The Office of Management and Budget will be charged with advising the President on the development of new programs to recruit, train, motivate, deploy, and evaluate the men and women who make up the top ranks of the civil service, in the broadest sense of that term. It will not deal with individuals, but will rely on the talented professionals of the Civil Service Commission and the Departments and agencies themselves to administer these programs. Under the leadership of the Office of Management and Budget there will be joint efforts to see to it that all executive talent is well utilized wherever it may be needed throughout the Executive Branch, and to assure that executive training and motivation meet not only today's needs but those of the years ahead. Finally, the new Office will continue the Legislative Reference functions now performed by the Bureau of the Budget, drawing together agency reactions on all proposed legislation, and helping develop legislation to carry out the President's program. It also will continue the Bureau's work of improving and coordinating Federal statistical services.

SIGNIFICANCE OF THE CHANGES

The people deserve a more responsive and more effective Government. The times require it. These changes will help provide it.

Each reorganization included in the plan which accompanies this message is necessary to accomplish one or more of the purposes set forth in Section 901(a) of Title 5 of the United States Code. In particular, the plan is responsive to Section 901(a)(1), "to promote the better execution of the laws, the more effective management of the Executive Branch and of its agencies and functions, and the expeditious administration of the public business;" and Section 901(a)(3), "to increase the efficiency of the operations of the Government to the fullest extent practicable."

The reorganizations provided for in this plan make necessary the appointment and compensation of new officers, as specified in Section 102(c) of the plan. The rates of compensation fixed for these officers are comparable to those fixed for other officers in the Executive Branch who have similar responsibilities.

While this plan will result in a modest increase in direct expenditures, its strengthening of the Executive Office of the President will bring significant indirect savings, and at the same time will help ensure that people actually receive the return they deserve for every dollar the Government spends. The savings will result from the improved efficiency these changes will provide throughout the Executive Branch-and also from curtailing the waste that results when programs simply fail to achieve their objectives. It is not practical, however, to itemize or aggregate these indirect expenditure reductions which will result from the reorganization.

I expect to follow with other reorganization plans, quite possibly including ones that will affect other activities of the Executive Office of the President. Our studies are continuing. But this by itself is a reorganization of major significance, and a key to the more effective functioning of the entire Executive Branch.

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These changes would provide an improved system of policy making and coordination, a strengthened capacity to perform those functions that are now the central concerns of the Bureau of the Budget, and a more effective set of management tools for the performance of other functions that have been rapidly increasing in importance.

The reorganization will not only improve the staff resources available to the President, but will also strengthen the advisory roles of those members of the Cabinet principally concerned with domestic affairs. By providing a means of formulating integrated and systematic recommendations on major domestic policy issues, the plan serves not only the needs of the President, but also the interests of the Congress.

This reorganization plan is of major importance to the functioning of modern government. The national interest requires it. I urge that the Congress allow it to become effective.

THE WHITE HOUSE, March 12, 1970.

RICHARD NIXON.

REORGANIZATION PLAN NO. 2 of 1970

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, March 12, 1970, pursuant to the provisions of chapter 9 of title 5 of the United States Code.

PART I. OFFICE OF MANAGEMENT AND BUDGET

SECTION 101. Transfer of functions to the President. There are hereby transferred to the President of the United States all functions vested by law (including reorganization plan) in the Bureau of the Budget or the Director of the Bureau of the Budget.

SEC. 102. Office of Management and Budget.-(a) The Bureau of the Budget in the Executive Office of the President is hereby designated as the Office of Management and Budget.

(b) The offices of Director of the Bureau of the Budget and Deputy Director of the Bureau of the Budget, and the offices of Assistant Directors of the Bureau of the Budget which are established by statute (31 U.S.C. 16a and 16c), are hereby designated Director of the Office of Management and Budget, Deputy Director of the Office of Management and Budget, and Assistant Directors of the Office of Management and Budget, respectively.

(c) There shall be within the office of Management and Budget not more than six additional officers, as determined from time to time by the Director of the Office of Management and Budget (hereinafter referred to as the Director). Each such officer shall be appointed by the Director, subject to the approval of the President, under the classified civil service, shall have such title as the Director shall from time to time determine, and shall receive compensation at the rate now or hereafter prescribed for offices and positions at Level V of the Executive Schedule (5 U.S.C. 5316).

(d) The Office of Management and Budget and the Director shall perform such functions as the President may from time to time dele

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gate or assign thereto. The Director, under the direction of the President, shall supervise and direct the administration of the Office of Management and Budget.

(e) The Deputy Director of the Office of Management and Budget, the Assistant Directors of the Office of Management and Budget designated by this reorganization plan, and the officers provided for in subsection (c) of this section shall perform such functions as the Director may from time to time direct.

(f) The Deputy Director (or during the absence or disability of the Deputy Director or in the event of a vacancy in the office of Deputy Director, such other officials of the Office of Management and Budget in such order as the President may from time to time designate) shall act as Director during the absence or disability of the Director or in the event of a vacancy in the office of Director.

SEC. 103. Records, property, personnel, and funds. The records. property, personnel, and unexpended balances, available or to be made available, of appropriations, allocations, and other funds of the Bureau of the Budget shall, upon the taking effect of the provisions of this reorganization plan, become records, property, personnel, and unexpended balances of the Office of Management and Budget.

PART II. DOMESTIC COUNCIL

SEC. 201. Establishment of the Council.-(a) There is hereby established in the Executive Office of the President a Domestic Council, hereinafter referred to as the Council.

(b) The Council shall be composed of the following:

The President of the United States

The Vice President of the United States

The Attorney General

Secretary of Agriculture

Secretary of Commerce

Secretary of Health, Education, and Welfare

Secretary of Housing and Urban Development

Secretary of the Interior

Secretary of Labor

Secretary of Transportation

Secretary of the Treasury

and such other officers of the Executive Branch as the President may from time to time direct.

(c) The President of the United States shall preside over meetings of the Council: Provided, That, in the event of his absence, he may designate a member of the Council to preside.

SEC. 202. Functions of the Council.-The Council shall perform such functions as the President may from time to time delegate or assign thereto.

SEC. 203. Executive Director.-The staff of the Council shall be headed by an Executive Director who shall be an assistant to the President designated by the President. The Executive Director shall perform such functions as the President may from time to time direct.

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PART III. TAKING EFFECT

SEC. 301. Effective date. The provisions of this reorganization plan shall take effect as provided by section 906(a) of title 5 of the United States Code, or on July 1, 1970, whichever is later.

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SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Staff Memorandum No. 91-2-16.

MAY 5, 1970.

Subject: Reorganization Plan No. 2 of 1970-Office of Management and Budget; Domestic Policy Council.

Reorganization Plan No. 2 of 1970 was transmitted by the President to the Congress on March 12, 1970 and referred to the Subcommittee on Executive Reorganization on March 14. Hearings on the plan have been scheduled for May 8. Unless it is disapproved by a majority vote of either House of the Congress, prior thereto, the last day for floor action on a resolution of disapproval is May 15, 1970. Because of the Easter recess, the original final date for such action, May 11, was extended 4 additional days pursuant to the provisions of Chapter 9 of Title 5, United States Code, which requires the exclusion of any period of adjournment of either House in excess of 3 days. Reorganization plans become effective on the 61st day following transmittal to the Congress. However, under the provisions of this plan, it will become effective on July 1, 1970.

A resolution of disapproval (H. Res. 960) was introduced in the House of Representatives on April 30 by Representative John A Blatnik, Chairman of the Subcommittee on Executive and Legislative Reorganization of the House Committee on Government Operations. On the same day, Representative Blatnik, for himself and Representative Holifield, introduced a bill (H.R. 17376) which embodies most of the principal features of Plan No. 2 of 1970, but includes certain basic changes.

PURPOSE OF THE PLAN

The stated purpose of Plan No. 2 of 1970 is to provide a more responsive and effective Government by modernizing the Executive Office of the President so as to provide an improved system of policy making and coordination and a more effective set of management tools. More specifically, it is designed to provide the President with the staff support deemed essential to assist in carrying out his responsibilities as chief executive, with particular reference to (1) developing policies and programs for consideration by the Congress; (2) evaluating existing programs; (3) developing improved plans for the organization, coordination and management of the executive branch in order to achieve efficient and economical service; (4) assuring effective program performance; and (5) developing policies and programs to facilitate recruitment of the best executive talent. The plan seeks to accomplish this objective by (1) changing the name of the Bureau of the Budget to the Office of Management and Budget; (2) transferring to the President all of the functions vested by law in the Bureau of the Budget, or its Director; (3) redesignating the existing offices of Director and Deputy Director of the Bureau of the Budget, and those offices of Assistant Director of the Bureau which are established by statute, as Director, Deputy Director and Assistant Directors, respectively; (4) authorizing the Director of the new Office, subject to Presidential approval, to appoint no more than six additional officers, under the classified civil service, at Level V of the Executive Schedule ($36,000). The Office of Management and Budget, and its Director, would perform such functions as the President may delegate or assign, and the Director would be required to supervise and direct the administration of the Office under the direction of the President. The Deputy Director, the Assistant Directors and the additional officers provided for in the plan, would perform such duties as the Director may direct. In his transmittal message, the President stated that he intended to delegate the statutory functions transferred to him by section 101 of the plan to the Director of the new Office.

The plan would also establish a Domestic Council, composed of the Attorney General and the Secretaries of Agriculture, Commerce, Health, Education and Welfare, Housing and Urban Development, Interior, Labor, Transportation and Treasury, and such other Executive Branch officers as the President shall direct. The Council would perform such functions as the President may from time to time delegate or assign, and its meetings would be presided over by the President, unless he designated a Council member to preside.

The plan further provides that the President shall designate an Executive Director to head the staff of the Council, who would be an Assistant to the President and would perform such functions as the President may from time to time direct. The major provisions of the plan are set forth in the Appendix, attached hereto.