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1975/10/13 HR9600 Budget Authority Rescission
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1975/10/13 HR9600 Budget Authority Rescission
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The original documents are located in Box 31, folder "10/13/75 HR9600 Budget Authority Rescission" of the White House Records Office: Legislation Case Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Exact duplicates within this folder were not digitized. & 10/13/75 APPROVED OCT13 OCT 13 ACTION THE WHITE HOUSE WASHINGTON Last Day: October 15 October 11, 1975 Posted 10/13/75 FROM: MEMORANDUM FOR THE PRESIDENT JIM CANNON a To archines SUBJECT: H.R. 9600 - Budget Authority Rescission 10/14/25 Attached for your consideration is H.R. 9600, sponsored by Representative Mahon, which rescinds $47.5 million in 1976 contract authority for the purchase of helium by the Department of Interior. This recission is in the amount and form you proposed. A discussion of the enrolled bill is provided in OMB's enrolled bill report at Tab A. OMB, Interior, Max Friedersdorf, Counsel's Office (Lazarus) and I recommend approval of the enrolled bill. RECOMMENDATION That you sign H.R. 9600 at Tab B. FORD is GERALD LIBRA Digitized from Box 31 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE STATE OFFICE OF MANAGEMENT AND BUDGET STATES WASHINGTON, D.C. 20503 OCT 9 1975 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 9600 - Budget Authority Rescission Last Day for Action: October 15, 1975 - Wednesday Purpose: Rescinds $47.5 million in 1976 contract authority for purchase of helium by the Department of the Interior. Perspective There is no basis for objecting to the single item included in this rescission bill. The $47.5 million rescission for contract authority to purchase helium is in the amount and form you proposed. Consequently, I recommend that you sign H.R. 9600 into law. The enrolled bill is objectionable only in that it fails to include three of your proposed rescissions. The Congress, by its inaction and under the terms of the Impoundment Control Act of 1974, has forced the loss of $51.4 million in 1976 budget authority savings for these three items and a portion of a fourth item. Nevertheless, most budget authority you recommended for rescission in 1976 is currently being saved--$162.5 million out of $213.9 million recommended. This result has been achieved through a combination of (1) Congressional action outside the enrolled bill and (2) funds lapsing before the date on which they would otherwise have been required to be released. All the events--Congressional and circumstantial--that affect your first eight 1976 rescission proposals are discussed in the attached longer memorandum and their budget authority and outlay effects are displayed in a table attached to that memorandum. Recommendation That you sign the bill into law. James T. Lynn Director Attachment PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET STATE WASHINGTON, D.C. 20503 OCT 9 1975 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 9600 - Budget Authority Rescission Sponsor - Representative Mahon (D), Texas Last Day for Action October 15, 1975 - Wednesday Purpose Rescinds $47.5 million in 1976 contract authority for the purchase of helium by the Department of the Interior. Agency Recommendations Office of Management and Budget Approval Department of the Interior Approval (informally) Discussion The enrolled bill is one of Congress' actions in response to the eight rescissions you have proposed for fiscal year 1976 under section 1012 of the Impoundment Control Act of 1974 (Public Law 93-344). The attached table details the savings realized--$162.5 million in 1976 budget authority and $45 million in 1976 and transition quarter outlays--and the savings lost--$51.4 million in 1976 budget authority and $13.4 million in 1976 and transition quarter outlays--as a result of Congressional action and inaction on the eight proposals included in your messages to the Congress of July 1 and July 26, 1975. Through this enrolled bill, Congress is approving one of the eight proposals transmitted to date: the rescission of $47.5 million in 1976 contract authority for the purchase of helium. Purchase of helium by the Federal Government was 2 terminated in 1973, but a 1961 law automatically makes $47.5 million in contract authority available each fiscal year. The contract authority would not have been used had it been made available. Through means other than this enrolled bill, the Congress acted favorably on two more of your eight proposals: - both the House and Senate have included language in the pending 1976 Transportation appropriations bill that would, as you requested, rescind $25 million for access highways to public recreation areas on lakes. In the same bill, however, both Houses included a direct appropriation of $10 million for the same program. Consequently, only $15 million of the $25 million you proposed will be saved. - the House and Senate Appropriations Committees invited the $90 million proposed for rescission for the Great River Road (to run through 10 States bordering the Mississippi River) to be deferred--instead of released on September 23, 1975, as would have otherwise been required--while the Congress continues to review the project. In your fourth 1976 special message to the Congress on impoundments, you accepted this invitation. The savings associated with your two rescission proposals for the Community Services Administration are secure for the present--but as a result of the funds lapsing before they were required, under terms of the Impoundment Control Act, to be released. The Congress did not act to approve these rescissions which total $10 million. Moreover, the Senate version of the pending 1976 Labor-HEW appropriations bill would make these funds available until December 31, 1975. Three of your rescission proposals have been released, as is routinely required when the Congress does not act, within a specified 45 day period, to approve the rescissions. They are: - $25.7 million that would have reduced the amount available for construction of forest roads and trails (Forest Service, Department of Agriculture), 3 - $8.7 million that is not expected to be spent this fiscal year for construction of the Federal Law Enforcement Training Center (Treasury), and - $7.0 million that would have reduced the amount available for the Head Start program (Department of Health, Education, and Welfare). Recommendation I recommend that you sign the bill into law, thus rescinding an unnecessary $47.5 million in 1976 contract authority. Jos James T. Lynn I.by Director Attachment ATTACHMENT DISPOSITION OF FIRST EIGHT 1976 RESCISSION PROPOSALS UNDER THE IMPOUNDMENT CONTROL ACT OF 1974 (in millions of dollars) Outlay Savings 1976 1976 and budget transition authority quarter 1977 Savings realized: Approved by Congress: -enrolled rescission bill (Helium Fund, Interior) 47.5 -- : -pending Transportation appropriation bill (access highways to lakes, Transportation) * 15.0 6.3 12.1 -invitation to defer funds proposed for rescission (Great River Road, Transportation) 90.0 28.7 50.0 Funds lapsed before required release date (Community Services Administration -two proposals) 10.0 10.0 : Total, savings realized 162.5 45.0 62.1 Savings lost: Agriculture: Forest Service: Forest Roads and Trails 25.7 5.0 11.0 Treasury: construction of Federal Law Enforcement Training Center 8.7 I | HEW: Head Start 7.0 6.7 .3 Transportation: access highways to lakes* 10.0 1.7 1.9 Total, savings lost 51.4 13.4 13.2 *The Congress, in effect, partially approved ($15 million) and partially rejected ($10 million) the President's rescission request ($25 million) for access highways to lakes. THE WHITE HOUSE WASHINGTON October 11, 1975 MEMORANDUM FOR THE STAFF SECRETARY FROM: MAX L. FRIEDERSDORF RKW SUBJECT: H.R. 9600 - Budget Authority Rescission The Office of Legislative Affairs has reviewed the subject bill and concurs in the recommendation that it be signed. THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 581 Date: October 10 Time: 700am FOR ACTION: Paul Leach cc (for information): Jim Cavanaugh Max Friedersdorf Jack Marsh Ken Lazarus Warren Hendriks FROM THE STAFF SECRETARY DUE: Date: October 11 Time: noon SUBJECT: H.R. 9600 - Budget Authority Rescission ACTION REQUESTED: For Necessary Action For Your Recommendations Prepare Agenda and Brief Draft Reply For Your Comments Draft Remarks REMARKS: Please return to Judy Johnston, Ground Floor West Wing PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please K. R. COLE, JR. telephone the Staff Secretary immediately. For the President To: Saves 10/10/75 Cavanaugh 11:15 Gem EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OFFICE OF management AND BUDGET WASHINGTON, D.C. 20503 OCT 9 1975 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 9600 - Budget Authority Rescission Last Day for Action: October 15, 1975 - Wednesday Purpose: Rescinds $47.5 million in 1976 contract authority for purchase of helium by the Department of the Interior. Perspective There is no basis for objecting to the single item included in this rescission bill. The $47.5 million rescission for contract authority to purchase helium is in the amount and form you proposed. Consequently, I recommend that you sign H.R. 9600 into law. The enrolled bill is objectionable only in that it fails to include three of your proposed rescissions. The Congress, by its inaction and under the terms of the Impoundment Control Act of 1974, has forced the loss of $51.4 million in 1976 budget authority savings for these three items and a portion of a fourth item. Nevertheless, most budget authority you recommended for rescission in 1976 is currently being saved--$162.5 million out of $213.9 million recommended. This result has been achieved through a combination of (1) Congressional action outside the. enrolled bill and (2) funds lapsing before the date on which they would otherwise have been required to be released. All the events--Congressional and circumstantial--that affect your first eight 1976 rescission proposals are discussed in the attached longer memorandum and their budget authority and outlay effects are displayed in a table attached to that memorandum. Recommendation That you sign the bill into law. James T. Lynn Director Attachment 94TH CONGRESS HOUSE OF REPRESENTATIVES REPORT 1st Session No. 94-496 BUDGET RESCISSION BILL, FISCAL YEAR 1976 SEPTEMBER 19, 1975.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. MAHON, from the Committee on Appropriations, submitted the following REPORT [To accompany H.R. 9600] The Committee on Appropriations, to whom was referred the bill H.R. 9600, to rescind certain budget authority recommended in the Message of the President of July 26, 1975 (H. Doc. 94-225), trans- mitted pursuant to the Impoundment Control Act of 1974, report the same to the House with amendments and with the recommendation that the bill as amended be passed. The amendments are as follows: Page 2, strike lines 1 through 7. Page 2, strike lines 8 through 18. Page 3, strike lines 1 through 11. SUMMARY OF THE BILL This is the fourth rescission bill to be reported by the Committee on Appropriations during the 94th Congress under the provisions of Title x of the new Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), July 12, 1974. The Presidential message of July 26, 1975 contains five rescissions which have not been acted on by the House. This bill and report reflect the recommendations of the Committee on Appropriations on those items. In addition, the Presidential message of July 1, 1975 (H. Doc. 94-206) transmitted 3 rescissions which are discussed in the report but are not included in the accompanying bill. Further, the Comptroller General, on June 19, 1975 notified the Speaker of the 57-006 2 3 House (H. Doc. 94-193) that there was in fact a rescission of budget authority in the College Housing Programs of HUD in the amount of $964,000,000. Thus there are 9 rescissions pending before the Congress. The Committee is recommending approval of one rescission. Amounts to be made available for obligation $7, 000, 000 2, 500, 000 7, 500, 000 25, 723, 000 90, 000, 000 8, 665, 000 141, 388, 000 ACTIONS IN OTHER THAN RESCISSION BILL In two instances, rescissions addressed in this report have been accomplished in the 1976 regular appropriation bills. Rescission 75-901 (College housing loan program) was negated by House and Senate action in passing the HUD-Independent Agencies Appropria- tion Act for 1976 which included a transfer of $964,000,000 from the Amounts rec- ommended for rescission in bill 47, 500, 000 College Housing program to other HUD programs. Funds identified the amount of $25,000,000 were rescinded in the Transportation and COMPARISON OF RESCISSIONS PROPOSED IN H. DOCS. 94-193, 94-206, 94-225, AND COMMITTEE RECOMMENDATIONS $47,500, 000 in 76-2 (access highways to public recreation areas on certain lakes) in Related Agencies Appropriation Act, 1976. That bill includes a direct appropriation of $10,000,000 for access highways to public recreation areas on certain lakes-a net reduction in budget authority of $15,- 000,000. Amounts proposed for rescission $7, 000, 000 2, 500, 000 7, 500, 000 47, 500, 000 25, 723, 000 90, 000, 000 8, 665, 000 188, 888, 000 INFLATIONARY IMPACT STATEMENT Pursuant to clause 2(1) (4) Rule XI of the House of Representatives, the Committee estimates that the enactment of this bill will have no inflationary impact on prices and costs in the operation of the national economy. Rescission of the funds proposed in this bill will mean that obligational authority in the amount of $47,500,000 will not become available for obligation in fiscal 1976. SUMMARY TABLE A summary table on rescissions follows which shows the items that are recommended for rescission and those items that the Committee is not recommending for rescission and for which funds are to be made available at the end of the 45-day time period. Department and activity Department of Health, Education, and Welfare: Headstart services to handicapped children Community Services Administration: Basic skills learning centers demonstration programs Community development corporation programs Department of Interior: Bureau of Mines, helium fund Department of Agriculture: Forest Service, Forest roads and trails Department of Transportation: National scenic and recreational highway Department of the Treasury: Construction of federal law enforcement training center Total Rescission No. 76-5 76-7 76-8 76-6 76-4 76-1 76-3 4 5 5 6 9 8 6 Report page No. 4 5 SUBCOMMITTEE ON THE DEPARTMENTS OF LABOR, AND neference made in the rescission message to the increases requested HEALTH, EDUCATION, AND WELFARE, AND RELATED in the budget for 1976 appears to be a gratuitous argument for re- scinding 1975 funds. The House has already considered 1976 ap- AGENCIES propriations for Head Start based upon the full amount appropriated DANIEL J. FLOOD, Pennsylvania, Chairman for fiscal year 1975 and has increased the 1976 budget by $15.7 million ROBERT H. MICHEL, Illinois for the purpose of adequately serving the handicapped. WILLIAM H. NATCHER, Kentucky NEAL SMITH, Iowa GARNER E. SHRIVER, Kansas In denying the rescission, the Committee expects HEW to obligate BOB CASEY, Texas SILVIO O. CONTE, Massachusetts the $7,000,000 in a judicious manner but at the earliest practical EDWARD J. PATTEN, New Jersey date. DAVID R. OBEY, Wisconsin RELATED AGENCIES EDWARD R. ROYBAL, California LOUIS STOKES, Ohio COMMUNITY SERVICES ADMINISTRATION DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE COMMUNITY SERVICES PROGRAM ASSISTANT SECRETARY FOR HUMAN DEVELOPMENT The Committee does not recommend approval of the two proposed rescissions totalling $10,000,000 for the Community Services Adminis- HUMAN DEVELOPMENT tration. The funds proposed for rescission were appropriated in the Second Supplemental Appropriations Act, 1975 (P.L. 94-32) and were The Committee has not approved the rescission of $7,000,000 for made available for obligation until September 30, 1975. the Head Start program. The funds proposed for rescission were The first of the proposed rescissions is $2,500,000 for research and appropriated in the Second Supplemental Appropriations Act for demonstration. The total amount appropriated for research and 1975 (Public Law 94-32) and were made available for obligation until demonstration in fiscal year 1975 was $8,800,000. The amount pro- October 31, 1975. posed for rescission is intended to be used for the expansion of the For fiscal year 1975, Congress appropriated $441 million for the basic skills learning centers demonstration program. This program Head Start program, an increase of $26,700,000 over the budget is designed to improve the reading and mathematics skills of children request. Of the amount added by the Congress, $11,700,000 was to who are below the national norms. This is done through a compre- help offset increased operating costs due to inflation, and $15,000,000 hensive program of individualized instruction with each student was to meet the additional cost of providing services to handicapped operating at his own pace. The program is in the very early develop- children. The proposed rescission of $7,000,000 relates to funds mental stage, and the Committee believes that it should be tested appropriated for services to handicapped children. The President's further to determine its potential for success. No convincing casé was message transmitting the proposed rescission indicates that $7,000,000 made by the agency for discontinuing the program. represents the amount in excess of estimated budgetary requirements The second proposed rescission is $7,500,000 for community eco- to initiate special services for handicapped children. The message nomic development under Title VII of the Community Services Act. further refers to increased funding requested for handicapped children The total amount appropriated for the basic Title VII program in in the 1976 budget. After reviewing the budget documents and hearing fiscal year 1975 was $46,500,000. The program provides support for testimony from Administration witnesses, the Committee concluded economic and community development in urban and rural areas with that the budget is based on a minimum effort in the enrollment of high concentrations of poor people through community development handicapped children. In fact the budget is inadequate to meet the corporations and cooperatives. The Committee believes that the additional cost of providing services to handicapped children. Congress was justified in providing an increase for the program in The basic law mandates that handicapped children must comprise fiscal year 1975, since it had operated at an almost static level of at least 10 percent of the total enrollment nationwide. Beginning in funding for several years prior to that. Again, the agency presented no fiscal year 1976 the law requires that 10 percent of each State's en- convincing testimony for rescinding these funds. rollment must be handicapped children. The 1975 budget made no The Committee strongly urges the executive branch to make these specific request for serving handicapped children, apparently in the funds available for obligation at once SO that they can be obligated by belief that some States had already enrolled sufficient numbers of September 30. If they are not, the funds will lapse and revert to the handicapped children to meet the statutory enrollment minimum. Treasury on that date. This would clearly be a violation of the spirit, In reviewing fiscal year 1975 program requirements, the Congress if not the letter, of the Congressional Budget and Impoundment felt that the budget did not make adequate provision for meeting Control Act. the additional cost of serving handicapped children. For that reason, $15 million was specifically included in the fiscal year 1975 appropria- tion. Because of the late enactment of the second supplemental ap- propriation bill, the availability of $7,000,000 was extended to Octo- ber 31 to allow sufficient time to obligate the funds for use in the present school year. There was no intention to stretch out the use of these funds to augment 1976 appropriations. 6 7 SUBCOMMITTEE ON THE DEPARTMENT OF THE In addition, the Committee has received information indicating INTERIOR AND RELATED AGENCIES that the estimated $47.9 million available from 10 percent of 1976 SIDNEY R. YATES, Illinois, Chairman National Forest receipts and which are merged with this account, will fall below what was projected in the President's budget for fiscal GUNN McKAY, Utah JOSEPH M. McDADE, Pennsylvania year 1976. CLARENCE D. LONG, Maryland RALPH S. REGULA, Ohio FRANK E. EVANS, Colorado JOHN P. MURTHA, Pennsylvania ROBERT DUNCAN, Oregon DEPARTMENT OF THE INTERIOR BUREAU OF MINES HELIUM FUND The Committee recommends a rescission of $47,500,000 in contract authority available to the Bureau of Mines for the Helium Fund as requested in Rescission Proposal No. R76-6, House Document 94-225. The contract authority is available under authority contained in the Helium Act Amendments of 1960 (P.L. 87-122). Contracts entered into pursuant to that authority for the purchase of helium for storage and future use were terminated by the Department of the Interior in 1973. Since helium deliveries are no longer being accepted by the Department, there is no need to use the available authority in fiscal year 1976. At the present time, there is about 40 billion cubic feet of helium in underground storage at the Cliffside Field near Amarillo, Texas. Current annual domestic use of helium is about one-half billion cubic feet. The helium purchase contracts are not now in force, but suits by three of the contractors claiming damages for breach of contract are pending in the U.S. Court of Claims. The government's liability, if any, in these cases will not be finally determined before the end of the current fiscal year. Even if damages are awarded, the funds for such damages would not come out of this appropriation. RELATED AGENCIES DEPARTMENT OF AGRICULTURE FOREST SERVICE FOREST ROADS AND TRAILS The Committee recommends that the proposed rescission of $25,- 723,000 in contract authority available to the Forest Service for forest roads and trails not be approved. The proposed rescission is R76-4, House Document 94-225. The Committee in its fiscal year 1976 report (94-374) emphasized the need for an expanded forest road and trail program, not only to provide for the harvesting of forest resources, but also to provide for other benefits, such as recreation and public use. To assist in im- proving the recreation potential and other benefits the Committee, with the concurrence of the House, approved a forest roads and trails contract authority program of $173,538,000, an increase of $15.4 million' above that proposed by the Administration. 8 9 SUBCOMMITTEE ON DEPARTMENT OF SUBSOMMITTEE ON TREASURY, POSTAL SERVICE TRANSPORTATION AND RELATED AGENCIES AND GENERAL GOVERNMENT JOHN J. McFALL, California, Chairman TOM STEED, Oklahoma, Chairman SIDNEY R. YATES, Illinois SILVIO O. CONTE, Massachusetts JOSEPH P. ADDABBO, New York ToM STEED, Oklahoma JACK EDWARDS, Alabama EDWARD R. ROYBAL California CLARENCE E. MILLER, Ohio EDWARD I. KOCH, New York ROBERT L. F. SIKES, Florida ROBERT C. McEWEN, New York BILL ALEXANDER, Arkansas EDWARD P. BOLAND, WILLIAM Colorado L. ARMSTRONG, ROBERT DUNCAN, Oregon Massachusetts JOHN J. FLYNT, JR., Georgia DEPARTMENT OF TRANSPORTATION EDWARD J. PATTEN, New Jersey CLARENCE D. LONG, Maryland FEDERAL HIGHWAY ADMINISTRATION DEPARTMENT OF THE TREASURY NATIONAL SCENIC AND RECREATIONAL HIGHWAY FEDERAL LAW ENFORCEMENT TRAINING CENTER The Committee has considered and recommends disapproval of the rescission, R76-1, for the National Scenic and Recreational Highway CONSTRUCTION (The Great River Road), which was proposed by the President in his July 1, 1975, message. The request is for the rescission of budget The Committee recommends that the proposed rescission of $8,665,- authority in the amount of $90,000,000. The Committee received Center be denied. 000 for the construction of the Federal Law Enforcement Training testimony on this request on July 31, 1975. Under Title X of the Congressional Budget and Impoundment The Committee feels that proposed rescission may be premature. Control Act, the $90,000,000 contained in R76-1 will have to be made The total cost of establishing the Training Center at Glynco, rvailable for obligation on September 22, 1975, unless Congress Georgia has not yet been determined and the Committee believes that approves the rescission. As indicated above, the Committee is not the funds appropriated for construction ought not be rescinded until aecommending approval of the proposed rescission. The Committee, it is determined exactly what the requirements at Glynco will be. however, feels that more information is needed with respect to the The Committee will reconsider this matter later when more definite information is available. National Scenic and Recreational Highway. The Committee, there- fore, expects the Department of Transportation and the ten States involved to develop specific plans and present further testimony on the scope and cost of the project. Because of the need to review this additional information, the Committee would be receptive to the consideration of a proposal to temporarily defer the funding for this project. Such a proposal would enable the Committee to receive additional testimony prior to making a further recommendation on the release of $90,000,000. ACCESS HIGHWAY TO PUBLIC RECREATION AREAS ON CERTAIN LAKES This program is authorized by Section 115(a) of the Federal-Aid Highway Amendments of 1974. The Federal Highway Administration interprets that legislation as providing $25,000,000 of contract author- ity for access highways to public recreation areas on certain lakes. Others do not agree with this interpretation. On July 10, 1975, the House passed the Department of Transporta- tion and Related Agencies Appropriation Bill which includes a direct appropriation of $10,000,000 for access highways to public recreation areas on certain lakes. The bill also includes language to rescind the contract authority, if there ever was any. On July 25, 1975, the Senate concurred in the House action. 10 SUBCOMMITTEE ON HOUSING AND URBAN DEVELOP- MENT-INDEPENDENT AGENCIES EDWARD P. BOLAND, Massachusetts, Chairman JOE L. EVINS, Tennessee BURT L. TALCOTT, California GEORGE E. SHIPLEY, Illinois JOSEPH M. McDADE, Pennsylvania J. EDWARD ROUSH, Indiana C. W. BILL YOUNG, Florida BOB TRAXLER, Michigan MAX BAUCUS, Montana LOUIS STOKES, Ohio YVONNE BRATHWAITE BURKE, California DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CORPORATIONS COLLEGE HOUSING-LOANS AND OTHER EXPENSES In a message to the Congress of June 19, 1975, (H. Doc. 94-193) the Comptroller General held that the discontinuation of the College Housing Loan Program constituted a rescission of budget authority not previously reported to the Congress. The Comptroller General noted that as of September 30, 1974, the remaining available balance in the college housing direct loan fund totaled approximately $1.1 billion, of which $964 million had been specifically provided for the direct loan program. The Comptroller General indicated that, at a minimum, the $964 million constituted a rescission. On June 24, the HUD-Independent Agency Appropriation Bill passed the House and included a provision transferring $964,000,000 of college housing budget authority to the Community Development Block Grant program. The Senate concurred with the transfer on July 26. The Congress in other legislation is therefore utilizing the funds in lieu of taking action in a rescission bill. Calendar No. 395 94TH CONGRESS SENATE REPORT 1st Session No. 94-403 FIRST BUDGET RESCISSION BILL, FISCAL YEAR 1976 SEPTEMBER 30 (legislative day, SEPTEMBER 11), 1975.-Ordered to be printed Mr. McCLELLAN, from the Committee on Appropriations, submitted the following REPORT together with VIEWS of the Committee on the Budget [To accompany H.R. 9600] The Committee on Appropriations, to which was referred the bill (H.R. 9600) to rescind certain budget authority recommended in the message of the President of July 26, 1975 (H. Doc. 94-225, S. Doc. 94-93), transmitted pursuant to the Impoundment Control Act of 1974, reports the same with the recommendation that the bill be passed, and submits the following explanation of its recommendation, together with the views of the Committee on the Budget, to which the bill was also referred. SUMMARY OF THE BILL This is the first rescission bill to be reported by the Committee on Appropriations during fiscal year 1976 under the provisions of Title X of the new Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), July 12, 1974. The Presidential message of July 26, 1975 contains five rescissions which have not been acted on by the House. This bill and report reflect the recommendations of the Committee on Appropriations on those items. In addition, the Presidential message of July 1, 1975 57-010 2 3 (S. Doc. 94-70), transmitted 3 rescissions which are discussed in the report but are not included in the accompanying bill. Further, the Comptroller General, on June 19, 1975 notified the Speaker of the House (H. Doc. 94-193) that there was in fact a rescission of budget authority in the College Housing Programs of HUD in the amount of $964,000,000. Thus there are 9 rescissions pending before the Amounts rec- ommended for rescission by the Committee on Appropriations $47, 500, 000 47, 500, 000 Congress. The Committee is recommending approval of one rescission. ACTIONS IN OTHER THAN RESCISSION BILL In two instances, rescissions addressed in this report have been accomplished in the 1976 regular appropriation bills. Rescission 75-901 (College housing loan program) was negated by House and Senate action in passing the HUD-Independent Agencies Appropria- Amounts rec- ommended for rescission by the House $47, 500, 000 47, 500, 000 tion Act for 1976 which included a transfer of $964,000,000 from the College Housing program to other HUD programs. Funds identified in Rescission 76-2 (access highways to public recreation areas on certain lakes) in the amount of $25,000,000 were rescinded in the Transportation and Related Agencies Appropriation Act, 1976. That bill includes a direct appropriation of $10,000,000 for access highways COMPARISON OF RESCISSIONS PROPOSED IN S. DOCS. 94-70, 94-93 AND COMMITTEE RECOMMENDATIONS Amounts proposed for rescission $7, 000, 000 2, 500, 000 7, 500, 000 47, 500, 000 25, 723, 000 90, 000, 000 8, 665, 000 188, 888, 000 to public recreation areas on certain lakes-a net reduction in budget authority of $15,000,000. SUMMARY TABLE A summary table on rescissions follows which shows the items that are recommended for rescission and those items that the Committee is not recommending for rescission. The views of the Committee on the Budget are shown on page 11. Department and activity Department of Health, Education, and Welfare: Headstart services to handicapped children Community Services Administration: Basic skills learning centers demonstration programs Community development corporation programs Department of Interior: Bureau of Mines, helium fund Department of Agriculture: Forest Service, Forest roads and trails Department of Transportation: National scenic and recreational highway Department of the Treasury: Construction of federal law enforcement training center Total Rescission No. 76-5 76-7 76-8 76-6 76-4 76-1 76-3 4 5 5 7 8 6 10 Report page No. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE ASSISTANT SECRETARY FOR HUMAN DEVELOPMENT COMMUNITY SERVICES ADMINISTRATION HUMAN DEVELOPMENT ECONOMIC OPPORTUNITY PROGRAM Rescission No.: R76-5 Date Proposed: July 26, 1957 Rescissions No.: R76-7 and R76-8 Date Proposed: July 26, 1975 Specific Programs Affected: Headstart programs Total Available Budgetary Resources-New BA: $69,800,000; Available Budgetary Resources-New BA: $441,000,000; BA: Other $ Other BA : $ Total of Proposed Rescissions : $10,000,000 Amount of Proposed Rescission: $7,000,000 Presidential Rationale for Proposed Rescissions: The rescission is pro- Presidential Rationale for Proposed Rescission: Funds proposed for posed as means to restrain 1976 budget outlays. The proposed with- rescission were appropriated for the purpose of initiating special drawal of funds would eliminate the Congressional increase for services for handicapped children enrolled in Head Start. Ac- this activity to the President's budget for fiscal year 1975. cording to the rescission message, $19.7 million already obligated House Action: Disapproved both rescissions. for this purpose is sufficient. Committee Recommendations: House Action: Disapproved rescission The Committee disapproves these two rescissions totaling Committee Recommendation: $10,000,000 for the Community Services Administration. The Committee concurs with the House in disapproving the The first rescission of $2,500,000 would have required that one rescission of $7,000,000 for the Headstart program. The proposed of the basic skills learning centers now in operation be ter- rescission would have limited the quality and quantity of services minated in October 1975. These centers are designed to im- provided to handicapped children. Additional funds were pro- prove reading and math skills of children below the national vided by Congress because the budget request underestimated the norms. If the centers should be forced to close before the comple- cost of services. tion of evaluations of their effectiveness, the substantial invest- More than 34,900 handicapped children are expected to enroll ment of funds to date in these demonstration projects would be in Headstart. The average cost per child could be as much as wasted. double that of other children ($1,278). In many cases, projects The Community Services Administration's exclusive focus on must plan on additional and substantial costs associated with individuals in poverty makes these programs highly valuable and enrollment and proper care for the handicapped, such as diagnostic unlike demonstration projects of any other agency. Testimony teachers. services, special equipment, modification of facilities, and special presented to the Committee did not provide convincing justifica- tion for terminating this program. The Committee expects the Department to obligate these funds The second rescission of $7,500,000 would have eliminated the without further delay. Further, the Department is cautioned June, 1975 Congressional increase for the community economic against any premature plans to delay the obligation of fiscal year development program provided in the fiscal 1975 Second Supple- 1976 appropriations. mental appropriations bill. Due to budgetary restraints, no new projects have been de- (4) veloped for several years. These additional funds will help over- come stagnation by expanding the 35 existing projects and establishing several new ones. Through investment in business ventures, this program is designed to both employ and train low- income persons and to upgrade the communities in which they live. Many of these projects have been successful for a decade. New projects, such as the Lumni Indian Aquaculture project in Washington State, have shown promise of developing unsubsi- dized profit-making enterprises. (5) 6 Economic recovery from the current recession should be en- couraged through expansion of programs such as this aimed at helping enterprises that might otherwise go out of business. The Committee urges the Executive Branch to immediately obligate these funds before September 30, 1975 to avoid the laps- ing of these funds back to the Treasury. DEPARTMENT OF THE INTERIOR The Committee feels very strongly that if these funds are BUREAU OF MINES allowed to lapse, the budgetary process and Congressional pre- rogative would be seriously undermined. Further, the Committee HELIUM FUND has clearly indicated its position on the use of these funds in past appropriation measures. The late rescission request by the Execu- Rescission No.: R76-6 Date Proposed: July 26, 1975 tive branch will cause unnecessary and very harmful program de- lays as well as the setting of a very negative precedent. Available Budgetary Resources-New BA $47,500,000; Other BA : $17,944,540 Amount of Proposed Rescission: $47,500,000 Presidential Rationale for Proposed Rescission: Termination of helium purchase contracts for which budget authority was enacted under P.L. 87-122. House Action: Approved rescission Committee Recommendation: The Committee recommends approval of the rescission of $47,500,000 in contract authority for helium purchases under P.L. 87-122. Purchase contracts were terminated by the Interior Department in 1973 and the contract authority is no longer needed. Any future payments to contractors arising from pending suits before the U.S. Court of Claims would be paid from a separate appropriation. (7) DEPARTMENT OF TRANSPORTATION DEPARTMENT OF AGRICULTURE FEDERAL HIGHWAY ADMINISTRATION FOREST SERVICE NATIONAL SCENIC AND RECREATIONAL HIGHWAY FOREST ROADS AND TRAILS Rescission No.: R76-1 Date Proposed: July 1, 1975 Rescission No.: R76-4 Date Proposed: July 26, 1975 Available Budgetary Resources-New BA : $ ; Available Budgetary Resources-New BA. $47,975,000 1 Other BA. $90,000,000 Other BA : $418,286,000 Amount of Proposed Rescission: $90,000,000 Amount Proposed Rescission: $25,723,000 Presidential Rationale for Proposed Rescission: "This program will Presidential Rationale for Proposed Rescission: $25,723,000 in con- not produce national benefits commensurate with its cost." Esti- tract authority available under Federal-Aid Highway Act is not mated Federal share of the project's cost is $1.17 billion, which is needed under the President's budget program and would lapse on over twelve times as much as the $90 million authorization. June 30, 1976. House Action: Disapproved rescission. House Action: Disapproved rescission Committee Recommendation: Committee Recommendation: The Committee recommends disap- The Committee recommends concurrence with the House action proval of rescinding $25,723,000 in contract authority for forest in disapproving the rescission for the National Scenic and Recre- roads and trails available for fiscal 1976 under the Federal-Aid ational Highway (The Great River Road). Highway Act until the program level is fixed by Congress in the The Committee also agrees with the House that more informa- pending appropriation bill for the Department of the Interior tion is needed concerning the specific plans of the ten states in- and related agencies. This concurs in the action of the House, volved in this program. The Committee would be receptive to a which has approved a program expansion with its passage of H.R. deferral message for such purpose but would not intend that this 8773. In addition, the Committee has learned that total estimated deferral be used as a precedent for similar action in other, unre- budgetary resources for this program may have to be revised lated programs. downward as a result of a reduction in National Forest receipts. ACCESS HIGHWAY TO PUBLIC RECREATION AREAS ON CERTAIN LAKES 1 Original estimate of 10 percent of National Forest receipts available under Public Law 93-87 submitted in President's fiscal year 1976 budget request. More recent estimates place Rescission No.: R76-2 this closer to $36,000,000. Date Proposed: July 1, 1975 (8) Available Budgetary Resources-New BA : $25,000,000; Other BA : $ Amount of Proposed Rescissions : $25,000,000 Presidential Rationale for Proposed Rescissions: "This is a special interest program as opposed to a program national in scope." Committee Recommendation: This program is authorized by Section 115(a) of the Federal-Aid Highway Act Amendments of 1974. Both the House and Senate, in the Department of Transporta- tion and Related Agencies Appropriation Bill for Fiscal 1976 and the transition period, have included a direct appropriation of $10,000,000 for this program and included language in the bill rescinding the contract authority for it. Thus, no further action is required at this time. (9) DEPARTMENT OF THE TREASURY VIEWS OF THE SENATE COMMITTEE ON THE BUDGET CONSOLIDATED FEDERAL LAW ENFORCEMENT TRAINING CENTER The Senate Committee on the Budget, to which was referred a bill (H.R. 9600), to rescind certain budget authority recommended in the CONSTRUCTION-FEDERAL LAW ENFORCEMENT TRAINING CENTER Message of the President of July 26, 1975 (H. Doc. 94-225), trans- mitted pursuant to the Congressional Budget and Impoundment Con- Rescission No.: R76-3 Date Proposed: July 1, 1975 trol Act of 1974, having considered the same, reports as follows. Available Budgetary Resources-New BA $ The matter contained in H.R. 9600, rescission request R75-6, does Other BA : $40,000,000 ; not appear to have significant macroeconomic effects, nor does it sig- nificantly affect national priorities. The Committee therefore has no Amount of Proposed Rescission. $8,665,000 recommendation on this rescission request. Presidential Rationale for Proposed Rescission: Prior year funding of The Committee notes with concern the suggestion contained in the $47,713,000 has been appropriated for construction of the Train- report of the House of Representatives which accompanied this bill ing Center at Beltsville, Md. It was subsequently decided to use in the House that the House Appropriations Committee "would be the former Glynco Naval Air Station, Brunswick, Georgia, for receptive to the consideration of a proposal to temporarily defer the this purpose. The Second Supplemental Appropriations Bill, funding" for the National Scenic and Recreation Highway, rescission 1975, included a limitation of $30,000,000 to be used for modifica- of the budget authority for which was contained in R76-1, submitted tion of the facility and necessary transition expenses. Obligations by the President on July 1, 1975 (H. Rept. No. 94-496, 94th Cong., 1st for planning of the proposed Beltsville facility totaled $7,713,000 Sess., p. 8.) Pursuant to this request the President, on September 24, and an additional $1,335,000 will be required for close-out activi- 1975, submitted a new impoundment (D76-55) of the budget authority ties. The remaining $8,665,000 is available for rescission. involved in R76-1, citing as his authority Section 1013 of the Im- House Action: Disapproved rescission poundment Control Act. Pursuant to the Order of the Senate of January 30, 1975, establish- Committee Recommendation: ing Senate procedures regarding impoundment matters, the Senate The Committee recommends concurrence with the House bill Budget Committee's responsibility, in addition to the macroeconomic that the proposed rescission of $8,665,000 for construction of the implications and impact on priorities of any impoundment, includes Consolidated Federal Law Enforcement Training Center at the "the legality of the President's use of the deferral and rescission former Glynco Naval Air Station, Brunswick, Georgia be denied. mechanism under Title X." The Budget Committee believes a Con- As the first class of trainees entered the Glynco facility in gressional committee's request for further impoundment of funds after September 1975, the Committee is concerned that the total funds the elapse of the 45-day statutory period provided for in the case of required for conversion of the facility may not be fully definitized. rescission requests should be viewed very narrowly. In no case should Construction 1976. activity is scheduled to commence during spring it be construed either (i) as a precedent for unilateral Administration action in the case of future impoundment requests upon which the The Committee will reconsider rescission of these funds when statutory period lapses, or (ii) as a precedent for any such impound- more definite information is available. ment, even where such Congressional committee request exists, unless separate statutory authority outside Title X exists to justify such (10) further impoundment. The Committee thus rejects the legal basis asserted in Deferral Number 76-55 as the authority for that impoundment. In this case, however, where the House Appropriations Committee desires more time to consider the matter contained in R76-1, prior to the obligation of the budget authority involved therein, it appears that the Antideficiency Act could be viewed as a basis for such further impoundment. Under these circumstances, the further impoundment which has been made could reasonably cite the Antideficiency Act as authority for that impoundment in a report to Congress required by (11) 12 Section 1013 of Title x of the Congressional Budget and Impound- ment Control Act. The Committee believes that Congress and the President are equally bound to observe the provisions of Title X. Those provisions do not make allowance for continuing an impoundment beyond the statutory period prescribed by Section 1012 when that impoundment has orig- inally been submitted in the form of a rescission request. Should further impoundment be desired by the Administration or the Con- gress, specific statutory authority aside from the provisions of Title X must exist to warrant such further impoundment. It would be in error for the Congress and illegal for the President to request or accede to further impoundment in any other case. H. R. 9600 Minety-fourth Congress of the United States of America AT THE FIRST SESSION Begun and held at the City of Washington on Tuesday, the fourteenth day of January, one thousand nine hundred and seventy-five An Act To rescind certain budget authority recommended in the message of the President of July 26, 1975 (H. Doc. 94-225), transmitted pursuant to the Impoundment Control Act of 1974. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following rescissions of budget authority contained in the message of the Presi- dent of July 26, 1975 (H. Doc. 94-225), are made pursuant to the Impoundment Control Act of 1974, namely: DEPARTMENT OF INTERIOR BUREAU OF MINES HELIUM FUND Contract authority under this head provided by Public Law 87-122 for the fiscal year 1976 is rescinded in the amount of $47,500,000. Speaker of the House of Representatives. Vice President of the United States and President of the Senate. October 3, 1975 Dear Mr. Director: The following bills were received at the White House on October 3rd: S. 2230 S. 2375 H.R. 9600 Please let the President have reports and recommendations as to the approval of these bills as soon as possible. Sincerely, Robert D. Linder Chief Executive Clerk The Honorable James T. Lynn Director Office of Management and Budget Washington, D. - C