As our operations have grown, we have had to request increased resources to perform them. These increased investments have, however, always resulted in more than a proportionate increase in the amount of revenue that we have turned in to the Treasury. Our total revised appropriation estimate for fiscal year 1962 is $4,724,000 and we estimate that our revenue for return to the Treasury for that year will be $5,600,000.

Our requested increase of $679,673 over the appropriation for fiscal year 1961 includes $144,980 for personnel compensation. Of this, $19,980 is to cover withingrade salary increases. The remainder would be used to employ, as necessary, temporary and part-time workers and to provide necessary overtime compensation, to keep our work programs on a current basis.

An increase of $1,693 for personnel benefits covers the required contributions to the civil service retirement fund, employee insurance, and health benefits.

Under "Rents, communications, and utilities," we have requested an increase of $8,000. Of this, $4,000 is to cover the additional postage, telephone, and telegram charges that the estimated increase in sales for fiscal year 1962 will make necessary. The remaining $4,000 is to cover our additional costs for heat, light, and power.

The increase of $169,000 that we are requesting for printing and reproduction will provide for the additional cost of purchasing publications for distribution to depository libraries, additional costs involved in the printing of the monthly catalog of U.S. Government publications and the numerical list and schedule of volumes of congressional documents and reports, and for the printing of additional copies of price lists of Government publications, for which there is an increased demand due to the present high public interest in U.S. Government publications. We believe that this increase will eliminate in 1962 the unfortunate necessity during the current year of deferring many requests where these price lists could have been used to advantage.

The increased need for supplies and materials that normally results from an increase in our volume of business provides the basis for an additional $62,000 requested for fiscal year 1962, to cover such necessary mailing supplies as mailing bags, envelopes, cartons, tubes, twine, cord, tape, stencils, wrapping paper, glue, and corrugated board, as well as stationery items, which include ribbons, microfilm, rubber stamps, form letters, cards, notices, coupons, and autostat supplies.

We are asking for an increase of $94,000 under "Equipment," which would be used for basically nonrecurring items; $27,000 of this amount would make possible the urgently needed replacement of existing equipment, and the remainder, $67,000 is for two high-speed mailing machines recently placed on the market, which will enable us to further mechanize our multiple-copy inserting operations, with substantial economies in future mailings an anticipated result.

The remaining $200,000 of our requested total increase for fiscal year 1962 would be designated as a reserve for contingencies, under the change in appropriation language which has been prepared with the assistance and cooperation of the Bureau of the Budget. The amount provided could be used only with the approval of the Public Printer when costs resulting from workload increases exceeded those provided in budget estimates. We have faced a recurring situation in recent years, where there has been a regrettable increase in the complaints from the public to us and to Members of Congress because we have not always been able to provide the service required of us in the manner that the ordering public has a right to expect. I am hopeful that the availability of this reserve fund for use if needed, and under the safeguards provided, will do much to eliminate this situation. I want to repeat that, even with the inclusion of this reserve in the appropriation requested for fiscal year 1962, we have every expectation that we shall again show earnings for that year that will exceed the amount of the entire appropriation.

I assure this committee that we shall continue to make every effort to provide Congress, the public, and the other Government agencies with the best possible service. We deeply appreciate the help you have always given us in the past and the opportunity to present this statement today.

STATEMENT SUPPORTING 1962 ESTIMATE FOR SALARIES AND EXPENSES, OFFICE OF THE SUPERINTENDENT OF DOCUMENTS

The Office of the Superintendent of Documents is a division of the Government Printing Office which operates under a separate appropriation. The primary function of the Office, and the only one which produces revenue, is the sale of U.S. Government publications. Publications offered for sale are purchased from the Public Printer, and the sales price is set in accordance with provision of law at cost plus 50 percent. Acquisition costs are paid from sales receipts, and each fiscal year receipts received in excess of the cost of the publications purchased for sale are turned in to the Treasury as miscellaneous receipts. This amount has steadily increased. Last year our earnings reached $4,109,562, and for the first time in the history of the Office covered not only the cost of the sales program but also the cost of all of the other programs with which the Office is charged by law. Sales for the current year are approximately 15 percent ahead of last year and we estimate that our earnings for this fiscal year will reach $4,900,000, which will again exceed the amount of our entire appropriation.

The four other functions with which the Office of the Superintendent of Documents is charged produce no revenue. These functions are: (1) The compilation and issuance of catalogs and indexes of Government publications; (2) the purchase of publications and their distribution to designated depository libraries, which now number 592; (3) the distribution of publications for other Government agencies; and (4) the distribution for Members of Congress of their quotas of such publications as farmers bulletins, soil survey reports, Children's Bureau publications, and copies of the Congressional Record and Official Gazette of the Patent Office.

All of our functions are of a service nature and are of such type that we have no control over the volume of work which we are called on to perform. We cannot regulate the number of publications that are issued by the various Government agencies or the number of persons who write to us for these publications. We are required to list in our catalogs and indexes information concerning every publication not confidential in character and to provide a copy for each of the 592 depository libraries which have requested it.

We prepared our original estimates for fiscal year 1962 based on known factors at the time, and in anticipation of some leveling off of the unprecedented increase in volume of business experienced in fiscal year 1960, but actually, the volume of sales for the first 9 months of the current fiscal year (1961) is again exceeding all expectations and is running about 15 percent ahead of last year. There is now every evidence that this trend will continue in 1962, resulting in sales for that fiscal year estimated at $11,300,000 and earnings for return to the Treasury of $5,600,000. It is already apparent that the amount of our original estimate for 1962 could not be adequate to provide the resources necessary to meet this increased demand for the service we are required to supply. Consequently, we have submitted to the Bureau of the Budget a supplemental estimate for 1962, which is reflected in the résumé below and the comparison between the 1962 and 1961 estimates. (An income and expense statement covering the fiscal years 1959, 1960, 1961, 1962, listed on pp. 8 and 9 of this statement will furnish additional and supplemental statistical information.)

APPROPRIATION LANGUAGE CHANGE CONTINGENCY RESERVE

The budget estimates submitted by this Office each year are designed to reflect the minimum funds that will be required to perform the actual workload expected by this Office. In recent years we have experienced substantially increased workloads over and above those which could have been reasonably anticipated at the time our budget estimates were originally prepared. As a result, in addition to the necessity of frequently amending the original budget estimates for the forthcoming fiscal year, funds requested and provided in the fiscal year preceding the amending of budget estimate have been insufficient to provide reasonably adequate service due to unexpected increases in workloads. This is particularly applicable to the present fiscal year, where we now have a situation that orders for publications are and have been from 2 to 3 weeks behind in being filled, other distributions drastically delayed, and the distribution upon request of pricelists and other publications announcements to the general public, civic, and other organizations and committees of Congress, severely curtailed. We had contemplated and investigated the possibility of

requesting a deficiency appropriation in an effort to alleviate these conditions; however, final determination and justification of the amount needed could not be reasonably determined until 7 or 8 months of the fiscal year had passed, and at such a late date in the fiscal year there are ordinarily no money bills pending or other methods available which would offer a practical means of requesting a deficiency appropriation. In an effort to provide a practical and economical solution for this problem, we are asking that, of the total increase of $679,673 for the fiscal year 1962, $200,000 of this amount be provided as a reserve for contingencies that could only be used with the approval of the Public Printer when costs resulting from workload increases exceeded those provided in budget estimates. We believe that the suggested appropriation language change for this purpose, which was prepared with the help and cooperation of the Bureau of the Budget, provides adequate safeguards to insure that this fund could and would only be used for the purpose previously outlined. It is our strong belief that the availability of this reserve for contingencies for use when necessary would do much to eliminate the situation that has occurred, particularly in the past 2 years, where, due to unexpected work increases, the type of service that the ordering public has a right to expect and should have could not be provided. This situation has resulted in an increased number of complaints to Members of Congress and to this Office. We estimate that, with this additional fund requested and the availability of this reserve fund, if needed, we can again show earnings in the year 1962 that will continue to exceed the entire appropriation requested.

Salaries and expenses, Office of Superintendent of Documents

Revised appropriation estimate, 1962
Appropriation, 1961__.

$4, 724, 000 4,044, 327

971,050

4, 044, 327

679, 673

$200,000

94,000

294, 000

385, 673

Obligated as of March 31, 1961.

Estimated total obligations, fiscal year 1961

Estimated obligations for April, May, and June 1961.

Estimated increase for fiscal year 1962.
Less:

Reserve for contingencies--

Nonrecurring item for equipment_

Total

Net estimated permanent increase for fiscal year 1962.

11 Personnel compensation:

Estimate, 1961

Estimate, 1962.

$2, 718, 147 2, 863, 127 Of the increased amount, $19,980 is to cover the cost of within-grade salary increases for employees, as provided by law. The remaining $125,000 is being requested for necessary temporary and intermittent (part-time) employees and necessary overtime compensation. This amount, we believe, will be necessary to handle orders for estimated sales for fiscal year 1962 of $11,300,000, with earnings for return to the Treasury estimated at $5,600,000. Sales for the first 9 months of the current fiscal year reflect an approximate 15-percent increase over the comparable period of last year, and there is every evidence that this trend will not only continue but will probably increase in fiscal year 1962. 12 Personnel benefits:

Estimate, 1961.
Estimate, 1962__

Increase__----

$174, 610 176, 303

1, 693

For required contributions to retirement fund, employee insurance and health benefits, due to within-grade increases for permanent employees.

21 Travel and transportation of persons:

Estimate, 1961-.
Estimate, 1962.

Increase___

$1,500

1,500

None

We anticipate that the same amount requested for "Travel and transportation of persons" in 1961 will be sufficient to meet the travel expenses incidental to the operations of the Office of the Superintendent of Documents, which include the statutory requirement of inspection by the Superintendent of Documents of the condition of depository libraries, which now number 592.

22 Transportation of things: Estimate, 1961Estimate, 1962.

Increase______

$1,600 1,600

None

This expenditure covers the cost of transporting sales publications ordered by Members of Congress for local delivery and deliveries to branch bookstores of the Office of the Superintendent of Documents in Washington, D.C.

23 Rents, communications and utilities:

Estimate 1961__
Estimate 1962.

$61,000 69,000

Increase_.

8,000

Funds in the object classification are used principally for payment of postage to the Post Office Department for necessary official correspondence, for telephone and telegraph service, and they also cover charges for heat, light, and power. Of the increased amount requested, $4,000 is being requested to cover additional postage, telephone and telegram charges incidental to the increase in volume of sales expected in the fiscal year 1962. The remaining $4,000 is requested to cover additional costs for heat, light, and power. The cost details in this object classification are as follows:

24 Printing and reproduction: Estimate, 1961. Estimate, 1962.

Increase

$675,000 844,000

169,000

No appropriation is required for the printing of publications offered for sale by the Office of the Superintendent of Documents, as the cost of these publications is paid from sales receipts. We are, however, charged by law with the function of furnishing free of charge upon request one copy of every publication not confidential in nature printed at the Government Printing Office, to each of the 592 designated depository libraries throughout the United States. Another statute requires us to compile and issue catalogs and indexes covering all Government publications. The total increase of $169,000 requested will enable us to provide from this amount $12,000 to cover increased costs of printing the Monthly Catalog of U.S. Government Publications and the numerical list and schedule of volumes for each session of Congress; $25,000 for additional costs involved in the purchase of copies of Government publications for distribution to depository libraries; $132,000 for the printing of catalogs, price lists, and price circulars which list Government publications available from this Office. These price lists are used as working tools and as a labor-saving device to help in processing the many thousands of requests which are received by letter, telephone, and telegram concerning available Government publications. The tremendous increase in public interest and use of the facilities of this Office has resulted in an increased demand for lists of publications available on the many subject areas encompassed by Government publications. We believe that the amount requested for price lists and price circulars will enable us to meet the requests which we anticipate will be forthcoming in the next fiscal year, and will eliminate a situation whereby in the current fiscal year it has been necessary to defer for as much as 3 months many requests for specific lists of groups of Government publications.

These funds cover repairs to office and plant fixtures and equipment, maintenance of electric trucks, alterations to work areas and cleaning of work areas and maintaining restrooms.

26 Supplies and materials: Estimate, 1961.

Estimate, 1962.

Increase__.

$287, 370 349, 370

62,000

These funds cover the cost of wrapping paper, cardboard, envelopes, shipping bags, cartons, mailing tubes, adhesive tape, cord, glue, and office supplies, necessary in the mailing of more than 175 million publications which must be performed each year by the Office of the Superintendent of Documents to the public which purchases Government publications, to depository libraries, and for Members of Congress and other Government agencies as requested. We have no control over the volume of mailing that these functions may require but each publication or order must be packaged or wrapped, which requires the extensive use of the materials in this category. We have based our 1962 estimate on the known factors of materials used and their cost in previous fiscal years, and the anticipated substantial increase in the volume of business expected in fiscal year 1962. The additional amount requested would provide $12,000 additional for stationery supplies, ribbons, microfilm, rubber stamps, printing of forms, form letters, cards, coupons and notices, autostat supplies and photostats, and $50,000 additional for jiffy bags, envelopes, cartons, mailing tubes, twine, cord, tape, stencils, wrapping paper, paste, glue, and corrugated board.

31 Equipment:

Estimate, 1961.
Estimate, 1962-