Statement by the President Following a Review of Agency Compliance With His Memorandum on "June Buying"

I am gratified by the thoroughness of the measures instituted throughout the executive branch to make certain that our cost reduction efforts are not circumvented or compromised by indulgence in the obsolete practice of "June Buying."

Following my memorandum of May 18, the head of each department and agency has assumed personal responsibility for making certain that orders, purchases, and contract commitments made during the last month of the present fiscal year will not exceed planned and necessary expenditures. In some instances, the agency heads have required that procurement requests for materials or services costing in excess of $500 must have the personal approval of appropriate office heads and be supported by written justifications. In other instances, agencies operating on other than appropriated funds have installed regulations complying fully with the spirit of my memorandum, even though their operations are exempt from the letter of that directive.

I want to express my appreciation to all who are participating in making this program successful--not only to the heads of the departments and agencies, but to the personnel at the requirements and purchasing level. The effective and imaginative cooperation they are offering is a vital factor in the success of our entire cost reduction program.

The old practice of "June Buying" is a relic from the past. In our governmental programs today, we recognize that sloth and indifference toward the management of fiscal affairs impairs the progressiveness of the Government in responding to the needs of our changing society. In the last fiscal year, responsible self-discipline every month of the 12 months enabled us to return more than $800 million to the Treasury at the close of the year. During the present fiscal year, departments and agencies have operated under even more exacting budgetary standards, but I am hopeful that the amount of unexpended funds on June 30 will again be substantial. On the basis of the reports I have reviewed, I am certain that there will be less unnecessary and unjustifiable spending during the month of June than in any comparable period during recent fiscal years.