LIBRARY OF CONGRESS Number of FTEs by Source of Funds, Fiscal 2000 Source of Funds Support from direct appropriations for regular authorized FTEs Support from direct appropriations for local staff in overseas offices This statement provides the methodology for both mandatory and price level increases displayed throughout the request. Price level or inflationary cost increases projected in the Library's budget request are of a cost-recovery nature and intended to provide a constant level of purchasing power. The fiscal 2001 inflation rates, applied to the fiscal 2000 bases, were derived as follows: For all pay categories, the Library applied the Office of Management and Budget (OMB) directed pay raise assumptions of 4.94 percent in fiscal 2000 and 4.61 percent in fiscal 2001. The fiscal 2001 4.61 percent increase includes: annualization of fiscal 2000's pay raise, the fiscal 2001 budget-year pay inflator (3.7 percent) required by law (the projected fiscal year-over-fiscal year increase in the Employment Cost Index), and an adjustment for changes in retirement and health insurance costs (0.6 percent). Government Printing Office Circular Letter No. 445, dated May 5, 1999 provided a fiscal 2001estimated price increase of 3.3 percent, over fiscal 2000, for printing and binding costs. The 3.3 percent rate was applied to the printing and binding categories in the Library's request as an adjustment to maintain a constant level of purchasing power. The General Services Administration (GSA) revised its methodology for pricing leases and utilities. The new pricing was approved by the OMB and was subsequently implemented for all new lease actions awarded in fiscal 1998, with existing lease actions to be repriced effective October 1, 1999. Further, the GSA predicts that annual inflation on the revised leases will be 3 percent. The Library of Congress has three GSA leased properties affected by the new policy. The specific price level increases are listed in the justification under the two programs with leased property: Library of Congress, Salaries and Expenses (Integrated Support Services) and Books for the Blind and Physically Handicapped. The Library of Congress, Salaries and Expenses, Integrated Support Services program includes a one-time adjustment to the new pricing for one property, and 3 percent inflation for the remaining GSA property. The leased property under Books for the Blind and Physically Handicapped includes the 3 percent annual increase. For all other non-personals categories of expense (with the two exceptions discussed below) the Library used the OMB Annual Baseline Adjustment Factor for Non-Pay Costs of 2.0 percent. The composite rate was applied to all categories of expense with the rationale that some categories will experience a greater increase in pricing and other categories a lesser increase. Using the single composite rate represents a consistent and conservative approach for estimating the effect of price changes to essential goods and services acquired for fulfilling the goals and objectives of the Library of Congress. Page 10 One category of expense where anticipated rate increases are not readily available and are unique to the The second category of expense where the OMB composite rate does not apply is the Library's Overseas Page 11 |