INDEPENDENT OFFICES AND DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT APPROPRIATIONS FOR FISCAL YEAR 1968 FRIDAY, JULY 21, 1967 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met at 2:10 p.m., in room S-128, the Capitol, Hon. Warren G. Magnuson (chairman) presiding. Present: Senators Magnuson, Ellender, and Allott. FEDERAL COMMUNICATIONS COMMISSION STATEMENT OF ROSEL H. HYDE, CHAIRMAN, ACCOMPANIED BY ROBERT E. LEE, KENNETH A. COX, AND NICHOLAS JOHNSON, COMMISSIONERS; MAX D. PAGLIN, EXECUTIVE DIRECTOR; STANLEY E. McKINLEY, DEPUTY EXECUTIVE DIRECTOR; RICHARD F. SLOAN, BUDGET OFFICER; BERNARD STRASSBURG, CHIEF, COMMON CARRIER BUREAU; CURTIS B. PLUMMER, CHIEF, FIELD ENGINEERING BUREAU; JAMES E. BARR, CHIEF, SAFETY AND SPECIAL RADIO SERVICES BUREAU; SOL SCHILDHAUSE, CHIEF, CATV TASK FORCE; RALPH J. RENTON, CHIEF ENGINEER; HENRY GELLER, GENERAL COUNSEL; AND WILLIAM H. WATKINS, DEPUTY CHIEF ENGINEER BUDGET REQUEST, HOUSE ALLOWANCE AND LETTER OF CHAIRMAN Senator MAGNUSON. The committee will come to order. We have the Federal Communications Commission with us today. For the purpose of the record, the fiscal year 1967 appropriations were $17,852,300. The budget requested for fiscal year 1968 is $19,221,000, and the House recommended $19 million, which is $1,147,000 over the 1967 fiscal year appropriations but $221,000 under the budget estimates. Those are our figures including the budget amendment, not considered by the House. We will discuss this amendment shortly. Mr. HYDE. I do have a discussion of that in the statement. Senator MAGNUSON. For the record we will insert your letter to the committee, along with the justifications. (The letter and justifications follow :) FEDERAL COMMUNICATIONS COMMISSION, Hon. WARREN G. MAGNUSON, Washington, D.C. DEAR SENATOR MAGNUSON: This is in response to your letter of May 12, 1967, concerning changes requested by this Commission in the Independent Offices Appropriation Bill for 1968. The Commission has reviewed its proposed program for 1968 in light of the allowance of $19,000,000 by the House of Representatives and decided that no formal appeal for restoration of the reduction should be filed. The Commisison feels that the House has evidenced its recognition of the continually increasing regulatory problems arising in the communications industry and has approved a very reasonable appropriation for the Commission when considered against the budgetary problems confronting the Congress at this time. I would like to point out that the House action was taken in response to our original budget request and does not cover the amendment of $121,000 which was transmitted by the President after the House had marked up this Bill. It is assumed that this additional amount will be considered separately. Thank you for this opportunity to comment on this appropriation bill. Sincerely yours, JUSTIFICATIONS ROSEL H. HYDE, Chairman. Hon. JOE L. EVINS, FEDERAL COMMUNICATIONS COMMISSION, Chairman, Subcommittee on Independent Offices, Committee on Appropriations, House of Representatives, Washington, D.C. DEAR MR. EVINS: Transmitted herewith is a justification and revised budget schedules for an amendment to the appropriation estimates of the Federal Communications Commission for fiscal year FY-1968. The requested amendment is required to finance increased pay costs for engineers which could not be foreseen by the Commission at the time annual estimates were submitted. This proposed amendment is to meet increased pay scales for certain engineers as authorized by the Civil Service Commission under Executive Order No. 11073 pursuant to 5 U.S.C. 5303 to become effective in February, 1967. AMENDMENT TO ESTIMATES OF APPROPRIATION FISCAL YEAR 1968 The annual estimate of appropriation for this Commission in the President's budget for FY-1968 was $19,100,000. Increased pay costs, which could not be foreseen at the time earlier estimates were prepared, will increase requirements by $121,000. It is requested, therefore, that our total estimate for FY-1968 be amended to $19,221,000. Effective in February 1967, the Civil Service Commission, under authority of 5 U.S.C. 5503 and Executive Order 11073, adjusted the annual salary rates for electronic engineers in grade GS-9, GS-11, and GS-12. This adjustment was necessary in order to enable the Government to compete with private industry in this extremely critical occupational group. It is becoming more difficult each year to retain trained personnel and to attract qualified replacements at all salary levels. Since a high percentage of the Commission's staff is comprised of electronic engineers, this change in pay scales has a greater impact in the FCC than in other regulatory agencies. The resulting added costs are distributed as shown below. In making this analysis we have taken into consideration anticipated grade changes only for that portion of the year in which the changes will be effective. It will not be possible to absorb the added cost without a major reprogramming of funds and further curtailment of programs which are now budgeted at minimum levels. The increased funds requested are to finance these added costs only and not to finance any additional staff or programs. 1 Includes capital outlay as follows: 1968 original, $1,386,000; 1968 revised, $1,386,000; increase, none. |