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Lyndon B. Johnson: Letter to the Speaker Reporting on Reductions in the Cost of Operating the Government.
Lyndon
Lyndon B. Johnson
240 - Letter to the Speaker Reporting on Reductions in the Cost of Operating the Government.
March 26, 1964
Public Papers of the Presidents
Lyndon B. Johnson<br>1963-64: Book I
Lyndon B. Johnson
1963-64: Book I
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Sir:

On November 30 and December 24, 1963, I directed the heads of executive departments and agencies to tighten operations, reduce employment and effect savings. As a result of the steps being taken pursuant to these instructions, I asked the Congress on March 9 to reduce the 1965 appropriations requested in the budget by $41,927,000.

The cost reduction actions underway will also reduce the need for funds already appropriated by the Congress for the fiscal year 1964. In addition, section 603 of the 1964 Foreign Aid and Related Agencies Appropriation Act requires that such savings as might result from delayed enactment of the 1964 appropriation acts be reserved from obligation. Therefore, I directed the Director of the Bureau of the Budget to scrutinize critically the apportionment of the 1964 appropriations for the purpose of reserving savings for eventual return to the Treasury.

The Director has reported to me that a total of $50,336,77 is being reserved from obligation at the present time. These savings result from changed program and legislative requirements, planned reductions in civilian employment, improvements in management and efficiency, the delay in final enactment of 1964 appropriations, and other factors. I have directed that the current cost reduction efforts be intensified in order to increase further the amount saved.

Of the sum currently reserved, the Director of the Bureau of the Budget is confident that $34,907,570 will not be needed. A list of the amounts comprising this total, by accounts, is attached. It contains 62 items, several of them less than $1,500, consistent with my philosophy that no saving is too small to be ignored. These amounts will be retained in reserve so that they cannot be spent under any circumstances. Alternatively, if the Congress should wish to rescind these amounts, I would have no objection.
Respectfully yours,

LYNDON B. JOHNSON

[The Speaker of the House of Representatives]

LIST OF AMOUNTS PERMANENTLY RESERVED

Department of Agriculture
Agricultural Research Service: Salaries and expenses:
Research $15,000
Plant and animal disease and pest control 160,000
Cooperative State Experiment Station Service:
Payments and expenses 3,220
Extension Service: Cooperative Extension Work: Payments and expenses:
Federal Extension Service 362,500
Farmers Cooperative Service: Salaries and expenses 1,130
Soil Conservation Service: Conservation operations 198,300
Economic Research Service: Salaries and expenses 14,530
Foreign Agricultural Service: Salaries and expenses 85,000
Commodity Exchange Authority: Salaries and expenses 1,390
Office of the General Counsel: Salaries and expenses 4,265
Office of Information: Salaries and expenses 1,390
National Agricultural Library: Salaries and expenses 2,000
General Administration: Salaries and expenses 3,220
Rural Electrification Administration: Salaries and expenses 90,000
Department of Commerce
General Administration:
Participation in Century 21 Exposition 600,000
West Virginia Centennial Celebration 4,625
Area Redevelopment Administration: Area redevelopment fund 20,000,000
Office of Business Economics: Salaries and expenses 10,000
Bureau of the Census: 1962 Census of Governments 75,000
Weather Bureau: Salaries and expenses 200,000
Department of Justice
Federal Prison Industries, Inc.: Limitation on administrative
and vocational training expenses 107,000
Department of State
International Boundary and Water Commission,
United States and Mexico: Operation and maintenance 10,000
Treasury Department
Internal Revenue Service: Salaries and expenses 200,000
Office of the Treasurer: Salaries and expenses 900,000
General Services Administration
Strategic and critical materials 5,560,000
Operating expenses, Public Buildings Service 113,000
Operating expenses, Federal Supply Service 225,000
Operating expenses, Utilization and Disposal Service 12,000
Federal Aviation Agency
Operations 2,500,000

Housing and Home Finance Agency
Office of the Administrator: Salaries and expenses:
Limitation on non-administrative expenses $250,000
Federal National Mortgage Association: Limitation on
administrative expenses 100,000
Veterans Administration
General operating expenses 1,217,000
Grants to the Republic of the Philippines 20,000
Export-Import
Bank of Washington
Limitation on administrative expenses 75,000
Federal Communications Commission
Salaries and expenses 20,000
Foreign Claims Settlement Commission
Salaries and expenses 12,000
National Capital Transportation Agency
Salaries and expenses 100,000
National Security Council
Salaries and expenses 11,000
Railroad Retirement Board
Limitation on salaries and expenses 93,000
Special Representative for Trade Negotiations
Salaries and expenses 7,000
Department of Health, Education, and Welfare
Food and Drug Administration: Salaries and expenses 100,000
Office of Education: Educational improvement for the handicapped 85,090
Office of Vocational Rehabilitation: Salaries and expenses 20,000
Public Health Service:
Child health and human development 8,000
National Cancer Institute 63,000
Mental health activities 55,000
National Heart Institute 32,000
National Institute of Dental Research 9,000
Arthritis and metabolic disease activities 30,000
Allergy and infectious disease activities 32,000
Neurology and blindness activities 35,000
National health statistics 32,000
National Library of Medicine 8,000
Emergency health activities 21,000
Social Security Administration:
Assistance for repatriated United States nationals 29,000
Salaries and expenses, Bureau of Family Services 150,000
Salaries and expenses, Children's Bureau 130,000
Salaries and expenses, Office of the Commissioner 68,000
Office of the Secretary:
Salaries and expenses, Office of the Secretary 50,000
Salaries and expenses, Office of Field Administration 40,000
Salaries and expenses, Office of the General Counsel 40,000
Juvenile delinquency and youth offenses 7,000



Citation: Lyndon B. Johnson: "Letter to the Speaker Reporting on Reductions in the Cost of Operating the Government.," March 26, 1964. Online by Gerhard Peters and John T. Woolley, The American Presidency Project. http://www.presidency.ucsb.edu/ws/?pid=26133.
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