81ST CONGRESS 1st Session

SENATE

REPORT No. 138

FIRST DEFICIENCY APPROPRIATION BILL, 1949

MARCH 22 (legislative day, MARCH 18), 1949.-Ordered to be printed

Mr. MCKELLAR, from the Committee on Appropriations, submitted the following

REPORT

[To accompany H. R. 2632]

The Committee on Appropriations, to whom was referred the bill (H. R. 2632) making appropriations to supply deficiencies in certain appropriations for the fiscal year ending June 30, 1949, and for other purposes, report the same to the Senate with various amendments and present herewith information relative to the changes made. Amount of bill as passed HouseAmount added by Senate, including $53,376,571.07 from supplemental and deficiency estimates sent to the Senate after bill passed the House...

Amount of bill as reported to Senate____ Total estimates considered by the Senate (contained in House Documents Nos. 35, 38, 40, 44, 50, 54, 58, and 93, and in Senate Documents Nos. 12, 13, 14, 15, 17, 18, 19, 22, 23, 24, and 26).

The bill is under the estimates_

$471, 895, 177. 52

66, 558, 296. 07

538, 453, 473. 59

564, 183, 148. 59 25, 729, 675.00

BUDGET ESTIMATES AND COMMITTEE ACTION The House considered in connection with this bill deficiency and supplemental estimates totaling $480,884,577.52, allowing appropriations totaling $471,895,177.52, or an amount $8,989,400 below the total estimates considered by the House.

The Senate committee considered deficiency and supplemental estimates totaling $564,183,148.59, allowing appropriations totaling $538,453,473.59, or an amount $25,729,675 below the total estimates considered by the committee, but $66,558,296.07 above the total appropriations approved by the House.

However, subsequent to passage of the bill by the House, deficiency and supplemental estimates totaling $69,876,571.07 were sent to the Senate. Of this amount, the committee has recommended approval of $53,376,571.07. Thus, of the total increase of $66,558,296.07 proposed by the committee, a total of $53,376,571.07 is contained in estimates that were not before the House but which came to the Senate after passage of the bill by the House. This $53,376,571.07 of estimates sent to the Senate and approved by the committee includes the following major items: $17,500,000 for emergency flood control necessitated by the heavy snows in the western part of the United States; $22,700,571.07 for claims for damages, audited claims and judgments; $5,400,000 for renovation and modernization of the Executive Mansion; $3,000,000 for the operation and maintenance of schools under the Bureau of Community Facilities, Federal Works Agency; and $4,000,000 for grants to States for unemployment compensation and employment service administration, Federal Security Agency.

Of the total increase of $66,558,296.07 proposed by the committee, $53,376,571.07 is accounted for as indicated above from supplemental and deficiency estimates sent to the Senate following passage of the bill by the House, $4,150,000 represents restorations of reductions made by the House (restoration totaling $7,232,200 having been requested), $8,359,000 is estimated for in House Document 93 as an amount for payment to the Choctaw and Chickasaw Nations of Indians, Oklahoma, which was received by the House after passage. of the first deficiency bill, 1949, and $672,725 is accounted for by items for which there are no budget estimates. The $672,725 of unbudgeted items approved by the committee is divided as follows: $43,725 for the legislative branch, including $37,500 for widows or other heirs of deceased Members, $20,000 for the Joint Committee on Nonessential Federal Expenditures, $600,000 for the Bureau of Indian Affairs, including $550,000 to continue welfare assistance to Indians in the States of Arizona and New Mexico, and including $50,000 for the care of Indian tubercular patients in the State of Minnesota; and $9,000 for the Corps of Engineers for deepening the small-boat harbor at Havre de Grace, Md.

The table appearing in the back of this report gives a comparative statement of the amounts of the budget estimates and of the amounts recommended to be appropriated.

FEDERAL SECURITY AGENCY

GRANTS ΤΟ STATES FOR UNEMPLOYMENT COMPENSATION AND EMPLOYMENT SERVICE ADMINISTRATION

The estimate considered by the House for this appropriation was in the amount of $4,987,000, which amount was approved by the House committee. On the floor of the House, the amount was increased to $10,000,000, or an increase over the House committee figure of $5,013,000.

The estimate before the House committee, $4,987,000, was based upon State salary scales in effect in November 1948, and upon estimates of work load made before the recent substantial rise in unemployment.

The committee was advised that since the original estimate of $4,987,000 was submitted to the House, certain State legislatures have taken action raising the pay of State employees, and also that the work load of the State employment security agencies, particularly in claims-taking activities, has materially increased.

In view of this situation, a further estimate was sent to the Senate while the bill was under consideration by the committee. The estimate received by the Senate is in the amount of $14,000,000, which represents a net increase in the estimate for this appropriation of $9,013,000 inasmuch as the $14,000,000 figure includes the original amount of $4,987,000 submitted to the House in House Document 44. The committee has approved the entire estimate of $14,000,000, which represents a net increase of $4,000,000 over the amount of $10,000,000 allowed by the House.

Of the $14,000,000 recommended by the committee, $4,000,000 is set up as a contingent fund as proposed in the budget estimate sent to the Senate. This $4,000,000 fund is to be used only upon determination of the Federal Security Administrator, with the approval of the Director of the Bureau of the Budget, that unanticipated increases in work load or State salaries have occurred since February 1, 1949. In this connection, the committee recommend that the following language be added to the bill:

of which $4,000,000 shall be available only upon determination by the Federal Security Administrator, with the approval of the Director of the Bureau of the Budget, that increased costs have resulted either from (1) increases in work load, or (2) increases in salaries of State employees, occurring after February 1, 1949

FEDERAL WORKS AGENCY

PUBLIC BUILDINGS ADMINISTRATION

RENOVATION AND MODERNIZATION, EXECUTIVE MANSION

The committee has approved a supplemental estimate in the amount of $5,400,000, contained in Senate Document 12, for renovation and modernization of the Executive Mansion.

Attention is directed to testimony at the Senate hearing by the Federal Works Administrator that in the plan for renovation and modernization of the Executive Mansion the outside appearance of the structure will not be changed and the outside walls will be left as they are now. It is the sense of the committee with respect to the use of the word "modernization" in the paragraph providing for this appropriation that the proposed work will be carried out without change of the present architectural appearance of the exterior of the Executive Mansion or the interior of its main floor.

The amendment as recommended by the committee includes language in a proviso which requires that any cost-plus-a-fixed-fee general construction contract entered into in pursuance of this appropriation shall be awarded on competitive bidding among responsible general contractors upon the amount of the fixed fee to accrue from the performance of such contract. Language is also included in another proviso to the effect that with the exception of the subcontract to be made by the general contractor for the underpinning and foundation work and work incidental and appurtenant thereto, which may be a cost-plus-a-fixed-fee contract, all other subcontracts made by the

general contractor shall be fixed-price contracts awarded on competitive bids received from responsible subcontractors.

The committee is insistent on the provisos contained in the language of this appropriation because it feels that there are many contractors in our country who will be proud to bid on and do the work of modernizing for future generations of our citizens this historic mansion of which we are all so proud and which we want to maintain as a home for our Presidents and a shrine for our people.

The complete text of the provision as agreed to by the committee reads as follows:

FEDERAL WORKS AGENCY

PUBLIC BUILDINGS ADMINISTRATION

Renovation and Modernization, Executive Mansion

For all expenses necessary for and incident to the renovation, repair, and modernization (without change of present architectural appearance of the exterior of the Mansion or the interior of its main floor) of the Executive Mansion, including the preparation of drawings and specifications, and the purchase of furniture, furnishings, and equipment, without regard to section 3709 of the Revised Statutes or the civil-service and classification laws, $5,400,000, to remain available until expended: Provided, That any cost-plus-a-fixed-fee general construction contract entered into in pursuance of this authority shall be awarded on competitive bidding among responsible general contractors upon the amount of the fixed fee to accrue from the performance of such contract: Provided further, That with the exception of the subcontract to be made by the general contractor for the underpinning and foundation work and work incidental and appurtenant thereto, which may be a cost-plus-a-fixed-fee contract, all other subcontracts made by the general contractor shall be fixed-price contracts awarded on competi tive bids received from responsible subcontractors.

BUREAU OF COMMUNITY FACILITIES

OPERATION AND MAINTENANCE OF SCHOOLS

The committee has approved the supplemental estimate of $3,000,000 contained in Senate Document 18 as an additional amount for "Maintenance and operation of schools" under the Bureau of Community Facilities.

The authorization for this program is contained in Public Law 839, Eightieth Congress, second session, approved June 29, 1948. The authorization was in the amount of $6,000,000 and was for the fiscal year 1949 only. Congress appropriated $3,000,000 of the $6,000,000 authorization in the Second Deficiency Appropriation Act, 1949, approved June 25, 1948, and the $3,000,000 proposed for inclusion in the present deficiency bill is the remainder of the $6,000,000 authorization for the current fiscal year.

In recommending this additional $3,000,000, the committee does so with instructions to the Federal Works Agency that it survey and examine most carefully the requests made for assistance under this program and with the understanding that there is to be no solicitation of opportunities to make contributions to local school districts under this program.

The assistance given under this program started as a wartime activity. Assistance to local education is given in varying forms and under different authority of law by such agencies as the Bureau of Community Facilities, the Corps of Engineers, the Department of the