Department of the Army-Fiscal 1951 budget summary by detailed cost category with prior year comparisons-Comparative new obligational authority for military Department of the Navy-Fiscal 1951 budget summary by detailed cost category with * Departmental distribution of public works contingent items to be determined by OSD, Excludes funds for "claims" transferred to OSD in fiscal 1951. (115.3 million dollars contract authority and 14.5 million dollars cash authorized in fiscal 1949). 63683-50- -3 Department of the Air Force-Fiscal 1951 budget summary by detailed cost category with prior year comparisons-Comparative new obligational authority for military 1 Reflects comparative transfer adjustments between Departments. Includes classified and non-ceiling Departmental distribution of public works contingent item to be determined by OSD. Mr. MCNEIL. I would like to start with a comparison of fiscal year 1950 and fiscal year 1951 covering three separate budget concepts: (1) New obligational authority; (2) cash appropriations; and (3) expenditures, or the measure of the checks written during the year. RECAPITULATION OF TOTAL 1951 BUDGET ESTIMATE New obligational authority, the measure of the authority to employ personnel and to enter into new contracts, is 13 billion dollars for 1951. Of the 13 billion dollars of new obligational authority requested in this budget, 10.8 billion dollars is in cash, 0.9 billion dollars is in contract authority carried forward from 1950 and not used in this year, and 1.3 billion dollars is in new contract authority. Except for a contingent reserve for public works to be presented and justified later, all of the contract authority is under aircraft procurement which I will discuss in further detail later in my statement. (To the $13,000,000,000 in this budget there has been added $103,000,000 of items not chargeable to the Department of Defense. ceiling in fiscal year 1951.) This 13-billion-dollar figure compared to the President's budget request of 14.2 billion dollars for fiscal year 1950. Action by the Congress on the President's budget for 1950, based in part upon savings reported by the Department of Defense, resulted in reductions of $315,000,000, $265,000,000 being direct reduction in appropriations with instructions to absorb $50,000,000 for the radar fence. Minusand-plus adjustments were made by the Congress resulting in appropriations of 13.9 billion dollars. That amount included $736,000,000 added by the Congress for aircraft procurement and for maintenance of an augmented group structure, and which amount was placed in reserve by the President. Senator THOMAS. What will become of that item in the total of 13.9 billion dollars? Mr. MCNEIL. The greater portion of this item was in continuingtype authority. The aircraft-procurement portion of the amount placed in reserve plus certain other amounts not being utilized in 1950 total 0.9 billion dollars. This total represents contract authority which was carried forward from fiscal 1950 and made a part of the fiscal 1951 request. The amount of this actual request from Congress, therefore, is reduced to 12.1 billion dollars. RESERVE FUNDS Senator THOMAS. Do you plan to use the $736,000,000 which was placed in reserve by the President? Mr. MCNEIL. All aircraft-procurement authority not utilized is being carried forward for use in 1951, and we therefore have asked for that much less in fiscal 1951. I have a chart here which will show that quite clearly, if you would like to see it. The full bar represents 13.9 billion dollars, the amount of the appropriation last year. The portion of the bar below the lower line represents the amount-13 billion dollars-that is being utilized this year. The portion of the bar between the lines represents the amountabout $160,000,000-that has been administratively held by the Secretary of Defense. The portion between the dotted line and the top represents the $736,000,000 placed in reserve by the President. The sum total of the last two items mentioned-about 0.9 billion dollars-is being carried over and becomes a part of the $13,000,000,000 this year. So, in effect, the Congress is being asked to provide 0.9 billion dollars less this year than otherwise would be the case. CONTRACT AUTHORITY FOR 1951 Senator WHERRY. What is your contract authority in 1950 for next year? Mr. MCNEIL. It is approximately $2,000,000,000. Senator WHERRY. I mean, exclusive of what you are carrying over what will the new amount of contract authority you are asking for be for the next fiscal year? Mr. MCNEIL. 1.3 billion dollars additional, of which nearly 1.1 billion dollars is in the bill before you, and the remainder will be requested in connection with the 1951 public-works program shown as a contingent item in the President's budget. Senator WHERRY. You are asking for as much money in new contract authority as you are carrying over? Mr. MCNEIL. Just about the same. The 0.9 billion dollars carried over plus the 1.1 billion dollars additional request will provide approximately 2.0 billion dollars for aircraft procurement. Senator FERGUSON. What percentage did you hold back? Mr. MCNEIL. It would total about 7 percent, including what the President placed in reserve. Senator FERGUSON. Does the blue portion of the chart represent actual expenditures? Mr. MCNEIL. No, sir. This represents obligational authority and does not tie in directly with expenditures at all. Senator FERGUSON. It does not tie in with expenditures? Mr. MCNEIL. No; it does not. Senator WHERRY. What did you actually expend? ACTUAL 1950 EXPENDITURES Mr. MCNEIL. The actual expenditures this year will be about 12.5 billion dollars. That is the present estimate of the checks actually to be issued up to June 30, 1950. Senator WHERRY. And the balance of that is in either reserve, in contract authority, or you are asking to have it transferred to the next fiscal year? Mr. MCNEIL. Or it will be carried over beyond June 30, 1950, to pay contracts let this year. Senator FERGUSON. That would be for work done prior to June 30 that was not billed and was not paid for? CARRY-OVER FUNDS Mr. MCNEIL. Yes, sir. This chart was prepared in order to show how the $736,000,000 and $160,000,000 was carried over. |