 4481 is the\nresult of a process whereby the Congress has taken a\nsimple, straightforward, specific Administration proposal\nfor extending public service jobs and providing summer\nyouth employment and turned it into a bill containing a\nhost of provisions of extremely uneven merit. In short,\nCongress has once again cluttered up a sensible Administra-\ntion proposal.\nSecondly he feels it inadvisable to specifically attack\neach of the provisions for particular groups since our\ncase can be made more effectively in the aggregate.\nThirdly, and most importantly, what the message lacks is\nan analysis of how many jobs are expected to be created\nby the provisions in the bill, when these jobs will come\ninto being (how quickly), and the average cost to the tax-\npayer of each additional job. Our suspicion is that such\nan analysis would reveal that the great bulk of jobs which\nmay be created by the bill would be some time in coming on\nstream, and, would not address our immediate unemployment\nproblems. One of the great liabilities of attempting to\nstimulate the economy through such programs is that they\ninevitably tend to have their impact too late.\nSALE FORD LIBRARY\n5/29\nm &\nKatee\n27\nREUD\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGION\nLOG NO.\n:\nDate:\nMay 27, 1975\nTime: 6:00pm\nFOR ACTION: Mike Duval\nCC (for information):\nJim Cavanaugh\nMax Friedersdorf\nJack Marsh\nKen Lazarus\nLWSeidman\nPaul Theis\nFROM THE STAFF SECRETARY\nDUE: Date: May 27\nTime:\nASAP\nSUBJECT:\nProclamation: Modifying Proclamation No. 3279, relating\nto Imports of Petroleum and Petroleum Products, etc.\nACTION REQUESTED:\nX\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\n//\nThe attached proclamation was just received at the White\nHouse and must go to the President tonight.\nob\ngws\nGERALD R\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nJames H. Cave.\ntelephone the Staff Secretary immediately.\nFor the President\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: May 23, 1975\nTime: 5im0pm\nFOR ACTION: Paul Leach\nCC (for information):\nMax Friedersdorf\nJim Cavanaugh\nKen Lazarus\nRobert Hartmann\nPaul Theis\nJack Marsh\nJim Lynn\nFROM THE STAFF SECRETARY\nDUE: Date: May 26\nTime:\n12:30p.m.\nSUBJECT:\nRevised and shortened veto message - H.R. 4481\nEmergency Employment Appropriation Act, 1975\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johaston, Ground Floor West Wing\npaka jernny\nTucomber\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nK. R. COLE, JR.\ntelephone the Staff Secretary immediately.\nFor the President\nASSISTANT DIRECTOR\nOFFICE OF MANAGEMENT AND BUDGET\nJudy Johnston\nHere are ow surgestion\nfor modification of their\ndraft vets message Jim\nLynn has not yes reviewed,\nMake ms Imber\nFORD & LIBRARY GERALD\nTHE WHITE HOUSE\nWASHINGTON\nSuggesta Sug 19st in\nchang 1 GERALD FORD\ni LIBRARY\nformal gm\nTHE WHITE HOUSE\nWASHINGTON\nMEMORANDUM FOR:\nJIM CAVANAUGH\nFROM:\nMAX L. FRIEDERSDORF m.b.\nSUBJECT:\nAction Memorandum - Log No.\nRevised and shortened veto message\nH.R. 4481 Emergency Employment Appropriations\nAct of 1975.\nThe Office of Legislative Affairs concurs with the agencies\nthat the President issue the revised veto message, deleting\nthe last sentence, to end on a positive note.\nAttachments\nFORD LIBRANT\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: May 23, 1975\nTime: 5: 40pm\nFOR ACTION: Paul Leach\ncc (for information):\nMax Friedersdorf\nJim Cavanaugh\nKen Lazarus\nRobert Hartmann\nPaul Theis\nJack Marsh\nJim Lynn\nFROM THE STAFF SECRETARY\nDUE: Date:\nTime:\nMay 26\n12:30p.m.\nSUBJECT:\nRevised and shortened veto message - H.R. 4481\nEmergency Employment Appropriation Act, 1975\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nNo objection-- Ken Lazarus\nFORD & LIBRARY GERALD\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\ntelephone the Sicif Sucretary hamedictely.\nGovanaugh\nthe Propident\nTO THE HOUSE OF REPRESENTATIVES\nI return herewith without my approval, H.R. 4481, the\nor\nEmergency Employment Appropriation Act.\nOF\nReducing the current high rate unemployment IS not the\nTHIS BILL IS NOT AN EFFECTIVE RESPONSE TO THE\n(4) The problem\npresented by this bill. We must and we will reduce\nUNEMPLOYMENT PROBLEM.\nThe\nWAPPROPRY\nwrong\napproad\nunemployment. But This bill\nIs the wrong approach to\nFOR A NUMBER OF REASONS.\ndoing so for several reasons.\nIt\ncymed\nexacerbate budgetary and economic pressures.\nIn my address to the Nation on March 29, announcing my decision\nto sign the Tax Reduction Act, I stressed the need to keep the\n1976 deficit below $60 billion. This bill is one of\ncombined\nmany being considered by the Congress that together, would\nincrease the deficit to $100 billion or more. This bill\nauthorizes spending of $3.3 billion above my budget requests.\nwould occur\nlmost half of this added spending occurring in fiscal\nyear 1976. In addition to its impact on 1976, this bill - and\nthe others making their way through the Congress --- would add\nsubstantially to spending and to Federal deficits in 1977 and\nlater years.\nESCALATED\nFORD & LIBRARY GERALD\nThe increased deficits caused by this additional spending\nwould lead to extraordinary Federal demands on our financial\nmarkets. These demands could deprive business firms of funds\nneeded for modernization and expansion of capacity. State and\nlocal governments and prospective home buyers would have\nincreased difficulty borrowing necessary the funds, they need. Interest\nAND\nING\nrates would be driven up result in increased costs for\neveryone.\n- 2 -\nIn this way, H.R. 4481 would contribute to choking off\nthe very economic growth that it is intended to help stimulate.\nFurther, it is unlikely that spending under this bill could occur\nsoon enough to accelerate the economic recovery that is generally\nexpected to be well underway by the end of this year. The\nheaviest impact that this bill would have on employment is not\nlikely to occur until well into 1976, and appreciable amount\nof spending would continue in calendar year 1977.\nOnce\nprojects\nin tiated\nunder this bill are begun, they will be very difficult to stop.\nThis additional spending comes at the wrong time and would run\nthe risk of fueling inflationary pressures that are now sub-\nsiding.\nTo help overcome the recession and high unemployment, I\nactedite\nenacted\nproposed and the Congress agreed on a major tax cut. I have\nP\nn\nalso proposed an extension of unemployment compensation\nbenefits, together with increases, which are included in this\nbill for public service jobs and summer employment. Further\ncounter - productive.\nstimulus is not needed now I am determined to hold the line\non the deficit for 1976 at $60 billion therefore I must veto\nthis bill.\nwould be\nThis bill is the wrong approach because it provides\nwasteful additional funds and for delivental to costly economic programs stability. The\n$2 billion request I have made for public service jobs and\nsummer youth employment meets the current problem by immediately providing\nnecessary,\nimmediate,\ntemporary employment.\nBy\nand\nIn the guise of aid to the unemployed, this bill contains a\nconglomeration of increases that are unneeded and expensive\nGERALD FORD LIBRARY\nThese expenditure\nwill not be effective in producing immediate employment.\n- 3 -\nAmong them are:\n--\n$440 million for the Federal Buildings Fund of the\nThis\nGeneral Services Administration, which would violate\nthe basic premise on which the Federal Buildings Fund\nwas created. The Fund was set up to finance real\nproperty expenses from rental receipts. It is also\ndoubtful that n the funds could be used effectively in\na short time.\n$385 million for Small Business Administration loans.\nThe Tax Reduction Act, which included reductions in\nboth corporate and personal income taxes and increased\ninvestment tax credits, provides financial stimulus to\nhelp small businesses recover from the recent drop in\nthe economy. The efforts of the Federal Reserve to\nincrease the growth of the money supply is causing a\nresurgence in the availability of funds for small\nFORD & LIBRARY\nbusinesses.\nFurther, I believe that the Federal\nGovernment should not and cannot fffectively assume\na large role in making individual credit allocation\ndecisions for small business financing The principal\nresponsibility for such decisions should be left with\nthe private sector.\nThis\n-- $120 million for college work-study grants\nwhich\nis\nbecause\nunnecessary given student assistance funds now\navailable and becoming available in 1976.\nThis\n-- $100 million for a payment to the Postal Service that\nmahing the Postal service\nwould shift substantial postal costs from users of\nthe Postal Service to the general taxpayer and would\nonce more inject the Legislative Branch into decision-\n- 4 -\n-- $70 million for the work incentive program of HEW.\n--- $66 million to purchase 18,000 vehicles for the\nGeneral Services Administration motor pool fleet, The\nnormally and more efficiently financed through agency-\nuser charges.\n-- $30 million for Community Service Employment for Older\nThis\nAmericans not only duplicates comprehensive\nmanpower assistance activities but actually may reduce\nthe amount of manpower services State and local govern-\nments provide older workers.\nThey\n-- An extra $45 million for summer youth employment which\nis entirely unnecessary in view of the $413 million\nrequested and the substantial amounts being programmed\nby States and localities.\nthis bill is the wrong approach because it provides\nhigher spending levels for a variety of programs and projects\nof unequal merit which may be difficult to reduce\nafter\nthe economic situation has improved. Included in this category\nare:\n-- $642 million in appropriations and loan authority for\nthe Farmer's Home Administration.\n--- $479 million for the Department of Commerce. Of this\namount, $375 million would be used in the Job\nOpportunities Program of the Economic Development\nFORD i LIBRARY GERALD\nAdministration. It is not yet known whether the\n$125 million provided for this program in the Urgent\nSupplemental Appropriations Act of last December can\n- 5 -\nbe effectively used, let alone another $375 million.\nExperience to date, has shown that the\nprogram is extremely difficult and time-consuming to\nadminister. Previous efforts to use such long-range\ndevelopment programs as anti-recession tools have not\nbeen successful. Funds have not been applied quickly\nenough to shorten significantly the period of recession\nA ssistance often has. not greatly benefited MANY those areas\nin need,\nosts of generating temporary employ-\nment through such mechanisms have been high.\n-- $333 million for public works projects of the Corps\nof Engineers and Bureau of Reclamation.\nIn summary, this bill would bring about an undesirable\net\nincrease in the Federal deficit would expand programs that are\ncostly and ineffective in aiding the unemployed,\nwould\nproduce spending in the future when it is not expected to be\nneeded and, in fact, will be counterproductive $ For these\nthis bill\nreasons, I am returning without my approval. The Nation\ndoes\nprovides\nneed\na bill that includes the funds I recommended\nfor\nproviding\nimmediate and temporary employment through public\nsector jobs and summer youth employment.\nwith\nS\nare\nand\ntudent summer vacations close at hand I urge the Congress to\npass such a bill promptly.\nH\nFORD i GERALD LIBRARY\nTHE WHITE HOUSE\nCTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: May 23, 1975\nTime: 5:40pm\nFOR ACTION: Paul Leach\nCC (for information):\nMax Friedersdorf\nJim Cavanaugh\nKen Lazarus\nRobert Hartmann\nPaul Theis\nJack Marsh\nBill Seidman\nJim Lynn\nFROM THE STAFF SECRETARY\nDUE: Date:\nTime:\nMay 26'\n12:30p m.\nof\nSUBJECT:\nRevised and shortened veto message - H.R. 4481\nEmergency Employment Appropriation Act, 1975\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nos - great sings revent\nbut stell meg ative.\nLIBRARY GERALD R. FORD\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required moterial, please\ntelephone the Staff Secretary immediately.\nUnwanaugh\nthe Procident\nTHE WHITE HOUSE\nWASHINGTON\nMay 21, 1975\nMEMORANDUM FOR:\nJIM CAVANAUGH\nFROM:\nMAX L. FRIEDERSDORF\nSUBJECT:\nAction Memorandum - Log No.\nEnrolled Bill H.R. 4481 - Emergency\nEmployment Appropriation Act, 1975\nThe Office of Legislative Affairs concurs with the agencies\nthat the\nbill be vetoed.\nAttachments\nBRARY\n6/4\nMr. J-\nTo add to file, plo.\nVitaed 5/28.\nThanks.\nKatu\nEXECUTIVE OFFICE OF THE PRESIDENT\n3:557. STATE SEATIS UNITED\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nMAY 21 1975\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 4481 - Emergency Employment Appropriation\nAct, 1975\nSponsor - Representative Mahon (D), Texas\nLast Day for Action:\nMay\n1975\n-\n- Transmittal of a veto message prior to the\nJune 2, 1975\nCongressional recess for Memorial Day is\nrecommended\nAdministration Enrolled Congressional\nAppropriations:\nRequest\nBill\nIncrease\n(In millions)\nNew budget authority\n$ 2,043\n$ 4,729\n$ 2,686\nDirect and insured loans\nI\n485\n485\nLiquidation of contract authority\n--\n92\n92\nOutlay Increases: FY 1975: $ 684 million\nFY 1976: $1,540 million\nHighlights:\nFORD i LIBRARY GERALD\n- With the exception of your requests of $1.6 billion for temporary\nemployment assistance, $413 million for summer youth employment, and\n$5 million for the U.S. Railway Association, all appropriations in\nthis bill were unrequested.\n- Almost half of the $3.3 billion provided by this bill over your request\nwould be spent in fiscal year 1976, making the $60 billion deficit\nline difficult to hold.\n- The bill contains a conglomeration of increases, some of which are\nunneeded, or more costly than necessary, or will not produce immediate\nemployment, or will set new program levels which will be difficult to\nreduce later.\nRecommendation\nI recommend that you veto the bill and issue a veto message before the\nCongress recesses for Memorial Day.\nJan Director James T. Lynn Log\nAttachment\nEXECUTIVE OFFICE OF THE PRESIDENT\nOREGO\nOFFICE OF MANAGEMENT AND BUDGET\nSEATES\nWASHINGTON, D.C. 20503\nMAY 2 1 1975\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 4481 - Emergency Employment\nAppropriation Act, 1975\nSponsor - Representative Mahon (D), Texas\nLast Day for Action\nJune May 2, 1975 1975 - monday\n.\nBecause the House plans to recess\nat the end of business on May 22 and the Senate the following\nday, transmittal of the veto message by May 22 is recommended.\nPurpose\nAppropriates a total of $4,729 million in budget authority,\n$485 million in direct and insured loan authority, and $92 mil-\nlion in appropriations to liquidate contract authority for the\nDepartments of Agriculture, Commerce, Interior, and Labor; the\nCorps of Engineers; the General Services Administration; the\nSmall Business Administration; and other agencies.\nAgency Recommendations\nOffice of Management and Budget\nDisapproval (veto\nstatement attached)\nDiscussion\nThe economic and budgetary pressures the enrolled bill would\ngenerate if it were approved are the bases for our veto\nrecommendation:\nThe appropriations and loan authority provided by the\nenrolled bill are $3.3 billion above your request of\n$2,043 million for emergency employment. Almost half of\nthe $3.3 billion of increased expenditures provided by\nthe bill over your request would be spent in fiscal year\n1976, making the $60 billion deficit line difficult to\nhold. Spending would continue in 1977 and later years\nand would increase the projected deficits for those years.\nFORD i LIBRARY\n2\nThe increased deficits resulting from this additional\nspending would lead to excessive Federal demands on finan-\ncial markets, making borrowing more difficult and driving\ninterest rates up. Thus, this bill could reverse the very\neconomic growth that the Congress intended to help stimulate.\nMany of the additional amounts in the bill for existing\nprograms will not quickly improve employment, but will\nproduce spending levels that will be difficult to reduce\nlater after the economic situation has improved. Spending\nunder the bill cannot occur soon enough to accelerate\nthe economic recovery that is expected to be well underway\nby the end of this year, but it could occur late enough\ninto the recovery to fuel again the inflationary pressures\nthat are just now subsiding.\nIn addition to the $1.6 billion for public service employment,\nthe $413 million (increased by the Congress to $458 million)\nfor summer youth employment and the $5 million for the U.S.\nRailway Association which you requested, the enrolled bill\ncontains appropriations of:\n-- $642 million for the Farmer's Home Administration.\nAlthough studies by the Department of Agriculture indi-\ncate a demand for program assistance in excess of current\nfunding levels, the loan and grant programs increased\nby the enrolled bill often require long lead times to\nget underway and will therefore not provide immediate\nemployment assistance.\n-- $506 million for the General Services Administration.\nIncluded in this amount is $440 million for the Federal\nBuildings Fund. This appropriation would violate the\nbasic premise of the Federal Buildings Fund: to operate\non a businesslike basis and finance real property\nexpenses out of proceeds of rental receipts. Language\nincluded will exempt GSA from the requirement of repay-\nment with interest of appropriations to this Fund.\nFurther, it is doubtful that GSA could effectively use\nthe additional amounts. The remaining $66 million for\nthe General Supply Fund would purchase 18 thousand\nvehicles, which would be used to replace approximately\none-fourth of the entire motor pool fleet. The appro-\npriation would be uneconomical and wasteful, because\nvehicle purchases are normally financed through agency\nFORD i LIBRARY 07V839\nuser charges and at a slightly lower rate.\n-- $479 million for the Department of Commerce. Of this\namount, $375 million would be used in the Job Opportunities\nProgram of the Economic Development Administration. It is\n3\nnot yet known whether the $125 million provided for this\nprogram in the Urgent Supplemental Appropriations Act\nof December, 1974, can be effectively used, let alone\nanother $375 million. Experience to date, however, has\nshown that the program is extremely difficult and time\nconsuming to administer. The remaining $104 million\nwould be used to accelerate the programs of the Economic\nDevelopment Administration and the Regional Action\nPlanning Commissions. Previous efforts to utilize long-\nrange development programs as anti-recession tools have\nnot been successful. Funds have not been utilized in\na timely enough manner to significantly shorten the period\nof recession, assistance often has not greatly benefited\nthose areas most in need, and costs of generating temporary\nemployment through such mechanisms have been high.\n-- $385 million for Small Business Administration loan pro-\ngrams. The recent tax reduction legislation, which\nincluded reductions in both corporate and personal income\ntaxes and increased investment tax credits, provides the\nfinancial stimulus to allow small businesses to recover\nfrom the recent drop in the economy. Federal Reserve\nefforts to expand the growth of the money supply are\ncausing a resurgence in the availability of capital for\nsmall businesses. Further, there is the question of\nwhether the Federal government should--and can effectively--\nassume a large role in making individual credit allocation\ndecisions for small business financing. It has been the\nAdministration's position that the principal responsibility\nfor such decisions should be left with the private sector.\n-- $333 million for public works projects of the Corps of\nEngineers and Bureau of Reclamation. These funds are to\nbe used to accelerate completion of projects now underway.\nIn addition to providing additional funds, approving the\nbill would give added weight to an undesirable statement\nof congressional intent contained in the conference report.\nThe report states that recreation development at projects\nauthorized prior to 1965 should be 100 per cent Federally-\nfunded. This is inconsistent both with the Administration's\ncost-sharing policy on water resource projects in general\nand with the law covering cost-sharing on projects auth-\nFORD\norized after 1965.\n-- $190 million for higher education and work incentives\nGERALD\nLIBRARY\nunder the Department of Health, Education, and Welfare.\nThe increase of $120 million for college work-study grants\nis unnecessary at this time, given the student assistance\nfunds already appropriated and the expected 1976 funding\nlevel. The funds for work incentives ($70 million) restore\na congressional reduction in last year's appropriation request.\n4\n-- $143 million for the Forest Service. These funds are\nprimarily for low priority items and may result in\ncompletion of some projects (i.e., forest roads and trails\nconstruction) in advance of need.\n-- $115 million for the Soil Conservation Service of the\nDepartment of Agriculture. Of the amount appropriated,\n$106 million is to assist in the reduction of backlogs\nin the watershed and flood prevention program.\n-- $100 million for payment to the U.S. Postal Service. Under\nthe Postal Reorganization Act of 1970, Federal subsidies\nare provided to the Postal Service for three specific\npurposes: to cover public service costs, reimburse the\nPostal Service for revenue foregone when carrying particu-\nlar classes of mail at reduced rates, and for covering\nliabilities of the former Post Office Department. To\nprovide funds as recommended in the bill would not conform\nto the above statutory authorizations. Provision of these\nfunds would once more inject the legislative branch into\nPostal decisionmaking and affect Postal management's\nlong-range planning efforts. It would once more subject\nthe Postal Service to the vagaries of the appropriation\nprocess and establish a precedent for providing additional\nforms of subsidy to assist the Postal Service in areas\nnot envisioned by the Reorganization Act. More importantly,\nprovision of this $100 million would shift a substantial\namount of postal costs from the users of the Postal Service\nonto the general taxpayer.\n-- $30 million for Community Service Employment for Older\nAmericans, that not only duplicates comprehensive manpower\nassistance activities, but may actually reduce the amount of\nmanpower services State and local governments provide older\nworkers.\nIn sum, the bill contains a conglomeration of increases, some of\nwhich are unneeded, more costly than necessary, will not produce\nimmediate employment, or will set new program levels which will\nbe difficult to reduce later.\nRecommendation\nYou have warned that this bill would be vetoed if the enrolled\nversion coming to you for signature did not represent a significant\nreduction from both the House and Senate versions. This enrolled\nbill does not represent such a reduction. I recommend that you\nveto the bill and issue a veto message (draft attached) before\nthe Congress recesses for Memorial Day.\nJames T. Lynn\nDirector\nAttachment\nTO THE HOUSE OF REPRESENTATIVES\nI return herewith, without my approval, H.R. 4481, the\nEmergency Employment Appropriation Act.\nReducing the current high rate of unemployment is not the\nissue presented by this bill. We must and we will reduce\nunemployment. This bill, however, is the wrong approach to\ndoing so for several reasons.\nFirst, it will exacerbate budgetary and economic pressures.\nIn my address to the Nation on March 29, announcing my decision\nto sign the Tax Reduction Act, I stressed the need to keep the\n1976 deficit at or below $60 billion. This bill is one of\nmany being considered by the Congress that, together, would\nincrease the deficit to $100 billion or more. This bill\nauthorizes spending of $3.3 billion above my budget requests,\nwith almost half of this added spending occurring in fiscal\nyear 1976. In addition to its impact on 1976, this bill -- and\nthe others making their way through the Congress -- would add\nsubstantially to spending and to Federal deficits in 1977 and\nlater years.\nThe increased deficits caused by this additional spending\nwould lead to extraordinary Federal demands on our financial\nmarkets. These demands could deprive business firms of funds\nneeded for modernization and expansion of capacity. State and\nlocal governments and prospective home buyers would have\nincreased difficulty borrowing the funds they need. Interest\nrates would be driven up, resulting in increased costs for\neveryone.\n- 2 -\nIn this way, H.R. 4481 would contribute to choking off\nthe very economic growth that it is intended to help stimulate.\nFurther, it is unlikely that spending under this bill could occur\nsoon enough to accelerate the economic recovery that is generally\nexpected to be well underway by the end of this year. The\nheaviest impact that this bill would have on employment is not\nlikely to occur until well into 1976 and an appreciable amount\nof spending would continue in calendar year 1977. Once projects\nunder this bill are begun, they will be very difficult to stop.\nThis additional spending comes at the wrong time and would run\nthe risk of fueling inflationary pressures that are now sub-\nsiding.\nTo help overcome the recession and high unemployment, I\nproposed and the Congress agreed on a major tax cut. I have\nalso proposed an extension of unemployment compensation\nbenefits, together with increases, which are included in this\nbill for public service jobs and summer employment. Further\nstimulus is not needed now. I am determined to hold the line\non the deficit for 1976 at $60 billion and therefore must veto\nthis bill.\nSecond, this bill is the wrong approach because it provides\nadditional funds for ineffective and costly programs. The\n$2 billion request I have made for public service jobs and\nsummer youth employment meets the current problem by providing\nnecessary, immediate, temporary employment. By contrast, and\nin the guise of aid to the unemployed, this bill contains a\nconglomeration of increases that are unneeded and expensive,\nand will not be effective in producing immediate employment.\n- 3 -\nAmong them are:\n-- $440 million for the Federal Buildings Fund of the\nGeneral Services Administration, which would violate\nthe basic premise on which the Federal Buildings Fund\nwas created. The Fund was set up to finance real\nproperty expenses from rental receipts. It is also\ndoubtful that the funds could be used effectively in\na short time.\n-- $385 million for Small Business Administration loans.\nThe Tax Reduction Act, which included reductions in\nboth corporate and personal income taxes and increased\ninvestment tax credits, provides financial stimulus to\nhelp small businesses recover from the recent drop in\nthe economy. The efforts of the Federal Reserve to\nincrease the growth of the money supply is causing a\nresurgence in the availability of funds for small\nbusinesses. Further, I believe that the Federal\nGovernment should not -- and cannot effectively-- assume\na large role in making individual credit allocation\ndecisions for small business financing. The principal\nresponsibility for such decisions should be left with\nthe private sector.\n-- $120 million for college work-study grants, which is\nunnecessary, given student assistance funds now\navailable and becoming available in 1976.\n-- $100 million for a payment to the Postal Service that\nwould shift substantial postal costs from users of\nthe Postal Service to the general taxpayer and would\nonce more inject the Legislative Branch into decision-\nmaking in the Postal Service.\nFORD GERALD & GERALD LIBRARY\n- 4 -\n-- $70 million for the work incentive program of HEW.\n-- $66 million to purchase 18,000 vehicles for the\nGeneral Services Administration motor pool fleet\nnormally and more efficiently financed through agency\nuser charges.\n-- $30 million for Community Service Employment for Older\nAmericans that not only duplicates comprehensive\nmanpower assistance activities but actually may reduce\nthe amount of manpower services State and local govern-\nments provide older workers.\n-- An extra $45 million for summer youth employment which\nis entirely unnecessary in view of the $413 million\nrequested and the substantial amounts being programmed\nby States and localities.\nThird, this bill is the wrong approach because it provides\nhigher spending levels for a variety of programs and projects\nof unequal merit which may be difficult to reduce later, after\nthe economic situation has improved. Included in this category\nare:\n-- $642 million in appropriations and loan authority for\nthe Farmer's Home Administration.\n-- $479 million for the Department of Commerce. Of this\namount, $375 million would be used in the Job\nOpportunities Program of the Economic Development\nAdministration. It is not yet known whether the\n$125 million provided for this program in the Urgent\nSupplemental Appropriations Act of last December can\nSERAID R. FORD LIBRABY\n- 5 -\nbe effectively used, let alone another $375 million.\nExperience to date, however, has shown that the\nprogram is extremely difficult and time consuming to\nadminister. Previous efforts to use such long-range\ndevelopment programs as anti-recession tools have not\nbeen successful. Funds have not been applied quickly\nenough to shorten significantly the period of recession,\nassistance often has not greatly benefited those areas\nmost in need, and costs of generating temporary employ-\nment through such mechanisms have been high.\n-- $333 million for public works projects of the Corps\nof Engineers and Bureau of Reclamation.\nIn summary, this bill would bring about an undesirable\nincrease in the Federal deficit, would expand programs that are\ncostly and ineffective in aiding the unemployed, and would\nproduce spending in the future when it is not expected to be\nneeded and, in fact, will be counterproductive. For these\nreasons, I am returning it without my approval. The Nation\nneeds, however, a bill that includes the funds I recommended\nfor providing immediate and temporary employment through public\nsector jobs and summer youth employment. Particularly with\nstudent summer vacations close at hand, I urge the Congress to\npass such a bill promptly.\nP..\nFORD\nis\nLIBRARY\nTHE WHITE HOUSE\nMay , 1975\nTO THE HOUSE OF REPRESENTATIVES:\nI return without my approval, H.R. 4481, the\nEmergency Employment Appropriation Act.\nThis bill is not an effective response to the\nunemployment problem. We must reduce unemployment.\nBut this bill is the wrong approach to the problem\nfor a number of reasons.\nIt would exacerbate budgetary and economic pressures.\nIn my address to the Nation on March 29, announcing my\ndecision to sign the Tax Reduction Act, I stressed the\nneed to keep the 1976 deficit below $60 billion. This\nbill is one of many being considered by the Congress that,\ncombined, would increase the deficit to $100 billion or\nmore. This bill authorizes spending of $3.3 billion\nabove my budget requests. Almost half of this added\nspending would occur in fiscal year 1976. In addition\nto its impact on 1976, this bill -- and the others\nmaking their way through the Congress -- would add\nsubstantially to spending and to Federal deficits in\n1977 and later years.\nFORD LIBRABY\n- 2 -\nH. R. 4481, by increasing Federal deficit borrowing,\nwould contribute to choking off the very economic growth\nthat it is intended to stimulate. Further, it is unlikely\nthat spending under this bill could occur soon enough to\naccelerate the economic recovery that is generally\nexpected to be well underway by the end of this year. The\nheaviest impact that this bill would have on employment\nis not likely to occur until well into 1976. An appreciable\namount of spending would continue in calendar year 1977.\nProjects initiated under this bill will be very difficult\nto stop. This additional spending comes at the wrong\ntime and would run the risk of fueling inflationary\npressures that are now subsiding.\nH.R. 4481 is the result of a process whereby the\nCongress has taken a simple, straightforward, specific\nAdministration proposal for extending public service jobs\nand providing summer youth employment and turned it into\na bill containing a host of provisions of extremely\nuneven merit.\nTo help overcome the recession and high unemployment,\nI proposed, and the Congress enacted, a major tax cut. I\nhave also proposed an extension of unemployment compensa-\ntion benefits, together with increases, which are included\nin this bill for public service jobs and summer employment.\n- 3 -\nFurther stimulus is now counter-productive. I am\ndetermined to hold the line on the deficit for 1976 at\n$60 billion.\nThe Nation does need a bill that will provide the\nfunds I recommended for immediate and temporary employ-\nment through public sector jobs and summer youth employment.\nStudent summer vacations are close at hand and I urge\nthe Congress to pass such a bill promptly.\nTherefore, I must veto this bill.\nTHE WHITE HOUSE\nWASHINGTON\nMay 23, 1975\nMEMORANDUM FOR:\nJIM CAVANAUGH\nFROM:\nDICK DUNHAM Di-\nAttached is the package on the veto\nmessage on H.R. 4481. Since I have made\na number of deletions and insertions as a\nresult of comments from various people, it\nperhaps should be staffed around again.\nPages 3 through 6 of the original draft\nmessage could also be included in the\npackage for the President's information\nand for possible use by Ron Nessen in\ndiscussing some of the specific undesirable\nitems in the bill.\nAttachment\nTO THE HOUSE OF REPRESENTATIVES:\nI return without my approval, H.R. 4481, the\nEmergency Employment Appropriation Act.\nThis bill is not an effective response to the\nunemployment problem. We must reduce unemployment.\nBut this bill is the wrong approach to the prob-\nlem for a number of reasons.\nIt would exacerbate budgetary and economic pressures.\nIn my address to the Nation on March 29, announcing my\ndecision to sign the Tax Reduction Act, I stressed the\nneed to keep the 1976 deficit below $60 billion. This\nbill is one of many being considered by the Congress\nthat, combined, would increase the deficit to $100\nbillion or more. This bill authorizes spending of $3.3\nbillion above my budget requests. Almost half of this\nadded spending would occur in fiscal year 1976. In\naddition to its impact on 1976, this bill -- and the\nothers making their way through the Congress -- would\nadd substantially to spending and to Federal deficits\nin 1977 and later years.\nThe increased deficits escalated by this additional\nspending would lead to extraordinary Federal demands on\nour financial markets. These demands could deprive\nbusiness firms of funds needed for modernization and\n2\nexpansion of capacity. State and local governments and\nprospective home buyers would have increased difficulty\nborrowing necessary funds. Interest rates would be\ndriven up, resulting in increased costs for everyone\nFederal\ndefect\nIn this way, H.R. 4481 would contribute to choking\noff the very economic growth that it is intended to\nstimulate. Further, it is unlikely that spending under\nthis bill could occur soon enough to accelerate the\neconomic recovery that is generally expected to be well\nunderway by the end of this year. The heaviest impact\nthat this bill would have on employment is not likely\nto occur until well into 1976. An appreciable amount\nof spending would continue in calendar year 1977. Proj-\nects initiated under this bill will be very difficult\nto stop. This additional spending comes at the wrong\ntime and would run the risk of fueling inflationary\npressures that are now subsiding.\nInsel A\nTo help overcome the recession and high unemployment,\nI proposed and the Congress enacted, a major tax cut. I\nhave also proposed an extension of unemployment compensa-\ntion benefits, together with increases, which are included\nin this bill for public service jobs and summer employment.\nFurther stimulus is now counter-productive. I am deter-\nmined to hold the line on the deficit for 1976 at $60\nbillion. Therefore, I must veto this bill.\n3\nThis bill would be wasteful and detrimental to\neconomic stability. The $2 billion request I have made\nfor public service jobs and summer youth employment meets\nthe current problem by immediately providing temporary\nemployment. In the guise of aid to the unemployed, this\nbill contains a conglomeration of increases that are\nunneeded and expensive. These expenditures will not be\neffective in producing immediate employment. Among them\nare:\n-- $440 million for the Federal Buildings Fund\nof the General Services Administration. This\nwould violate the basic premise on which the\nFederal Buildings Fund was created. The Fund\nwas set up to finance real property expenses\nfrom rental receipts. It is also doubtful\nwhether the funds could be used effectively\nin a short time.\n-- $385 million for Small Business Administration\nloans. The Tax Reduction Act, which included\nreductions in both corporate and personal in-\ncome taxes and increased investment tax credits,\nprovides financial stimulus to help small\nbusinesses recover from the recent drop in the\neconomy. The efforts of the Federal Reserve\n4\nto increase the growth of the money supply\nis causing a resurgence in the availability\nof funds for small businesses.\n-- $120 million for college work-study grants.\nThis is unnecessary because of student\nassistance funds now available and becoming\navailable in 1976.\n-- $100 million for a payment to the Postal Service.\nThis would shift substantial postal costs from\nusers of the Postal Service to the general tax-\npayer and would once more inject the Legislative\nBranch into decision-making in the Postal Service.\n-- $70 million for the work incentive program\nof HEW.\n-- $66 million to purchase 18,000 vehicles for\nthe General Services Administration motor pool\nfleet. This is normally and more efficiently\nfinanced through agency-user charges.\n-- $30 million for Community Service Employment\nfor Older Americans. This not only duplicates\ncomprehensive manpower assistance activities but\nactually may reduce the amount of manpower\nservices State and local governments provide\nolder workers.\n5\n-- An extra $45 million for summer youth\nemployment. This is entirely unnecessary\nin view of the $413 million requested and\nthe substantial amounts being programmed\nby States and localities.\nThis bill is the wrong approach because it provides\nhigher spending levels for a variety of programs and\nprojects of unequal merit which may be difficult to re-\nduce after the economic situation has improved. Included\nin this category are:\n-- $642 million in appropriations and loan authority\nfor the Farmer's Home Administration.\n-- $479 million for the Department of Commerce.\nOf this amount, $375 million would be used in\nthe Job Opportunities Program of the Economic\nDevelopment Administration. It is not yet known\nwhether the $125 million provided for this pro-\ngram in the Urgent Supplemental Appropriations\nAct of last December can be effectively used,\nlet alone another $375 million. Experience to\ndate has shown that the program is extremely\ndifficult and time-consuming to administer.\nPrevious efforts to use such long-range develop-\nment programs as anti-recession tools have not\nbeen successful. Funds have not been applied\n6\nquickly enough to significantly shorten the\nperiod of recession. Assistance has not\ngreatly benefited many areas in need. Costs\nof generating temporary employment through\nsuch mechanisms have been high.\n-- $333 million for public works projects of\nthe Corps of Engineers and Bureau of\nReclamation.\nIn summary, this bill would bring about an undesirable\nincrease in the Federal deficit. It would expand programs\nthat are costly and ineffective in aiding the unemployed.\nIt would produce spending in the future when it is not\nexpected to be needed and, in fact, will be counter-\nproductive.\nFor these reasons, I am returning this bill without\nmy approval. The Nation does need a bill that will provide\nthe funds I recommended for immediate and temporary employ-\nment through public sector jobs and summer youth employment.\nStudent summer vacations are close at hand and I urge the\nCongress to pass such a bill promptly.\nTO THE HOUSE OF REPRESENTATIVES:\nI return without my approval, H.R. 4481, the Emergency\nEmployment Appropriation Act.\nBarlier this year, I asked the Congress for legislation\nto deal with the Nation's most immediate employment problems\nthrough an extension of public service jobs and a program of\nsummer youth employment.\nThe Congress has taken this simple, straightforward and\nspecific proposal and turned it into a bill containing a host\nof provisions of questionable value.\nThis bill, as presented to me, is not an effective\nresponse to the unemployment problem. It would exacerbate\nboth budgetary and economic pressures, and its chief impact\nwould be felt long after our current unemployment problems\nare expected to subside.\nThe bill authorizes spending of $3.3 billion above my\nbudget requests. Almost half of this added spending would\noccur in fiscal 1976 and an appreciable amount of spending\nwould continue in calendar year 1977. Economic recovery is\nexpected to be well underway by the end of 1975, and the\naccelerative influences of this bill would come much too\nlate to give impetus to this recovery. Instead, those in-\nfluences would run the risk of contributing to a new round\nof inflation later on.\nIn my address to the Nation on March 29, announcing my\ndecision to sign the Tax Reduction Act, I stressed the need\nto keep the 1976 deficit below $60 billion. This bill is\none of many being considered by the Congress that, combined,\nwould increase the deficit to $100 billion or more. Already,\nCongressional actions and inactions have added $7.3 billion\nto the 1975 deficit and $4.4 billion to the 1976 deficit.\n2\nSuch an increase in the Federal budget deficit would\nlead to an increase in Federal borrowing from private\nfinancial markets. These heavy Federal demands for capital\ncould deprive business firms of funds needed for moderniza-\ntion and expansion of capacity.\nThus, H.R. 4481 would contribute to choking off the\nvery economic growth it is intended to stimulate.\nTo help overcome the recession and high unemployment,\nI have proposed, and the Congress has enacted, a major tax\ncut. I have also proposed an extension of unemployment com-\npensation benefits, together with increases, which are\nincluded in this bill for public service jobs and summer\nemployment.\nFurther stimulus would hurt more than it would help our\neconomy in the long run. H.R. 4481 provides for too much\nstimulus, too late, and I must therefore veto the bill.\nThe need remains, however, for a bill that will provide\nthe funds I recommended for immediate and temporary employment\nthrough the public sector and summer youth jobs. Since\nstudent summer vacations are close at hand, I urge the Congress\nto pass such a bill as quickly as possible.\nTHE WHITE HOUSE,\nTO THE HOUSE OF REPRESENTATIVES\nI return herewith, without my approval, H.R. 4481, the\nEmergency Employment Appropriation Act.\nReducing the current high rate of unemployment is not the\nissue presented by this bill. We must and we will reduce\nunemployment. This bill, however, is the wrong approach to\ndoing so for several reasons.\nFirst, it will exacerbate budgetary and economic pressures.\nIn my address to the Nation on March 29, announcing my decision\nto sign the Tax Reduction Act, I stressed the need to keep the\n1976 deficit at or below $60 billion. This bill is one of\nmany being considered by the Congress that, together, would\nincrease the deficit to $100 billion or more. This bill\nauthorizes spending of $3.3 billion above my budget requests,\nwith almost half of this added spending occurring in fiscal\nyear 1976. In addition to its impact on 1976, this bill -- and\nthe others making their way through the Congress -- would add\nsubstantially to spending and to Federal deficits in 1977 and\nlater years.\nThe increased deficits caused by this additional spending\nwould lead to extraordinary Federal demands on our financial\nmarkets. These demands could deprive business firms of funds\nneeded for modernization and expansion of capacity. State and\nlocal governments and prospective home buyers would have\nincreased difficulty borrowing the funds they need. Interest\nrates would be driven up, resulting in increased costs for\neveryone.\n- 2 -\nIn this way, H.R. 4481 would contribute to choking off\nthe very economic growth that it is intended to help stimulate.\nFurther, it is unlikely that spending under this bill could occur\nsoon enough to accelerate the economic recovery that is generally\nexpected to be well underway by the end of this year. The\nheaviest impact that this bill would have on employment is not\nlikely to occur until well into 1976 and an appreciable amount\nof spending would continue in calendar year 1977. Once projects\nunder this bill are begun, they will be very difficult to stop.\nThis additional spending comes at the wrong time and would run\nthe risk of fueling inflationary pressures that are now sub-\nsiding.\nTo help overcome the recession and high unemployment, I\nproposed and the Congress agreed on a major tax cut. I have\nalso proposed an extension of unemployment compensation\nbenefits, together with increases, which are included in this\nbill for public service jobs and summer employment. Further\nstimulus is not needed now. I am determined to hold the line\non the deficit for 1976 at $60 billion and therefore must veto\nthis bill.\nSecond, this bill is the wrong approach because it provides\nadditional funds for ineffective and costly programs. The\n$2 billion request I have made for public service jobs and\nsummer youth employment meets the current problem by providing\nnecessary, immediate, temporary employment. By contrast, and\nin the guise of aid to the unemployed, this bill contains a\nconglomeration of increases that are unneeded and expensive,\nand will not be effective in producing immediate employment.\n- 3 -\nAmong them are:\n-- $440 million for the Federal Buildings Fund of the\nGeneral Services Administration, which would violate\nthe basic premise on which the Federal Buildings Fund\nwas created. The Fund was set up to finance real\nproperty expenses from rental receipts. It is also\ndoubtful that the funds could be used effectively in\na short time.\n-- $385 million for Small Business Administration loans.\nThe Tax Reduction Act, which included reductions in\nboth corporate and personal income taxes and increased\ninvestment tax credits, provides financial stimulus to\nhelp small businesses recover from the recent drop in\nthe economy. The efforts of the Federal Reserve to\nincrease the growth of the money supply is causing a\nresurgence in the availability of funds for small\nbusinesses. ( Further, I believe that the Federal\nGovernment should not -- and cannot effectively-- assume\na large role in making individual credit allocation\ndecisions for small business financing. The principal\nresponsibility for such decisions should be left with\nthe private sector.\n-- $120 million for college work-study grants, which is\nunnecessary, given student assistance funds now\navailable and becoming available in 1976.\n-- $100 million for a payment to the Postal Service that\nwould shift substantial postal costs from users of\nthe Postal Service to the general taxpayer and would\nonce more inject the Legislative Branch into decision-\nmaking in the Postal Service.\n- 4 -\n-- $70 million for the work incentive program of HEW.\n-- $66 million to purchase 18,000 vehicles for the\nGeneral Services Administration motor pool fleet\nnormally and more efficiently financed through agency\nuser charges.\n-- $30 million for Community Service Employment for Older\nAmericans that not only duplicates comprehensive\nmanpower assistance activities but actually may reduce\nthe amount of manpower services State and local govern-\nments provide older workers.\n-- An extra $45 million for summer youth employment which\nis entirely unnecessary in view of the $413 million\nrequested and the substantial amounts being programmed\nby States and localities.\nThird, this bill is the wrong approach because it provides\nhigher spending levels for a variety of programs and projects\nof unequal merit which may be difficult to reduce later, after\nthe economic situation has improved. Included in this category\nare:\n-- $642 million in appropriations and loan authority for\nthe Farmer's Home Administration.\n-- $479 million for the Department of Commerce. Of this\namount, $375 million would be used in the Job\nOpportunities Program of the Economic Development\nAdministration. It is not yet known whether the\n$125 million provided for this program in the Urgent\nSupplemental Appropriations Act of last December can\n- 5 -\nbe effectively used, let alone another $375 million.\nExperience to date, however, has shown that the\nprogram is extremely difficult and time consuming to\nadminister. Previous efforts to use such long-range\ndevelopment programs as anti-recession tools have not\nbeen successful. Funds have not been applied quickly\nenough to shorten significantly the period of recession,\nassistance often has not greatly benefited those areas\nmost in need, and costs of generating temporary employ-\nment through such mechanisms have been high.\n-- $333 million for public works projects of the Corps\nof Engineers and Bureau of Reclamation.\nIn summary, this bill would bring about an undesirable\nincrease in the Federal deficit, would expand programs that are\ncostly and ineffective in aiding the unemployed, and would\nproduce spending in the future when it is not expected to be\nneeded and, in fact, will be counterproductive. For these\nreasons, I am returning it without my approval. The Nation\nneeds, however, a bill that includes the funds I recommended\nfor providing immediate and temporary employment through public\nsector jobs and summer youth employment. Particularly with\nstudent summer vacations close at hand, I urge the Congress to\npass such a bill promptly.\nTHE WHITE HOUSE\nMay , 1975\nse THE HOURN of\nI return without my approval, U.R. 1401, the Beargency\nEmployment Appropriation Act.\nEarlier this year, I asked He Congres: for\nOn\nI proposed legislation to deal with the\nNation's most immediate employment problems through an ex-\ntension of public service jobs and a program of summer\nyouth employment.\ntahn the simple, straight forward and specific proposal\nThe Congress has responded with a bill that not only\nand turned it its a 6111 host of provisions of questionable value\nneedlessly increases the spending levels for these programs,\nbut-adds several very costly and extraneous provisions which\nwere not requested and are not needed.\nThis bill, as presented to me, is not an effective\nresponse to the unemployment problem. It would exacerbate\nboth budgetary and economic pressures, and its chief impact\nwould be felt long after our current unemployment problems\nare expected to subside.\nThe bill authorizes spending of $3.3 billion above my\nbudget requests. Almost half of this added spending would\noccur in fiscal 1976 and an appreciable amount of spending\nwould continue in calendar year 1977. Economic recovery is\nexpected to be well underway by the end of 1975, and the\naccelerative influences of this bill would come much too\nlate to give impetus to this recovery. Instead, those in-\nfluences would run the risk of contributing to a new round\nof inflation later on.\nIn my address to the Nation on March 29, announcing my\ndecision to sign the Tax Reduction Act, I stressed the need\nto keep the 1976 deficit below $60 billion. This bill is\none of many being considered by the Congress that, combined,\nwould increase the deficit to $100 billion or more. Already,\nCongressional actions and inactions have added $7.3 billion\nto the 1975 deficit and $4.4 billion to the 1976 deficit.\nSuch an increase in the Codern? burlent Gelt vold\nincle to 11 increase in Federal bourowing\nfinancial markets. Whose lumy Yedowal for covital\ncould deprive business firms of funds needed for modemina-\ntion and expansion of capacity,\nThus, N.R. 4431 would contribute to cheking off the\nvery economic growth it is intended to stimulate.\nTo help overcome the recession and high unemployment,\nI have proposed, and the Congress has enacted, a major tax\nout. I have also proposed an extension of unemployment com-\npensation benefits, together with increases, which are\nincluded in this bill for public service jobs and summer\nemployment.\nFurther stimulus would hurt more than it would help our\neconomy in the long run. H.R. 4481 provides for too much\nstimulus, too late, and I must therefore veto the bill.\nThe need remains, however, for a bill that will provide\nthe funds I recommended for immediate and temporary employment\nsince\nthrough the public sector and summer youth jobs. Student\nsummer vacations are close at hand and I urge the Congress\nto pass such a bill as quickly as possible.\nGERALO FORD LIBRARY\nTHE WHITE HOUSE,\nhave\nalvady, actumn actions and mostrime nactions have\nodded 87. 3 hellim to The 1975 defect and $4.4\nhillion 10 The 1976 dificit.\ngot\nIn my address to the Nation on March 29, announcing\nmy decision to sign the Tax Reduction Act, I stressed the\nneed to keep the 1976 deficit below $60 billion. This bill\nis one of many being considered by the Congress that, combined,\nwould increase the deficit to $100 billion or more.\nSuch an increase in the Federal budget deficit would\nlead to an increase in Federal borrowing from private\nfinancial markets. These heavy Federal\ndemands for capital\nmodernization could and expansion of capacity the\ndeprive business firms of funds needed for\nfunds from sorrings deformts 1 needer for\nThus, H. R. 4481 would contribute directly to choking\noff the very economic growth it isp intended to stimulate.\nTo help overcome the recession and high unemployment,\nI have proposed, and the Congress has enacted, a major\nan\ntax cut. I have also proposed, extension and increased levels\ntogether with increases\nof unemployment compensation benefits, which are included\nin this bill for public service jobs and summer employment.\nthat\nFurther stimulus would hurt more than it would help\nour economy in the long run. H. R. 4481 provides for too\nmuch stimulus, too late, and I must therefore veto the bill.\nThe need remains, however, for a bill that will provide\nthe funds I recommended for immediate and temporary employment\nPaul- The revend nto message didn 1, sun to has\nthe porticularly will The 4 trantially\nit 1100 bith\n8 the matrical 10 make Put\n*2304\n1\nI return without my approval, H. R. 4481, the Emergency\nEmployment Appropriation Act.\nL\nlegislation to deal with the Nation's most\nBady\nimmediate employment problems through an extension of\nsome\npublic service jobs and a program of summer youth employment.\nlike\nnot only\nThe Congress has responded with a bill that needlessly\nLa\nincreases the spending levels for these programs, but also\ndid\nadds several very costly and extraneous provisions which were\nobt\nnot requested and are not needed.\n(dolgint get across\nthe idea that sprints\nThis bill, as presented to me, is not an effective a\nresponse to the unemployment problem. It would exacerbate a melter\nof\nboth budgetary and economic pressures, and its chief impact emat\nwould be felt long after our current unemployment problems\nnot\nare expected to subside.\nat emplysis\nThis\nThe bill authorizes spending of $3.3 billion above\none\nmy budget\nrequests. Almost half of this added\nto\nspending would occur in fiscal 1976 and an appreciable\nword\nlite\nit.\namount of spending would continue in calendar year 1977.\nperhaps\nEconomic recovery is expected to be well underway by the\nis\nend of 1975, and the accelerative influences of this bill\nwould come much too late to give impetus to this recovery.\nInstead, those influences would run the risk of contributing\nto a new round of inflation later on.\nstudent summer loseat\nvacationsa\nthrough the public sector and summer youth jobs. I urge\nthe Congress to pass such a bill as quickly as possible.\nH\nRoad\nofther ov nore it belts lite,\nbe\nFORD & LIBRARY 076839"
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