Supplemental Appropriation Bill

COMPTROLLER GENERAL'S

REPORT TO THE CONGRESS

DIGEST

FEDERAL ASSISTANCE FOR
PRESIDENTIAL TRANSITIONS
B-149372 and B-158195

WHY THE REVIEW WAS MADE

Under modern conditions, a change of administration is a complex and difficult process, requiring forethought and cooperation by the principal participants--the incoming and outgoing Presidents and their leading associates--if the transition is to be carried through successfully.

The Presidential Transition Act of 1963 was an important recognition of the public interest in orderly transitions; it sought to make that interest effective by establishing objectives and guidelines for the behavior of those involved and by authorizing the use of public facilities and funds.

The full application of the Presidential Transition Act was first demonstrated in the 1968-69 transition. Therefore, GAO believed it appropriate to review the operation of the Presidential Transition Act and other related legislation.

The basic purpose of this report is to provide information on the transitional process, which may be of interest to the Congress and the executive branch.

FINDINGS AND CONCLUSIONS

The transition of 1968-69 from President Lyndon B. Johnson to President Richard M. Nixon continued the trend, begun in the last several transitions, toward more careful advance preparations and greater continuity. In broad outline, the 1968-69 transition fulfilled the objectives of the act of 1963.

There are, however, several matters which GAO believes warrant further attention by the Congress.

Adequacy of transition funds for incoming administrations

A question arises as to whether the transition funds made available to the incoming President and Vice President are adequate. Certainly, the question is encouraged by the manner in which the amounts were determined.

Tear Sheet

NOV. 16, 1970

The starting point was an estimate presented to the Congress by the Bureau of the Budget (now the Office of Management and Budget) in its testimony on legislation leading to the Presidential Transition Act. The Bureau estimated that $1,225,000 would be a conservative amount to authorize for transition expenses. The bill passed by the House authorized an amount of $1,300,000 (apparently the Bureau's estimate rounded).. This amount was compromised to $900,000 in conference with the Senate. Although the act is silent on the matter of the division of the funds between the incoming and outgoing administrations, the legislative history reflects an expectation that they be divided equally. This was done in the case of the 1968-69 transition. (See pp. 24 and 25.)

Although the $450,000 in assistance made available to incoming administrations might well have been based on a more accurate determination of the actual expenses, it can also be argued that Presidents-elect and Vice-Presidents-elect have both quasi-official and political responsibilities in uncertain proportion and that there is no objective means of determining in what proportion their total expenses should be borne by public and private funds. GAO believes, however, that, if the Presidential Transition Act is to function as intended, the Federal assistance must cover a substantial part of the transition expenses.

GAO believes also that the $450,000 in Federal funds made available to the incoming Nixon administration was clearly inadequate in light of the $1.5 million estimated to have been spent during the 1968-69 transition. (See p. 34.)

Period of availability

of transition funds to outgoing administrations

In the normal course of events, the monies authorized for the former President and the former Vice President under the Presidential Transition Act are available for only 6 months after they have left office. At the end of this period, funds for the former President would be made available at a much-reduced level for staff and other expenses under the Former Presidents Act while the former Vice President would receive no further funds. (See pp. 22 and 38.)

On the basis of experience gained from the last transition, GAO believes that the extension of the period of availability of transition funds beyond the 6 months set by the Presidential Transition Act is desirable. It is GAO's view that, although existing legislation correctly assumes that the burdens of former Presidents and Vice Presidents are greatest in the months immediately after leaving office, the actual burdens do not decline as rapidly as the 6-month limitation in the Presidential Transition Act implies; therefore, a strict adherence to the 6-month limitation makes the timing of fund availability out of phase with the workload pattern.

The Presidential Transition Act authorizes appropriated funds for the
former President and Vice President at an average rate of $75,000 a
month for 6 months or, under the ratio used in the 1968-69 transition,
$62,500 a month for the former President and $12,500 a month for the
former Vice President. At the end of 6 months, the appropriated funds
available for the former President's staff are reduced sharply to $8,000
a month, and the former Vice President gets nothing (see p. 38).

The burdens of a former President in winding up his affairs apparently do not drop off so sharply. Certainly, the screening of Mr. Johnson's papers preparatory to releasing them to the presidential library had scarcely begun by July 21, 1969, the date that Presidential Transition Act funds would normally have terminated.

Limitation on salaries of

former President's staff

The Former Presidents Act, as amended, provides that the compensation which may be paid to any member of the former President's staff be no higher than the base pay for positions at Level II on the Executive Schedule (presently $42,500 a year). It further provides that the compensation of persons employed by a former President under the act not exceed $96,000 a year, in the aggregate. (See p. 38.) Originally, the limitation was $50,000 and it was raised by amendments to $65,000 and $80,000 before reaching the current amount in April 1970.

The maximum individual salary, then, is tied to legislation establishing Executive Schedule pay scales, whereas the overall compensation. of a former President's staff is limited by the Former Presidents Act itself.

It seems reasonable that an increase in individual salaries would warrant, at the same time, a corresponding increase in the overall limitation. But, in practice, the Former Presidents Act is not likely to be amended at the time Executive Schedule pay rates or classified pay rates in general are raised. Also, general pay increases for classified employees have occurred with greater frequency in recent years than have increases in the limitation in the Former Presidents Act.

AGENCY ACTIONS AND UNRESOLVED ISSUES

The Office of Management and Budget supports the conclusions of the report. (See p. 46.)

Tear Sheet

MATTERS FOR CONSIDERATION BY THE CONGRESS

The Congress may wish to consider

--the desirability of increasing the amount of funds authorized under the Presidential Transition Act for the incoming President and Vice President (see p. 47),

--the need for an extension of the time during which Presidential Transition Act funds are available to the former President and Vice President (see p. 48), and,

--the need to amend the Former Presidents Act to provide for adjustment of the overall limit on compensation of the former President's staff, in line with pay raises in general. Or, perhaps, in view of the uncertain purpose for the limitation on total salaries within the total appropriations available, the limitation could be safely eliminated (see p. 49).