Thus, the amount of contract authority made available reflects the level of obligations implicitly approved by the Congress in its review of and action on the appropriation required to liquidate obligations under existing contract authority.

1 ESTIMATED EFFECTS 1

Obligation of major amounts of funds proposed to be deferred would not be possible as planning and other pre-construction activities have not been accomplished. Therefore, if these funds were made available for obligation, investment could result in opportunities likely to yield low returns, investments not coordinated with other resource development activities, and a program level for which comprehensive plans have not been prepared.

If the contract authority were made immediately available, obligations in 1975 would increase by about $11,600,000. The outlay effect would be $2.3 million in FY 1975, $7.6 million in FY 1976 and $1.7 million in FY 1977.

[Deferral No. D75-54A]

SUPPLEMENTARY REPORT

(Report pursuant to Sec. 1014 (c) of Public Law 93-344)

This supplementary message modifies Deferral No. D75-54 transmitted in the special message of October 4, 1974, and printed as House Document No. 93– 365. This deferral was submitted initially for information purposes only as the determination to withhold this contract authority from obligation was made prior to enactment of the Congressional Budget and Impoundment Control Act of 1974. Since this previous report, an action has been taken with respect to this deferral which now places it under the provisions of the Act.

The previous report reflected an estimate of unobligated balances of $28,961,000. This report reflects actual balances determined available of $30,036,585. The difference between estimated and actual balances brought forward into fiscal year 1975, $1,075,585, has been made available for obligation. No other changes have been made from the previous report.

DEFERRAL OF BUDGET AUTHORITY

(Report Pursuant to Sec. 1013 of Public Law 93-344)

Interior-Bureau of Land Management

The $5,195,585 programmed for the Public Lands Development Roads and Trails represents the funding required to support resource development and use plans for the public lands in 1975. The Federal Aid Highway Act of 1970 provides contract authority of $5 million for 1972 and $10 million for 1973 to be available for two years subsequent to the fiscal year for which it is authorized. The Federal Aid Highway Act of 1973 provides additional contract authority of $10 million for each of fiscal years 1974, 1975 and 1976 and authorizes use of this authority 1 year in advance of and 2 years subsequent to the fiscal year for which it is authorized. The total budgetary resources for this program consist of $10,000,000 in 1976 contract authority, $30,036,585 in unobligated balances carried forward from fiscal year 1974 and $50,000 in anticipated reimbursements. Under the existing program, $4,981,000 of contract authority will lapse on June 30, 1975, and $30 million will be carried into 1976.

The program for road development in any 1 year is based on estimated requirements to meet the objectives for multiple use resource development and use plans on the national resource lands. This program is reviewed annually by the Congress when it takes action on the appropriation required to liquidate 1 Revised from previous submission.

obligations under existing contract authority. Thus, the amount of contract authority made available has been implicitly approved by the Congress.

ESTIMATED EFFECTS

If the contract authority deferred were to be made immediately available, the release would result in capital investments expected to yield low returns, investments not coordinated with other resource development activities and a program level for which comprehensive plans have not been prepared. It is doubtful whether obligation of major amounts of funds deferred is possible as planning and other pre-construction activities have not been accomplished. This deferral and the proposed rescission under this account have been initiated to achieve optimum utilization of funds.

If the amounts deferred, the amounts proposed for rescission, or both amounts were to be made immediately available, the program level would increase by $3.1 million in 1975 and outlays by approximately $.8 million in 1975 and $2.3 million in 1976.

[Deferral No. D 75-61 A]

SUPPLEMENTARY MESSAGE

(Report pursuant to Section 1014 (c) of Public Law 93-344)

This supplementary message modifies Deferral D75-61 transmitted in the special message of October 4, 1974, and printed as House Document No. 93-365. This deferral was submitted initially for information purposes only, as the determination to withhold this contract authority from obligation was made prior to enactment of the Congressional Budget and Impoundment Control Act of 1974. Since this previous report, an action has been taken with respect to this deferral which now places it under the provisions of the Act.

Total budgetary resources have been adjusted downward $941 to reflect actual balances brought forward on July 1. This has the effect of reducing the amount reserved by the same amount, as all budgetary resources in this account are deferred.

DEFERRAL OF BUDGET AUTHORITY

Report Pursuant to Section 1013 of Public Law 93-344

Interior-U.S. Geological Survey

PAYMENTS FROM PROCEEDS, SALE OF WATER, MINERAL LEASING ACT, 1920; SECTION 40 (d)1

Section 40(d) of the Mineral Leasing Act of 1920 [30 U.S.C. 229(a)] provides that when lessees or operators drilling for oil or gas on public lands strike water, water wells may be developed by the Department from the proceeds from sale of water from existing wells. Receipts have been accruing to this permanent account at the rate of about $1,000 per year. At the start of fiscal year 1965, the account had an unobligated balance of $16,000 which had increased to $27,000 by the start of fiscal year 1975. None of these receipts have been obligated over the past 9 years and none are planned for obligation in fiscal year 1975 because the total available is too small to be put to practical use for the purpose designated by law. Deferral is planned because funds could not be used effectively during the current fiscal year even if made available for obligation. This reserve action is taken pursuant to the Anti-Deficiency Act (31 USC 665 (c) (1)).

ESTIMATED EFFECTS

There will be no programmatic or outlay impact in FY 1975 since the receipts will continue to accrue but will remain unobligated until such time as an amount is available which can be used for effective purpose.

George E. Evans, Robert B. Foster, and Charles Snodgrass, Staff Assistants

THURSDAY, NOVEMBER 21, 1974

DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT

GRANTS FOR BASIC WATER AND SEWER FACILITIES

RESCISSIONS AND DEFERRALS OF BUDGET AUTHORITY

WITNESSES

JAMES L. MITCHELL, UNDER SECRETARY

DAVID O. MEEKER, JR., ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT

ROBERT R. ELLIOTT, GENERAL COUNSEL

ALBERT J. KLIMAN, DEPUTY DEPARTMENTAL BUDGET OFFICER

STATEMENT OF RESCISSIONS AND DEFERRALS SUBMITTED TO THE CONGRESS

CONTINUING DEFERRAL (NO. D75-51)

GRANTS FOR BASIC WATER AND SEWER FACILITIES

INTRODUCTION

The amount to be deferred for grants for basic water and sewer facilities as reported in House Document No. 93-365 was $501,734,000. However, it was noted that this estimate was subject to change and might be adjusted once actual 1974 accounting data became available. Such adjustment was to be reported when final figures became available. Final June 30, 1974, data show that the actual total available and amount to be deferred is $407,535,992.

( 123 )

Section 702 of the Housing and Urban Development Act of 1965, as amended, authorized grants to local public bodies to finance construction of water and sewer facilities other than sewage treatment works. The Housing and Community Development Act of 1974 terminates this program on January 1, 1975, and specifies that no commitments for new grants may be made after that date. The program was terminated administratively on January 5, 1973. No new grant reservations were made in 1974 or will be made in 1975. However, funds would continue available under the law for cost increases or other eligible expenses on previously approved projects.

These funds are being deferred through January 1, 1975, based on the scheduled replacement of the Water and Sewer program by the new Community Development Block Grant program authorized by the 1974 Act. Activities previously supported will be eligible for assistance under the new program.

The Department is examining several long range alternatives relative to the ultimate disposition of the available balance. These alternatives include utilization of all or some portion of these funds as follows:

--Transfer into the Disaster Assistance Fund pursuant to

Section 406 of the HUD Appropriations Act of 1973 (P.L. 92-383);

-2

--Transfer to the Community Development Grant program for liquidation of
contracts under that program;

--Transfer to the Revolving Fund for Liquidating Programs pursuant

to Section 117 of the Housing and Community Development Act of
1974; and

--Rescission of the remaining balance based on a determination, at
some future point in time, that the funds will not be needed for any
other purpose.

STATUS OF PROGRAM

Since the inception of the program a total of 2,452 grant reservations for
$1,107.5 million were approved. By the end of fiscal year 1975, an estimated
1,952 water and sewer projects will have been completed as a result of these
grants.

After the statutory termination date for the program, the Department will continue to have certain responsibilities with regard to previously approved projects for which construction has not been completed. An estimated $181 million of obligated funds will remain available for disbursement at the end of 1975.

The following table shows the status of obligated balances in this program: