Supplemental Estimates for FY 1971

Published by the Government Accountability Office on 1971-05-03.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                                STATEMENT OF
                                            OF THE UNITED STATES
                                                 BEFORE THE
                                            UNITED STATES SENATE
                                               ESTIMATES FOR FISCAL YEAR 1971 f?                                              a4


                        We appreciate             the opportunity              to appear       before        you today          to

            discuss          our supplemental               request      for     fiscal       year      1971.

                        Our request         for         1971 supplemental           funds,          totalis-

            is    for     certain         mandatory         increases          in our       costs      resulting       from      leg-

            islation-enacted                subsequent             to the submission                of our budget         estimates

            for     fiscal         year    1971.          The legislation           to which           I refer       authorized

            two pay increases,                    an eight         percent      tax on travel             by air,      and an

          increase  in the Government contributions  for employee health benefits.

        I The supplemental  request to cover the cost of the tax on travel   is

            included          in Title         I of the supplemental                 bill       and our supplemental
4   d
            request          for     the pay increases               and for      the increase             in the Govern-
            ment contribution                     for     health     benefits       is included            in Title       II.

                        The Federal           Employee Salary            Act of 1970 (Public                      Law 91-231)

            approved          April       15, 1970, but retroactive                       to December 28,             1969, pro-

            vided        a six       percent       increase         in the General            Schedule          pay rates.             This

            increases              our cost       for     pay and related           benefits           in fiscal       year          1971

            by a total              of $3,892,000.

             The Federal             Pay Comparability                Act     of 1970 (Public                   Law 91-656)

    approved         January         8, 1971,            and Executive          Order          11576,       January          8, 1971,

    increased             the General          Schedule           pay rates          effective          January         10, 1971.

    This     increased             our pay rates             5.96 percent             and increases              the cost             of

    pay and related                 benefits        in fiscal         year      1971 by $1,786,000.

             Public         Law 91-418,            approved         September           25, 1970,           increased           the

    Government             contribution            for     health     benefits,              and increased              our con-

    tributions             to the health            benefits         program          over         100 percent,             effective
                                    .e    For example,             under     the Blue Cross                 and Aetna plans

    (the     two largest             plans)        the Government’s                  biweekly          contribution             in-

    creased         for     a high        option         family     enrollment           from        $4.10      to $8.64          or

    almost         111 percent.             For the high             option          single         enrollment          the bi-

    weekly         increase         was from $1.68                to $3.46      or about             106 percent.               These in-

    creases         are expected            to increase             our costs           in fiscal           year       1971 by

          The Airport                 and Airway           Revenue Act of 1970 (Public                              Law 91-258)

    approved         May 21, 1970,              imposed           an eight      percent             tax on the amount

    paid     for     transportation                of persons         by air          within         the United             States

    effective             July     1, 1970.         About         28 percent          of our travel                 costs     have

    been related                 to air    transportation              and our increased                     cost      as a result

    of the tax will                 be about        $120,000         in     fiscal       year        1971.
             We had planned                to absorb          the added cost                 for     the tax          on travel

    by air         and the increase                in the Government                  contribution              for     health

    benefits         through          savings       realized         from expected                  attrition          in staff.

                                                                                                                                           - 2 -
however,       because       of limited       employment       opportunities                 elsewhere,          we

have not experienced              nearly      as many separations                   as we had anticipated.

Also,     we have had more returning                 veterans         this        year     than     our previous

experience          led us to expect.              Because of this                low turnover,           we had

an March 31, 1971,             51 more professional              staff        on our rolls              than     the

number of average professional                     positions      included               in our 1971 budget.

Thus,     we will      need not only          the supplemental               funds        requested       for         the

pay increases          but    also     the supplementai          funds        for        the tax on travel

by air     and the cost          of the increase          in Government                  contribution           for

health     benefits.

         We have furnished             your   Subcommittee        with        a justification                  for

our supplemental             request      of $5,971,000         for      fiscal          year     1971,   and

respectfully           urge your       favorable      consideration.

         We will       be glad to answer           any questions             you may have.