TABLE A.-Analysis of Federal budget expenditures, fiscal years 1900–48,5 major Source: Based on Budget documents and annual reports of the Secretary of the Treasury. TABLE B.-Analysis of Federal budget expenditures, fiscal years 1900-48-Percent of total expenditures by major functions Source: Based on Budget documents and annual reports of the Secretary of the Treasury. Chairman BRIDGES. We will hear General Richards. DEPARTMENT OF THE ARMY ENGINEER CORPS STATEMENT OF MAJ. GEN. GEORGE J. RICHARDS, THE ARMY COMPTROLLER, BUDGET DIVISION, DEPARTMENT OF THE ARMY ENGINEER SERVICE, ARMY General RICHARDS. Mr. Chairman and members of the committee: General Wheeler and I appear in defense of Senate Document No. 144, which requires $41 million for engineering activities of the Army. I have a prepared statement which I wish to insert in the record, sir, and will briefly summarize the request and the necessity for it at the present time. Chairman BRIDGES. It will be made a part of the record. [(The statement is as follows:)] SUMMARY OF REQUEST AND NECESSITY FOR IT ENGINEER CORPS APPROPRIATIONS The appropriations for the activities of the Engineer Corps of the Army are contained in an appropriation with three subappropriations. The three subappropriations are: First, "Engineer Service", the one for procurement, research and development, the Engineer School, military field operations, overseas activities and certain other related functions; second, Barracks and Quarters, which contains the funds for the maintenance and repair of barracks, quarters and utilities and related activities in the United States; and third, "Military Posts", which contains funds for construction, related engineering overhead and planning and certain miscellaneous functions. MILITARY POSTS As just indicated, the construction appropriation for the Corps of Engineers has contained funds not only for actual construction of building airfields and utilities; but it also contained the fund requirements for the inspection and administration of construction authorized in prior years, the procurement of special engineer advice and support, the preparation of engineer studies, the testing of engineer design, the disposition of surplus facilities, administration and miscellaneous real-estate activities, and similar administrative and miscellaneous services. CONSTRUCTION BILL FOR FISCAL YEAR 1948 NOT ENACTED The bill for construction for fiscal year 1948 was presented to the first session of the Eightieth Congress, but was not passed. Although it has passed the Senate in this session, it has not as yet been passed finally by the House. Passage had been hoped for last July, then in December, and next early this year. Immediately upon passage, the funds for the actual construction and for the administrative and engineering activities usually contained in the "Military Posts" appropriation, were to be transmitted to the Congress. SUPERVISION OF CONSTRUCTION When around the end of July 1947, the Congress adjourned without the passage of the fiscal year 1948 construction bill, it became apparent that all construction authorized in prior years and related activities would have to stop unless supervisory funds were available to carry on. The results of such a stoppage would have been drastic and costly. Faced with this additional problem, the chairman of the House Sub-Committee on War Department Appropriations and the chairman of the Senate and House appropriation committees were consulted almost immediately after adjournment of Congress; and the proposal made to utilize funds for administration and miscellaneous current operations from the appropriation “Engineer Service, Army" until an appropriation for military construction was passed by the Congress. The chairmen were generally in accord with such proposal. At that time there was an estimated need for $32,675,000 of which $6,000,000 was for transportation of construction materials. This $6,000,000, it was felt, could be properly charged to the appropriation "Transportation Service, Army," thus reducing the need for utilization of "Engineer Service, Army" funds to $26,675,000 which was the amount included in the 1948 construction bill estimates for reimbursement. Next, it was hoped the construction bill would be passed in December; then passage in January was anticipated. Since by the spring of 1948, there was still no indication that the appropriation for 1948 construction would be passed, the required items were requested of the Bureau of the Budget; and the necessary items reduced to $21,000,000, which is what the Army now asks be immediately appropriated. Unfortunately this request for funds did not leave the Bureau of the Budget until April 8, which apparently was too late for the House to act upon it in connection with the First Deficiency Bill, 1948. PURPOSES FOR WHCH FUNDS REQUESTED ARE UTLIZED I have given the general purpose for which the funds requested are utilized. At this point, I should like to insert in the record a more detailed justification of the funds requested. These show the requirement for overseas as $10,049,000 and for the United States as $10,951,000. Fiscal year 1948: PROJECT 430.-Engineer field operations Amount appropriated. SUPPORTING DATA $89, 900, 085 10, 049, 000 (a) Overseas, construction operations, $10,049,000.-The amount requested in the supplemental consists of $9,200,000 for the administration of work now under construction authorized from prior years funds, $60,000 for professional engineer services for the benefit of the theaters, and $789,000 for advance planning and design of public works. The use of these funds is for the pay of personnel, travel, etc., which could not be obligated in advance. The largest item, $9,200,000 for the administration of prior years construction work is less than 5 percent of the cost of work to be completed during fiscal year 1948. They are really applicable to the work appropriated for in prior years which cannot be charged to funds for such work. Since it was neither economical nor feasible to immediately discontinue the large volume of construction work and since other funds were not available to discharge the cost incurred, it becomes necessary to supply the funds required in this supplemental. It is estimated that $201,500,000 worth of construction will be completed during fiscal year 1948. These funds will provide a minimum force for supervision, inspection, engineering, cost reporting, accounting, legal work, measurement of completed work, record drawings, and compilation of payments due contractors. Fiscal year 1948: PROJECT 320.-Ground Force facilities Amount appropriated__ Amount of supplemental_ $116, 981, 000 10, 951, 000 SUPPORTING DATA Continental United States, construction operations and related activities, $10,951,000. All of the items listed below are of such nature that they must be paid for with current funds since the prior year funds could not be obligated in advance of the time the work was actually performed. Since it was not feasible to dis continue construction work that was under way on July 1, 1947, the funds are required. For administration of work now in progress authorized with prior years funds___ For professional services to the armies and technical services provided by the field offices of the Corps of Engineers_ For termination charges which are not properly chargeable to con- For master planning, investigation of protective structures, ad- For disposition of surplus facilities $5,600,000 300,000 1, 000, 000 100, 000 1,775,000 1, 000, 000 1, 176,000 It is estimated that $92,200,000 of the total amount of construction authorized during prior fiscal years remained to be placed after June 30, 1947, and that $87,200,000 will be completed during fiscal year 1948. The cost of administering construction work, $5,600,000, which is the largest single component of this request, will provide approximately 6.5 percent of the value of the work to be completed in fiscal year 1948. These funds will provide a minimum force for supervision, inspection, engineering, cost reporting, accounting, legal work, measurement of completed work, record drawings, and compilation of payments due contractors. ADDITIONAL ENGINEER OVERSEAS RESPONSIBILITIES At the time of the hearings before the Senate on the 1948 appropriation act, and with the approval of the Bureau of the Budget, the Army requested an increase under the appropriation "Engineer Service, Army" to cover expenses under the pay-as-you-go policy in certain countries. This policy was placed in operation after the original 1948 budget had been submitted and after the appropriation bill had passed the House; and no provision had been made for the funds required for the fiscal year 1948. The Senate committee recognized the need for these additional funds; and included funds for the purpose in the Senate bill. However, it was the decision of the Senate and House conferees that since a more precise determination of the amounts required could be made later, funds should not be appropriated at that time. This decision was embodied in Conference Report 1091 on H. R. 3678, the Military Establishment appropriation bill, 1948, which stated: "Amendment No. 15: Appropriates $129,386,000 for Engineer Service, Army, instead of $114,512,405 as proposed by the House and $145,456,411 as proposed by the Senate. The $10,800,000 recommended by the Senate for requirements due to the new policy of treating as liberated nations certain countries heretofore treated as occupied is not included in the approved amount. This action by the conferees is not intended to prevent a request for a deficiency for this purpose later in the year upon proper justifications." The Department of the Army offered no protest to this decision because it was felt that more precise estimates could be made later and because of the indication by the conferees that a deficiency for this purpose would be considered later in the year. FUNDS REQUIRED On June 27, 1947, before the Senate Subcommittee on War Department Appropriations, I indicated that the Army would absorb in its then available and requested appropriations, as much of the additional requirements as possible; but at that time estimated that from $15,000,000 to $18,000,000 additional would be necessary. The estimates now required by the overseas theaters are for $20,000,000. They are largely for repairs and utilities; and I should like to insert in the record the data supporting this request: |