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TO INCLUDE ALL GENERAL APPROPRIATION BILLS IN ONE CONSOLIDATED GENERAL APPROPRIATION BILL

TUESDAY, JUNE 24, 1947

UNITED STATES SENATE,
SUBCOMMITTEE ON RULES OF THE

COMMITTEE ON RULES AND ADMINISTRATION,

Washington, D. C.

The subcommittee met, pursuant to call, at 10 a. m., in room 104-B, Senate Office Building, Senator Kenneth S. Wherry (chairman) presiding.

Present: Senators Wherry and Ives.

Also present: Senator Byrd; R. W. Maxwell, Commissioner of Accounts, Treasury Department; G. L. Cake, Associate Commissioner of Accounts, Treasury Department; S. M. Brown, Assistant Chief, Office of Administrative Planning, General Accounting Office; Fred Lawton, Assistant Director of Budget, Bureau of the Budget; and Carl Tiller, budget examiner, Bureau of the Budget.

Senator WHERRY. The commitee will be in order.

Senator Byrd has submitted an amendment to Senate Concurrent Resolution No. 6, in the nature of a substitute, and I will ask that the committee print of said amendment be inserted in the record at this point.

(Committee print of S. Con. Res. 6 is as follows:)

[COMMITTEE PRINT]

[S. Con. Res. 6, 80th Cong., 1st sess.]

[Strike out all enclosed in black brackets and insert the part printed in italic]

CONCURRENT RESOLUTION

Resolved by the Senate (the House of Representatives concurring), [That the joint rule of the Senate and of the House of Representatives contained in section 138 of the Legislative Reorganization Act of 1946 is amended by adding at the end thereof the following new subsection:

"(c) (1) Commencing with the Eightieth Congress, all general appropriations for each fiscal year shall be consolidated in one general appropriation bill to be known as the 'Consolidated General Appropriation Act of (the blank

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to be filled in with the calendar year in which the fiscal year for which such appropriations are being made ends). As used in this paragraph the term 'general appropriations' shall not include deficiency or supplemental appropriations.

"(2) The consolidated general appropriation bill, and each deficiency or supplementary general appropriation bill, shall show in tabular form by items and totals (A) each item of appropriation, (B) the amount to be expended in the ensuing fiscal year from such appropriation, (C) the amount to be expended in the ensuing fiscal year from all other appropriations made in prior years for the same purpose as the item of appropriation referred to in clause (A) is made, (D) the total amount to be expended in the ensuing fiscal year from such appropriations, and (E) that part of the item of appropriation referred to in clause 41

(A) which will be available for expenditure subsequent to the close of the ensuing fiscal year.

"(3) Amendments to any general appropriation bill which would have the effect of changing any figures required to be shown by paragraph 2 of this subsection, shall contain a provision changing such figures to conform to the proposed amendments.

"(4) No general appropriation bill and no amendment thereto shall be received or considered in either House unless it conforms with this rule."] That, effective on the first day of the second regular session of the Eightieth Congress, the joint rule of the Senate and of the House of Representatives contained in section 138 of the Legislative Reorganization Act of 1946 is amended by adding at the end thereof the following new subsection:

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"(c) (1) All appropriations for each fiscal year shall be consolidated in one general appropriation bill to be known as the 'Consolidated General Appropriation Act of (the blank to be filled in with the appropriate fiscal year). The consolidated general appropriation bill may be divided into separate titles, each title corresponding so far as practicable to the respective regular general appropriation bills heretofore enacted. As used in this paragraph the term ‘appropriations' shall not include deficiency or supplemental appropriations, appropriations under Private Acts of Congress, or rescissions of appropriations.

"(2) The consolidated general appropriation bill for each fiscal year, and each deficiency and supplemental general appropriation bill containing appropriations available for obligation during such fiscal year, shall contain provisions limiting the net amount to be obligated during such fiscal year in the case of each appropriation made therein which is available for obligation beyond the close of such fiscal year. Such consolidated general appropriation bill shall also contain provisions limiting the net amounts to be obligated during such fiscal year from all other prior appropriations which are available for obligation beyond the close of such fiscal year. Each such general appropriation bill shall also contain a provision that the limitations required by this paragraph shall not be construed to prohibit the incurring of an obligation in the form of a contract within the respective amounts appropriated or otherwise authorized by law, if such contract does not provide for the delivery of property or the rendition of services during such fiscal year in excess of the applicable limitations on obligations. The foregoing provisions of this paragraph shall not be applicable to appropriations made specially for the payment of claims certified by the Comptroller General of the United States and of judgments, to amounts appropriated under Private Acts of Congress, to appropriations for the payment of interest on the public debt, or to revolving funds or appropriations thereto.

"(3) The committee reports accompanying each consolidated general appropriation bill, and any conference report thereon, shall show in tabular form, for information purposes, by items and totals

"(A) the amount of each appropriation, including estimates of amounts becoming available in the fiscal year under permanent appropriations;

"(B) estimates of the amounts to be transferred between such appropriations:

"(C) estimates of the net amount to be expended in such fiscal year from each appropriation referred to in clause (A);

"(D) estimates of the net amount to be expended in such fiscal year from the balances of prior appropriations;

"(E) the total of the amounts referred to in clauses (C) and (D); and "(F) estimates of the total amount which will be available for expenditure subsequent to the close of such fiscal year from the appropriations referred to in clause (A).

The committee reports accompanying each deficiency and supplemental appropriation bill containing appropriations available for obligation or expenditure during such fiscal year, and each appropriation rescission bill, and any conference report on any such bill, shall include appropriate cumulative revisions of such abulations.

"(4) The committee reports accompanying each consolidated general appropriation bill, and any conference report thereon, shall show in tabular form, for information purposes, for each wholly owned Government corporation or other agency of the Government which is authorized to receive and expend receipts without covering such receipts into the Treasury of the United States and which uses a checking account maintained with the Treasurer of the United States for that purpose (A) the estimated expenditures (other than retirement of borrowing) to be made out of such checking account for the fiscal year, (B) the esti

mated receipts (other than borrowing) to be deposited in such checking account for such fiscal year, and (C) the difference between (A) and (B).

"(5) The provisions of paragraph (2), (3), and (4) shall not be applicable to appropriations of trust funds or to transactions involving public-debt retirement.

"(6) No general appropriation bill shall be received or considered in either House unless the bill and the report accompanying it conforms with this rule. "(7) The Appropriations Committees of the two Houses may hold hearings simultaneously on each general appropriation bill or may hold joint hearings thereon."

Senator WHERRY. I have before me a summary of the changes which are involved in the new committee print. [Reading:]

Where the original draft would have provided that appropriation acts fix direct limitations on annual expenditures, the new draft substitutes limitations on obligations against appropriations which may be available beyond the ensuing year.

We all understood that.

Senator IVES. Yes.

Senator WHERRY (reading):

In lieu of legal limitations on annual expenditures fixed in appropriation acts as provided in the original draft, the new draft substitutes provision for tabular presentation of itemized and totaled expenditure estimates, for information and guidance, in Appropriation Committee reports and conference reports on appropriation bills.

Do you mean by that that you are going to give us a quarterly or a monthly report on the amount of expenditures these Departments have made? Let's for example, take Reclamation, are we going to be able to go into the Appropriations Committee room and there have a monthly report on how each project is progressing?

Mr. LAWTON. Well, this provision in the bill means that the House Appropriations Committee, for example, when they reported out the Interior Department bill, would indicate the appropriations allowed, and they would indicate in an informative statement what those appropriations meant in terms of expenditures by fiscal years.

Senator WHERRY. By fiscal years I understand, but what about any part of a year?

Mr. LAWTON. That would not be affected in this. This is the action of Congress on the appropriations.

Senator WHERRY. Now, "Summary of new draft"-do you want to give it to us, Senator Byrd, or make a statement on it?

Senator BYRD. I think it is precisely and concisely stated in that statement you have before you.

Senator WHERRY (reading):

The effective date of the resolution is changed to the beginning of the second session of the Eightieth Congress for obvious reasons.

The Consolidated General Appropriation Act proposal contained in the original draft is preserved.

The new draft substitutes limitations on obligations against appropriations which may be available beyond the ensuing year, instead of limitations against all expenditures as proposed in the original draft.

That is because of the accounting requirements, is that right?
Mr. BROWN. That is correct.

Mr. LAWTON. Yes.

Senator WHERRY (reading):

Under the new draft, expenditures for the ensuing year, from all appropriations-regular, permanent, etc.-would be estimated in committee and confer

ence reports on appropriation bills, but they would not be fixed in the law, and there would be no requirement for enforcement. The expenditure table would be for information and guidance.

In addition to those effecting the change in the policy of the resolution, numerous other changes have been made in the new draft to meet technical and administrative requirements.

Then there is a limitation on the obligation, isn't that right?
Mr. LAWTON. That is right.

Senator WHERRY. But there is no limitation fixed by law, in reality, on the appropriation, is that right?

Mr. LAWTON. Well, the limitation on the appropriation of course is the authority to obligate and to fix the limitation on the appropriation you are limiting your authority to obligate. The question of when you pay for those obligations is not limited.

Senator WHERRY. Here is an appropriation in the reclamation bill where we appropriate for the fiscal year 1948, say $15,000,000. That is cash money, what I call free money to be expended in the fiscal year 1948. Along comes the Reclamation Bureau and they say:

We want to obligate ourselves for 1948, 1949, and 1950, on a continuous contract, so much of it to be spent in 1948 if we can let the contract, so much in 1949 and so much in 1950.

How will that be affected because that is an obligation?

Mr. LAWTON. There is a limitation also provided in the bill on any obligations which do not call for delivery of goods or services within the fiscal year, similar to the present procedure where you have an appropriation made to enter into the contracts and pay for those contracts, and in addition to that you have a contract authorization to enter into contracts which you won't pay for until the succeeding fiscal year. Now there will be both limitations in this bill.

Senator WHERRY. But they will have to continue to have continuous contracts, but the limitations will be what they will spend in each fiscal year?

Mr. LAWTON. That is right.

Senator WHERRY. Of that continuous contract, is that right?
Mr. LAWTON. That is right.

Senator WHERRY. Senator Byrd, do you have anything to add?

Senator BYRD. For the purpose of the record I would like to have the representatives of the Treasury, the General Accounting Office, and the Bureau of the Budget make a short statement.

Senator WHERRY. All right.

Senator BYRD. Mr. Maxwell.

Mr. MAXWELL. Mr. Chairman, the Treasury feels, of course, that this is a policy matter for the Congress to determine. A representative of the Treasury, Mr. Cake, the Associate Commissioner, has been working with the committee to iron out what the Treasury thought would be difficult problems involved, and I think that everything has been taken care of, and that the things which we thought needed clarification have been clarified.

Senator WHERRY. What do you think this bill does, just briefly? Mr. MAXWELL. Well, to me it sets up an obligation on what we call either the "no year" appropriations or the "dual year" appropriations, so that a limitation is set up on those cases to the extent of the obligation which may be incurred in each year. As far as the Treasury is

concerned, I think most agencies can operate under that limitation without too much trouble.

Senator WHERRY. And the Treasury thinks this bill would serve that purpose?

Mr. MAXWELL. I think it would; yes.

Senator WHERRY. You stated earlier that they felt that it was Congress which should establish the policy?

Mr. MAXWELL. That is a policy matter.

Senator WHERRY. Are you in total accord with the policy?

Mr. MAXWELL. As far as the Treasury is concerned I don't know what the answer might be to that question, but personally I think it is something which can operate very expeditiously, and it certainly would require the agencies to watch their records a little more carefully. Senator WHERRY. All right, who is the next witness?

Senator BYRD. Mr. S. Brown, Assistant Chief, Office of Administrative Planning, General Accounting Office.

Mr. BROWN. We feel the same way about it as Mr. Maxwell. We have worked with the committtee's staff in drawing up the bill and we feel that the Congress is entitled to this information. The Congress will set the limitations on what can be expended and it is a much better bill, in our opinion, than the original bill, from an accounting standpoint.

Senator BYRD. In other words, when Congress enacts this one appropriation bill they will know practically how much will be expended in each fiscal year?

Mr. BROWN. That is right.

Senator BYRD. And there will be a limitation upon the obligations, which information, Mr. Chairman, is not now available. '

Senator WHERRY. That is right; I have tried it.

You are an accountant, Mr. Brown, explain the difference between how you can mechanically do this and not do what was intended in the original bill?

Mr. BROWN. Well, in the original bill there would have been a limit on the amount of cash that could be withdrawn from the Treasury. In that case we don't know when a person is going to cash his check. That would have been the big difficulty. We must maintain a record of our obligations in order not to exceed the appropriation that Congress establishes.

Then in addition, under the original bill we would have had to maintain a separate record of how much cash was withdrawn from the Treasury and if people would all cash their checks as soon as they were turned over to them it probably wouldn't have been very difficult, but we have many undelivered and uncashed checks every year.

Senator BYRD. The main difficulty, Mr. Brown, was in interpreting what an expenditure is, whether it was a cash withdrawal or something else. But the difference between expenditures and obligations for expenditures should not be very great.

Mr. BROWN. That is right. And if the Congress controls the amount that can be obligated they in effect have a very good control on the amount that can be expended.

Senator BYRD. Mr. Lawton, the Assistant Director of the Budget.

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