13884 CONGRESSIONAL RECORD-HOUSE May 6, 1977 It is admirable in both its ambition and its exemplary news and public affairs pro careers for themselves within New execution, quietly and effectively going be graming geared to the special needs of York's garment industry. yond stereotypes to tap the fascinating re women in the tri-State area. Channel 2 Weekday mornings, WCB~TV's pro sources of real people ... the closeups prove "Eye On," which this year won a New vocative interview program with Jeanne fascinating. and the subsequent talk is in York area Emmy award for "outstand Parr sparks lively discussions on topics formative. ing documentary series," each week of particular interest to women. Ms. Kay Gardella of the New York Daily focuses on a critical issue or newsmaking Parr, who was one of this country's first News found Ms. Myerson- personality affecting residents of New women news correspondents, has tackled A splendid on-camera performer, and the York, New Jersey, and Connecticut. such controversial themes as the right of women she chooses as subjects are articulate Whether it be an investigative report on women to enter the priesthood, alco and capable of pinpointing their needs, emo women ex-offenders caught in the re holism among women, menopause, and tions and problems-it is an excellent series. volving door of criminal justice or a pro women in sports and journalism. Writing in the New York Post, Bob file of my colleague Congresswoman Liz This kind of enlightened broadcasting Williams praised Ms. Myerson's approach HOLTZMAN, "Eye On" maintains the high philosophy is a reflection of WCBS-TV's to the women on the evening and daily standards of · electronic journalism continuing commitment and responsi broadcasts of "A Woman Is . . .," pioneered by Edward R. Murrow. bility to produce quality and significant which "makes her all that more effective "Channel 2 The People," WCBS-TV's programing for tri-State area residents. on the home screen." other weekly public affairs series, has The designer of this and other laudatory Elaine Bissell of the Westchester presented a number of reports dealing efforts undertaken by WCB~TV is Mr. Rockland newspapers added that the with the issues and concerns affecting Thomas F. Leahy, vice president and series "delivered a stunning discussion women, with an emphasis on the general manager for WCBS-TV. His has problems of minority women. Past pro been a job well done and he should be probing HOUSE OF REPRESENTATIVES-Friday, May 6, 1977 The House met at 11 o'clock a.m. PROVIDING FOR CONSIDERATION leader if the distinguished gentleman The Chaplain, Rev. Edward G. Latch, OF H.R. 6655, THE HOUSING AND can inform us as to the program for the D.D., offered the following prayer: COMMUNITY DEVELOPMENT ACT week of May 9. If any of you lacks wisdom, let him ask OF 1977 Mr. WRIGHT. Yes; if the gentleman God who gives to all men generously and Mr. MOAKLEY. Mr. Speaker, by di from Massachusetts will yield so that I without reproaching, and it will be given rection of the Committee on Rules, I can respond to the gentleman from him.-James 1: 5. call up House Resolution 541 and ask for Dlinois. 0 Lord, our God, in whom we live and its immediate consideration. Mr. MOAKLEY. I am happy to yield. move and have our being, at the begin The Clerk read the resolution, as Mr. WRIGHT. Mr. Speaker, the plan ning of a new day and faced with impor follows: is that we should adopt this rule today tant decisions, we turn to Thee seeking H. RES. 541 on the Housing and Community Devel insight to see our way, inspiration to Resolved, That upon the adoption of this opment Act and complete general de walk in that way, and industry to keep resolution it shall be in order to move, sec bate on the Housing Act today. on walking until our work is done. When tion 401 (b) of the Congressional Budget Act Upon completion of general debate to burdens are heaVY, decisions difficult, and of 1974 (Public Law 93-344) to the contrary day, the Committee would rise, and we notwithstanding, that the House resolve itself would hope to complete consideration problems persistent, grant unto us into the Committee of the Whole House on strength and wisdom to carry our bur of the Housing and Community Devel the State of the Union for the consideration opment Act next Tuesday, the lOth. dens, to make our decisions, and to solve of the b111 (H.R. 6655) to amend certain our problems with clear consciences and Federal laws pertaining to community de On Monday next, the House would clean hands. velopment, housing, and related programs, meet at noon. There are no District bills, God bless America and so shed Thy and all points of order against said b111 for but there are four bills on suspension grace on her that every flaw may be failure to comply with the provisions of which we would hope to present. They mended, all gold refined, and our good clause 5, rule XXI are hereby waived. After are as follows: be crowned with brotherhood from sea to general debate, which shall be confined to H.R. 5562, relating to Val-Kill Na shining sea. Amen. the blll and shall continue not to exceed tional Historic Site in New York State· two hours, to be equally divided and con H.R. 6692, Extension of Education t~ trolled by the chairman and ranking minor Handicapped Act; ity member of the Committee on Banking, Finance and Urban Affairs, the bill shall be H.R. 6668, to amend the Age Discrimi THE JOURNAL · read for amendment under the five-minute nation Act of 1977; and The SPEAKER. The Chair has exam rule by titles instead of by sections. At the H.R. 6774, technical amendments to conclusion of the consideration of the bill the Higher Education Act. ined the Journal of the last day's pro for amendment, the Committee shall rise and Following that, we would consider ceedings and announces to the House his report the bill to the House with such House Resolution 334, a funding resolu approval thereof. amendments as may have been adopted, and tion for legal intervention in A.T. & T. Is there objection to the approval of the previous question shall be considered as cases. the Journal. ordered on the bill and amendments thereto Mr. BAUMAN. Mr. Speaker, reserving to final passage without intervening mo Following that, on Monday the House tion except one motion to recommit. is scheduled to consider four resolutions the right to object, the gentleman from on contested House seats. They are as Maryland just wants the Speaker to know LEGISLATIVE PROGRAM that the gentleman from Maryland also Mr. MOAKLEY. Mr. Speaker, I yield follows: approves the Journal. at this time to the gentleman from House Resolution 525, Saunders v. The SPEAKER. The gentleman is very Dlinois (Mr. ANDERSON). Kelly (Fifth District, Florida); gracious. Mr. ANDERSON of Illinois. Mr. House Resolution 526, Paul v. Gam Is there objection to the approval of Speaker, I thank the gentleman for mage (22d District, Texas) ; the Journal? yielding. I do so for the purpose of in House Resolution 527, Young v. Mikva There was no objection. quiring of the distinguished majority Tennessee. Madigan Rahall Volkmer Mr. McKay with Mr. Wiggins. regardless of the merits of the bill it Mahon Regula Waggonner makes in order. Mann Reuss Walgren Mr. StGermain with Mr. Wylie. Marks Rinaldo Walker Mr. Don H. Clausen with Mr. Alexander. Mr. MOAKLEY. Mr. Speaker, I move Marlenee Risenhoover Wampler Mr. Coughlin with Mr. Chappell. the previous question on the resolution. Martin Roberts Waxman Mr. Fish with Mr. Carney. The previous question was ordered. Mathis Robinson Weaver Mr. Gilman with Mr. Beard of Rhode Mattox Rodino Weiss Island. The SPEAKER. The question is on the Meyner Rogers Whalen Mr. Michel with Mr. Corman. resolution. Miller, Calif. Rooney Whitehurst Miller, Ohio Rosenthal Whitley Mr. Railsback with Mr. Byron. The question was taken; and the Mineta Roybal Whitten Mr. Rhodes with Mr. Dent. Speaker announced that the ayes ap Minish Ruppe Wilson, Bob Mr. Sarasin with Mr. Aspin. Mitchell, Md. Satterfield Wilson, Tex. Mr. Rudd with Mr. Drinan. peared to have it. Mitchell, N.Y. Scheuer Winn Mr. Vander Jagt with Mr. Cotter. Mr. LAGOMARSINO. Mr. Speaker, I Moakley Schroeder Wirth Mr. Walsh with Mr. Evans of Colorado. object to the vote on the ground that a Moffett Sebelius Wolff Mr. Young of Florida with Mr. Dodd. Mollohan Sharp Wright quorum is not present and make the Montgomery Simon Yates Mr. Wydler with Mr. Fuqua. point of order that a quorum is not Moore Sisk Yatron Mr. Young of Alaska with Mr. Early. present. Moorhead, Skubitz Young, Mo. Mr. Biaggi with Mr. Del Clawson. Calif. Slack Young, Tex. Mr. Fithian with Mr. Fraser. The SPEAKER. Evidently a quorum is Moorhead, Pa. Smith, Nebr. Zablocki Mr. Gammage with Mr. Irelan d. not present. Myers, Gary Spellman Mrs. Burke of California with Mr. Eilberg. The Sergeant at Arms will notify ab NAY8-4 Mr. Gradison with Mr. Holland. Mr. Krueger with Mr. Thornton. sent Members. Bauman Steiger Symms McDonald Mr. Bingham with Mrs. Collins of lllinois. The vote was taken by electronic de Mr. Solarz with Mr. White. vice, and there were--yeas 280, nays 4, NOT VOTING-148 Mr. Koch with Mr. Frey. not voting 148, as follows: Abdnor Gibbons Price Mr. Murtha with Mr. Nolan. Addabbo Gilman Pursell Mr. Hanley with Mr. Zeferetti. [Roll No. 205] Alexander Gradison Quie Mr. Boland with Mr. LaF'alce. YEAS-280 Ashbrook Hanley Quillen Mr. Hillis with Mr. Luken. Aspin Harrington Railsback Akaka Carr Fowler Beard, R.I. Hawkins Rangel Mr. Phillip Burton with Mr. Evans of Allen Cavanaugh Frenzel Beard, Tenn. Hillis Rhodes Indiana. Ambro Cederberg Gephardt Biaggi Holland Richmond Mr. Pepper with Mr. Leach. Ammerman Clay Ginn Bingham Huckaby Roe Mr. Long of Louisiana with Mr. Markey. Anderson, Cleveland Glickman Boland Hughes Roncalio Mrs. Chisholm with Mr. Ford of Michigan. Calif. Cochran Goldwater Burgener Ireland Rose Anderson, Til. Cohen Gonzalez Mr. Santini with Mr. Marriott. Burke, Calif. Jones, Tenn. Rostenkowski Mr. Charles H. Wilson of California with Andrews, N.C. Coleman Goodling Burton, John Kelly Rousselot Andrews, Collins, Tex. Gore Burton, Phillip Koch Rudd Mr. Long of Maryland. N.Dak. Conte Grassley Byron Krueger Runnels Mr. John Burton with Mr. Ford of Ten- Annunzio Conyers Gudger Carney LaFalce Russo nessee. Applegate Corcoran Guyer Carter Latta Ryan Mr. Hughes with Mr. Lederer. Archer Cornell Hagedorn Chappell Leach Santini Mr. Roncalio with Mr. Mottl. Armstrong Corn well Hall Chisholm Lederer Sarasin Ashley Crane Hamilton Mr. Mazzoli with Mr. Nowak . Clausen, Long, La. Sawyer Mr. Murphy of New York with Mr. Watkins. AuCoin D' Amours Hammer- Don H. Long, Md. Schulze Badham Daniel, Dan schmidt Clawson, Del Lujan Seiberling Mr. Richmond with Mr. Traxler. Badillo Daniel, R. W. Hannaford Collins, Til. Luken Shipley Mr. Milford with Mr. Stump. Bafalis Danielson Hansen Conable McKay Shuster Mr. Neal with Mr. Ryan. Baldus Davis Harkin Corman Maguire Sikes Mr. Murphy of Illinois with Mr. Qu1e. Barnard de la Garza Harris Cotter Markey Skelton Baucus Dell ums Harsha Mr. Pickle with Mr. Lujan. coughlin Marriott Smith, Iowa Mr. Pursell with Mr. Smith of Iowa. Bedell Derrick Heckler Delaney Mazzoli Snyder Beilenson Derwinski Hefner Dent Meeds Solarz Mr. Sawyer with Mr. Teague. Benjamin Devine Heftel Dodd Metcalfe StGermain Mr. Vanik with Mr. Runnels. Bennett Dickinson Hightower Dornan Michel Staggers Mr. Schulze with Mr. Nichols. Bevill Dicks Hollenbeck Drinan Mikulski Stokes Mr. M1kva with Mr. Patterson. Blanchard Diggs Holt Early Mikva Stump Mr. Russo with Ms. Mikulski. Blouin Dingell Holtzman Eilberg Milford Teague Boggs Downey Horton Mr. Michael 0. Myers with Mr. Rose. Evans, Colo. Moss Thornton Mr. Price with Mr. Rousselot. Bolling Duncan, Oreg. Howard Evans, Ind. Mottl Traxler Bonior Duncan, Tenn. Hubbard Fish Murphy, ill. Udall So the resolution was agreed to. Banker Eckhardt Hyde Fithian Murphy, N.Y. VanderJagt Bowen Edgar !chord Flippo Murphy, Pa. Vanik The result of the vote was announced Brademas Edwards, Ala. Jacobs Florio Murtha Walsh as above recorded. Breaux Edwards, Calif. Jeffords Ford, Mich. Myers, Michael Watkins A motion to reconsider was laid on the Breckinridge Edwards, Okla. Jenkins Ford, Tenn. Neal White Brinkley Emery Jenrette Forsythe Nichols Wiggins table. Brodhead English Johnson, Calif. Fountain Nix Wilson, C. H. Brooks Erlenborn Johnson, Colo. Fraser Nolan Wydler Broomfield Ertel Jones. N.C. Frey Nowak Wylie SEVERE STORM TRAGEDY Brown, Calif. Evans, Del. Jones, Okla. Fuqua Patterson Young, Alaska Brown, Mich. Evans, Ga. Jordan Gammage Pepper Young, Fla. (Mr. WINN asked and was given per Brown, Ohio Fary Kasten Gaydos Pickle Zeferetti mission ta address the House for 1 min Broyhill Fascell Kastenmeier Giaimo Pike Buchanan Fenwick Kazen ute and to revise and extend his re Burke, Fla. Findley Kemp The Clerk announced the following marks.) Burke, Mass. Fisher Ketchum pairs: Mr. WINN. Mr. Speaker, I would like Burleson, Tex. Flood Keys to take a few moments to impress upon Burlison, Mo. Flowers Kildee Mr. Jones of Tennessee with Mr. Hawkins. Butler Flynt Kindness Mr. Rangel with Mr. Sikes. my c01leagues the sheer devastation that Caputo Foley Kostmayer Mr. Florio with Mr. Pike. natural weather phenomena can bring May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13887 to bear upon a community. This last the context of the President's proposal the distinguished chairman of the full Wednesday a storm cell developed in the but such may not be possible in all cases. committee. Kansas City area which wreaked havoc For the benefit of the Members and Mr. REUSS. Mr. Chairman, I rise in with a multitude of people. The Wash all interested individuals, the subcom strong support of the bill, H.R. 6655, the ington Post portrayed some of this havoc mittee's present plan is to hold hearings Housing and Community Development this morning with a picture of the rubble as follows: Act of 1977. I commend the distinguished of the Pleasant Hill, Mo., High School. May 9 aaJ. 10: 10 a.m. and afternoon, chairman of our Subcommittee on Hous The thing the article failed to state was room 2123, Rayburn House Office Build ing and Community Development, our that there were 650 children in the school ing on May 9, room 2322, Rayburn House colleague Lun AsHLEY of Ohio, for the at that time. Miraculously, there were Office Building on May 10-Utility pro splendid effort he demonstrated in no fatalities. gram (title I, part A-Energy conserva putting together this bipartisan ap Damage estimates for Johnson and tion program for existing residential proach that will serve our urban com Douglas Counties, Kans., are $2.8 million. buildings-Subpart 1) . munities, both large and small, well in The area hit the hardest was in the Se May 11: 10 a.m. and afternoon, room the next 3 years. I would also like to dalia, Mo., area with damage estimates 2123, Rayburn House Office Building commend the distinguished ranking mi at $15 million. Cass Oounty, Mo., where Energy efficiency standards for con nority member of the subcommittee, our Pleasant Hill is located, estimates their sumer products other than automobiles colleague from Michigan, GARRY BROWN, damage at $5 to $10 million. The total Jimmy carter</a> not get your hopes up too high. Uncle is going to have to face," says Robert Rauch the minority's wishes on marking up this a lawyer for the Environmental Defens~ legislation. As Mr. AsHLEY knows, we Sam may appear to be riding to the Fund. "It's just dynamite." have all worked hard on the community rescue, but he seems to be clumsily wield The problem has been building since mid- development block grant program, and ing a two-edged sword. 1975, the original deadline for cleaning up we are pleased to see it reauthorized for As for other provisions in the bill the country's air, when 156 of the 247 air 3 more years. such as raising the FHA mortgage limits quality districts missed their goal for at I consider this to be a good bill and to $60,000, and increasing the FNMA and least one of the six pollutants measured. A FHLMC mortgage purchase limits-they few regions got two-year extensions, but for it is my hope that by the end of the the rest a strict reading of the 1970 Clean amending process, it will be better. are certainly necessary. The changes re Air Act would bar any industrial expansion. For example, it is important to note garding savings and loan lending powers But that was "politically impo~sible," an that smaller communities must be ade were also necessary and worthwhile. EPA official notes. quately provided for under the bill. As Freeing up capital for housing is a vital So late last year the agency adopted its hold-harmless phases out for these cities concern for us all, and as the demand compromise "offset" rule. It permitted for capital increases during our economic plant expansions or new factories that would and towns of under 50,000 population, emit less than 100 tons of pollutants a year. a number will be left with uncompleted upswing, these changes will have a salu tory effect. To build a fac111ty that would spew out more projects. than 100 tons (or more than 1,000 tons of While the bill does provide for HUD The changes, with respect to rural certain pollutants), a company would have to make multiyear commitments, it does housing, are also sorely needed. Too to clean up a greater amount of existing air not necessarily provide a system to pro often, the committee has proceeded with pollution in the same air-quality district If tect smaller communities which may be legislation without giving adequate con it didn't have enough of its own fac111ties' to in the midst of a major project but will sideration to the needs of rural hous clean up or close, it could try to persuade ing. While there are some problems with other polluters in the same district to elimi still experience reduced funding. Some nate some emissions. special consideration should be given to the rural housing changes, they tend to these situations. be minor and do not go to the question FORD'S SOLUTION Also, there still are a number of ques of whether or not there should be such a The requirement poses the least prob tions with respect to the urban develop program. lems for corporations with ample fac111ties In conclusion, Mr. Chairman, I support in the area where they hope to build. Ford ment action grants, and I would have Motor Co., for example, wants to double preferred to see the committee wait un H.R. 6655 and I hope our colleagues will production from an auto plant in Lousiv1lle, til the task forces, Chairman AsHLEY give serious study to the improvements Ky., an area that doesn't meet federal air has announced, have had an opportunity we will be offering during the delibera quality standards. By changing the spray to study the best way to assist large tions on Monday. painting process at the plant and at another scale community development projects. [From the Wall Street Journal, May 4, 1977] in the same district, Ford expects to elimi nate more hydrocarbon emissions than its After all, a major thrust of this new pro CURB ON CONSTRUCTION WHERE AIR Is DIRTY RANKLES BUSINESSMEN-PROJECTS HELD UP expansion wm add, thus meeting the EPA's gram is for economic development and requirement. there are other Federal programs which BY NEED To CUT MORE POLLUTION THAN THE address the same problem. NEW PLANT ADDS The rule is "something you might be able (By Douglas Martin) to live with 1f you have existing facillties Speaking of action grants, I would like and lots of them," says Victor Sussman, a to draw the attention of the House to an Environmentalists and industrialists are Ford pollution expert. pitted in what could become one of their article appearing in the Wall Street most bitter battles yet. The EPA's conditions also can be met 1f Journal of May 4, 1977. It raises serious The issue is the tight federal restriction a community wants a plant badly enough. questions of whether the clean air on plant construction in areas where the air That was the case when General Motors standards will block any meaningful is already so dirty the government considers Corp. announced plans for a new car assem activity under the action grants. I would it unhealthful. In such areas-well over half bly plant in Oklahoma City. Because the ask unanimous consent to include in the tho country-the Environmental Protection area hadn't met federal standards for photo REcORD a copy of the article by Douglas Agency lets a company build only if the con chemical oxidants, which irritate the eyes cern first eliminates more existing air pollu and can cause breathing d11ficulty, it would Martin, immediately after my remarks. tion than its new plant will emit. The in have to eliminate 3,240 tons of annual hydro In this article, Mr. Martin points out tended effect is indisputably clever, a net carbon emissions before the GM plant could over half the country is covered by EPA reduction in pollution as a result of the new be bunt. rules which will restrict plant construe- construction. Most of Oklahoma City's air pollution May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13889 comes from cars, while only that from sta Companies planning to build in Oklahoma thinks some of these areas can meet the oxi tionary sources can be used to offset a new in the future may face a tougher situation, dant standard." But even this amendment plant's emissions. "It looked for a while as however. The EPA plans to ask the state to is far from settled: Today, opponents hope if there wasn't a chance in Hades of getting adopt a stiffened antipollution program un to stiffen its effect, when they meet to pin this thing built," says Edward Cote, a GM der which emissions from oil-storage tanks, down what "reasonable progress" means. executive. for example, would have to be curbed. Be Regardless o:f the final version of the clean WANTED: 5,000 JOBS cause such pollution reductions would be air amendments which emerge from Con But Oklahoma City's Chamber of Com required anyway; they couldn't be used to gress, it's expected the bill, or at least part merce and the state's politicians wanted the offset the emissions of a proposed new plant. of it, will be acted on quickly. The reason is 5,000 jobs the big assembly plant would pro This has happened in state after state. that the legislation is now linked to an ex vide. So oftlcials visited 14 oil companies "Tradeoffs that originally appeared to be tension of the deadline for auto companies to with fac111ties in the air-quality district, available now have been taken away," says meet emission standards, and "nobody wantS' trying to persuade them to install pollution W. J. Coppoc, vice president of Texaco Inc. to be remembered for shutting down De controls with the argument that the controls TAPPING INDUSTRY'S TECHNOLOGY troit," a Senate staffer says. would cut costs by reducing evaporation. Environmentalists say that's precisely the Mr. AS!ll.JEY. First, Mr. Chairman, let Some oil companies wanted to be given idea. They note that a lot of old facilities me express my appreciation for the very the pollution-control equipment and be paid are continually being closed anyway; if a for reducing emissions. Others just weren't company could get credit for closing them, kind and cordial remarks of my very good interested. But four agreed to install emis the pollution-offset policy would do little or friend from Ohio, Mr. STANTON. I will say sion controls on crude-oil storage tanks, and nothing to improve air quality. The goal, that our Subcommittee on Housing and the result was a reduction in hydrocarbons environmentalists say, is to implement the Community Development does indeed suftlcient to enable GM to proceed with its tradeoff policy so strictly that big industry, seek to legislate in a bipartisan spirit, and new plant. with its armies of scientists and technol the product that we have before us today A tougher case arises when a company ogists, has an economic interest in finding is a product which reflects that effort. It new ways to reduce pollution. that wants to build in a dirty-air district has is an effort that reflects the spirit that we neither fac111ties of its own to clean up nor "The biggest problem," says Carl Pope, air eager local-sponsors. Standard on Co. of quality specialist for the Sierra Club, "is that have on the subcommittee, which is to Ohio has been sparring for months with Cal the people who know the most about clean say that we seek to legislate on the basis ifornia's Air Resources Board, which admin ing up a plant are those with the least incen of inclusion, rather than exclusion. This isters the EPA pollution-tradeoff rule in that tive to tell you." product reflects that fact also, because state, over Schio's plan to build a $500 mll But in some ways the EPA rule itself can much of the substance of H.R. 6655 can lion landing and storage fac111ty in Long tend to discourage pollution abatement. A be attributed to the insights and the Beach for Alaskan crude on. Sohio proposes company that someday may want to build in specific contributions in the way of to offset its expected emissions by paving a dirty-air district has an obvious incentive amendments from the gentleman from some dusty Long Beach streets and install to delay cleaning up its existing fac111ties ing pollution controls on local dry-cleaning there until it needs a pollution offset. The Michigan and others. shops, among other things. EPA, recOJnizing the problem, is consider Mr. Chairman, H.R. 6655, the Housing But so far Sohio and the California agency ing allowing companies to "bank" pollution and Community Development Act of can't even agree on the amount of air pollu reductions for future plant expansions. 1977, is the product of nearly 3 years of tion that needs to be offset, not to mention The EPA also finds that a lot of businesses effort by the Committee on Banking, Fi the means of offsetting it. Alan Goodley, an are trying to avoid the offset rule by keeping nance and Urban Affairs to improve upon air board official, suggests that Sohio isn't their projects small. "It's amazing how many the landmark community development really trying. "There's more money to be of them are suddenly coming in at less than block grant program enacted in The made by selling oil to Japan than the U.S.," 100 tons of emissions a year," the point at 1974. he remarks. which the pollution offset requirement takes bill also contains many significant Sohio says that suggestion is ridiculous, effect, says Oscar Cabra, a technical officer in amendments to, and dollar authoriza considering that the company has already the Dallas EPA office. So the agency is think tions for, the housing programs admin spent $25 milllon on the project. As one ing of making the rule apply to any project istered by HUD and the Farmers Home Sohio spokesman sees it, "It's a matter of that adds 50 tons of pollutants a year to air Administration. It represents a major ef (California's) making us chase our tail." that is aready too dirty. fort by the committee to draw up basic Another project being held up by the pol CLEAN AIR RULES, TOO housing and community development lution tradeoff requirement is a $540 mil lion Virginia refinery planned by Hampton Nor can companies escape simply by build legislation which will be acceptable to Roads Energy Co., a subsidiary of Cox Enter ing where the air is clean. The EPA bars con the Members of the House by providing, prises Inc., of Atlanta. Hampton Roa.ds, struction causing significant deterioration in in a fair and equitable manner, lasting says federal environmental officiais have sug air that meets federal standards. This policy benefits to our Nation's communities and gested that it allocate 10% of the plant's 1s being challenged before the Supreme to citizens in need of decent housing. cost to cleaning up a nearby Amoco refinery. Court. In addition to oversight hearings over But as a Hampton Roads spokesman com Meanwhile, some regions meet federal air quality standards for one pollutant but miss the past few years, mandated studies and ments, "I·t's diftlcult to obtain $54 mUlion reports from the Department of HUD, to clean up a competitor's plant. It isn't the them for another, subjecting any business sort of thing that banks like to do." planning an expansion to a bewildering in and special staff studies, the Subcommit Similarly, Du Pont Co. wants to build a terplay of two tough antipollution rules. "A tee on Housing and Community Develop billion-dollar chemical complex on the lot of companies will be caught" in this ment held 10 days of extensive hearings Texas coast but is having trouble finding squeeze, an EPA lawyer concedes. on this legislation. During the 13 days it companies to reduce pollution enough. The Nevertheless, officials of the environmental took to mark up this legislation in both main reason, a spokesman says, is that most agency believes its rules can be met by most companies, including Sohio and Hampton subcommittee and in the full Banking of the corporations Du Pont could ask are Committee, the issues involved were ex competitors, and it fears that dealing with Roads. The EPA is optimistic about negotiat them might create "all kinds of antitrust ing offsets for two other huge projects, tensively debated. H.R. 6655, the product problems." Environmental Protection Agency Volkswagen's proposed plant in New Stanton, finally agreed upon, was reported by the officials concede that antitrust could be a Pa., and Seadock, a Gulf COast supertanker committee to the House by a vote of 31 problem with the offset rule. port planned by eight oil companies. ayes to 4 nays. The pollution tradeoff policy presumably But currently, the issue is most sharply I would like to compliment the chair also could give some companies in dirty-air focused in Congress. The House Commerce man of the full Banking Committee <Mr. Committee has specifically voted to continue regions power to help keep out potential REuss) for his cooperation in expediting competitors, by refusing to cooperate in re the tradeoff policy but has provided a. waiver ducing emissions. It's a problem a lot of for states determined to avoid it. It's a tough the proceedings on this bill. I would also executives say they worry about. waiver: States must prove to EPA that they like to commend my distinguished col Harry Birdwell, an oftlcial of the Oklahoma are pursuing a plan to achieve standards by leagues on the Subcommittee on Housing City Chamber of COmmerce, thinks that if 1987. and Community Development, especially the EPA policy remains in effect "you're Similarly, the Senate Environment and Mr. AUCOIN of Oregon and Mr. LUNDINE going to get to the point where it's bought Public Works Committee has voted a waiver of New York, for the very substantial ef and sold like a commodity." The Oklahoma for states making "reasonable progress" to forts they exerted to make this a solid ward attainment. Sen. Lloyd Bentsen, Dem City chamber and General Motors say they and workable bill. considered paying companies to cut emis ocrat of Texas and sponsor of the amend sions so that GM could build its auto plant, ment, calls it "a. victory for common sense," It is always a pleasure to work with although ultimately they didn't. adding that "I don't know anybody who the ranking minority members of the full 13890 ~ONGRESSIONAL RECORD-HOUSE May 6, 1977 committee and the Housing and Oommu nonmetropolitan areas. In metropolitan in metropolitan areas from an estimated nity Development Subcommittee, the areas, funds would be distributed first, $100 million in fiscal1977 to $308 million distinguished Member from Ohio, Mr. to metropolitan cities and urban counties in fiscal1980. For nonmetropolitan areas STANTON, without whose fine cooperation pursuant to a 3-part formula--based on the estimated amounts are from $323 we would probably not have such a bi population, housing overcrowding, and million in fiscal 1977 to $689 million in partisan bill before us today and, as al poverty counted twice; and second, to fiscal 1980. These discretionary funds ways, Mr. BROWN of Michigan whose meet the "hold harmless" needs of metro would be allocated to metropolitan areas nonpartisan and constructive work on politan cities and urban counties-where and to nonmetropolitan areas within any piece of housing legislation is invalu those needs exceeded their formula en States using the similar dual formula able. titlements-and other units of general employed for allocating funds to entitle As I have indicated, Mr. Chairman, local government which qualify for hold ment communities. With respect to most of the major changes from existing harffiless treatment. Funds remaining in smaller rural communities wishing to law and programs are contained in title the metropolitan area allocation would be apply for single purpose grants, the Sec I of the bill relating to the community distributed among the metropolitan areas retary would have authority to waive development block grant program. for use by States and units of local gov many of the application requirements In 1974, when the community develop ernment in those areas. which communities carrying out more ment block grant program was first en In nonmetropolitan areas, funds would comprehensive programs must meet. acted, we recognized that further study be used to meet the hold harmless needs In addition to amending the com of the complex mechanics of grant allo of units of general local government munity development block grant pro cation to the various recipients would be which qualify for hold harmless treat gram, title I would also authorize ap needed. In section 10(e) of the 1974 act ment, with the remaining funds to be propriations for 1978 of $60 million for we directed the Secretary of HUD to re allocated among the States and units of HUD's section 312 rehabilitation loan port back to the Congress this year on general local government in each State. program and not to exceed $80 million this matter. Title I of the bill substan Realizing that this fund distribution for the section 701 comprehensive plan tially incorporates the recommendations mechanism was far from perfect, the ning assistance program. which were made by the Secretary. These Congress limited funding for this new Title II of the bill relates to housing recommendations, by the way, are but program to 3 years and made provision authorizations and provides additional tressed by independent studies done ·by for full reconsideration of the basic annual contributions contract authority the Brookings Institution and other re formula at the end of that time. As a for fiscal year 1978 of approximately search organizations. result of this reconsideration, the com $1.2 billion for the public housing and Title I would authorize continuation of mittee came to a number of important section 8 housing assistance payments the basic block grant program for the conclusions. First, because of extreme programs. This additional authority next 3 fiscal years at funding levels of variations in funding among hold harm should enable HUD to provide for 400,000 $3.5 billion, $3.65 billion, and $3.8 billion, less communities, the hold harmless dis units of housing for lower-income Amer respectively. To assist in the financial tribution of funds has a weak relation icans in fiscal year 1978. In addition, close out of prior categorical projects ship to actual community development $665 million would be authorized of pub now consolidated into the block grant needs. Second, the existing formula is lic operating subsidies. program, primarily urban renewal proj very responsive to population factors but Other provisions would raise the ects, an additional $100 million for fiscal is not responsive to the physical com mortgage limits and lower the down years 1978, 1979, and 1980 would be au munity development needs of cities and payments required in FHA's basic home thorized. Finally the bill authorizes an other communities throughout the coun mortgage insurance programs, provide appropriation of $400 million a year try in greatest distress. Third, commu for an extended operating subsidy under over 3 years for a new urban de nities with stagnant or losing popula the section 236 rental assistance pro velopment action grant program de tions exhibit higher levels of commu gram and authorize appropriations of signed to provide an opportunity nity development need than faster grow $15 million for the urban homesteading for our most severely distressed cities, ing communities, and finally a formula demonstration program, $108 million to both large and small, to take advantage alternative that includes pre-1940 hous carry out flood insurance studies, and of major housing and economic d«;velop ing as a factor correlates most highly $65 million for HUD research for fiscal ment opportunities which require heavy with what would be commonly agreed year 1978. front end investments. This program is upon as indicators of community de Title III of the bill extends to Octo essential if we are to "turn around" many velopment need. ber 1, 1978, the FHA mortgage insur of our most economically depressed and With these considerations in mind, ance programs, the flood insurance pro deteriorated communities. It should be the committee decided that a dual for gram and the Emergency Home Pur emphasized that this urban action grant mula approach would be most responsive chase Assistance Act of 1974. program is not a rehash of the old urban to the policy of distributing funds in Title IV contains amendments relating renewal program. It is a program de accordance with need while maintaining to the lending powers of Federal savings signed to take advantage of unique de the level of funding of those new cities and loan associations. receiving block grants who are now be velopment or redevelopment opportuni ing phased into full formula under the Title V would reorient the reporting ties that may occur for severely distressed 1974 act. and policy development requirements of cities, both large and small, for which The second or alternative formula the Urban Growth and New Community significant and timely front-end funding measures statistically the relative Development Act of 1970 toward the de may be required which the regular block amounts of old housing, the compara velopment of a national urban policy. grant program is not structured to sup tive rate of decline or stagnation of pop Title VI of the bill contains rural hous ply. It would be chiefly distinguishable ulation growth, and poverty, and weighs ing amendments, one of which would from the old urban rer:ewal program in them at 50 percent, 20 percent, and 30 direct the Secretary of Agriculture to its emphasis on a commitment to the percent respectively, as factors typically begin implementation of the rural rent project of other public and private finan- associated with urban economic distress. subsidy program authorized in 1974. cial assistance. · Without this new formula and, if exist Mr. Chairman, this legislation has Title I would also change the present ing law remains unchanged, many older been very carefully worked out. :!:ts single statutory formula for distributing communities, despite their relatively enactment will benefit all of us. It is bal community development block grant greater needs, will experience sharp re anced legislation designed to assist com funds to a dual formula. It is this aspect ductions in assistance because they will munities and lower-income families of the title which I think merits a rather lose a guarantee of pre-1974 funding throughout the entire Nation. I strongly detailed explanation. levels-hold harmless-and be shifted to urge its enactment. Under the provisions which we enacted the formula in existing law. Mr. BROWN of Michigan. Mr. Chair in 1974, ,80 percel).t of the funds available With respect to small communities, man, I yield such time as he may con each year would be allocated for use in title I provides for a growth of discre sume to the gentleman from California metropolitan areas, 20 percent for use in tionary funds for smaller communities (Mr. LAGOMARSINO). May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13891 Mr. LAGOMARSINO. Mr. Chairman, bill through 10 days of comprehensive make a loan in a :flood plain area and I thank the gentleman for yielding. hearings and 13 long days of intensive you want to build a house and you build Mr. Chairman, I take this time to en markup. in a :flood plain area, why should that not gage in a colloquy with the manager of H.R. 6655 represents a significant step be permitted? the bill, the gentleman from Ohio <Mr. forward toward our ultimate goal of de Mr. ASHLEY. Mr. Chairman, will the ASHLEY). cent affordable housing for all Ameri gentleman yield? Mr. Chairman, I have been advised cans and improving the quality of life Mr. LUNDINE. I certainly would yield. that Ventura County, Calif., which is my in communities across the Nation. The Mr. ASHLEY. The gentleman from district, and which is currently partic bill includes language which recognizes Missouri is referring to an FHA loan? ipating as an urban county in the com that economic development and commu The taxpayers then are on the hook to munity development program will lose its nity development are inextricably linked. pick up the mortgage in case a :flood eligibility as an urban county in fiscal If a community is not a good place in comes along. 1978 because it will fall below the 200,000 which to live, business will not invest Mr. !CHORD. I am not talking about population--exclusive of metropolitan there, jobs will be lost, and people who an FHA loan, I am talking about a bank cities within it--necessary for urban can afford to will move away. Economic loan itself, without any Government county qualification. This will happen development has to be an integral part guarantee. The gentleman from Ohio because the Department of Housing and of our housing and community develop well knows that under the present law Urban Development will use 1975 Census ment policy. the bank cannot make such a loan. Bureau estimates of population for fiscal In addition to this new emphasis, H.R. Mr. TAYLOR. Mr. Chairman, will the 1978. Under these new estimates the city 6655 provides for higher levels of fund gentleman yield? of Thousand Oaks in Ventura County, ing for community development and im Mr. LUNDINE. I yield to the gentle will become a metropolitan city because proved allocation of those funds, targeted man from Missouri. its estimated population will exceed 50,- to need. It also authorizes a major new Mr. TAYLOR. Mr. Chairman, I think 000 requiring such population to be ex urban initiative--an urban development what my colleague, the gentleman from cluded from that of Ventura County. The action grant program which focuses on Missouri <Mr. !cHORD) is alluding to are county, therefore, will fall below the revitalization of neighborhoods and the regulations now in place in many 200,000 population needed for continued stimulation of economic development; it communities which say that a savings eligibility. lowers the requirements for downpay and loan company or a bank, or a fed I understand that the bill under con ments and increases maximum mortgages erally insured institution, are precluded sideration, in section 106 (e) , page 17, di obtainable under FHA financing for pro from making loans in their general com rects the Secretary of HUD, in making spective homeowners, and includes a title munity with their own money from their grants from the discretionary fund to devoted to extending and improving own depositors because they have been consider past participation in the block rural housing programs under the Farm told that this particular piece of legis grant program as one of several criteria ers Home Administration. lation precludes them from doing so. to be considered in making multiyear In the past, housing and community We have had instances in Missouri grant commitments. Is that not correct? development legislation has tended to be where this is a very serious situation, Mr. ASHLEY. If the gentleman will big city oriented. The bill before us to where a community has been designated yield, that is absolutely correct, I would day, however, provides a balanced ap and defined as a :flood plain. There is one say to the gentleman. proach to housing and community de city in my community, Aurora, Mo., Mr. LAGOMARSINO. Is the Ventura velopment needs--both urban and rural. which is located in a part of the Ozarks County experience, then, the very kind Mr. !CHORD. Mr. Chairman, will the some 2,000 feet above sea level with no of situation wherein the committee in gentleman yield? body of water within 5 miles and yet tends that the Secretary provide for pro Mr. LUNDINE. I yield to the gentle they have been designated as a :flood gram continuation through a multiyear man from Missouri. plain, and the bankers say they cannot grant commitment from the discretion Mr. !CHORD. Mr. Chairman, it is my loan money because this is a :flood plain. ary fund? understanding that the gentleman from That is tommyrot. Mr. ASHLEY. Again the gentleman is Missouri <Mr. TAYLOR) has an amend Mr. PATTISON of New York. Mr. absolutely correct, and I am pleased to ment which would permit a bank or a Chairman, will the gentleman yield? have this opportunity to advise him that savings and loan company to lend money Mr. LUNDINE. I yield to my colleague, this very type of situation has been dis to a person who might wish to build a the gentleman from New York. cussed with Department o:fficials at the house or a business in a :flood plain area. Mr. PATTISON of New York. Mr. highest level, with the Secretary and As the gentleman from New York well Chairman, as a matter of fact the law with the appropriate Assistant Secretary. knows, under the present law and regula is not quite as stated. The reqt{irements Therefore, I am pleased to be able to tions that have been established, savings on :flood plains refers to the fact that say that the type of situation which we and loan companies and banks are pro a town may adopt a :flood plain ordinance treated hypothetically, as to which the hibited from making loans to such indi that requires that you have to get a gentleman seeks direction, is a reality viduals. The gentleman from New York permit before you build on a fiood plain. and is one that has been discussed thor was talking about the improvement of Obviously if you are going to build on a oughly. communities. Will the gentleman from fiood plain it has to be something that I am pleased to respond to the gentle New York support an amendment such as either will not :float away or will not be man, Mr. Chairman, in this fashion. the gentleman from Missouri (Mr. TAY affected by a :flood. Mr. LAGOMARSINO. Mr. Chairman, LOR) may offer? The reason that we do that is because I thank the gentleman for his comments Mr. LUNDINE. I do not think I would. our history has been that people have and for his answers. But I do not think it is addressed to the built in the :flood plains year after year. Mr. ASHLEY. Mr. Chairman, I yield point that I was trying to make about the Mr. TAYLOR of Missouri. Mr. Chair such time as he may consume to the bill representing a balanced approach be man, if the gentleman will yield, r un gentleman from New York (Mr. LUN tween urban and rural concezns. derstand that. I served on the Water Re DINE) , who has made a truly remarka Mr. !CHORD. The point I want to sources Committee. I understand the ble contribution to this legislation. make to the gentleman from New York purpose of this legislation. I am in agree Mr. LUNDINE. Mr. Chairman, the bill and I might add that I did not rise on ment with some of it. But I am not in we are considering makes important and my feet when the gentleman said this agreement with legislation that will go needed changes in our housing and com was a balanced approach to housing into a community and tell local private munity development programs. As the what I cannot understand is that this lending facilities and institutions that newest member of the subcommittee, I Nation operates under the free enterprise they cannot use their own money here. wish to commend the efforts of my fel system. I am not an absolute laissez faire Here is a bank which has been in the low subcommittee members and to ex- proponent but I am a proponent of the community for 100 years. It never has press my admiration for the patience free enterprise system. suffered a loss as an institution because and skill of the distinguished chairman What are we trying to do in this Na of flooding. Yet, because the city council of that subcommittee in guiding this tion? If I am a banker and I want to refuses to accept the mandated :flood 13892 CONGRESSIONAL RECORD-HOUSE May 6, 1977 plain that some bureaucrat came and within such a unit as a result of com adopted a hold-harmless provision in the said was a flood plain and said to the munity development activity and the original community development legisla city council: "Just because you say there physical and economic deterioration tion. This provision, which guaranteed has never been a flood does not mean within the unit. each city roughly the same level of fund there will not be a flood," and it is a mat The small cities provisions do not pre ing that it had been receiving prior to ter of record there has never been a flood, clude the Secretary from continuing to passage of the legislation, in effect I do not agree with that. approve grants, without multiyear fund masked the inequities of the "old" form Mr. PATTISON of New York. Mr. ing, for communities that wish to carry ula for the first 3 years of the com- Chairman, if we could get those same out less than comprehensive programs munity development legislation. · people to sign a statement saying they which do not require or need a multi Studies by HUD demonstrated both will never ask to be bailed out if they year funding commitment. the flaws in the original formula and the are flooded out perhaps we could go DUAL FORMULA APPROACH NEEDED TO CORRECT lack of correlation between levels of hold along. REGIONAL IMBALANCE harmless funding and community devel Mr. TAYLOR of Missouri. I would be Let me review, briefly, for those of my opment needs. The decision was conse glad to make it a part of my amendment colleagues who are unfamiliar with the quently made to phase out the hold that no flood relief would be requested. program's history, how the "dual" harmless provisions of the legislation and Mr. !CHORD. :::::f the gentleman will formula for cities over 50,000 came into to alter the formula for distributing com yield, I do not think they should receive being. The community development munity development funds to correct the any disaster relief w,hatsoever under block grant concept was initiated during inequity which had resulted for the those circumstances. the Nixon administration to consolidate Northeast and Midwest portions ·of the Mr. LUNDINE. Mr. Chairman, having categorical programs and to fashion pro country. engaged in this interesting colloquy re grams known as "special revenue shar Under the committee bill, cities over garding the flood insurance portion of ing." The community development pro 50,000 have a "dual" formula approach to the bill, I would like to continue with my gram which emerged from that initiative determining entitlements. A city may use remarks on the bill. represented a compromise between the · either the old formula or a second, new DUAL FORMULA: A CORRECTION OF REGIONAL wish of the Congress to concentrate re formula to calculate its entitlement. The IMBALANCE sources in areas of greatest need and the second formula was designed expressly H.R. 6655 establishes a choice of for desire of the administration to spread to favor the demographic characteristics mula in the allocation and distribution moneys more evenly throughout the Na which best measured need in the North of community d~velopment funds to tion, including the more affluent areas. east and Midwest central cities and was major cities which measures need more The formula devised for the original expressly designed to compensate those accurately than did the sirigle, old for community development legislation-the cities for the bias inherent in the old mula. The new alternative formula rec so-called "old" formula-is one which community development formula. ognizes that overcrowding of housing can counts poverty twice in the calculation DUAL FORMULA APPROACH FOR SMALL CITIES sometimes be a symptom of a dynamic, for distributing money, substandard, or H.R. 6655 applies a similar dual for growing city and that allowance must overcrowded housing once in the calcu mula principle to allocation of funds to be made, as well, for loss of population, lation, and population once-or a 50, 25, the discretionary balances of both metro for aging and deteriorating housing 25 percent weighting. This sounds like a politan and nonmetropolitan areas of stock, and for resultant urban blight. good formula, but what has its effect been States. The second formula in this in SMALL CITIES on the Northeast and Midwest portions stance counts age of housing stock 2 ¥2 The bill also recognizes that the needs of the Nation? times, poverty 1% times, and population of cities do not change when their pop For one thing, the basis for calculat once-a 50, 30, and 20 percent weighting ulation falls below 50,000. As a former ing poverty is national average data: of these factors. The only difference be small city mayor, I particularly endorse That means unadjusted or cost of living. tween this formula and the second for those provisions in title I which attend Areas like New York, Philadelphia, Chi mula for cities over 50,000 is that to the community development needs of cago, and other severely impacted cities, straight population is used instead of small cities and towns. therefore, do not get any appreciable growth lag because figures on popula The small cities provisions in title I benefit from having poverty counted as tion lag are not available for smaller essentially apply the dual formula ap 50 percent of the old formula. Those communities. proach to allocation of community de areas of the country which have a low The small cities provisions in title I do velopment block grant funds from the standard of living get a disproportionate not take money away from the South discretionary balance to both metropol benefit from the calculation in the old and West. What they do is to halt a shift itan and nonmetropolitan areas within formula which supposedly measures rela of resources-presently in Northeast and States. That means that each State has tive poverty. Midwest cities because of hold-harmless a choice of formula for its metropolitan Similarly, the portion of the old form funding-to the South and the West over and nonmetropolitan areas. The second ula which measures the quality of hous the next 3 years. formula in the new small cities provi ing does so by calculating the degree Let me give you an example. In my sions takes into account aging and de to which housing units are overcrowd own State of New York, in 1977 there teriorating housing stock. ed-not whether they are habitable units is $17.676 million allocated to nonmetro In addition the small cities provisions as measured by a city housing code or any discretionary funding, and an additional authorize multiyear funding of commu other realistic measure of the quality of $6.646 million committed via hold harm nity development programs for small the housing stock. Cities experiencing less to nonmetro cities in the State. This cities with comprehensive plans. This net population loss-like Detroit or St. adds up to a total of $24.322 million go permits small cities to plan and to meet Louis, for example-have severe housing ing to the nonmetro portions of New their housing and community develop problems which are not reflected in the York State in 1977. By 1980, if the small ment needs in the same way that larger "old" community development formula. cities dual formula is not adopted, all of entitlement cities now can. Likewise, the housing and community the hold-harmless moneys would be The small cities provisions also in development needs of cities like Balti phased out and the cities in the non struct the Secretary in determining both more and Pittsburgh, which have old, metropolitan portion of New York State eligibility and level of funding for com deteriorating housing and concomitant would have to compete with each other munity development . grants to small social problems, are not represented ac for $16 million. In other words, $8.3 cities, towns and rural communities to curately in a formula which uses over million would be drained away from New take into consideration such factors as crowding as a measure. This element of York State between fiscal year 1977 and the unit's engaging in economic redevel the old formula has discriminated very fiscal year 1980 if the small cities dual opment activities, past performance of much against the Northeast and Midwest formula is not adopted. With the dual the unit in such activities, the function cities and regions of the country. formula for small cities, those communi of the unit as a regional center of eco Because the old formula was so bla ties in the nonmetro portion of New York nomic development and activity, the po tantly unfair to the older central cities State would have $22.2 million for which tential for having increased employment of the Northeast and Midwest, Congress to compete among themselves. This still May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13893 represents a $2.1 million loss from what addressed as nearly as possible in the thorizations for an additional year with is flowing into the State in 1977. How same way as they are for larger cities. a very modest increase of $5 million each ever, it is a distinct improvement over No funding is being taken away from in the Farm Labor Rental Housing pro the larger drain that would occur with either larger cities or rural communities gram and in the home repair and reha out the dual formula approach. The same under this approach. On the other hand, bilitation grant and loan program. trend can be illustrated for many States application of the dual formula, plus the Section 602 deals with a new type of in the Northeast and Midwest. I include provision for multiyear funding of com program for Farmers Home, and one in the REcORD at this point :figures show prehensive community development which gives me some pause. It is a guar ing the estimated distributional effects plans, remedies present inequities and antee loan program designed for home of the dual formula approach to the allo provides for small cities the same access borrowers of moderate and above mod cation of community development non to comprehensive redevelopment funds, erate income. The program was initially metro discretionary balance funds in based on need, as large cities will enjoy authorized by the Rural Development fiscal year 1980: under the provisions of the committee Act of 1972, and this provision was ESTIMATED DISTRIBUTIONAL EFFECTS OF LUNDINE bill. adopted at the administration's urging, A NATIONAL, NOT A REGIONAL BU.L AMENDMENT ON CDBG NON-METRO DISCRETIONARY "to make it more workable." I voted for BALANCE FUNDS IN FISCAL YEAR 1980-Continued Mr. Chairman, I would like to stress the provision in committee and I shall that every area of the country does bet vote for it here, but I want to make it [Dollar amounts in thousands; fiscal years[ ter under this bill than without it. The very clear that I believe the guarantee bill is balanced. It meets the needs of program should be restricted to above 1977, It hold the East and the West, of the Midwest moderate income families. is not ap harmless and the South. I would like to point out propriate for low- or modera·te-income plus families, and if there is an attempt to discre- 1980, 1980, that States such as North Carolina and tionary without with Louisiana are not presently under coerce such families into a guarantee Stat balance amendment amendment funded. They currently receive $31.9 mil program, it will change the entire na lion and $13.5 million a year in non ture and philosophy of the FmHA "Su Alabama ______----- $21, 121 $20,960 $18,325 metro community development funds, pervised Credit" program, and conse Alaska ______------4,625 2, 506 2,192 Arizona ______----- 4, 301 7, 308 6, 392 respectively, compared to $24.3 million quently, the rural housing programs. Arkansas_ ____ ------15,991 18,931 16,559 for New York, $24.6 for Pennsylvania, Section 602 makes it clear that the guar California ______11, 320 14, 686 12, 846 antee program and the insured program Colorado ______----- 4, 793 5, 081 4,992 and $10.9 for Michigan. Connecticut______3, 789 2, 366 2,922 Under the new dual formula approach are to be operated separately, and that Delaware ______869 1, 670 1, 461 to allocation of the discretionary bal the funds designated for one program Florida ______----~-_ 9, 458 14,824 12,967 Georgia ______------26, 387 29,719 25, 995 ance for small cities, towns, and rural may not be transferred to the other. Hawaii__------1, 509 1, 740 1, 522 communities, these States will not lose Section 603 deals with the prepayment Idaho ______4,567 6,125 5, 540 Illinois _____ ------15,031 18,444 24,108 their discretionary allowances, but ac of taxes and insurance by home borrow Indiana ______------10,696 14,969 17,959 tually gain considerably. North Carolina ers. At the present time, FmHA is by far Iowa ______------16, 147 14, 864 21,673 Kansas ______15, 412 11,762 15, 403 and Louisiana will receive $33.2 million the largest lender in the Nation which Kentucky_------22,944 26,726 23,377 and $27.9 million in fiscal year 1980---in does not permit borrowers to pay a pro Lou isiana ______----- 13,467 24, 151 21, 125 creases of $1.3 million and $7.7 million, rata share of their annual tax and insur Maine ______6,047 7, 261 8, 850 Maryland ____ ------5,128 5, 682 5, 991 respectively. ance bill along with the monthly pay Massachusetts ______5,539 5, 363 7, 062 I repeat this is a balanced bill, which ment for principal and interest. There Michigan ______10,934 14, 150 15,691 Minnesota_------11,104 13,788 15,716 makes a real effort to treat all regions sult is an annual tax and insurance bill Mississippi______--- 25,814 31,936 27,934 fairly and to meet the needs of small which drives some homeowners into de Missouri______------15,527 19,597 20, 109 fault. I cannot speak for my colleagues, Montana ______7,079 5, 455 5, 616 cities and rural communities as well as Nebraska ___ ------5, 741 8,000 10,698 those of our larger cities. but I might find myself in serious cllifi Nevada ______499 2,340 2, 047 culties if I were personally faced with New Hampshire ______4, 513 3, 779 5, 156 RURAL HOUSING PROVISIONS New Jersey __ ------2, 279 3,188 3,068 that kind of a payment. This provision New Mexico ______12,718 10, 551 9,229 I would like now, Mr. Chairman, to will permit FmHA to collect in advance New York ______24,322 16,057 22,221 describe briefly the major provisions of and pay out on behalf of the borrower, North Carolina ______31,889 37, 925 33,173 title VI which, together, address some of North Dakota ______6, 860 5, 693 5,862 such taxes and insurance as may become Ohio ___ ------______15,320 18, 117 22,398 the important reforms that are needed due. Oklahoma ______------13, 731 14, 414 13,783 in the programs of the Farmers Home Oregon ______4,930 7, 523 6, 952 Section 604 is a new program for Pennsylvania ______24,629 19,530 25,734 Administration. lt is not every day, nor Farmers Home, but it has been the HOD <a href="/tags/Puerto_Rico/" rel="tag">Puerto Rico</a> ______19,366 43,766 38,282 unfortunately, even every year that a Rhode Island ______1, 490 657 720 significant piece of rural housing legis program for some years. It authorizes South Carolina ______15,275 20, 794 18,189 the Agency to pay for the repair of de South Dakota ______5,858 6, 569 6,896 lation comes to the floor for the atten Tennessee ______20,458 20,594 18,014 tion of all the Members. I would like to fects in new housing financed and in Texas_------26, 224 36,813 32,200 spected by Farmers Home, which diligent Utah _____ ------1, 329 4, 913 4,297 commend my distinguished colleagues, Vermont______----- 3, 795 3, 764 5, 013 Mr. REUSS and Mr. ASHLEY, for their inspection by the Government would Virginia ______12,974 19, 905 17,411 efforts to make certain, despite severe have disclosed at the time the loan was Washington __ ------4, 981 8,092 8, 632 made. The period for which claims may West Virginia ______9, 481 15,011 13,751 time restrictions, that these rural hous Wisconsin ______--- 12,514 14,986 18,876 ing provisions were included in the bill. be made is 18 months from the time of Wyoming __ ------3,622 10,755 9,407 I wish also to commend my colleague purchase. FmHA may, of course, proceed TotaL ______574,067 696,000 696,000 from Oregon (Mr. AuCoiN) for his lead against the builder/contractor for recov ership in introducing these provisions ~ry of any moneys expended if the facts warrant such action. This provision will EQUITY OF THE DUAL FORMULA APPROACH FOR during the committee markup. SMALL CITIES strengthen the hand of both the bor Some of the provisions are technical rower and FmHA in dealing with the Inclusion of a second formula for non and perfecting amendments which will builder, and I believe it will tend to make metro and SMSA balances is a logical make present programs operated by the the occasional careless builder a bit more extension of the concept of a dual for Farmers Home Administration work responsible. mula as it applies to cities over 50,000. more effectively. Others clarify and in Existence of a bias in the old formula sure that the intent of the Congress will, Section 605 simply extends provisions has been generally acknowledged, and indeed, be carried out. And finally, there of the farm labor housing program to consequently there has been recognition iare some modest extensions of rural legal residents of Puerto Rico and the of the need to accept a second formula housing programs which bring rural Virgin Islands. Section 606 is a technical for large cities. The same arguments housing assistance into line with the change permitting payment of the taxes hold true for cities under 50,00{). kind of housing assistance opportunities and insurance I discussed earlier. Small cities have much the same needs that have been available in urban pro Sections 607 and 608 give FmHA the and problems as larger communities, grams for some years. authority to extend the benefits of their and those needs and problems should be Section 601 extends all present au- programs to the elderly and handi- 13894 CONGRESSIONAL RECORD-HOUSE May 6, 1977 capped, and expressly authorizes congre a reordering of priorities beyond any past 3 years, has provided a simplified gate housing for them. thing contemplated in this bill. But I cer block grant approach to local officials, Section 609 legislatively enacts what tainly consider title VI of H.R. 6655 an giving them greater flexibility to deal has been the practice of the Appropria important beginning in the direction of with the pressing needs of community tions Committee over the past several solving rural housing problems. development in ways which best meet the years. It specifies that at least 60 percent The Housing and Community Develop .requirements of the individual localities. of the homeownership and rural rental ment Act of 1977 is the product of many, The legislation before the House today loans shall be made for the benefit of many hours and weeks of deliberation, does not make substantial changes in the low-income persons. incorporating the best judgments and block grant approach. Rather, it refines Section 610 addresses a longstanding expertise of housing professionals and improves that approach so they can problem faced by those attempting to throughout the country. It represents a more adequately meet the community deal with the problems of housing in successful effort toward accomplishing development needs as they now exist in rural areas-a serious lack of informa our shared goals of providing each of the United States. tion about alternative methods of pro our citizens with the opportunity to ob A key feature of the new bill is its dual viding for rural housing needs. FmHA, tain safe, adequate, and affordable hous allocation formula. Under this approach, with a loan portfolio approaching $20 ing. It strengthens the capacity of com a metropolitan city or urban county billion, has no research office or division, munities to achieve their own develop would receive the higher amount com and indeed virtually no research capaci ment goals. I ask not only for your sup puted under one of two formulas: the ty. It must rely upon housing research port of the provisions I have just de existing formula, which counts popula done by HUD. Bluntly stated, HUD sim scribed, but for your vote for this im tion once, housing overcrowding once, ply does not engage in research into portant and comprehensive housing and poverty twice, or the new formula problems peculiar to rural areas. Hence package. in which age of housing is counted 2% none is done. This provision direGts the Mr. BROWN of Michigan. Mr. Chair times, poverty counted 1% times and Secretary of Agriculture to establish a man, I yield such time as he may con growth lag counted once. The effect of research capacity within FmHA. The au sume to the gentleman from Delaware this second formula is to direct additional thorization to fund this effort is but $1 (Mr. EVANS). funds into areas, such as Wilmington, million for fiscal year 1978, compared to Mr. EVANS of Delaware. Mr. Chair Del., which have suffered severe economic HUD's authorization for $65 million. As man, as a cosponsor of H.R. 6655, the dislocation and decline in growth over with other sections of title VI, it is a good Housing and Community Development recent decades. start. Act of 1977, I .rise in its strong support Some of my friends on the committee Finally, section 611 directs the Secre and urge my colleagues to pass this most objected to this dual formula, because it tary to operate the rural rent supplement important measure. ostensibly takes money away from the program enacted by the Congress in 1974. Before commenting on some of the West and South, and gives it to the A comparable program has been in provisions of this measure, ·I want to Northeast and Midwest sections of the operation in HUD's urban program for make a few observations about the proc country. I must point out two things in some years, but past administrations ess used in developing this act. I am priv response to this argument. First, the bill have not seen fit to offer this separate ileged to be the only freshman member of substantially increases funding, so that program to rural tenants. It has resulted either party on the Housing and Commu no city or urban county is particularly in a gross inequity. Although the present nity Development Subcommittee. Thus, penalized. Second, the bill allows the administration has expressed support for I came to the committee with little ex communities to pick the formula which this program, I do not believe legislative perience in the housing field, yet with a best meets their needs, thus adding flexi enactments should be implemented, or desire to at least make some small con bility to our community development not implemented, at the caprice of any tribution to those deliberations. Begin program. given administration. ning in late February, the subcommittee, The purpose of any social program, Mr. Chairman, the rural areas of this under the guidance of Chairman AsHLEY whether it be in housing or other human Nation have about one-third of the total and the distinguished gentleman from resources, is to direct assistance to areas population, but nearly 60 percent of its Michigan, Mr. BROWN, began an exhaus most in need. This bill recognizes that substandard housing. By almost any ob tive series of hearings and markups need and directs funds toward it. It is not jective measure, the housing problems of which culminated in the development a revenue-sharing bill, based solely on rural people are worse than those of of H.R. 6655. population, nor should it be. It is a com urbanites. For example, according to the In my brief experience in this House, munity development bill, designed to 1974 annual housing sur\rey, 63 percent I have yet to see another bill which has fight the growth of urban blight and of all of the units in the country lacking received the close consideration and economic decline which has afflicted so plumbing facilities were in communities careful scrutiny that this legislation has many of our cities and communities of 2,500 or less. Fifty-nine percent of all received. The committee heard from wit throughout the country. The dual housing units lacking kitchens, and 34 nesses which reflected the entire housing formula significantly improves the ability percent of all overcrowded units were in spectrum, and, as a result, were able to of the community development program those same small communities and open move into the markup phase of our de to meet real community needs and thus country. liberations with a broad base of infor forms a basic cornerstone of the act. I do not intend in any way to minimize mation on community development and The committee also took action, which the housing problems of our cities, par housing progranis. I strongly supported, to reduce the red ticularly our central cities, for they are, I want to commend my chairman, the tape burdens on small communities. The indeed, serious. But I do not believe that gentleman from Ohio, for his reasoned committee adopted an amendment we can afford to ignore the problems of and fair leadership during this, at times offered by the distinguished gentleman rural housing simply because the tele trying, but important process. And I from Oregon, (Mr. AuCoiN), which will vision camera and the metropolitan also want to salute my ranking minority reduce significantly the paperwork re dailies focus on the fields of waving member, the gentleman from Michigan, quirements of communities which seek grain, to the exclusion of the misery and for his help and for the many construc single-shot community development human degradation which exist just tive suggestions which he made through grants. Very few small communities in beyond the view from the interstate. We out this process. this country can afford the high costs of must address the problems of rural peo Together, their thoughtful approach to the "grantsmen" which are often re ples just as surely as we are addressing housing and community development quired in order to meet the standards those of low-income families in the cities. problems are reflected in this bill, and the imposed by Washington in receiving Fed While I have said that this is a good many improvements that this legislation eral assistance. As a result, many com bill with sound rural housing provisions, represents, as well as the bipartisan sup munities literally throw up their hands I should not ·like to be understood as port which it received in committee, is in disgust and walk away from Federal saying that these measures will solve the a tribute to their leadership. grants which are supposed to meet their housing crisis in rural America. That will Mr. Chairman, the community devel community needs. The changes made in require a commitment of resources and opment block grant program, over the this act will remove some of those bar- May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13895 riers and enable towns which do not region of the c<>untry. It was clear to the failure. It is a failure if we cannot allow have expert help to receive their fair committee that in order to make units for these inequities. share of community development available under these programs to a rea We are not talking about a few pe<>ple assistance. sonably broad geographic distribution of when we speak of Los Angeles and San Third, the measure establishes a major income eligible families, the mortgage Francisco; we are talking about millions new initiative for the distressed urban limits had to be increased. Additionally, of dollars taken away from people who areas in our Nation. The bill authorizes the committee increased insurable limits are in greater need than those to whom an appropriations of $400 million each in rural areas from the very low $16,200 the money is being given. year for the next 3 years for an urban now in existence to 75 percent of the This new formula does not even men development action grant program. FHA limit, thus effectively increasing tion people; it talks about buildings. I I am extremely pleased that the the insurability level to $45,000. think we need a formula that considers administration requested this program. Mr. Chairman, this is a reasoned and people and their levels of poverty instead It will enable communities with special well-balanced bill. It has received close of buildings. People are not even included needs to receive funding outside the nor consideration of the Housing Sub com in the new formula. mal community development grant pro mittee and the full Banking Committee, The formula talks about the age of gram. I'm also pleased that the program and I urge its overwhelming approval. buildings--specifically, pre-1939 housing. will emphasize economic development Mr. Chairman, I could go on and on, but I would just like to say, finally, that Most of the cities in my district in south opportunities, which are so important if ern California were not even discovered cities throughout the country are going it has been a great pleasure being on the in 1939. The formula is sectionally titled, to develop tax bases which will support subcommittee under the chairmanship to be sure, and even within the State of economic prosperity. of the gentleman from Ohio <Mr. AsH California it is tilted, as is dramatically However, I must emphasize that it is LEY) and it. has been a great pleasure demonstrated by these :figures I gave. certainly not my intention as a member working with the gentleman from Michi of the Housing and Community Develop gan <Mr. BROWN). I look forward to Mr. Chairman, I thank the subcom ment Subcommittee to see the urban making many more contributions than mittee chairman for his hard work and development action grant program take I have been able to make as a new mem for granting me this time, but I will be the place of, or receive a higher priority ber of this committee. in opposition to this new allocation than, the community development block Mr. ASHLEY. Mr. Chairman, I yield formula when we consideer amendments grant program. In a sense, the urban 5 minutes to the gentleman from Cali on the floor work next week. development action grant program is a fornia (Mr. HANNAFORD). Mr. BROWN of Michigan. Mr. Chair categorical grant controlled solely by the Mr. HANNAFORD. Mr. Chairman, first man, I yield such time as he may con Secretary. We have seen the many prob I would like to express my gratitude and sume to the gentleman from Iowa <Mr. lems that categorical grant programs appreciation for the very hard work GRASSLEY). have, not only in housing, but in other that the chairman of the subcommittee Mr. GRASSLEY. Mr. Chairman, the areas as well. For that reason, the Con has done, the subcommittee itself and the previous speaker mentioned the fact that gress, and I think wisely, has moved in full committee. There are few people this bill is a bill concerned with build the direction of the block grant program. that I respect as much as the gentleman ings and not with people. There is one Thus, I would certainly not like to see from Ohio <Mr. AsHLEY), and I cer group of people who are for the first time the administration use the urban de tainly would not want at this time to better recognized in this bill, and I wav.t velopment action grant program as an cause him any grief, because he is tak to thank the chairman of the subcom excuse not to fully fund the community ing a position and assuming a most im mittee, the gentleman from Ohio <Mr. development block grant program. It is portant role in this Congress in the time AsHLEY) , for his assistance in helping my hope that both can be funded ade ahead. But I have to oppose this legis us give adequate recognition to the needs quately. But I woul~ certainly not look lation as it stands, and I would like to of the American Indian in this bill. with favor on any efforts by the admin explain a few points as to why. That has now been done for the first istration to take funding away from the In our State of California, the city of time. It may have to be a subject of community development grant program Los Angeles receives less than $19 per future consideration, but at least this is in order to fund the new action grant capita in title I of this bill. The city of a pleasant start. program. San Francisco, as fair a city as adorns However, I am disappointed that this Finally, the bill makes several major the face of this <a href="/tags/Earth_(The_Book)/" rel="tag">Earth</a>, receives $38 per bill does not fully recognize the need changes in our national housing program. capita. A marvelous city, with good pub of smaller communities in both urban Of particular importance, is the new lic transit downtown, beautifully de and rural areas. Their needs are just maximum insurable mortgage amount veloped, Los Angeles is in greater need, as great as the needs of the major urban for FHA insured mortgages. The com and receives less than one-half as much centers. To my mind, the committee bas mittee has increased this amount to $60,- money. Under the old formula, Los not adequately recognized the needs vf 000, both to reflect the increases in the Angeles received in the neighborhood of over 100 million people who live in these prices of homes and mortgage amounts $18 per capita and Detroit received in communities with populations under 50,- since 1974 and anticipate likely increases the neighborhood of $20 per capita, an 000. Their needs include better housing, for at least the near future. acceptable inequity. Under the new better community facilities, better sewer One of the growing crises in this coun formula, Los Angeles now goes up to systems, and better water systems. try is the inability of most American $18.80 per capita. Detroit goes to $43 A General Accounting Office report of families, particularly yo·,mg families, to per capita, an unacceptable inequity. In December 1976, points out that if com afford homes. Studies by groups, such as terms of per capita income, as related to munity development block grant funds the Joint Economic Committee of Con benefits, a small city in my district re were allocated consistently with the ac gress, have indicated that somewhere ceives $16 per capita, and their per capita tual distribution of poverty, population, in the neighborhood of 85 percent of all income is $2,600 per year. Washington, and overcrowded housing, smaller com American families cannot afford to buy a D.C., receives $44 per capita, and it has a munities outside the SMSA's would re new home. The FHA program is designed per capita income of $7,500, almost three ceive 34 percent of all funds. Yet they to help people buy homes, yet the insur times as much per capita income. are now receiving only a meager 20 per able amounts have been far below exist I know how hard the Department and cent. ing marketing practices. For instance, as the committee worked on this faulted Smaller communities within the the committee report points out, last formula. I know that they tried 18 SMSA's are, of course, suffering also. year, only about 12 percent of all new formulas of different varieties, and this Due to the elimination of hold-harmless homes were sold for less than $30,000. is the one, they said, that worked best. funding over the next 3 years, due to This year, it is likely that less than 8 The chairman of the committee said this excessive drains of discretionary moneys percent will be similarly priced and prob is the best formula. by urban communities, small communi ably three-fourths of those lower priced It is my view that if this is the one that ties in SMSA's may not be receiving homes will be located in the southern works best, the block grant program is a their fair share of funding. C.XXIII--874-Part 11 13896 CONGRESSIONAL RECORD-HOUSE May 6, 1977 Given these clear indications of need Mr. Chairman, a more fair way and was first enacted. It was for that reason and I emphasize the word, "need"-! am the alternative that I will be offering to that Congress statutorily mandated are shocked that the administration should this House is to let the small communities view of the formula so that corrections propose the creation of what they call compete against each other for a very and perfections could be made. I believe the "urban development action grant" small piece of the pie and let the De that there are perfections that have been program without providing a guarantee traits and New York Citys compete made in the bill. of at least a minimal amount of funding against each other for the largest piece I want to say to my colleague, the gen for small communities. of the pie. Equity and fairness ought to be tleman from California, if he is still in. I intend next week to offer an amend our goal. the Chamber, and to all of the other ment which would insure that at least Mr. ASHLEY. Mr. Chairman, I yie.Id Members who are on the floor that the 25 percent of the $400 million proposed such time as he may consume to the gen West does not lost funds under this bill for the action grant program would go tleman from Oregon <Mr. AuCoiN), our and that the South does not lose funds to communities of under 50,000 popula colleague on the subcommittee who has under this bill. That what we have is tion. been nothing less than outstanding in a bill that increases funding for all re I am very pleased, incidentally, that aiding us on this committee this year and regions of the country. the gentleman from Oklahoma <Mr. in previous years as well. I believe, even though I vigorously de WATKINS), a member of this committee, Mr. AuCOIN. Mr. Chairman, I thank bated bits and pieces of this in the sub is joining me in offering this amendment. the chairman of the subcommittee for committee and in the full committee, We, the sponsors of this amendment, yielding. that we have forged a formula that gives arrived at the figure of 25 percent by Let me say-even though this morn us a chance to better tailor limited noting that under current law and in ing we are running the risk of having funds-and these funds are, in fact, lim current programs 20 percent of the com a "love-in" by throwing bouquets at each ited-to areas of the greatest need while munity development funds is guaranteed other-that I compliment the leaders of not taking away funds from any one to go to communities outside the SMSA's, this subcommittee on both sides of the region of the country. I believe the com and that about 5 percent is guaranteed aisle for the absolutely outstanding work mittee can be proud of that fact. to go to smaller communities within that was done and the leadership they I am particularly pleased, as well, that SMSA's. I should make clear, too, that exhibited. It has been a rare privilege to the bill addresses the urban problems of my amendment would make this 25 per serve with the gentleman from Ohio <Mr. housing. It does this by adopting the cent funding available to smaller com AsHLEY) and I say, in all sincerity, that dual formula that has been described, munities within urban counties, counties I have never known a finer chairman, a but it also does it by adopting an innova which would be eligible to apply for a fairer chairman, a more diligent and tion called urban development action piece of the $300 million which would be harder working chairman than the gen grants. available to such counties and cities tleman from Ohio <Mr. AsHLEY). Until the Federal Government, work should my amendment be adopted. Mr. Chairman, I must also say that ing in cooperation with State govern Mr. Chairman, my amendment will in the gentleman from Michigan <Mr. ments and local governments can stop no way restrict the ability of the Secre BROWN), the ranking minority member, the rot that is eating away at every tary to decide precisely which commu with whom I have had many disagree major urban center in this country, this nities should receive action grant money. ments, is a man who has made an out Nation is going to be picking up the It would simply insure that no circum standing contribution to this subcom pieces for years to come. The problems vention of the distribution of funds es mittee and has proved it again and again of energy consumption that stem from tablished under current law will take by the constructive, meaningful changes transportation patterns caused by sub place. About 25 percent of all block grant he has made ;n the legislation before us. urban sprawl, the loss of agricultural funds now go to small communities. If I salute him on the floor today. land that comes from that same sprawl, we do not provide that 25 percent of the Mr. Chairman, what we have before us the incredible financial loss to taxpayers action grant funds go to such commu is a bill that was passed by the full Com when they have to subsidize and pay for nities, we will, in effect, be saying that mittee on Banking, Finance and Urban new municipal services resulting from small communities should receive a low Affairs by a vote of 31 to 3. the exodus from the decaying center er percentage of the overall funding. This bill is supported by organizations city-these problems have to be stopped. Mr. Chairman, the vast majority of which include, among others, the U.S. I believe this bill makes a genuine step the Members of this Chamber represent Conference of Mayors, the National forward in doing that. communities of under 50,000 persons. I League of Cities, the National Governors My district has both an urban center ask these Members, "Can you honestly Conference, the National Association of and suburbs surrounding that urban go to these small communities and say: Homebuilders, the National Housing center. It has small towns and rural 'You do not have the needs of the larger Conference, the AFL-CIO Building Con areas across the length and breadth of urban centers and, therefore, you should struction Trades Union, the Mortgage northwest Oregon. not be able to get any part of the action Bankers Association, and the U.S. League I can say to my colleagues that this grant money?' "-money intended to of Savings and Loan Associations, and bill contributes significantly to the hous fight housing abandonment, population the National Rural Housing Alliance. ing and community development needs outmigration, and physical deterioration. of every one of those parts of my district. Mr. Chairman, I do not think that my Mr. Chairman, I am from the West. If my district is not a microcosm of this colleagues could answer that question in This is one of the regions of the country from which it is alleged this bill takes country, then I do not know whose dis the affirmative. trict is. My amendment will certainly not pro money. We have urban provisions that have vide smaller communities with the 34 I want to say that while I have a very been described. percent of funding that they ought to high regard and a very deep respect for But we have also done a lot to cut the be getting and which the General Ac my colleague, the gentleman from Cali paperwork requirements that have shut. counting Office study indicates that they fornia, who preceded me, I disagree with out small towns from this program. It ought to get, but it would ·at least pre him in his interpretation of this bill. makes no sense for a small town to have vent a sizable cut in the portion of funds I believe there comes a time in this to develop a 3-year master plan when they are now receiving. body when one is called upon to look at that small community may have only a Mr. Chairman, the name of the game the national interest and rise above the single community need, with a need for a is equity for small communities. I am selfish personal interest of a region of a one-shot, 1-year funding. To correct saying "Do not force the small towns of country. We have that challenge before this, we have reduced the paperwork by America to compete for action grant us today. enabling the Secretary to waive require money with the Detroits, with the New The chairman of the committee, the ments for all such master plans, in those York Citys, · or with the Newarks." In gentleman from Ohio, <Mr. AsHLEY) has instances. such a competition, we all know who will pointed out that the original formula for We have also addressed rural housing come out on top. The cards will be distribution of these funds was not con needs by adding new provisions to re stacked against the small communities. sidered perfect at the time the program vitalize the Farmer& Eqm~ f\d.ministra- May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13897 tion. The National Rural Housing Al conducted the hearings and markup ses amendment to the Urban Development liance says this is one of the few times, sions on this legislation. This year as in Action Grants, I would note that it is one of the landmark instances, in which the past he indicated his tremendous questionable whether the full $400 mil both rural housing needs and small town ability, cooperation, and cordiality with lion for UDAG can be put to good use in housing needs have been met in what is respect to all of the activities of the com the next fiscal year. HUD will need addi basically an urban housing bill. mittee. It has been a pleasure to be with tional central office staff to start up the I think the committee can be pleased him on prior occasions legislatively new program. Communities would have with that accomplishment as well and I speaking in developing housing and com to undertake full environmental impact compliment the chairman and appreciate munity development legislation. statements for many of the projects. his cooperation in the adoption of the I look forward to working with him in Private front-end funding commitments FmHA amendments I introduced in com his new capacity, which is even greater, would also be necessary. All this makes it mittee and worked on with the gentleman that of chairman of the Energy Commit difficult to conclude that the new pro from New York (Mr. LUNDINE). tee. It is interesting that once again we gram will be fully committed or well uti Mr. Chairman, what it really comes find ourselves working on another prob lized if it is. down to is that this is a national bill that lem that is very immediate and impor While I am pleased to see that the ad hurts no one and benefits every region tant to this Nation. I trust that we will ministration plans to retain the section of the country. be able to have the same kind or at least 8 housing program as the major vehicle It is a national bill that ought to be same degree of unanimity and consensus for housing needy families, the changes passed and supported by every Member of the energy legislation that we have that continue to be made to the program of the House who is concerned about the been able to achieve on housing. are cause for concern. The President has human habitat in large cities as well as I say that somewhat with tongue in just signed the 1977 Supplemental Au in small cities and rural areas across this cheek, recognizing that the problems are thorization Act. In that act, we added a land. a little different. provision which was designed to prefer The only thing that could jeopardize Mr. Chairman, I rise in support of this conventional projects over FHA proj this bill is an attitude which says the bill. ects. Now, we have included a provision funding increases in one region are not Mr. Chairman, H.R. 6655 received in this bill for the purpose of according large enough-that they must have even overwhelming bipartisan support in FHA "the same treatment as convention more. committee. ally financed projects." I suggest to my colleagues we have a We were pleased to see the committee I am also pleased to see the increase responsibility which transcends that, and take a number of steps to perfect the in the FHA mortgage limits and lowering that is to look at the Nation's need. We 1974 Housing and Community Develop the downpayment requirements. Both of are national legislators as well as Repre ment Act and make the CDBG program these proposals, plus the expansion of sentatives of our own districts and even more useful to the participants in it. A the graduated payment mortgage pro though I myself in committee have dis number of minority amendments were gram, were originally introduced by my agreed with some parts of the legislation accepted including ones to make the loan self and Congressmen BoB MICHEL and at certain steps along the way, I have program workable, to prevent the pirat DON H. CLAUSEN. These changes should reached the conclusion that the national ing of industry through the use of the assist young married couples who are interest is best served by this bill. new urban development action grant, entering the housing market for the It is inaccurate to say the bill's fund and to recognize a role for State govern first time. ing formula is based on buildings instead ment. Other minority supported amend I was not pleased, however, to see the of people. The fact is that the Depart ments, to preserve a reasonable propor committee approve a provision which ment tried any number of criteria based tion of discretionary funds for one-shot mandates the payment of operating sub on what appeared to be more ''human grants and to broaden the Secretary's sidies for section 236 rental assistance statistics" and found that none of them authority to waive redtape for the grant housing. In effect, this provision tells the came as close to meeting bonafide human applications of smaller communities were Federal Government that it must go community needs as this bill's dual form also adopted. beyond providing the 236 interest rate ula does. There are, however, a number of pro subsidies on State or local projects and I want every Member of this House to visions which need some corrective ac also pay for the deficit cost of utilities, know that this formula is not perfect. tion. Briefly, I would just note that this property taxes, and operating and main But neither is our world. And if we must legislation needs a specific funding prior tenance expenses. wait until the "perfect" formula is found, ity as between the original community Mr. Chairman, the true test of this bill then I say to you that we will wait for development block grant program, the will come when it is acted upon by the ever, we will never act. closeout of ongoing urban renewal proj Federal administrators and local com Instead, let us do what this bill sug ects and the new categorical urban devel munities. The initial congressional in gests. Let us attack the problems blight opment action grant program. tent, which led to the enactment of the ing our communities with the best ideas If, for any reason, the full $4 billion community development block grant available to us. Let us then carefully re is not made available for community program in 1974, is retained in this bill. view the experience we have with the new development, it is incumbent upon us to Within certain national objectives and formula and, as the bill mandates, let us set the specific funding priorities, and through certain eligible activities, local perfect it further at the time of the next I plan to offer an amendment to do just community residents, and their locally 3-year extension, if evidence suggests this that. In this way, all communities receiv elected officials are provided considerable is necessary. ing funding under the basic block grant flexibility to carry out a program that is As a Member from the West and as a program would be assured of receiving locally designed to meet local percep Representative who has that diversity of their grant amounts before any new pro tions of need. The application process constituency, I stand before my colleagues gram would be funded. has not been added to by this bill, nor today and I say this piece of legislation Since most larger hold-harmless com have any of the certifications been is carefully crafted. It enjoys strong bi munities benefit directly from the change changed. The Secretary still must ap partisan support and I think it deserves to the dual formula for distribution of prove within 75 days, or specifically re the support of this House. CDBG funds, I intend to offer another ject an application on the grounds that I thank the chairman for yielding. amendment which would require that the community's application, is plainly Mr. BROWN of Michigan. Mr. Chair the Secretary give "special considera inconsistent with generally known facts man, I yield myself such time as I may tion" to those smaller hold-harmless and data in its recitation of needs, or that consume. communities, which will lose all of their the community's application is plainly Mr. Chairman, at the outset I would hold-harmless funding over the next 3 inappropriate in what it plans to do to like to join the others who have com years and which have serious pressing meet those needs. mended the gentleman from Ohio <Mr. problems. Two days ago, the Wall Street Journal AsHLEY) for the fine way in which he While I do not intend to offer an published an article entitled ''Redtape Is 13898 CONGRESSIONAL RECORD-HOUSE May 6, 1977 Hobbling Federal Benefit Programs and assisted housing development, HUD still I think that the Urban Development Raising Costs, State and Local Officials has to redo the environmental clearance Action Grant program is a particularly Say." I would like to say that the com when it considers the housing project it important one, and I want to commend munity development block grant pro self. And, if a city complies with State the chairman of the subcommittee for gram is an exception to that rule. But, law for environmental review, it still has including a provision that will require unfortunately, I cannot. Three weeks to go through a separate review process that, before any grants can be made, the ago, while the committee was consider for Federal purposes. cooperation o.f private enterprise will be ing and rejecting efforts to further re I have received a letter dated April 5, enlisted to assure that only those pro strict the discretion of local recipients, 1977, from HUD Assistant Secretary grams which can succeed may be and while the committee was accepting Robert C. Embry, Jr., in which he agrees approved. changes to relieve small communities of that a local environmental review for a Mr. Chairman, one of the very im red tape requirements, the Department of housing site under the community devel portant amendments which was accepted Housir.g and Urban Development was opment act should trigger a finding of by the committee was the one requiring sending an 11-page memorandum to its adequa:te prior review for subsequent that there be citizen participation pro field offices calling for further Federal projects. HUD has promised to carry this grams at times and places during which judgments on locally selected projects, out by regulation. the people could participate. I pointed and for more justification on paper from In the same letter, however, Mr. Emory out to the committee that in my own city local appplicants even where the statute notes that the Council on Environmental of New York the hearings were held at provides for a local certification of com Quality remains opposed to any effort to central police headquarters. Of course, pliance. The field offices of HUD are also substitute a single State review, even this program is addressed to low-income given considerable leeway to approve ap with the protection of a requirement people, and it takes a very bold group of plications within the 75-day period called that CEQ find the State law adequate for low-income people to storm police head for by law, but to condition the use of the purposes of the NP,tional Environ quarters to demonstrate their dissatis funds until further documentation and mental Policy Act. Since this particular faction with the program. I think if we review has taken place. In effect, HUD is duplicatiOll is limited to a few States, really want to know what the people of heading back into the same categorical and since it has implications beyond the the communities think about the pro approach typified by the old workable community development program, I am grams, we have to let them know in the program review requirements that have reluctant to offer any corrective amend areas where they are and see to it that tied up fund reservations for urban re ments. But, it would be my hope that we can enlist their support. The amend newal projects in the past, with all the HUD and CEQ could begin to explore ment that was accepted does precisely problems of Federal to local communica ways in which this type of duplication that. tions, misunderstandings, delays, and could be decreased or eliminated. In addition, there were amendments disruptions that Congress attempted to In conclusion, Mr. Chairman, while I that specified that in developing the com avoid in the 1974 act. strongly support the legislation and com munity action program local areas spell The Wall Street Journal article cites mend Chairman AsHLEY on his handling out the particular programs that they Presider..t Carter's determination to cut of this important bill, there still are im may propose, but also the housing needs redtape and excess regulations, and his provements which can be made. When of the communities. That is important, desire to involve local and State officials we begin to consider amendments on because in some areas the technical re in the policymaking process based on his Tuesday, we will have the chance to quirements of the law are complied own frustrations in dealing with Federal make those improvements. I am sure Mr. with, but no housing programs have been agencies as Governor of Georgia. An of AsHLEY and I will be in agreement on provided for at all. It is for this reason, ficial of the White House Office of In a number of the amendments. On the also, that a provision was included to tergovernmental Relations is quoted as other amendments, I am sure the per provide for a limitation on the amount saying that there will be a "vigorous ef suasiveness of the arguments will carry of debt service or insurance that may be fort to involve State and local people in the day. used for housing in order to see to it the writing of regulations from the Mr. ASHLEY. Mr. Chairman, I yield that, where housing is built, it is built earli~st process." I would recommend 5 minutes to the gentleman from New in the areas o.f the municipality that most · that effort with HUD, since the April 15 York (Mr. BADILLO). need it. policy memorandum, which applies to Mr. BADILLO. Mr. Chairman, I rise Mr. Chairman, having said that, and this year's grants, even though most ap in support ·of this legislation, and I too having thanked the chairman of the plicants are already through their plan would like to commend the chairman of subcommittee for his persistence, I hope ning process, was never made available the subcommittee, the gentleman from to prevail upon him to accept one other for the White House, OMB, or the Con Ohio (Mr. AsHLEY) and the ranking mi amendment which I will be proposing to gress to comment on, let alone State or nority member, the gentleman from this bill, and that is one that will require local officials. Since I understand that Michigan (Mr. BROWN). As the Members that where moneys are used for public HUD has been criticized on this same know, I just transferred to this commit service programs, they be not used as a memorandum by members of the other tee, and I am particularly grateful to substitute for existing programs. body from both sides of the aisle, I would Mr. AsHLEY for having put up with all The present law provides that it is hope that this is a startup problem for the many amendments that I made as permissible for a local area to provide for the new team at HUD, that will not be a member of the full committee, and for public service where "they are not other repeated again, and that the tendency of having accepted so many of them. I also wise available in areas assisted under Federal officials to search for ways of want to thank the staff of the subcom this title where programs are being car- . directing local actions wil! be studiously mittee for their cooperation. ried out in a concentrated manner." I am particularly interested in this avoided in order to reflect the expecta We all agree with that. But we want to tions of Congress toward this program. legislation because it makes some funda mental and, I believe, necessary changes be sure that, where public services art\ Despite this setback, there is at least in the Housing and Community Devel provided, they are not merely a substi~ some hope that the future of the pro opment Act of 1974, so that it is strength tute for . existing programs which have gram is not totally bleak. ened and becomes more meaningful to been cut back just prior to the prepara In an effort to cut down· on excess our Nation. The adoption of the alterna tion of the proposal. paperwork and redtape, I asked the De tive formula, I think, is a ·1ery wise Mr. Chairman, that is why I drafted partment of Housing and Urban De precedent that we might use in other an amendment, with the help of the staff velopment to consider two changes relat legislation in order to see to it that we of the subcommittee, which will insure ing to environmental review of housing provide meaningful assistance to areas that we really carry out the intent of and community ·development projects. that need it, in this case older Ameri this provision by seeing to it that we are As it stands now, even if a community can cities that have pre-1939 housing, not financing the budget of the local satisfies the environmental review re without at the same time taking away municipalities, but where public services quirements of the law with respect to from some of the areas which are satis are being provided that are new and dif the use of land purchased for federally field with the existing formula. ferent and necessary public services. May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13899 Mr. Chairman, I hope that that I am particularly pleased that the full depositors' funds in the States of origin, amendment will be accepted. Its text committee approved the addition of title providing badly needed farm building follows: IV to this bill which will conform the credit. AMENDMENT TO H.R. 6655, AS REPORTED, lending limits of Federal savings and Mr. GONZALEZ. Mr. Chairman, while OFFERED BY MR. BADILLO loans to other changes made in the bill. I did not express any additional or dis Page 10, line 12, insert "(1)" after "(b)". Section 403 will also broaden the flexi senting views in the committee report on Page 10, after line 13, insert the following: bility of the S. & L.'s so-called spill the housing and community develop (2) Section 105(a) (8) of such Act is over category real estate loans by al ment bill of 1977, I have a number of amended by inserting the following before lowing such loans to be made with re reservations as to whether or not we are the semicolon at the end thereof : ", and if spect to real estate used primarily for truly striving toward the goals laid out such services have not been provided by the unit of local government (through funds farm purposes. The present law restricts in the 1949 Housing Act which, for the raised by such unit, or received by such unit such loans only to real estate used pri first time, stated a national goal for from the State in which it is located) dur marily for residential purposes. The ad housing. ing the 12-month period immediately pre dition of the words "or farm" to section One of the concerns I have about this ceding the fiscal year during which funds 5(c) of the Home Owners' Loan Act of bill before us, and I expressed this in made available under this title are to be 1933 will enable Federal S. & L.'s to better the full committee markup, is whether utilized for such services". serve loan demand for farm properties or not the community development blocK Mr. MINISH. Mr. Chairman, at this and structures in agricultural America. grant funds are really being spent on time, I would like to urge my colleagues As many of my colleagues are being made those who need them the most, the low to pass, without delay, H.R. 6655, the aware, there is a real danger of a credit and moderate-income people. I offered Housing and Community Development crunch in the Midwest this growing an amendment in committee markup Act of 1977. As most of us are aware, the season. These two additional words-"or which I intend to o:f!er at the appropri~ bill will provide funds to continue and farms" will help to forestall a crisis. ate time on the House floor, that will re improve upon the community develop Nonconforming or "spillover" category quire a minimum amount of CD funds ment block grants program which has provides that loans in this category can to be spent on these persons depending been of such great benefit to cities and be made up to a maximum amount equal on the formula used by a community to towns in each of our districts. to 5 percent of an individual association's obtain these funds. Thus Congress will As a member of the Committee on assets. This is a closely regulated special be assured that a certain portion of CD Banking, Finance and Urban Affairs, I category which confers discretion upon moneys will b~ used to alleviate the seri have been privileged to participate close the Board to permit flexibility from the ous problems for which the program was ly in the growth of this important legis present multiple restrictions found in originally intended. lation. I feel that it represents a marked section 5(c) of the Home Owners Loan Another area of concern is the dual improvement over its predecessor, passed Act to permit: formula that has been incorporated into by this body in 1974. First, FHA loans originated out-of this bill for the distribution of the com One of the major changes in the bill we State; munity development programs. The De consider today involves a new formula Second, conventional out-of-State partment of Housing and Urban Devel for determining the amount of money home loans; opment has assured us that this is the available to municipalities. Unlike the Third, loans on combinations of resi fairest and most equitable method of re Community Development Act of 1974 this dential and business properties; distributing the block grant funds but measure considers the age of housing Fourth, multifamily projects that do the major effect seems to be providing stock as a measure of communities' need, not specifically meet the dollar per room a large increase in funds for the old along with the extent of poverty and fall limits of section 207 (c) (3) of the Na cities in the East and Midwest while the off in the locality's population growth. tional Housing Act; cities in the South and West must settle It is my feeling that the new formula in Fifth, nonconforming real estate for merely an inflationary increase over creases the responsiveness of this act to trade-in loans where the loan-to-value last year's funds. the true needs of our cities. ratio is above 80 percent, or where re I strongly believe that the general wel Of particular import to areas such as payment would be in more than 18 fare and security of our Nation depend my own northern New Jersey, and other months; and upon keeping our cities and urban areas sections which have been hardest hit by Sixth, loans on housing for the aging. decent, attractive and safe places to live our economic ills, the Community Devel The bill adds the words "or farm" after and that the Federal Government cer opment Act of 1977 will serve as a stim residential, to permit the types of farm tainly has a strong role to play in achiev ulus to continued growth and economic loans commonly made in the upper Mid ing these goals. But I don't feel that recovery. For example, section 202 of the west which includes my State of Ne we should be concentrating an increas act increases the maximum amount of braska and the States of North and ingly large portion of our CD funds into mortgages that can be insured by the South Dakota, Montana, and Iowa. the older cities at the possible expense Federal Housing Administration. This addition is very simple, but its of future problems for those cities in the And, of course, this bill will provide impact is significant for States such as South and West that are presently eco that the many municipalities eligible for Nebraska. g clarifies the legislative in nomically sound. aid will be able to begin or continue im tent first articulated in section 704 of The dual formula approach in the bill portant projects to improve the living Public Law 93-383 which amended the will be used for 3 years and I would favor conditions of the American people. Home Owner's Loan Act of 1933. a more cautious approach that would re I need not emphasize the importance Specifically, this amendment will al quire HUD to study the problem further of the housing industry to the entire low individu3.l savings and loan associa and consider other possible alternatives economy. ·Passage of this act will spur tions to make farm loans from the 5- that will not, in effect, be penalizing cer housing and, as a result, will help em percent "spillover" loan category incor tain sections of our country and their ployment and industry. porated in the 1933 act. This is not a residents because they are still finan Mr. CAVANAUGH. Mr. Chairman, I new power. Rather it is required to fur cially viable. want to commend the gentleman from ther state the intent of Congress. A third concern I have is in the area Ohio for working so diligently in both Present interpretation by the FHLBB of low-rent public housing. I do not feel the subcommittee and the full Banking prevents savings and loans from using that we are providing enough funQ.s for Committee to produce what can be con excess capital in rural States for badly this program. Of the $1.2 billion in the sidered a rather well balanced piece of needed loans for farm land and build bill, which is expected to provide 400,000 legislation. As a member of the Banking ings. As a consequence, a number of these additional housing units, only 56,000 of Committee I know the desire of the floor associations have had to export capital these will be public housing. While there manager to satisfy the interests of all from their respective States of deposits, ha.s been much criticism of public hous regions and all Members. I look forward seeking investment opportunities. This ing programs, and I will not deny that to supporting this bill with my vote next clarifying amendment will allow these some has been valid, there are also many Tuesday. associations to keep a greater percent of cities, my own city of San Antonio being 13900 CONGRESSIONAL RECORD-HOUSE May 6, 197'7 one, that have had tremendous success was warmly welcomed by our distin the amount of funds that the different with their program and I feel that we guished new mayor, Michael Bilandic, of recipients will receive under the new should not ignore this very viable meth Chicago in a recent visit here to Wash formula or under the new program with od of providing housing for our citizens. ington. This new program would operate the dual formula. As I review the housing bill before outside the formula or entitlement com The gentleman does agree, does he not, us I wonder if we really are moving for munity development program, since the that those figures should be viewed in the ward in trying to meet the goals of the basic CD block grants cannot be used to context of the phenomenon that exists; 1949 Housing Act, or are we merely target assistance to specifically distressed that is, that due to the nature of the shuffling programs around, giving them communities which have physical and dual formula, there will probably be a new names and formulas, but standing economic deterioration and, just as im pro rata reduction in those figures even still in terms of providing the actions portantly, a high degree of commitment if the Committee on Appropriations that our low- and moderate-income citi and performance in dealing with these funds the basic program at the level we problems. The primary emphasis and are authorizing? Is that not true? zens need and deserve? direction in this action grant program Mr. ANNUNZIO. Mr. Chairman, I rise Mr. ASHLEY. The gentleman is abso would be the revitalization and conserva lutely right. in support of the bill H.R. 6655, the Hous tion of residential neighborhoods and ing and Community Development Act of the stimulation of commercial and indus Mr. BROWN of Michigan. Mr. Chair 1977, which was approved by the Com trial development essential to the vitality man, I only say that so there will not mittee on Banking, Finance and Urban of our central cities and their residential be some problem that might arise be Affairs, on which I serve, by a vote of 31 neighborhoods. tween what some printout shows and ayes and 3 nays. Mr. Chairman, I would Mr. Chairman, far too often in legis what a community actually receives like to compliment the distinguished lating programs for our urban commu when the program is implemented. chairman of the Subcommittee on Hous nities both past administrations and the Mr. ASHLEY. Mr. Chairman, I thank ing and Community Development, and Congress have forgotten that the most the gentleman. I think it is very respon my good friend from Ohio <Mr. AsHLEY) important element in preserving our sible on his part to bring that out. I do for the exemplary way he put together cities is the preservation of our residen agree with him. this product with bipartisan support in tial neighborhoods. Mr. BROWN of Michigan. Mr. Chair the subcommittee and the full commit Mr. Chairman, I applaud the direction man, I have no further requests for time, tee. that the urban development action grant and I yield back the balance of my time. Mr. Chairman, the committee-ap program is taking and particularly am proved bill represents an important re The CHAIRMAN. Pursuant to the rule, pleased to see the strong support the the Clerk will now read the bill by titles. authorization of a program that means Carter administration is pledging in this a great deal to almost 3,000 urban com area. The Clerk read as follows: munities of this Nation. It is particularly H.R. 6655 would also reauthorize HUD Be it enacted by the Senate and House most important to my city of Chicago. housing assistance programs and make of Representatives of the United States of Chicago has been in the forefront in the basic extensions in the authorities and America in Congress assembled, previous years in the use of the old HUD programs for which the Secretary of SHORT TITLE categorical programs such as urban re HUD has responsibility. I would also SECTION 1. This Act may be cited as the newal and model cities, and more im applaud my distinguished colleague from "Housing and Community Development Act portantly has been in the forefront of Rhode Island (Mr. ST GERMAIN) for his of 1977". developing a citywide approach to its efforts to get title IV of this bill included Mr. ASHLEY. Mr. Chairman, I move community development needs. The which would increase the mortgage that the Committee do now rise. community development block grant amounts that federally insured savings The motion was agreed to. program has been important to Chicago and loan institutions may make and and it has been well used because of the Accordingly the Committee rose; and would also increase the amounts of loans the Speaker having resumed the chair, community development strategy that for home improvements and construction our late great Mayor Richard Daley and Mr. STunns, Chairman of the Committee loans. of the Whole House on the State of the the Chicago City Council has developed Before concluding, Mr. Chairman, I over the past 3 years. Union, reported that that Committee, would again like to commend the distin having had under consideration the bill H.R. 6655 reauthorizes for an addi guished gentleman from Ohio (Mr. (H.R. 6655) to amend certain Federal tional 3 fiscal years the community de AsHLEY) and the distinguished gentle laws pertaining to community develop velopment block grant program. The bill man from Michigan (Mr. BROWN) for also proposed a new dual formula upon ment, housing, and related programs, their work in putting together this im had come to no resolution thereon. which to allocate the CD funds to the portant bill. Mr. Chairman, I urge the very urgent needs of many of our both adoption of this bill. large and small urban communities. This Mr. ASHLEY. Mr. Chairman, I have second formula approach proposed by no further requests for time, and I yield GENERAL LEAVE the Carter administration as well as by back the balance of my time. Mr. ASHLEY. Mr. Speaker, I ask unan the Ford administration, would use Mr. BROWN of Michigan. Mr. Chair imous consent that all Members may criteria that truly reflects the great needs have 5 legislative days in which to revise of cities such as Chicago. The criteria man, I yield myself such time as I may consume, :for the purpose of participat-: and extend their remarks, and include of this new formula would be the age of extraneous matter, on H.R. 6655. the bill the existing housing stock pre-1940 ing in a short colloquy with the gentle weighted 50 percent, poverty weighted man from Ohio (Mr. AsHLEY). just under consideration. 30 percent, and a new factor called popu Mr. Chairman, it is our understanding, The SPEAKER. Is there objection to lation growth lag weighted 20 percent. and I assume the gentleman has cleared the gentleman from Ohio? With the introduction of this new for it with the leadership, that the amenda There was no objection. mula the amount of funds that the city tory process, the reading of the bill for of Chicago would be eligible to receive amendments, will not begin until almost doubles. 'While this increase is Tuesday. MESSAGE FROM THE SENATE dramatic, it really only reflects what the Mr. ASHLEY. If the gentleman will formula meant to reflect, that is the ur yield, that is correct. A message from the Senate by Mr. gent developmental needs for the city. Mr. BROWN of Michigan. Mr. Chair Sparrow, one of its clerks, announced Mr. Chairman, title I also proposes the man, there is one further thing, which I that the Senate had passed with amend creation of a new urban development think the gentleman will agree with me ments in which the concurrence of the action grant program to be funded at a on, and that is that we will see printouts House is requested, bills of the House of level of $400 million for the next 3 fiscal from time to time during the course of the following titles: years. This new action grant program the consideration of this bill, indicating H.R. 4491. An act to authorize appropria- May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13901 tions for activities of the National Science miscellaneous amendments to provisions TITLE III-PROVISIONS RELATING TO Foundation, and for other purposes; and relating to higher education contained in EFFECTIVE DATES AND OTHER PRO H.R. 5840. An act to amend the Export Ad VISIONS OF THE TAX REFORM ACT OF the Education Amendments of 1976. 1976 ministration Act of 1969 in order to extend The SPEAKER. Is there objection to the authorities of that Act and improve the Sec. 301. Effective date of changes in the administration of export controls under that the request of the gentleman from Ohio? exclusion for sick pay. Act, and to strengthen the antiboycott pro There was no objection. Sec. 302. Changes in treatment of income visions of that Act. earned abroad by United States The message also announced that the citizens living or residing abroad. PERMISSION TO FILE CONFERENCE Sec. 303. Underpayments of estimated tax. Senate insists upon its amendment to the REPORT ON H.R. 3477, TAX REDUC Sec. 304. Underwithholding. bill <H.R. 4991) entitled "An act to au TION AND SIMPLIFICATION ACT Sec. 305. Interest on underpayments of tax. thorize appropriations for activities of OF 1977 Sec. 306. Use of residence as day care facility. the National Science Foundation, and for Sec. 307. State legislators' travel expenses other purposes," requests a conference Mr. PEASE. Mr. Speaker, I ask away from home. with the House on the disagreeing votes unanimous consent that the managers Sec. 308. Treatment of intangible driiling of the two Houses thereon, and appoints may have until midnight tonight to file costs for purposes of the mini a conference report on H.R. 3477 to mum tax. Mr. KENNEDY, Mr. PELL, Mr. NELSON, Sec. 309. Transfers of partial interests in Mr. HATHAWAY, Mr. SCHWEIKER, Mr. JAV provide for a refund of 1976 individual property for conservation pur ITS, and Mr. CHAFEE to be the conferees income taxes and other payments, to poses. on the part of the Senate. reduce individual and business income TITLE IV-MISCELLANEOUS PROVISIONS The message also announced that the taxes, and to provide tax simplification Sec. 401. Authorization of additional ap Senate had passed bills of the following and reform. propriations for the work incen titles, in which the concurrence of the The SPEAKER. Is there objection to tive program. House is requested: the request of the gentleman from Ohio? Sec. 402. Rapid amortization of child care S. 773. An act authorizing the Wichita In There was no objection. facilities. dian Tribes of Oklahoma, and its affiliated CONFERENCE REPORT (H. REPT. No. 95-263) Sec. 403. Election of former retirement in bands and groups of Indians, to file with the come credit provisions for 1976. The committee of conference on the dis Sec. 404. Postponement of effective date of Indian Claims Commission any of their agreeing votes of the two Houses on the claims against the United States for lands changes made by the Tax Reform amendments of the Senate to the bill (H.R. Act of 1976 in the method of ac taken without adequate compensation, and 3477) to provide for a refund of 1976 indi for other purposes; and counting for certain corporations vidual income taxes and other payments, engaged in farming. S. 1435. An act to authorize appropriations to reduce individual and business income for the Federal Election Commission for fis Sec. 405. Withholding tax on certain gam taxes, and to provide tax simplification and bling winnings. cal year 1978. reform, having met, after full and free con Sec. 406. Termination of 1975 special pay ference, have agreed to recommend and do ments to certain individuals. recommend to their respective Houses as Sec. 407. Payments to the governments of PERMISSION FOR COMMITTEE ON follows: American Samoa, Guam, and the MERCHANT MARINE AND FISHER That the Senate recede from its amend Virgin Islands. IES TO Fn..E REPORT ON H.R. 6205 ments numbered 13, 14, 15, 17, 33, 35, 44, Sec. 408. Withholding of county income tax 45, 46, 47, 48, 51, 69, 70, 75, 77, 79, and 83. on Federal employees. Mr. PE+A.SE. Mr. Speaker, I ask unan- That the House recede from its disagree ment to the amendments of the Senate TITLE V-CERTAIN SOCIAL SECURITY imous consent that the Committee on ACT AMENDMENTS numbered 1A, 2, 3, 6, 7, 8, 9, 10, 11, 12, 16, Merchant Marine and Fisheries may Sec. 501. Clarification of garnishment pro have until midnight tonight to file are 18, 19, 21, 22, 24, 25, 26, 27, 28, 29, 30, 31, 32, 34, 36, 37, 39, 40, 41, 42, 43, 49, 50, 52, 53, 54, visions. port on H.R. 6205, to authorize appropri 55, 56, 57, 59, 60, 61, 62, 63, 64, and 66; and Sec. 502. Bonding of certain State or local ations for fiscal years 1978, 1979, and 1980 agree to the same. employees; handling of cash re to carry out the Atlantic Tunas Conven Amendment numbered 1: That the House ceipts. tion Act of 1975. recede from its disagreement to the amend Sec. 503. Incentive payments to States and The SPEAKER. Is there objection to ment of the Senate numbered 1, and agree localities. to the same with an amendment as follows: Sec. 504 Annual report of the Secretary. the request of the gentleman from Ohio? Sec. 505. Certain AFDC payments. There was no objection. In lieu of the matter proposed to be inserted by the Senate amendment, insert the And the Senate agree to the same. following: Amendment numbered 4: That the House recede from its disagree· PERMISSION FOR COMMITTEE ON TITLE I-REDUCTION AND SIMPLIFICA ment to the amendm.ent of the Senate num• EDUCATION AND LABOR TO Fn..E TION OF INDIVIDUAL INCOME TAXES bered 4, and agree to the same with an REPORTS ON H.R. 6692, H.R. 6668, Sec. 101. Change in tax rates and tax tables amendment as follows: to reflect permanent inerease in In lieu of the matter proposed to be in AND H.R. 6774 standard deduction. serted by the Senate amendment insert the Mr. PEASE. Mr. Speaker, I ask unan Sec. 102. Change in definition of taxable following: imous consent that the Committee on income to reflect change in tax "SECTION 1. TAX IMPOSED. Education and Labor may have until rates and tables. " (a) MARRIED INDIVIDUALS FILING JOINT midnight tonight to file reports on H.R. Sec. 103. Extension of individual income RETURNS AND SURVIVING SPOUSES.-There is tax reductions. hereby imposed on the taxable income of- 6692, to extend certain programs under Sec. 104. Change in filing requirements. the Education of the Handicapped Act; " ( 1) every married individual (as defined Sec. 105. Withholding tax. in section 143) who makes a single return H.R. 6668, to amend the Age Dsicrimi Sec. 106. Effective dates. jointly with his spouse under section 6013, nation Act of 1975 to extend the date TITLE II-REDUCTION IN BUSINESS and upon which the U.S. Commission on Civil TAXES "(2) every surviving spouse (as defined in Rights is required to file its report under Sec. 201. Extension of certain corporate in section 2 (a)), such act, and for other purposes; and come tax reductions. a tax determined in accordance with the H.R. 677 4, to make certain technical and Sec. 202. New jobs credit. following table: </p><p>"If the taxable income is: The tax ls: Not over $3,200------No tax. 0ver $3,200 but not over $4,200------14% of the excess over $3,200. 0ver $4,200 but not over $5,200------$140, plus 15% of excess over $4,200. 0ver $5,200 but not over $6,200 ______$290, plus 16% of excess over $5,200. Over $6,200 but not over $7,200------$450, plus 17% of excess over $6,200. 0ver $7,200 but not over $11,200------$620, plus 19 % of excess over $7,200. 0ver $11,200 but not over $15,200 ______$1,380, plus 22% of excess over $11,200. Over $15,200 but not over $19,200------$2,260, plus 25% of excess over $15,200. 0ver $19,200 but not over $23,200------$3,260, plus 28% of excess over $19,200. 0ver $23,200 but not over $27,200------$4,380, plus 32 % of excess over $23,200. 13902 CONGRESSIONAL RECORD-HOUSE May 6, 1977 </p><p>"If the taxable income is: The tax is: Over $27,200 but not over $31,200------$5,660, plus 36 % of excess over $27,200. 0ver $31,200 but not over $35,200 ______$7,100, plus 39 % of excess over $31,200. Over $35,200 but not over $39,200 ______$8,660, plus 42 % of excess over $35,200. Over $39,200 but not over $43,200 ______$10,340, plus 45 % of excess over $39,200. Over $43,200 but not over $47,200 ______$12,140, plus 43 % of excess over $43,200. Over $47,200 but not over $55,200 ______$14,060, plus 50 % of excess over $47,200. Over $55,200 but not over $67,200------$18,060, plus 53 % of excess over $55,200. 0ver $67,200 but not over $79,200 ______$24,420, plus 55 % of excess over $67,200. Over $79,200 but not over $91,200 ______$31,020, plus 58 % of excess over $79,200. Over $91,200 but not over $103,200 ______: ______$37,980, plus 60 % of excess over $91,200. Over $103,200 but not over $123,200 ______$45,180, plus 62 % of excess over $103,200. Over $123,200 but not over $143,200------$57,580, plus 64 % of excess over $123,200. 0ver $143,200 but not over $163,200------$70,380, plus 66 % of excess over $143,200. 0ver $163,200 but not over $183,200------$83,580, plus 68 % of excess over $163,200. 0ver $183,200 but not over $203,200 ______$37,180, plus 69 % of excess over $183,200. Over $203,200------$110,980, plus 70 % of excess over $203,200. </p><p>" (b) HEADS OF HousEHOLDs .-There is hereby imposed on the t axable income of every individual who is the head of a household (as defined in section 2 (b)) a tax determined in accordance with the following table: </p><p>"If the taxable income is: The tax is: Not over $2,200------No tax. 0ver $2,200 but not over $3,200------14% of the excess over $2,200. 0 ver $3,200 but not over $4,200 ______$140, plus 16% of excess over $3,200. Over $4,200 but not over $6,200------$300, plus 18% of excess over $4,200. 0ver $6,200 but not over $8,200------$660, plus 19 % of excess over $6,200. 0ver $8,200 but not over $10,200------$1,040, plus 22 % of excess over $8,200. 0ver $10,200 but not over $12,200------$1 ,480, plus 23 % of excess over $10,200. 0ver $12,200 but not over $14,200------$1,940, plus 25% of excess over $12,200. 0ver $14,200 but not over $16,200------$2,440, plus 27 % of excess over $14,200. 0 ver $16,200 but not over $18,200------$2,980, plus 28% of excess over $16,200. 0ver $18,200 but not over $20,200 ______$3,540, plus 31 % of excess over $18,200. Over $20,200 but not over $22,200------$4,160, plus 32 % of excess over $20,200. 0ver $22,200 but not over $24,200------$4,800, plus 35 % of excess over $22,200. 0ver $21: ,200 but not over $26,200 ______$5,500, plus 36 % of excess over $24,200. Over $26,200 but not over $28,200------$6,220, plus 38% of excess over $26,200. 0ver $28,200 but not over $30,200 ______$6,980, plus 41 % of excess over $28,200. Over $30,200 but not over $34,200 ______$7,800, plus 42 % of excess over $30,200. Over $34,200 but not over $38,200------$9,480, plus 45 % of excess over $34,200. 0ver $38,200 but not over $40,200------$11,280, plus 48 % of excess over $38,200. 0ver $40,200 but not over $42,200------$12,240, plus 51 % of excess over $40,200. 0ver $42,200 but not over $46,200 ______$13,260, plus 52 % of excess over $42,200. Over $46,200 but not over $52,200 ______$15,340, plus 55 % of excess over $46,200. Over $52,200 but not over $54,200------$18,640, plus 56 % of excess over $52,200. 0ver $54,200 but not over $66,200------$19,760, plus 58% of excess over $54,200. 0ver $66,200 but not over $72,200------$26,720, plus 59 % of excess over $66,200. 0ver $72,200 but not over $78,200------$30,260, plus 61 % of excess over $72,200. 0ver $78,200 but not over $82,200 ______$33,920, plus 62 % of excess over $78,200. Over $82,200 but not over $90,200 ______$36,400, plus 63 % of excess over $82,200. Over $90,200 but not over $102,200------$41,440, plus 64 % of excess over $90,200. 0ver $102,200 but not over $122,200 ______$49,120, plus 66 % of excess over $102,200. Over $122,200 but not over $142,200------$62,320, plus 67 % of excess over $122,200. 0ver $142,200 but not over $162,200------$75,720, plus 68% of excess over $142,200. 0ver $162,200 but not over $182,200------$89,320, plus 69 % of excess over $162,200 0ver $182,20Q ______$103,120, plus 70 % of excess over $182,200. </p><p>"(c) UNMARRIED INNVIDUALS (OTHER THAN SURVIVING SPOUSES AND HEADS OF HOUSEHOLDS) .-There is hereby imposed on the tax able income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 143) a tax determined in accordance with the following table: </p><p>"If the taxable income is: The tax is: Not over $2,200 ______No tax. Over $2,200 but not over $2,700------14% of the excess over $2,200. 0ver $2,700 but not over $3,200------$70 plus 15 % of excess over $2,700. 0ver $3,200 but not over $3,700------$145, plus 16% of excess over $3,200. 0ver $3,700 but not over $4,200------$225, plus 17% of excess over $3,700. 0ver $4,200 but not over $6,200 ______$310, plus 19 % of excess over $4,200. Over $6,200 but not over $8,200 ______$690, plus 21 % of excess over $6,200. Over $8,200 but not over $10,200------$1,110, plus 24% of excess over $8,200. 0ver $10,200 but not over $12,200 ______$1,590, plus 25 % of excess over $10,200. Over $12,200 but not over $14,200------$2,000, plus 27 % of excess over $12,200. 0ver $14,200 but not over $16,200------$2,630, plus 29 % of excess over $14,200. 0ver $16,200 but n ot over $18,200 ______$3,210, plus 31 % of excess over $16,200. Over $18,200 but not over $20,200 ______$3,830, plus 34% of excess over $18,200. Over $20,200 but not over $22,200------$4,510, plus 36% of excess over $20,200. 0ver $22,200 but not over $24,200------$5,230, plus 38% of excess over $22,200. 0ver $24,200 but not over $28,200------$5,990, plus 40 % of excess over $24,200. 0ver $28,200 but not over $34,200------$7,590, plus 45 % of excess over $28,200. 0ver $34,200 but not over $40,200------$10,290, plus 50% of excess over $34,200. Qver $40,2()0 but not ever $46,200 ______._ _,.. ______• ______$13,290, plus 55o/o- of excess over $40,200. May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13903 </p><p>"If the taxable income is: The tax is: Over $46,200 but not over $52,200------$16,590, plus 60% of excess over $46,200. 0ver $52,200 but not over $62,200------$20,190, plus 62% of excess over $52,200. 0ver $62,200 but not over $72,200------$26,390, plus 64% of excess over $62,200. 0ver $72,200 but not over $82,200------$32,790, plus 66% of excess over $72,200. 0ver $82,200 but not over $92,200------$39,390, plus 68% of excess over $82,200. 0ver $92,200 but not over $102,200------$46,190, plus 69% of excess over $92,200. 0ver $102~00------$53,090, plus 70% of excess over $102,200. </p><p>"(b) MARRIED INDIVIDUALS FILING SEPARATE RETURNS.-There is hereby imposed on the taxable income of every married individual (as defined in section 143) who does not make a single return jointly with his spouse under section 6013 a tax determined 1n accordance with the following table: </p><p>"If the taxable income is: The tax is: Not over $1,600------No tax. 0ver $1,600 but not over $2,100------14% of the excess over $1,600. 0ver $2,100 but not over $2,600 ______$70, plus 15% of excess over $2,100. Over $2,600 but not over $3,100------$145, plus 16% of excess over $2,600. 0ver $3,100 but not over $3,600------$225, plus 17% of excess over $3,100. 0ver $3,600 but.not over $5,600------$310, plus 19% of excess over $3,600. 0ver $5,600 but not over $7,600------$690, plus 22% of excess over $5,600. 0ver $7,600 but not over $9,600------$1,130, plus 25% of excess over $7,600. 0ver $9,600 but not over $11,600------$1,630, plus 28% of excess over $9,600. 0ver $11,600 but not over $13,600------$2,190, plus 32% of excess over $11,600. 0ver $13,600 but not over $15,600------$2,830, plus 36% of excess over $13,600. 0ver $15,600 but not over $17,600------ $3,550, plus 39% of excess over $15,600. Over $17,600 but not over $19,600------$4,330, plus 42% of excess over $17,600. 0ver $19,600 but not over $21,600------$5,170, plus 45% of excess over $19,600. 0ver $21,600 but not over $23,600------$6,070, plus 48% of excess over $21,600. 0ver $23,600 but not over $27,600------$7,030, plus 50% of excess over $23,600. 0ver $27,600 but not over $33,600------$9,030, plus 53% of excess over $27,600. 0ver $33,600 but not over $39,600------$12,210, plus 55% of excess over $33,600. 0ver $39,600 but not over $45,600------..:------$15,510, plus 58% of excess over $39,600. 0ver $45,600 but not over $51,600------$18,990, plus 60% of excess over $45,600. 0ver $51,600 but not over $61,600------$22,590, plus 62% of excess over $51,600. 0ver $61,600 but not over $71,600------$28,790, plus 64% of excess over $61,600. 0ver $71,600 but not over $81,600------$35,190, plus 66% of excess over $71,600. 0ver $81,600 but not over $91,600------$41,790, plus 68% of excess over $81,600. 0ver $91,600 but not over $101,600------$48,590, plus 69% of excess over $91,600. 0ver $101,600------$55,490, plus 70% of excess over $101,600. </p><p>And the Senate agree to the same. And the Senate agree to the same. "Sec. 52. Special rules. Amendment numbered 5: That the House Amendment numbered 38: That the House "Sec. 53. Limitation based on a.mount of recede from its disagreement to the amend recede from its disagreement to the amend tax. ment of the Senate numbered 5, and agree ment of the Senate numbered 38, and agree "SEC. 51. AMOUNT OF CREDrr. to the same with the following amendments: to the same with an amendment as follows: "(a) DETERMINATION OF AMOUNT.-The Strike out the matter proposed to be In lieu of inserting the matter proposed amount of the credit allowable by section stricken by the Senate amendment; insert to be inserted by the Senate amendment, on 44B shall be-- the matter proposed to be inserted by the page 47 of the House engrossed bill strike Senate amendment; and on page 29, after "(1) for a taxable year beginning in 1977, out lines 12 and 13 and insert: an amount equal to 50 percent of the excess line 17, of the House engrossed bill, insert the "(iv) an individual who has income (otiler following: of the aggregate unemployment insurance than earned income) of $750 or more and wages paid during 1977 over 102 percent of (4) The first sentence of subsection (b) of who is described in section 63(e) (1) (D); or section 42 is amended by striking out "by the aggregate unemployment insurance wages this chapter" and inserting in lieu thereof And the Senate agree to the same. paid during 1976, and the following: "by section 1, or the amount Amendment numbered 58: That the House "(2) for a taxable year beginning in 1978, of the tax imposed in lieu of the tax im recede from it disagreement to the amend- an amount equal to 50 percent of the excess posed by section 1," ment of the Senate numbered 58, and agree of the aggregate unemployment insurance And the Senate agree to the same. to the same with an amendment, as follows: wages paid during 1978 over 102 percent of Amendment numbered 20: That the House In lieu of the matter proposed to be in the aggregate unemployment insurance recede from its disagreement to the amend serted by the Senate amendment insert the wages paid during 1977. following: ment of the Senate numbered 20, and agree "(b) MINIMUM PRECEDING YEAR WAGES. to the same with an amendment as follows: SEC. 202. NEW JOBS CREDIT. In lieu of the matter proposed to be in For purposes of determining the amount of (a) IN GENERAL.-Bubpart A of part IV of the credit under subsection (a) with respect serted by the Senate amendment, insert subchapter A of chapter 1 (relating to credits the following: to 1977 or 1978, 102 percent of the amount of allowable) is amended by inserting after sec the aggregate unemployment insurance wages "(3) CERTAIN INDIVIDUALS TREATED AS ELECT tion 44A the following new section: ING TO ITEMIZE.-An individual WhO haS an paid during the preceding calendar year shall "SEC. 44B. CREDIT FOR EMPLOYMENT OF CER be deemed to be not less than 50 percent of unused zero bracket amount (as determined TAIN NEW EMPLOYEES. under subsection (e) (2)) shall be treated as the amount of such wages paid during 1977 having made an election under this subsec "(a) GENERAL RULE.-There shall be al or 1978, as the case may be. tion for the taxable year. lowed as a credit against the tax imposed by "(c) TOTAL WAGES MUST lNCREASE.-The this chapter the amount determined under And the Senate agree to the same. amount of the credit allowable by section subpart D of this part. Amendment numbered 23: That the House 44B for any taxable year shall not exceed the recede from its disagreement to the amend "(b) REGULATIONS.-The Secretary shall amount which would be determined for such ment of the Senate numbered 23, and agree prescribe such regulations as may be neces sary to carry out the purposes of this section year under subsection (a) (without regard to the same with an amendment as follows: to subsection (b)) if- In lieu of the matter proposed to be in and subpart D." serted by the Senate amendment, insert the (b) RULES FOR COMPUTING CREDIT.-Pa.rt IV " ( 1) the aggregate amounts taken into ac following: For purposes of subsection (c)- of subchapter A of chapter 1 (relating to count as unemployment insurance wages "(A) the deduction provided by the pi"P. credits against tax) is amended by adding at were determined without any dollar limita ceding sentence shall be in lieu of any item the end thereof the following new subpart: tion, and ized deductions of the taxpayer, and "Subpart D-Rules for Computing Credit for "(2) '105 percent' were substituted for '102 "(B) such sentence shall not u.pply to an Employment of Certain New Employees percent' in the appropriate paragraph of sub individual who elects to itemize deductions.". "Sec. 51. Amount of credit. section (a) . CXXlli--875-Part 11 13904 CONGRESSIONAL RECORD-HOUSE May 6, 1977 "(d) $100,000 PER YEAR LIMITATION ON upon completion of (or while receiving) player or the major portion of a separate CREDIT .-Except as provided in subsection rehabll1tative services pursuant to-- ~nit of a trade or business of the employer (e), the amount of the credit determined "(i) an individualized written rehabilita m a transaction to which paragraph ( 1) ap under· this subpart for any employer (and tion plan under a State plan for vocational plies, and the amount of the credit allowable by sec rehabilitation services approved under the "(B) the employer furnishes the acquir tion 44B to any taxpayer) with respect to any Rehabilitation Act of 1973 or ing person such information as is necessary calendar year shall not exceed $100,000. "(ll) a program of voc'ational rehabilita for the app1ica tion of paragraph ( 1), "(e) ADDITIONAL 10 PERCENT CREDIT FOR tion carried out under chapter 31 of title 38 then, for purposes of applying this sub VOCATIONAL REHABILITATION REFERRALS.- United States Code. ' part for any calendar year ending after such "(!) IN GENERAL.-The amount of the cred "(g) RULES FOR APPLICATION OF SECTION. disposition, the amount of unemployment it allowable by section 44B for any taxable For purposes of this subpart- insurance wages deemed paid by the em year beginning in 1977 or 1978 (determined . " ( 1) REMUNERATION MUST BE FOR TRADE ployer during periods before such disposi without regard to this subsection) shall be OR BUSINESS EMPLOYMENT WITHIN UNITED tion shall be decreased by so much of such increased by an amount equal to 10 percent STATEs.-Remuneration paid by an employer wages as is attributable to such trade or of the unemployment insurance wages paid to an employee during any calendar year business or separate unit. by the employer to vocational rehabll1tation shall be taken into account only if more than "(d) TAX-EXEMPT 0RGANIZATIONS.-NO referrals during the calendar year in which one-half Olf the remuneration so paid is for credit shall be allowed under section 44B such taxable year begins. services performed in the United States in to any organization {other than a coopera "(2) ONLY FIRST YEAR TAKEN INTO AC a trade or business of the employer tive described in section 521) which is exempt COUNT.-For purposes of this subsection, un "(2) SPECIAL RULE FOR CERTAIN DET~RMINA from income tax unde·r this chapter. employment insurance wages may be taken TIONS.-Any determination as to whether " {e) CHANGE IN STATUS FROM SELF-EM· into account with respect to any individual- paragraph {1) of this subsection, or para PLOYED TO EMPLOYEE.-If- " (A) only to the extent attributable to graph (2) or (3) of subsection (f), applies " ( 1) during 1976 or 1977 an individual services rendered during the 1-year period with respect to any employee for any calen has net earnings from self -employment {as beginning with his first payment of wages dar year shall be made without regard to defined in seotion 1402{a)) which are at by the employer after the beginning of such subsections (a) and (b) of section 52. tributable to a trade or business and individual's rehabilitation plan, and "SEC. 52. SPECIAL RULES. "{2) for any portion of the ~ucceeding " (B) only if such, first payment occurs after calendar year such individual is an employee "(a) CONTROLLED GROUP OF CORPORA of such trade or business December 31, 1976. TIONS.-For purposes of this subpart, all em "(3) ONLY FIRST $4,200 OF WAGES TAKEN then, for purposes of de~rmining the credit ployees of all corporations which are mem allowable for a taxable year beginning in INTO ACCOUNT FOR ANY INDIVIDUAL.-For pur bers of the same controlled group of corpo poses of this subsection, the unemployment such succeeding calendar year, the employ rations shall be treated as employed by a er's aggregate unemployment insurance insurance wages paid during 1978 which are single employer. In any such case, the credit taken .into account with respect to any indi wages for 1976 or 1977, as the case may be, (if any) allowable by section 44B to each shall be increased by an amount equal to vidual shall not exceed $4,200 reduced by the such member shall be its proportionate con amount of unemployment insurance wages so much of the net earnings referred to in tribution to the increase in unemployment paragraph ( 1) as does not exceed $4 200 paid by the employer to such individual dur insurance wages giving rise to such credit. ing 1977. "{f) SUBCHAPTER S CORPORATION;.-!~ the For purposes of this subsection the term case of an electing small business corpora "(4) 20-PERCENT LIMITATION.-The amount 'controlled group of corporation's' has the of the credit allowable by reason of this sub tion {as defined in section 1371)- section for any taxable year shall not exceed meaning given to such term by section "{1) the amount of the credit determined one-fifth of the credit determined for such 1563(a),exceptthat-- under this subpart for any taxable year shall " ( 1) 'more than 50 percent' shall be sub be apportioned pro rata among the persons year under this section without regard to stituted for 'at least 80 percent' each place this subsection and subsection (d). who are shareholders of such corporation on '·'(f) DEFINITIONS.-For purposes of this it appears in section 1563(a) (1), and the last day of such taxable year and "(2) the determination shall be made "{2) any person to whom an' amount is subpart-- without regard to subsections (a) (4) and ''(!) UNEMPLOYMENT INSURANCE WAGES. apportioned under paragraph {1) shall be Except as otherwise provided, in this subpart, (e) (3) (C) of section 1563. allowed, subject to section 53, a credit under the term 'unemployment insurance wages' "(b) EMPLOYEES OF PARTNERSHIPS, PRo section 44B for such amount. has the meaning given to the term 'wages' PRIETORSHIPS, ETC., WHICH ARE UNDER CoM "{g) ESTATES AND 'I'RUSTS.-In the case of by section 3306{b), except that, in the case of MON CONTROL.-For purposes of this sub an estate or trust-- amounts paid during 1978, '$4,200' shall be part, under regulations prescribed by the "{1) the amount of the credit determined substituted for '$6,000' each place it appears Secretary- under this subpart for any taxable year shall " ( 1) all employees of trades or business in section 3306{b). be apportioned between the estate or trust "(2) AGRICULTURAL LABOR.-If the services {whether or not incorporated) which are un and the beneficiaries on the basis of the in• performed by any employee for an employer der common control shall be treated as em come of the estate or trust allocable to each, during more than one-half of any pay period ployed by a single employer, and "{2) any beneficiary to whom any amount (within the meaning of section 3306(d)) "{2) the credit {if any) allowable by sec bas been apportioned under paragraph ( 1) taken into account with respect to any calen tion 44B with respect to each trade or busi shall be allowed subject to section 53 a dar year constitute agricultural labor (within ness shall be its proportionate contribution credit under section 44B for such amou'nt the meaning of section 3306 {k) ) , the term to the increase in unemployment insurance and ' 'unemployment insurance wages' means, with wages giving rise to such credit. "{3) the $100,000 amount specified in sec respect to the remuneration paid by the The regulations prescribed under this sub tion 51{d) applicable to such estate or trust employer to such employee for such year, an section shall be based on principles similar shall be reduced to an amount which be&'s amount equal to so much of such remunera to the principles which apply in the case of the same ratio to $100,000 as the portion of tion as constitutes •wages' within the mean subsection {a) . the credit allocable to the estate or trust ing of section 312l(a), except that the con " {C) ADJUSTMENTS FOR CERTAIN ACQUISI· under paragraph {1) bears to the entire tribution and benefit base for each calendar TIONS, ETc.-Under regulations prescribed by amount of such credit. year shall be deemed to be $4,200. the Secretary- "{!) AcQuiSITIONS.-If, after December 31, "{h) LIMITATIONS WITH RESPECT TO CER• "(3) RAILWAY LABOR.-If more than one TAIN PERsoNs.-Under regulations prescribed half of the remuneration paid by an em 1975, an employer acquires the major por tion of a trade or business of another person by the Secretary, in the case of- ployer to an employee during the calendar " {1) an organization to which section 593 year is remuneration for service described (hereinafter in this pa.ra.graph referred to as the 'predecessor') or the major portion of a {relating to reserves for losses on loans) ap in section 3306 {c) ( 9) , the term 'unemploy plies, ment insurance wages' means, with respect to separate unit of a trade or business of a predecessor, then, for purposes of applying "{2) a regulated investment company or a such employee for such year, an amount real estate investment trust subject to taxa equal to of so much of the remuneration this subpart for any calendar year ending % after such acquisition, the amount of unem tion under subchapter M {section 851 and paid to such employee during such year as following), and is subject to contributions under section 8 ployment insurance wages deemed paid by (a) of the Railroad Unemployment Insurance the employer during periods before such ac "{3) a cooperative organization described quisition shall be increased by so much of in section 1381 {a) , Act {45 U.S.C. 358{a)). such wages paid by the predecessor with re "{4) VOCATIONAL REHABILITATION REFER· rules similar to the rules provided in section RAL.-The term •vocational rehab111tation spect to the acquired trade or business as is 46 (e) shall apply in determining the amount attributable to the portion of such trade of the credit under this subpart. referral' means any individual who-- "(A) has a physical or mental disab111ty or business acquired by the employer. "(i) $50,000 LIMITATION IN THE CASE OF which, for such individual, constitutes or re "(2) DISPOSITIONS.-If, after December 31, MARRIED !NDIVIDUALS FILING SEPARATE RE sults in a substantial handicap to employ 1975- TURNS.-ln the case of a husband or wife "{A) an employer disposes of the major who files a separate return, the limitation ment, and under section 51{d) shall be $50,000 in lieu "(B) has been referred to the employer poJ.'Ition of any trade or business of the em- May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13905 of $100,000. This subsection shall not apply been in effect for such taxable year for pur (relating to tax carryover for timber) is if the spouse of the taxpayer has no interest poses of allowing such carryback as a credit amended- in a trade or business for the taxable year of under such section. The entire amount of (i) by striking out "and" at the end of such spouse which ends within or with the the unused credit for an unused credit year clause (11), taxpayer's taxable year. shall be carried to the earliest of the 10 tax (11) by striking out "exceed" at the end of "(j) CERTAIN SHORT TAXABLE YEARS.-If able years to which (by reason of subpara clause (111) and inserting in lieu thereof the employer has more than one taxable graphs (A) and (B)) such credit may be car "and", and yea.r beginning in 1977 or 1978, the credit un ried, and then to each of the other 9 taxable (111) by inserting after clause {iii) the fol der this subpart shall be determined for the years to the extent that, because of the lim lowing new clause: employer's last taxable year beginning in itation contained in paragraph (2), such "(iv) section 44B (relating to credit for 1977 or 1978, as the case ma:v be. unused credit may not be added for a prior employment of certain new employees), ex "SEC. 53. LIMITATION BASED ON AMOUNT OF taxable year to which such unused credit ceed". TAX. may be carried. (3) CORPORATE REORGANIZATIONS.- "(a) GENERAL RULE.-Notwithstanding "(2) LIMITATION.-The amount of the un (A) Subsection (c) of section 381 (relating section 51, the amount of the credit allowed used credit which may be added under para to items of the distributor or transfer cor by section 44B for the taxable year shall not graph ( 1) for any preceding or succeeding poration) is amended by adding at the end exceed the amount of the tax imposed by taxable year shall not exceed the amount by thereof the following new paragraph: this chapter for the taxable year, reduced which the limitation provided by subsection "(26) CREDIT UNDER SECTION 44B FOR EM• by the sum of the credits allowable under- (a) for such taxable year exceeds the sum PLOYMENT OF CERTAIN NEW EMPLOYEES.-The "(1) section 33 (relating to foreign tax of- acquiring corporation shall take into account credit), "(A) the credit allowable under section (to the extent proper to carry out the pur "(2) section 37 (relating to credit for the 44B for such taxable year, and poses of this section and section 4B, and elderly), "(B) the amounts which, by reason of this under such regulations as may be prescribed "(3) section 38 (relating to investment in subsection, are added to the amount allow by the Secretary) the items required to be certain depreciable property), able for such taxable year and which are at taken into account for purposes of section " ( 4) section 40 (relating to expenses of tributable to taxable years preceding the un 44B in respect of the distributor or trans work incentive programs), used credit year." feror corporation." "(5) section 41 (relating to contributions (C) DEDUCTION FOR WAGES PAID REDUCED BY (B) Section 383 (relating to special limi to candidates for public offi.ce) , AMOUNT OF CREDIT.- tations on unused investment credits, work " ( 6) section 42 (relating to general tax ( 1) IN GENERAL.-Part IX Of subchapter B incentive program credits, foreign taxes, and credit), and of chapter 1 (relating to items not deducti capital losses) , as in effect for taxable years "(7) section 44A (relating to expenses for ble) is amended by adding at the end thereof beginning after June 30, 1978, as amended- household and dependent care services nec the following new section: (!) by inserting "to any unused new em essary for gainful employment). "SEC. 280C. PORTION OF WAGES FOR WHICH ployee credit of the corporation under sec For purposes of this subsection, any tax im CREDIT IS CLAIMED UNDER SEC tion 53(c)," after "section 50A(b),"; and posed for the taxable year by section 56 TION 44B. (ll) by striking out "WORK INCENTIVE (relating to minimum tax for tax prefer "No deduction shall be allowed for that PROGRAM CREDITS," in the section heading ences), section 72(m) (5) (B) (relating to 10 portion of the wages or salaries paid or in and inserting in lieu thereof "WORK INCEN percent tax on premature distributions to curred for the taxable year which is equal TIVE PROGRAM CREDITS, NEW EM owner-employees), section 408(f) (relating to the amount of the credit allowable for PLOYEE CREDITS,". to additional tax on income from certain re the taxable year under section 44B (relating (C) Section 383 (as in effect on the day tirement accounts) , section 402 (e) (relating to credit for employment of certain new em before the date of the enactment of the Tax to tax on lump-sum distributions), section ployees) determined without regard to the Reform Act of 1976) is amended- 531 (relating to accumulated earnings tax), provisions of section 53 (relating to limita (i) by inserting "to any unused new em section 541 (relating to personal holding tion based on amount of tax). In the case of ployee credit of the corporation which could company tax), or section 1378 (relating to a corporation which is a member of a con otherwise be carried forward under section tax on certain capital gains of subchapter S trolled group of corporations (within the 53(c) ,"after "section 50A(b) ,"; and corporations), and any additional tax im (11) by striking out "WORK INCENTIVE posed for the taxable year by section 1351 meaning of section 52(a)) or a trade or busi ness which is treated as being under com PROGRAM CREDITS," in the section head (d) (1) (relating to recoveries of foreign ex mon control with other trades or businesses ing and inserting in lieu thereof "WORK IN propriation losses), shall not be considered (within the meaning of section 52 (b) ) , this CENTIVE PROGRAM CREDITS, NEW EM tax imposed by this chapter for such year. PLOYEE CREDITS,". "(b) SPECL\L RULE FOR PASS-THROUGH OF section shall be applied under rules pre CREDIT.-In the case of a partner in a part scribed by the Secretary similar to the rules (D) The table of sections for part V of nership, a beneficiary of an estate or trust, applicable under subsections (a) and (b) of subchapter C of chapter 1 is amended by and a shareholder in a subchapter S corpo section 52.". striking out "work incentive program cred ration, the limitation provided by subsection (2) CLERICAL AMENDMENT.-The table Of its," in the item relating to section 383 and (a) for the taxable year shall not exceed a sections for such part is amended by adding inserting in lieu thereof "work incentive pro limitation separately computed with respect at the end thereof the following new item. gram credits, new employee credits,". to such person's interest in such entity by "Sec. 280C. Portion of wages for which credit (4) STATUTES OF LIMITATION AND INTEREST taking an amount which bears the same rela is claimed under section 44B." RELATING TO NEW EMPLOYEE CREDIT CARRY• tionship to such limitation as- (d) TECHNICAL AND CONFORMING AMEND• BACK.- " ( 1) that portion of the person's taxable MENTS.- ( A) ASSESSMENT AND COLLECTION.--Section income which is allocable or apportionable ( 1) 0LERICAL AMENDMENTS.- 6501 (relating to limitations on assessment to the person's interest in such entity, (A) The table of sections for subpart A of and collection) is amended by adding at the bears to part IV of subchapter A of chapter 1 is end thereof the following new subsection: "(2) the person's taxable income for such amended by inserting after the item relat ing to section 44A the following new item: "(p) NEW EMPLOYEE CREDIT CARRYBACKS. year reduced by his zero bracket amount In the case of a deficiency attributable to (determined under section 63 (d) ) , 1f any. "Sec. 44B. Credit for employment of certain new employees." the application to the taxpayer of a new " (C) CARRYBACK AND CARRYOVER OF UNUSED employee credit carryback (including defi CREDIT.- (B) The table of subparts for part IV of ciences which may be assessed pursuant to "(1) ALLOWANCE OF CREDIT.-!! the amount subchapter A of chapter 1 is amended by the provisions of section 6213(b) (3)), such of the credit determined under section 51 for adding at the end thereof the !following new deficiency may be assessed at any time before any taxable year exceeds the 11m.1tation pro item: the expiration of the period within which a vided by subsection t a) for such taxable "Subpart D. Rules for computing credit for deficiency for the taxable year of the unused year (hereinafter in this subsection referred employment of certain new new employee credit which results in such to as the 'unused credit year'), such excess employees." deficiencies which may be assessed pursuant shall be- (2) MINIMUM TAX.- to any portion of a new employee credit car "(A) a new employee credit carryback to ( A) Section 56 (c) (defining regular tax ryback from a taxable year attributable to a each of the 3 taxable years preceding the un net operating loss carryback, an investment used credit year, and deduction) is amended by striking out "and" at the end of paragraph (7), by striking out credit carryback, a work incentive program "(B) a new employee credit carryover to credit carryback, or a capital loss carryback each of the 7 taxable years following the un the period at the end of paragraph (8) and inserting in lieu thereof ", and", and by from a subsequent taxable year, at any time used credit year, before the expiration of the period within and shall be added to the amount allowable adding at the ~nd thereof the following new paragraph: which a deficiency for such subsequent tax as a credit by section 44B for such years. If able year may be assessed." any portion of such excess is a carryback to "(9) section 44B (relating to credit for em ployment of certain new employees)." (B) CREDIT OR REFUND.-Bection 651l(d) a taxable year beginning before January 1, (relating to llm.ltations on credit or refund) 1977, section 44B shall be deemed to have (B) Subparagraph (A) of section 56(e) (1) 13906 CONGRESSIONAL RECORD-HOUSE May 6, 1977 is amended by adding at the end thereof taxable year attributable to a net operating "(11) has been granted (and such grant the following new paragraph: loss carryback, an investment credit carry ing has not been revoked) , or "(9) SPECIAL PERIOD OF LIMITATION WITH back, a work incentive program credit carry "(iii) is exempt from having, RESPECT TO NEW EMPLOYEE CREDIT CARRY back, or a capital loss carryback from a sub a license, certification, registration, or ap BACKS.- sequent taxable year, such overpayment shall proval as a day care center or as a family or " (A) PERIOD OF LIMITATIONS.-If the claim be deemed not to have been made before the group day care home under the provisions for credit or refund relates to an overpayment close of such subsequent taxable year." of any applicable State law. This subpara attributable to a new employee credit carry ( 5) TENTATIVE CARRYBACK ADJUSTMENTS. graph shall apply only to items accruing in back, in lieu of the 3-year period of limita (A) APPLICATION FOR AD.JUSTMENT.-Section periods beginning on or after the first day tion prescribed in subsection (a), the period 6411 (relating to quick refunds in respect of of the first month which begins more than shall be that period which ends with the tentative carryback adjustments) is 90 days after the date of the enactment of expiration of the 15th day of the 40th month amended- the Tax Reduction and Simplification Act (or 39th month, in the case of a corpora (!) by striking out "or unused work incen of 1977. tion) following the end of the taxable year tive program credit" each place it appears in "(C) ALLOCATION FORMULA.-If a portion Of of the unused new employee credit which such section and inserting in lieu thereof the taxpayer's dwelling unit used for the results in such carryback (or, with respect "unused work incentive program credit, or purposes described in subparagraph (A) is to' any portion of a new employee credit unused new employee credit", not used exclusively for those purposes, the car:J,"yback from a taxable year attributable ( ti) by inserting after "section 50 A (b) " in amount of the expenses attributa~ble to that to b. ' r1et operating loss carryback, an invest the first sentence of subsection (a) "by a new portion shall not exceed an amount which ment·credit carryback, a work incentive pro employee credit carryback provided in section bears the same ratio to the total amount gram credit carryback, or a capital loss 53(c) ,", of the items allocable to such portion as the carryback from a subsequent taxable year, (iii) by striking out "or a work incentive number of hours the portion is used for such the period shall be that period which ends program carryback from" in the second sen purposes bears to the number of hours the with the expiration of the 15th day of the tence of subsection (a) and inserting in lieu portion is available for use." 40th month, or 39th month, in the case of a thereof ", a work incentive program carry (b) CONFORMING AMENDMENT.-Paragraph corporation, following the end of such tax back, or a new employee credit carryback ( 5) of section 280A (c) of such Code (as re able year) or the period prescribed in sub from", and designated by subsection (a)) is amended section (c) in respect of such taxable year, (iv) by striking out "investment credit by striking out· "paragraph (1) or (2)" and whichever expires later. In the case of such carryback)" in the second sentence of sub inserting in lieu thereof "pal:'agraph (1), (2), a claim, the amount of the credit or refund section (a) and inserting in lieu thereof or (4) ". may exceed the portion of the tax paid within "investment credit carryback, or, in the case (c) EFFECTIVE DATE.-The amendments the period provided in subsection (b) (2) of a new employee credit carryback, to an in made by this section shall apply to taxable or (c), whichever is applicable, to the extent vestment credit carryback or a work incen years beginning after December 31, 1975. of the amount of the overpayment attributa tive program carryback)", And the Senate agree to the same. ble to such carryback. (B) TENTATIVE CARRYBACK ADJUSTMENT Amendment numbered 67: That the House "(B) APPLICABLE RULES.-If the allowance ASSESSMENT PERIOD.-Section 6501 (m) (relat recede from its disagreement to the amend of a credit or refund of an overpayment of ing to tentative carryback adjustment assess ment of the Senate numbered 67, and agree tax attributable to a new employee credit ment period) is amended- to the same with an amendment as follows: carryback is otherwise prevented by the op (i) by striking out "or a work incentive In lieu of the matter proposed to be inserted eration of any law or rule of law other than program carryback" and inserting in lieu by the Senate amendment, insert the follow section 7122, relating to compromises, such thereof "a work incentive program carryback, ing: credit or refund may be allowed or made, if or a new employee credit carryback". and SEC. 308. TREATMENT OF INTANGIBLE DRILLING claim therefor is filed within the period pro (11) by striking out "(j), or ( o)" each place COSTS FOR PuRPOSES OF THE MINI vided in subparagraph (A) of this paragraph. MUM TAX. In the case of any such claim for credit or re it appears and inserting in lieu thereof "(j), (o),or (p)". (a) IN GENERAL.-Pa.ragraph (11) of sec fund, the determination by any court, in tion 57(a) (relating to minimum tax) is cluding the Tax Court, in any proceeding in (6) DESIGNATION OF INCOME TAX PAYMENT. Section 6096(b) (relating to designation of amended to read as follows: which the decision of the court has become "(11) INTANGIBLE DRILLING COSTS.- final shall not be conclusive with respect to income tax payments to Presidential Election Campaign Fund} is amended by striking out "(A) IN GENERAL.-With respect to all Oll the new employee credit, and the effect of and gas properties of the taxpayer, the such credit, to the extent that such credit is "and 44A" and inserting in lieu thereof "44A and44B". amount (if any) by which the amount of the affected by a carryback which was not in excess intangible drilling costs arising in the issue in such proceeding." (e) EFFECTIVE DATE.-The amendments taxable year is greater than the amount of (C) INTEREST ON UNDERPAYMENTS.-Sec made by this section shall apply to taxable the net income of the taxpayer from oil and years beginning after December 31, 1976, and tion 6601(d) (relating to income tax reduced ~ properties !or the taxable year. by carryback or adjustment for certain un to credit carrybacks from such years. "(B) EXCESS INTANGIBLE DRILLING COSTS. used deductions) is amended by adding at And the Senate agree to the same. For purposes of subparagraph (A), the the end thereof the following new paragraph: Amendment numbered 65: That the House amount of the excess intangible drilling costs "(5) NEW EMPLOYEE CREDIT CARRYBACK. recede from its disagreement to the amend arising in the taxable year is the excess o!- If the credit allowed by section 44B for any ment of the Senate numbered 65, and agree "(i) the intangible drilling and develop taxable year is increased by reason of a new to the same with an amendment as follows: ment costs described in section 263 (c) paid employee credit carryback, such increase In lieu of the matter proposed to be in or incurred in connection with on and gas shall not affect the computation of interest serted by the Senate amendment, insert the wells (other than costs incurred in drilling under this section for the period ending with following: a nonproductive well) allowable under this the last day of the taxable year in which the SEC. 306. USE OF RESIDENCE AS DAY CARE chapter for the taxable year, over new employee credit carryback arises, or, FACILITY. "(ii) the amount which would have been with respect to any portion of a new em (a) IN GENERAL.-Subsection (c) of section allowable for the taxable year if such costs ployee credit carryback from a taxable year 280A (relating to exceptions for certain busi had been capitalized and straight line recov attributable to a net operating loss carry ness or rental use; limitation on deductions ery of intangibles (as defined in subsection back, an investment credit carryback, a work for such use) is amended by redesignating (d)) had been used with respect to such incentive program credit carryback, or a cap paragraph (4) as paragraph (5} and by in costs. ital loss carryback from a subsequent taxable serting after paragraph (3) the following new "(C) NET INCOME FROM OIL AND GAS PROPER year, such increase shall not affect the com paragraph: TIES.-For purposes of subparagraph (A), the putation of interest under this section for amount of the net income o! the taxpayer the period ending with the last day of such " ( 4) USE IN PROVIDING DAY CARE SERVICES.- " (A) IN GENERAL.-SUbsection (a) shall from oil and gas properties for the taxable subsequent taxable year." year is the excess of- (D) INTEREST ON OVERPAYMENTS.-Section not apply to any item to the extent that 6611 (f) (relating to refund of income tax such item is allocable to the use of any por "(i) the aggregate amount o! gross income caused by carryback or adjustment for cer tion of the dwelling unit on a regular basis (within the meaning of section 613(a)) from tain unused deductions) is amended by add in the taxpayer's trade or business of pro all oil and gas properties of the taxpayer ing at the end thereof the following new viding day care for children, for individuals received or accrued by the taxpayer during paragraph: who have attained age 65, or !or individuals the taxable year, over " ( 5) NEW EMPLOYEE CREDIT CARRYBACK. who are physically or mentally incapable of '"(ii) the amount of any deductions allo For purposes of subsection (a}, if any over caring for themselves. cable to such properties reduced by the ex payment of tax imposed by subtitle A results "(B) LICENSING, ETC., REQUIREMENT.-SUb cess deScribed in subparagraph (B) for such from a new employee credit carryback, such paragraph (A) shall apply to items accruing taxable year." overpayment shall be deemed not to have for a period only if the owner or operator of (b) EFFECTIVE DATE.-The amendment been made before the close of the taxable the trade or business referred to in subpara made by subsection (a) shall apply with re year in which such new employee credit car graph (A)- spect to taxable years beginning after De ryback arises, or, with respect to any portion "(i) has applied for (and such applica cember 31, 1976, and before January 1, 1978. of a new employee credit carryback from a tion has not been rejected), And the Senate agree to the same. May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13907 Amendment numbered 68: That the House ment of the Senate numbered 74, and agree On page 79, line 1, of the Senate engrossed recede from its disagreement to the amend to the same with an amendment as follows: amendments, strike out "disposal" and insert ment of the Senate numbered 68, and agree In lieu of the matter proposed to be inserted the following: "disposable". to the same With an amendment as follows: by the Senate amendment, insert the follow On page 79, line 23, of the Senate en In lieu of the matter proposed to be inserted ing: grossed amendments, insert after "and" the by the Senate amendment, insert the follow SEC. 403. ELECTION OF FORMER RETIREMENT following: "which". ing: INCOME CREDIT PROVISIONS FOR On page 80, line 9, of the Senate en SEC. 309. TRANSFERS OF PARTIAL INTERESTS rN 1976. grossed amendments, strike out "SEC. 602," PROPERTY FOR CONSERVATION PUR A taxpayer may elect (at such time and in and insert the following: "SEC. 502". POSES. such manner as the Secretary of the Treasury On page 8l,line 11, of the Senate engrossed amendments, strike out "SEC. 603" and in (a) IN GENERAL.-clause (iii) of section or his delegate shall prescribe) to determine 170 (f) (3) (B) (relating to exceptions from the amount of his credit under section 37 of sert the following: "SEC. 503". denial of deduction in case of certain con the Internal Revenue Code of 1954 for his On page 82, line 1, of the Senate engrossed tributions of p·artial interests in property) first taxable year beginning in 1976 under the amendments, strike out "SEC. 604" and insert is amended to read as follows: provisions of such section as they existed the following: "SEC. 504". On page 82 of the Senate engrossed "(iii) a lease on, option to purchase, or before the amendment made by section 503 easement with respect to real property of the Tax Reform Act of 1976. amendments, strike out lines 19 through 22 granted in perpetuity to an organization de And the Senate agree to the same. and insert the following: scribed in subsection (b) (1) (A) exclusively Amendment numbered 76: That the House "(C) the number of child support ca-ses- ~ - ... for conservation purposes, or". recede from its disagreement to the amend in each State during each quarter of the (b) EFFECTIVE DATES.- ment of the Senate numbered 76, and agree fiscal year last ending before the report is (1) The amendment made by subsection to the same with an amendment as follows: submitted and during each quarter of the (a) shall apply with respect to contributions On page 57, line 16, of the Senate engrossed preceding fiscal year (including the transi or transfers made after June 13, 1977, and amendments, strike out "SEC. 505" and in tional period beginning July 1, 1976, and before June 14, 1981. sert the following: "SEC. 404"; And the Sen ending September 30, 1976, in the case of the (2) Paragraph (4) of section 2124(e) of ate agree to the same. first report to which this subpa.ragraph the Tax Reform Act of 1976 is amended by Amendment numbered 78: That the House applies), and the disposition of such cases;" striking out "June 14, 1977" and inserting in recede from its disagreement to the amend On page 88, line 15, of the Senate en lieu thereof "June 14, 1981". ment of the Senate numbered 78, and agree grossed amendments, strike out "(26) (B) And the Senate agree to the same. to the same with an amendment as follows: (11); and" and insert the following: "(26) Amendment numbered 71: That the House On page 62, line 22, of the Senate engrossed (B) (11) ;". recede from its disagreement to the amend amendments, strike out "SEC. 5{)7" and in On page 84, line 22, of the Senate en ment of the Senate numbered 71, and agree sert the following: "SEC. 405"; And the Sen grossed amendments, strike out "SEC. 605" to the same with an amendment as follows: ate agree to the same. and insert the following: "SEC. 505". In lieu of the matter proposed to be inserted Amendment numbered 80: That the On page 85, line 12, of the Senate en by the Senate amendment, insert the follow House recede from its disll!greement to the grossed amendments, before the period in ing: amendment o! the Senate numbered 80, and sert the following: "of such Act". "TITLE IV-MISCELLANEOUS agree to the same with an amendment as And the Senate agreed to the same. PROVISIONS" follows: On page 64, line 18, of the Senate Amendment numbered 85: That the And the Senate agree to the same. engrossed amendments, strike out "SEC. amendment of the Senate numbered 85 is Amendment numbered 72: That the House 509" and insert the following: "SEC. 406"; reported in d1sagreement. recede from its disagreement to the amend and the Senate agree to the same. That the House recede from its disagree ment of the Senate numbered 72, and Amendment numbered 81: That the House ment to the amendment of the Senate to the agree to the same with an amendment as reqede from its disagreement to the amend title, and agree to the same. follows: On page 53, Une 7, of the Senate ment of the Senate numbered 81, and agree AL ULLMAN, engrossed amendments strike out "SEC 501" to the same with an amendment as follows: JAMES A. BURKE, and insert the following: "SEC 401"; On page 65, line 2, of the Senate engrossed DAN RoSTENKOWSKI, And the Senate agree to the same. amendments, strike out "SEC. 510" and in CHARLES A. VANIK, Amendment numbered 73: That the House sert the following: "SEC. 407"; and the 0MAR BURLESON, recede from its disagreement to the amend Senate agree to the same. BARBER B. CoNABLE, ment of the Senate numbered 73, and agree Amendment numbered 82: That the House JOHN J. DUNCAN, to the same with an amendment as follows: recede from its disagreement to the amend Managers on the Part of the House. In lieu of the matter proposed to be inserted ment of the Senate numbered 82, and agree RUSSELL LONG, by the Senate amendment, insert the to the same with an amendment as follows: HERMAN TALMADGE, following: On page 65, line 21, of the Senate engrossed ABRAHAM RmiCOFF, amendments, strike out "SEC. 511" and in SEC. 402. RAPID AMORTIZATION OF CHILD CARE HARRY F. BYRD, Jr., FACILITIES. sert the following: "SEC. 408"; and the Sen LLOYD BENTSEN, ate agree to the same. FLOYD K. HASKELL, (a) RAPID AMORTIZATION OF CHILD CARE Amendment numbered 84: That the House Managers on the Part of the Senate. FACILITIES.- recede from its disagreement to the amend (!) Subsection (c) of section 188 (relating ment of the Senate numbered 84, and agree to application of section 188) is amended by JOINT EXPLANATORY STATEMENT OF THE COM to the same with amendments as follows: MITTEE OF CONFERENCE striking out "January 1, 1977" and inserting On page 67, line 14, of the Senate en in lieu thereof "January 1, 1982". The managers on the part of the House grossed amendments, strike out "TITLE VI" and the Senate at the conference on the dis (2) Subsection (b) of section 188 (relat and insert the following: "TITLE V". ing to definition of section 188 property) is agreeing votes of the two houses on the On page 67, line 16 of the Senate engrossed amendments of the Senate to the blli (H.R. amended by striking out "as a facility for amendments, strike out "SEC. 601" and in- on-the-job training of employees (or pros 3477) to amend the Internal Revenue Code sert the following: "SEC. 501." - of 1954 to provide for a refund of 1976 indi pective employees) of the taxpayer, or". On page 71, line 24, of the Senate en (3) The caption of section 188 is amended vidual income taxes and other payments, to grossed amendments, insert after "brought," reduce individual and business income taxes, by striking out "ON-THE-JOB TRAINING the following: "and". AND.'' to provide tax simplification and reform, and (4) The table of sections for part VI of On page 72, line 3, of the Senate engrossed for other purposes, submit the following subchapter B of chapter 1 is amended by amendments, strike out "that". joint statement to the House and the Senate striking out the item relating to section 188 On page 72, line 10, of the Senate en in explanation of the effect of the action and inserting in lieu thereof the following grossed amendments, strike out "Govern (other than action of a merely technical, new item: ment, or" and insert the following: "Govern clerical, or conforming nature) agreed upon "Sec. 188. Amortization of certain expen ment.". by the managers and recommended in the ditures for child care facilities." On page 75 of the Senate engrossed accompanying conference report: amendments, beginning in line 3, strike out (5) The caption of paragraph (10) of sec ", when used in the context of section 459,". REFUND OF 1976 INDIVIDUAL INCOME TAXES tion 57(a) (relating to items of tax prefer On page 76, line 5, of the Senate en (Senate amendment numbered lA) ence) is amended by striking out "on-the-job grossed amendments, strike out "benefits (as House bill.-The House bill provides a re training and". defined" and insert the following: "benefits fund of 1976 individual income taxes equal {b) EFFECTIVE DATE.-The amendments (including a periodic benefit as defined". to $50 for each taxpayer and dependent, made by subsection (a) shall apply with re On page 77 of the Senate engrossed amend phased out between income levels of $25,000 spect to expenditures made after December ments, strike out the period at the end of and $30,000. The refund is limited to tax 31, 1976. line 23 and insert a comma. liability, except in the case of recipients of And the Senate agree to the same. On page 78, line 3, of the Senate en the earned income credit and certain others Amendment numbered 74: That the House grossed amendments, strike out "and" arid who would be eligible for that credit but for recede from its disagreement to the amend- insert the following: "or". the income phaseout of that credit. 13908 CONGRESSIONAL RECORD-HOUSE May 6, 1977 Senate amendment.-The Senate amend deduction is not extended to heads of house of households to claim an additional exemp ment deletes the House provision. holds and conforming changes are made. The tion to reflect most of the higher "standard Conference agreement.-The conference effective date is the same as in the House deduction" and amendment numbered 41 agreement omits this provision of the House bill and the Senate amendment. makes the first withholding changes apply bill. EXTENSION OF INDIVIDUAL TAX REDUCTIONS after May 31, 1977. Conference agreement.-The conference SPECIAL PAYMENTS (Senate amendments numbered 30 and 31) (Senate amendment numbered 1A) agreement is the same as the Senate amend House bill.-The House bill extends the ment except that the additional exemption House bill.-The House blll provides $50 general tax credit and the earned income for heads of households is not provided. payments to recipients of benefits under so credit through 1978. Under present law, the cial security, supplemental security income general tax credit equals the greater of $35 EXTENSION OF CORPORATE TAX REDUCTIONS (SSI), railroad retirement, black lung pro per taxpayer and dependent or 2 percent of (Senate amendments numbered 56 and 57) grams, State-supplemented SSI, aid to fami the first $9,000 of taxable income. The earned House bill.-The House bill extends lies with dependent children (AFDC), and income credit equals 10 percent of the first through 1978 the tax reductions for small Veterans' Administration pensions and com $4,000 of earned income and is phased out business enacted in 1975 and subsequently pensation. It prohibits double payments to as income rises from $4,000 to $8,000. It is extended through 1977. These tax cuts reduce beneficiaries of more than one of these pro available only to people who maintain a the tax rate on the initial $25,000 of corpo grams and payments to beneficiaries of the household for a child who is either under rate taxable income from 22 percent to 20 ·· ...... li• :Programs other than AFDC who also receive a -19, a student or an adult disabled dependent. percent and reduce the rate on the next tax refund. The earned income credit (but not the gen- $25,000 of corporate taxable income from 48 Senate amendment.-The Senate amend eral tax credit) may exceed tax liability. In percent to 22 percent. ment deletes the House provision. addition to extending the general tax credit Senate amendment.-senate amendments Conference agreement.-The conference and the earned income credit through 1978, numbered 56 and 57 are clerical amend agreement omits this provision of the House the House bill authorizes an appropriation ments to the House provision. bill. for refunds of the earned income credit in Conference agreement.-The conference excess of tax liability. It also modifies the agreement follows the House bill as modi STANDARD DEDUCTION AND CHANGES IN TAX fied by the clerical Senate amendments. RATES, TAX TABLES AND TAXABLE INCOME definition of "maintaining a household" so NEW JOBS TAX CREDIT (Senate amendments numbered 4, 5, 12, 15, that AFDC payments would be disregarded 16, 17, 18, and 24) in determining whether a person provides (Senate amendment numbered 58) enough support for the household to qualify House bill.-Under present law, the stand House bill.-The House bill provides a new for the earned income credit. jobs tax credit. The maximum credit for each ard deduction is 16 percent of adjusted gross senate amendment.-The Senate amend income with a minimum of $1,700 for single net new employee hired by an employer in ments. retain the basic extension of the tax 1977 or 1978 is $1,680 ( 40 percent of the first returns and $2,100 for joint returns, and a cuts. Senate amendment numbered 30 de $4,200 of wages paid to net new employees) . maximum of $2,400 for single returns and letes the authorization for refunds of the $2,800 for joint returns. The House bill in The credit generally is based on FUTA earned income credit in excess of tax liab111ty (Federal Unemployment Tax Act) wages (the creases the present standard deduction to a because the refunds now do not require such fiat amount of $2,400 for single persons and first $4,200 of an employee's wages) paid by authorization. Senate amendment numbered an employer during the year in excess of $3,000 for joint returns and simplifies the 31 deletes the provision in the House bill tax return forms. It adopts a tax table based 103 percent of FUTA wages paid during the modifying the definition of "maintaining a preceding year. Wages on which the credit on tax table income and the number of ex household" for purposes of determining el1gi emptions and builds the 'general tax credit, is based are limited to total wages p•aid dur bi11ty for the earned income credit. ing the year in excess of 103 percent of total the standard deduction and the personal ex Conference agreement.-The conference wages paid during the previous year. emption into the table. For people who do agreement follows the Senate amendments. not itemize their deductions, "tax table" in The bill provides that any employer dis come equals adjusted gross income, as cur FILING REQUIREMENTS missing an employee in order to secure the rently defined. Itemizers must subtract (Senate amendments numbered 34, 35, 36, credit loses an amount of credit equal to itemized deductions in excess of the new 37 and 38) twice the amount that otherwise would have been gained by the dismissal. standard deduction to obtain "tax table" in House bill.-The House bill increases the come. Conforming changes are made to the For any year, the credit for a taxpayer income level for filing tax returns to $3,1.50 or employer is limited to $40,000. Code references to taxable income. The bill for a single person and a head of household also changes the tax rates to apply above a The bill allows an additional 10-percent and to $4,500 for a joint return. The changes credit for increased employment of handi "zero bracket amount" equal to the new apply to taxable years beginning after De standard deduction amount. The $35 per capped workers who receive vocational re cember 31, 1976. habilitation training over the number em capita tax credit is made available for the Senate amendment.-r-Senate amendment extra age and blindness exemptions, and mar ployed in the previous year. The $40.000 numbered 34 changes the filing requirement limit does not apply to the additional credit ried individuals filing separately are limited to $2,950 for a single person. Amendments to the $35 per capital credit. These changes for the handicapped. 35 and 36 make the requirement $3,950 for Senate amendment.-The Senate amend apply to taxable years beginning after De a head of household. Amendment 37 makes cember 31, 1976. ment increases the investment credit by 2 the requirement $4,700 for a joint return. percent (to 12 percent plus the extra 11f2 Senate amendment.-senate amendments Senate amendment numbered 38 esta.blishes numbered 12, 16, 18, and 24 set the standard percent ESOP credit) through 1980. For 1977 that individuals with unearned income who and 1978, the additional credit is allowed deduction at $2,200 for single persons and are claimed as dependents on other individ $3,200 for joint returns ($1,600 for married only if the new jobs tax credit is not elected. uals' tax returns (and who thus have an The Senate amendment provides a jobs individuals filing separate returns) . Senate unused zero bracket amount) are subject to amendments numbered 15 and 17 extend the credit which is the same as the House bill, the special, stricter filing requirements only except that the maximum credit for each $3,200 standard deduction for joint returns if their unearned inoome exceeds $750, be to heads of households. (Under present law, net new employee is $2,100 (50 percent of the cause only in that case can they possibly first $4,200 of wages paid to net new em heads of households have the same standard h·ave any tax Uabi11ty at income levels below deduction as single taxpayers.) Senate ployees). In addition, the deduction for the normal filing requirements. The effective wages must be reduced by the amount of amendment numbered 5 changes the general date is the same as the House bill. tax credit to apply only against the section the credit claimed. Conference agreement.-Th.e conference Further, the total wage limit-ation requires 1 tax (and other taxes in lieu of section 1 agreement sets the fl.llng requirement at taxes), rather than against all the taxes im an increase over 105 percent of total wages $2,950 for single persons and heads of house paid during the previous year. The dismissal posed by Chapter 1 of the Internal Revenue holds and $4,700 ·for joint returns. These Code. Senate amendment numbered 4 substi provision in the House bill is deleted. The increased levels in the filing requirements 103-percent FUTA wage limitation and the tutes tax rate tables to reflect the Senate conform to the increases in the standard de amendments.1 The effective date is the same 105-percent total wage limitation are ea.ch duction. The effective date is the same as the reduced to 101 percent for a year for States as the House bill. House bill and the Senate amendment. Conference agreement.-The conference with unemployment rates of 7 ¥2 percent or agreement is the same as the Senate amend WITHHOLDING CHANGES more for the previous year. ment except that the joint return standard (Senate amendments numbered 41, 42, 43, The amendment raises the $40,000 limita and 44) tion on the amount of the credit that any 1 Technical Amendment numbered 20, re House bill.-The House bill requires the employer or taxpayer may receive under the lating to changes in the new tax tables, treats Secretary of the Treasury to modify the With House bill to $100,000. dependents with an unused zero bracket holding rates after April 30, 1977, to reflect An additional 10-percent nonincremental amount equal to their earned income (among the changes in the "standard deduction" and credit is provided for all new employees hired others) as having elected to itemize deduc to modify them further after December 31, (without regard to the number employed in tions. In cases where these individuals have 1978, to reflect the expiration of the general the previous year) in the following cate earned income in excess of their itemized tax credit. gories: (1) handicapped individuals (includ deductions, it is intended that the amount of Senate amendment.-The Senate amend ing handicapped veterans) who have received the excess earned income be treated as if it ment is the same as the House bill except vocational rehabilitation, (2) Vietnam-era were an itemized deduction. that amendment numbered 44 permits heads veterans under age 27 and certain disabled May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13909 veterans, and (3) low-income persons who agreement is the same as the Senate amend Senate amendment.--senate amendment are unemployed 15 or more weeks or who are ment. numbered 67 reduces an individual's mini AFDC recipents. The speclallO-percent credit RELIEF FROM INTEREST, ADDITIONS '.CO TAX, AND mum tax preference for intangible drilling is llmlted to one-fifth o! the 50-percent credit PENALTIES FOR UNDERWITHHOLDING OR UN costs provided under the Tax Reform Act of which would have been allowed before apply 1976 by the amount of his net income from ing the $100,000 limitation. DERPAYMENT ATTRmUTABLE TO APPLICATION TO 1976 OF PROVISIONS OF THE TAX REFORM oil and gas properties. This amendment is To limit the credit available to a new or ACT OP 1976 effective for taxable years beginning after rapidly expanding business, the Senate December 31, 1976. (Senat~ amendment-6 numbered 62, 63 amendment provides that wages on which Conference agreement.-The conference the credit is based are llmlted to 50 percent and 64) agreement follows the Senate amendment, of FUTA wages for the year. The Senate House bill.-No provision. effective, however, only for taxable years amendment does not provide a penalty !or Senate amendment.--senate amendment which begin in 1977. dismissing employees. numberecl 62 relieves individual taxpaye1·s The conference agreement restates the Conference agreement.-The conference for periods prior to April 16, 1977, o.nd corpo Senate amendment to clarify and simplify agreement omits the elective 2-percent in rations for periods prior to March 16, 1977, the computation of the preference. Under crease in the investment credit and adopts from additions to tax for underpayments of the conference agreement, the preference is the new jobs tax credit contained in the estimated tax attributable to ch<m~es in the to be computed by reducing the amount of Senate amendment wtth the following law made applicable to 1976 by the Tax Re intangible dr1lling costs paid or in changes: (1) the 103-percent FUTA limita form Act of 1976. For the same periods, Sen during the taxable year, first, by the ' tion is reduced to 102 percent, (2) the spe ate amendment numbered 64 relieves indi of those costs (i.e., the costs paid or incurred cial FUTA and total wage 101-percent limi viduals and corporations from interest in that taxable year) which could have been tations for high unemployment States are charged against underpayments after the deducted in that year had those costs been eliminated, and (3) the additional 10-per last date for filing returns and paying tax capitalized and amortized and, second, by the cent credilt is limited to handicapped indi 1! the interest is attributable to the 1976 Act taxpayer's net income from all on and gas viduals (including handicapped veterans) changes. Senate amendment numbered 63 re properties. Income from oil and gas proper who have received vocational rehabilitation. lieves employers of 11ab111ty !or failures to ties is to be determined in accordance with Under the conference agreement, the lOS withhold on income paid before January 1, the rules for determining gross income from percent total wage Umitation is applied in 1977, which was made taxable by the 1976 oil and gas properties for purposes of per dependently of the rule for new and rapidly Act. centage depletion (sec. 613(a) o! the Code, expanding businesses. For ex,ample, even Conference agreement.-The conference without regard to the llmltations under sec. though the new business rule limit-6 the agreement follows the Senate amendments. 613A). Net income is gross income from oil amount taken into account as an increase and gas properties reduced by the amount in FUTA wages for the year, the new busi BUSINESS USE OF RESIDENCE FOR DAY CARE SERVICES of deductions properly allowable thereto (in ness rule would not limit the amount taken cluding percentage depletion) .2 into account as an increase in total wages (Senate amendment numbered 65) paid during the year. Also, under the con House bill.-No provision. CHARITABLE CONTRmUTIONS OF CONSERVATION ference agreement, for 1978 the credit for a Senate amendment.-The Senate amend EASEMENTS handicapped individual (including a handi ment provides that for taxable years begin (Senate amendment numbered 68) capped veteran) is computed, subject to the ni;n.g after December 31, 1975, the exclusive House bill.-No provision. one-fifth llmltation, on the basis of the use requirement for deducting business ex Senate amendment.--senate amendment FUTA wages paid during 1978, reduced by penses attributable to the business use of numbered 68 extends through June 13, 1981, FUTA wages paid to that individual during a personal residence is not to apply in the period durLng which deductions are al 1977. the case of a residence used to provide day lowable for charitable contributions of re SICK PAY care services to children, handicapped indi mainder interests in real property and per (Senate amendment numbered 60) viduals, and the elderly. The deductible busi petual or permanent leases on, options to ness expenses are to be limited to the excess purchase, or easements with respect to real House bill.-No provision. of the gross income from providing day care property. Under provisions added by the Tax Senate amendment.-The Senate amend ment generally postpones for one year the services over the allocable portion of prop Reform Act of 1976, deductions are allow erty taxes, mortgage interest, etc., which are able !or contributions to public charities effective date of the revisions in the tax and governmental units exclusively for con treatment of sick pay made by the Tax Re deductible in any event. The expenses alloca ble to the business activity are to be deter servation purposes of leases on, options to form Act of 1976. The amendment makes purchase, or easements with respect to the changes applloable to taxable years be mined on the basis of the space used to fur nish the day care services end on the basis real property of at least 30 years' duration, ginning after December 31, 1976. However, and remainder interests in rent property, taxpayers preferring the revisions made by of the time that space is used to provide the services as compared to the total time only lf contributed before June 14, 1977. the Tax Reform Act of 1976, may elect to Conference agreement.-The conference file their 1976 returns under the new law. that space is available for all uses. Conference agreement.-The conference agreement generally follows the Senate Conference agreement.-The conference amendment. It extends through June 13, 1981, agreement follows the Senate amendment. agreement is in substance the same as the Senate amendment except that, after the first the period during which deductions are al EXCLUSION OF INCOME EARNED ABROAD day of the first month beginning more than lowable for charitable contributions of re (Senate amendment numbered 61) 90 days after enactment, the exception to mainder interests in real property. It also House bill.-No provision. the exclusive use test wm apply only lf the extends through June 13, 1981, the period Senate amendment.-Senate amendment day care services comply with any applicable during wb.ich deductions are allowable for numbered 61 postpones until taxable years State Ucenslng, certification, or approval re charitable contributions exclusively for con beginning a.fter December 31, 1976, the effec quirement. (The 11cens1ng requirement 1s servation purposes of leases on, options to tive date for the changes made by the Tax identical to the requirement provided Wilder purchase, and easement-6 with respect to real Reform Act of 1976 (sec. 1011) with respect H.R. 3340, which was passed by the House property, but only if the lease, option, or to the section 911 earned income exclusion on April 18, 1977.) easement is perpetual. However, the confer and with respect to the foreign tax credit for STATE LEGISLATORS' TRAVEL EXPENSES ence agreement does not allow a deduction taxpayers electing the standard deduction. for contributions for conservation purposes (Senate amendment numbered 66) after June 13, 1977, of leases, options, and For taxable years beginning ar.ter December House bill.-No provision. 31, 1975, the 1976 Act modified the section easements which are not perpetual. 911 earned income exclusion by (1) reducing Senate amendment.-The Senate amend While it is intended that the term "con the llmlt to $15,000 ($20,000 for charitable ment extends to 1976 the election to treat a servation purposes" be liberally construed employees) from $20,000 ($25,000 lf resident State legislator's place of residence within with regard to the types of property with overseas for more than 3 years), (2) taking the legislative district be represents as his respect to which deductible conservation the excluded income from the lowest rate tax home. If an election is made, the legisla easements or remainder interests may be brackets (additional income is taxed at the tor is treated as having expended for living granted, it is also intended that contribu rates which would apply lf the excluded in expenses an amount equal to the dally per tions of perpetual easements and remainder come were also taxed). (3) disallowing the diem allowed U.S. Government employees interests qualify for the deduction only in foreign tax credit for taxes attributable to multiplied by the number of days the State situations where the conservation purposes the excluded amount, and {4) denying the legislature was in session or the legislator of protecting or preserving the property wlll exclusion for income received outside the was formally recorded at a committee meet country in which earned in order to avoid ing when the legislature was not in session. Conference agreement.-The conference 2 The provision in the Senate amendment tax in that country. The 1976 Act also re requiring that net income be reduced by the pealed, effective for taxable years beginning agreement is the same as the Senate amend ment. amount of taxes allocable to that income 1s after 1975, the provision in prior law which omitted because, except in an extremely un prohibited taxpayers electing the standard MINIMUM TAX ON INTANGmLE DRll.LING usual case, no chapter one tax is allocable to deduction from also claiming the foreign tax COSTS income from oll and gas properties for in credit. (Senate amendment numbered 67) dividuals whose intanglible deductions ex Conference agreement.-The conference House bill.-No provision. ceed net income before tax. 13910 CONGRESSIONAL RECORD-HOUSE May 6, 1977 in practice be carried out. Thus, it is in gross income in excess of $7,500 for a single pretation of section 3402(q) (3) (B), which tended that a contribution of a conservation person and $10,000 for a joint return. (The requires withholding on proceeds of more easement or remainder interest qualify for AGI phaseout does not apply to public re than $5,000 from wagers placed in State-con a deduction only if the holding of the ease tirees under age 65.) ducted lotteries. The conferees intend that ment (or, in the case of a remainder in Conference agreement.-The conference this provision be interpreted to include terest, the property) is related to the purpose agreement follows the Senate amendment. State-conducted lotteries in which the or function constituting the donee's purpose TAX CREDIT FOR PROVIDING HOME FOR AGED amount of the proceeds is determined by a for exemption (organizations such as nature DEPENDENTS parimutuel system. The conferees understand conservancies, environmental, and historic (Senate amendment numbered 75) that the Treasury Department and the Inter trusts, State and local governments, etc.) nal Revenue Service agree with this inter and the donee is able to enforce its rights House bill.-No provision. pretation. Senate amendment.-Senate amendment as holder of the easement or remainder in CANADIAN TAX IMPACT ON UNITED STATES terest and protect the conservation purposes numbered 75 provides a nonrefundable $250 income tax credit each year for individual BROADCASTERS which the contribution is intended to ad (Senate amendment numbered 79) vance. The requirement that the contribu taxpayers who maintain a household which tion be exclusively for conservation purposes includes one or more dependents 65 years of House bill.-No provision. - · "'-lso. intended to limit deductible contri- age or older. This amendment is effective for Senate amendment.-The Senate amend . ,. .l o those transfers which require that taxable years beginning after December 31, ment expresses the sense of the Senate that . . _ -· ___ .;e hold the easement (or, in the case 1976 . in view of the special relationship between of a remainder interest, the property) ex Conference agreement.-The conference the United States and Canada, the President clusively for conservation purposes (i.e., agreement deletes the Senate amendment. should discuss with the Canadian Govern that they not be transferable by the donee ACCRUAL ACCOUNTING FOR FARM CORPORATIONS ment the impact of recent Canadian Tax Code provisions on the United States broad in exchange for money, other property, or (Senate amendment numbered 76) services). casting dndustry in order to adjust dif House bill.-No provision. ferences. STUDIES OF IMPACT OF BILL BY GOVERNMENT Senate amendment.-The Senate amend Conference agreement.-The conference AGENCIES ment postpones until taxable years beginning agreement omits the Senate amendment. (Senate amendments numbered 69 and 70) after December 31, 1977, the effective date for TERMINATION OF 1975 PAYMENTS TO SOCIAL House bill.-No provision. requiring accrual accounting by any farm SECURITY RECIPIENTS corporation if either (a) two famllies own at Senate amendment.-The Senate amend (Senate amendment numbered 80) ment directs four government agencies-the least 65 percent of the stock, or (b) three House bill.-No provision . Treasury Department, the Council of Eco . families own at least 50 percent of the stock and substantially all (for example, 90 per Senate amendment.-The Tax Reduction nomic Advisers, the Federal Reserve Board Act of 1975 included a $50 payment to social and the Congressional Budget Office-to cent) of the remaining stock is owned by em ployees, their families, or exempt retirement security, SSI and railroad retirement study the economic effects of the principal recipients. In certain cases, these payments tax changes in the bill and submit periodic trusts established for the benefit of the em ployees. The Tax Reform Act of 1976 had re are still being made. The Senate amendment reports to Congress. quired certain corporations engaged in farm terminates the 1975 payments, effectllve on Conference agreement.-The conference ing to use the accrual method of accounting the date of enactment. agreement omits the Senate amendment. and to capitalize preproductive period ex Conference agreement.-The conference INCREASED AUTHORIZATION FOR WORK INCENTIVE penses for taxable years beginning after De agreement follows the Senate amendment. (WIN) PROGRAM cember 31 , 1976. PAYMENTS TO GOVERNMENTS OF VffiGIN ISLANDS, (Senate amendment numbered 72) Conference agreement.-The conference AMERICAN SAMOA AND GUAM agreement follows the Senate amendment. House bill.-No provision. (Senate amendment numbered 81) Senate amendment.-The Senate amend TAX LIENS ON RESIDENCES House bill.-The House bill aut horizes an ment authorizes an appropriation of an ad (Senate amendment numbered 77) appropriation for a payment to the govern ditional $435 mill1on in each of fiscal years House bill.-No provision. ments of the Virgin Islands, Guam and 1978 and 1979 for employment and supportive Senate amendment.-The Senate amend American Samoa. to compensa.te them for the services for welfare recipients, with no re ment repeals the requirement added under reduction in their tax receipts for 1976 and quirement for State matching funds. the Tax Reform Act of 1976 that a notice of 1977 resulting from the refund of 1976 taxes, Conference agreement.-The conference a tax lien is not treated as filed unless the the increase in the standard deduotion and agreement is the same as the Senate amend filing is recorded in a public index at the ap the modifications of the general tax credit in ment. propriate district office of the Internal Reve the House bill. (These possessions experience FIVE-YEAR AMORTIZATION FOR CHILD CARE nue Service. However, a filed Federal tax lien an automatic tax reduction whenever the FACILITIES on a residence (containing not more than 4 United States enacts a tax cut.) dwell1ng units) would be discharged against Senate amendment.-Senate amendment (Senate amendment numbered 73) an individual purchaser if the lien was not numbered 1A deletes the payment in the House bill.-No provision. properly recorded at the appropriate office House bill, but Senate amendment num Senate amendment.-The Senate amend where the notice of lien is filed when the in bered 81 authorizes a similar payment to ment extends for 5 years, from January 1, dividual purchased the property. Administra these governments for 1977 which applies 1977, through December 31, 1981, the provi tive and judicial remedies would be provided only to the reduction in tax receipts for 1977 sions of section 188 which allow an employer to obtain a discharge of an unrecorded tax because of the changes in the standard de to elect to amortize capital expenditures for lien against a purchased residence. A suit duction and the modtification of the general child care facilities over a five-year period in would have to be started within 6 years after tax credit. stead of using other depreciation methods. the notice of lien is filed. Conference agreement.-The conference This provision expired at the end of 1976. The provision would apply generally to any agreement follows the Senate amendments. Conference agreement.-The conference lien imposed under the 1954 Code. The 6- WITHHOLDING OF COUNTY INCOME OR EMPLOY agreement is the same as the Senate amend year statute of limitations on discharge suits MENT TAXES FROM FEDERAL EMPLOYEES ment. would not apply to suits started before De (Senate amendment numbered 82) RETIREMENT INCOME CREDIT ELECTION cember 31, 1977. Conference ag.reement.-The conference House bill.-No provision. (Senate amendment numbered 74) agreement omits the Senate amendment. Senate amendment.-The Senate amend House bill.-No provision. ment requires that the Federal Government WITHHOLDING ON CERTAIN GAMBLING Senate amendment.-The Senate amend withhold county income or employment ment allows taxpayers to file amended re WINNINGS taxes from Federal employees if (1) the com turns in order to elect to claim the retire (Senate amendment numbered 78) pensation is earned in the county, (2) the ment income credit for their first taxable year House bill.-No provision. Federal employees regularly work in the beginning in 1976 either under the revised Senate amendment.-The Senate amend county and live in the State, (3) 500 or more provision enacted in the Tax Reform Act of ment modifies the requirement for with Federal employees are regularly employed in 1976 or under prior law. If a married couple holding on gambling winnings to provide the county, and (4) the county requests such files a joint return, both spouses must make that withholding is required on proceeds of withholding. the same election under this provision. The more than $1,000 from wagers placed in pari The Secretary of the Treasury must enter Tax Reform Act of 1976 generally increased mutuel pools involving horses, dogs or jai a withholding agreement within 120 days of and simplified the 15-percent retirement in alai, but only if the amount of the proceeds the request by a county. come credit for taxable years beginning after ts at least 300 times as large as the amount Conference agreement.-The confe-rence December 31, 1975, for taxpayers age 65 and wagered. The provision applies to payments agreement is the same as the Senate amend over. The maximum amount of the credit made after April 30, 1977. ment. base was increased from $1,524 to $2,500 for Conference agreement.-The conference INVESTMENT ANNUITIES single persons and from $2,286 to $3,750 for agreement is the same as the Senate amend (Senate amendment numbered 83) married persons. These maximums are re ment. House bill.-No provision. duced by certain exempt income. The credit In addition, the conferees understand that Senate amendment.-The Senate amend is phased out by $1 for every $2 of adjusted there has been some question as to the inter- ment postpones the effective date of Internal May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13911 </p><p>Revenue Service Revenue Ruling 77-85 (re The amendment provides that each tenth from his position. If more Government per lating to investment annuity contracts) from of a percentage point generate $30 million sonnel are to be placed at the disposal of March 9, 1977, to March 9, 197·8. for allocation in addition to the basic $125 Mr. Young for his appointment they may well Conference agreement.-The conference million. The amendment further provides be of this same radical character. If he con agreement omits the Senate amendment. that payments be made to Puerto Rico and tinues to make statements that embarrass CERTAIN SOCIAL SECURITY ACT AMENDMENTS the Virgin Islands on a formula basis. The the United States then we in the U.S. Con (Senate amendment numbered 84) amount to be distributed equals 1 percent of gress ought not to grant any additional staff House bill.-No provision. the national aggregate amount and is in to be used to propagandize his views. Senate amendment.-The first section of addition to the national amount. Allocation the amendment clarifies the law which pro between Puerto Rico and the Virgin Islands Mr. Speaker, on the heels of that vote, vides for the garnishment of Federal pay is based on their relative population size, as this morning's edition of the Washington ment for purposes of child support and ali determined by the Bureau of the Census. Post includes a column by Me.ssers. Evans mony. This section: {1) specifically author The Senate amendment updates the data and Novak which further details the izes the issuance of regulations by the three to be used in the formula. Currently, the rising career of Mr. Brady Tyson under branches of Government charged with ad• formula uses the unemployment rate in ex the patronage of Ambassador Young. ministering the garnishment law; (2) spe cess of 4.5 percent and the fiscal year 1976 revenue sharing entitlement payments. The The column spells out in detail Mr. cifically includes the District of Columbia Tyson's support for Communist govern under the garnishment provisions; (3) pro amendment provides that more up to date vides specific conditions and procedures to entitlement payment data be utilized. ments in Latin America and incredibly, be followed under the garnishment provi Conference agreement.-This amendment reveals that Tyson has been picked to sions relating to service of legal processes; was reported in technical disagreement. formulate policy for the U.N. Ambas (4) defines the terms used in the garnish AL ULLMAN, sador in this very area. ment provisions; and ( 5) sets a limit of 50 JAMES A. BURKE, I include the column at this point: percent on the amount of wages subject to DAN ROSTENKOWSKI, CHARLES A. VANIK, BRADY TYSON-CHAPTER II garnishment for child support and alimony (By Rowland Evans and Robert Novak) for a person supporting a second family and 0MAR BURLESON, 60 percent for a person who is not (plus an BARBER B. CONABLE, The only remarkable aspect of Ambassador additional 5 percent in each situation if there JOHN J. DUNCAN, Andrew Young's speech to the Latin Ameri are outstanding arrearages under 12 weeks Managers on the Part of the House. ican economic conference in Guatemala City old). RUSSELL LONG, Tuesday was its principal author: the Rev. The second section of the amendment: (1) HERMAN TALMADGE, Dr. Brady Tyson, last seen in Geneva two requires bonding of all State and local em ABRAHAM RmiCOFF, months ago, declaring U.S. responsibility for ployees, or employees of contractors used by HARRY F. BYRD, Jr., subverting the former government of Chile. agencies, who handle the collection of child LLOYD BENTSEN, After apologizing for that historically in support payments, and (2) provides that FLOYD K. HASKELL, accurate admission of national guilt, Tyson persons handling cash be separated from Managers on the Part of the Senate. dropped from sight. White House aides hinted those in the accounting function. that his Geneva performance was the begin The third section of the amendment sets ning and end of his government service. In art 15 percent the proportion of child support AMBASSADOR YOUNG PICKS PRO fact, Tyson has joined the United Natioru, payments retained by the State in which COMMUNIST AS HIS LATIN AMER mission as Young's Latin American adviser the recipient family lives which will be paid ICAN ADVISER To old hands in this region familiar with as an incentive to the political subdivision Tyson's well-established pro-Castro position. within the State, or to another State, which The SPEAKER. Under a previous or this is puzzling and disturbing. makes the collections. der of the House, the gentleman from Tyson actually is quite compatible with The fourth section of the amendment re Maryland (Mr. BAUMAN) is recognized Young's world view. Apart from inexperience lates to the annual report on the child sup for 15 minutes. and indiscretion, the ambassador to the por:t program which must be submitted to Mr. BAUMAN. Mr. Speaker, last United Nations represents the vanguard of the Congress by the Secretary of Health, Wednesday, May 4, I offered an amend leftist critics of the past generation's U.S. Education, and Welfare. The sect ion: ( 1) ment to the State Department authori foreign policy who are slipping under the gov lists the specific kinds of information to be ernmental tent into the Carter administra included in the annual report; (2) requires zation bill which would have prevented tion. While overall policy from the White that an annual report be submitted to the $90,000 in annual funding for five addi House and the State Department maintains a Congress within 3 months of the end of each tional special staff members to be ap basic anti-Communism posture, the erstwhile fiscal year; and (3) requires a special sup pointed by United Nations Ambassador critics are taking over at lower levels-par plemental report on fiscal year 1976 and the Andrew Young. That amendment was ticularly in Latin American affairs. transitional quarter by June 30, 1977. defeated by a vote of 91 to 318. Perhaps Tyson maintains associations unprece The fifth section: validates a letter of ex the Members who opposed the amend dented at a high level in the foreign-policy ception by the Department of Health, Edu ment should know what they endorsed. bureaucracy. Identified in the invitations as cation, and Welfare to Georgia dated Janu a State Department representative, Tyson ary 22, 1976, permitting that State until the At the time, I made plain my reason will address a fund-raising dinner of the end of calendar year 1976 to work out a prob for the amendment was to prevent the Fund for New Priorities in America in New lem of interpretation concerning the treat appointment by Mr. Young of radical York May 19. That organization for seven ment of child support collections for purposes leftists and others who would propagan years has fought the level of defense spend of reimbursement. dize the Ambassador's radical views at ing that President Carter now seeks to main Conference agreement.-The conference the taxpayers' expense. tain. agreement follows the Senate amendment. But Tyson's past, not his present, causes During the debate I pointed out one of an the wonderment that he is now inside the EXTENSION OF COUNTERCYCLICAL REVENUE Mr. Young's more infamous appoint SHARING governmental tent. As a founder of the pro ments as follows: Castro North American Congress on Latin (Senate amendment numbered 85) Mr. Chairman, I add an additional factor America (NACLA), Tyson openly supported House bill.-No provision. to support this position. Aside from the pro the hemisphere's radical left rather than Senate amendment.-The Senate amend nouncements Mr. Young has made since he democratic left-for example, Salvador Al ment extends and makes some minor tech assumed this post, I would refer to the CoN lende's Socialists in Chile rather than the nical revisions in the current countercyclical GRESSIONAL RECORD of March 10 in Which I Christian Democrats. revenue sharing legislation which expires detailed" in a rather specific manner the his Tyson was expelled for subversive political September 30, 1977. The ceiling on the ag tory of one of Mr. Young's personal appoint activity in 1966 by the right-wing govern gregate authorization under current law oc ments, that is, as a delegate to the United ment of Brazil after four years there as a curred in April 1977 with a distribution of Nations Human Rights Commission, Mr. Methodist missionary. Since then, on the $60 million to eligible State and local govern Brady Tyson. Mr. Tyson is apparently an American University faculty, he has been an ments. Accordingly, no more payments can avowed Marxist and a member of at least activist on Latin American questions--for be made under current law. Under .the Sen two front groups dominated by Marxists and example, seeking to organize a 1970 student ate amendment, up to $1 blllion in additional Communists. This is the same person that march on the Inter-American Defense Col funding is authorized for fiscal year 1977, apologized to the Commission on Human lege in Washington. So, when Tyson told ac and up to $2.25 billion is authorized for fiscal Rights for what he said was the terrible past quaintances in 1976 that he had close con year 1978. The aggregate amount to be pro policy of the U.S. Government regarding tacts with candidate Jimmy Carter, the re vided is amended to depend on tenths of un Chile. action was incredulity. employment percentages rather than half I have written to President Carter and re In naming Tyson to represent the United percentage points. Currently, each half per ceived a response from his assistant, Mr. States at the U.N. Human Rights Commis centage point by which the national unem Moore, saying the President will in time sion meeting in Geneva this March, did ployment rate exceeds 6 percent, generates respond to my objections to Mr. Tyson and Young know that Tyson had been expelled $62.5 million. my suggestion that he should be removed by our Brazilian allies? "That would recom- CXXIII-876-Part 11 13"912 CONGRESSIONAL RECORD-HOUSE May 6, 1977 mend him to me," Young told us. After Ty United States' foreign policy, which he ob relations and restrictions on trade and visits son's groundless accusation of U.S. com viously opposed. with Castro's Communist regime. plicity in the Chilean coup, Young did not When he returned to the United States, Mr. Speaker, I believe that any ob gi'Iasp the opportunity to get rid of him but Mr. Tyson became active in the North Ameri placed him at the U.N. mission in New York can Congress on Latin America-NACLA jective observer would have to conclude as a political officer. and was one of several incorporators of that that the usefulness of Mr. Brady Tyson Young's speech to retired Foreign Service organization. The House Committee on In as an official of the U.S. Government is officers April 22 shows affinity for the line ternal Security in its annual report of 1971 absolutely nil. In fact, in the post to long preached by Tyson: "There has been a described NACLA as "off shoot for the Stu which Ambassador Young has named tremendous amount of guilt and strain on dents For A Democratic Society-80S." him he can do great positive harm, per Amerioa.n citmens to know thiat for years NACLA has specialized in the preparation of their tax dollars have been used not to de reports, from a Marxist perspective, on Latin haps even greater than the Ambassador velop, not to feed the hungry, but essentially American affairs. It has been in the forefront himself has done. as part of an apparatus of repression in many of both leftist and Communist groups sup I have asked President Carter to re places on the face of the earth." porting Communist guerrilla. activities oper spond to these facts and have received. Young's theme of national guilt is totally ating in the Southern Hemisphere. NACLA's only a routine acknoweldgement from consistent with Tyson's performance a.t draft statement on ideology published in May his assistant, Mr. Frank Moore. Geneva. What's more, kindred souls are of 1967 said that the organization was trying I call on President Carter publicly to quietly, without announcement, joining to finance and support those who "favor a them in the government. revolutionary change in Latin America, but state whether or not he approves of Mr. And in prospect is the transfer of econo also take a. revolutionary position toward Tyson's continued presence in the Fed mist Richard Feinberg from the Treasury to their own society." eral Government, and if so, whether that the State Departmenrt as a Latin American It is interesting to note that virtually all constitutes any less than an endorse specialist for pollcy and planning. Papers of NACLA's publications bear the union print ment of Mr. Tyson's avowedly pro-Com found in the briefcase of Orlando Letelier, ing label No. 209, which belongs to Prompt munist views. I believe the Congress and the murdered Chilean Socialist leader, list Press, the same press which prints almost the American people would like to know Feinberg as the prospective secret coauthor all of the literature of the American Com of a. report by NACLA, Tyson's old organim munist Party and its various fronts. the answer. tion (though, in fact, Feinberg decided Mr. Speaker, at the time NACLA was found against going through with 11t because of ed in November of 1966, Brady Tyson, giving SPECIAL ORDER BY THE HONOR conflict with his Treasury job). his address as Southhampton, N.Y., was one WUl this transformation at low levels seep of five original incorporators of the organiza ABLE JONATHAN BINGHAM OF UipWard into policy formation? The Young tion. The other incorporators who founded NEW YORK, MAY 6, 1977 Tyson collaboration art Guatemala City has the organization have an participated in a The SPEAKER pro tempore. Under a a little mild self-flagellation ("too often, it number of Communist or leftist front organi seems to me, the United States has tried to zations or groups in the United States. previous order of the House, the gentle take or preempt leadership in the hemi· Mr. Tyson has also been associated with man from New York (Mr. BINGHAM) is sphere") but concentrates on declarations the U.S. Committee for Justice for Latin recognized for 15 minutes. in beh:alf of human rights. Left unanswered American Political Prisoners-USLA. In hear Mr. BINGHAM. Mr. Speaker, I am in is which rights they are talking about. ings held before the Subcommittee on In troducing legislation on Monday, May 9, A recent interview in Cuba's Bohemia ternal Security of the Committee otf the Ju which would require the Federal Govern magazine with Sen. George McGovern reveals diciary of the U.S. Senate on July 24, 1975, ment to assume a new responsibility for how admirers of Fidel Oastro define "human at page 67, a letterhead of the organization rights." Radio Havana reported that McGov USLA appears listing Rev. Brady Tyson as the effects of abrupt changes in Govern ern praised the Cuban revolution for "guar one of the sponsors of the organization. His ment procurement policies. anteeing the people fundamental human name appears alongside such other spon For many years, Senator McGOVERN rights such as the right to eat, to work, to sors as Herbert Aptheker, one of the chief and I have been urging the Congress to housing and education" and "stressed that theoreticians of the U.S. Communist Party, consider legislation which would direct the Amerioa.n people need to understand radical attorney, William Kunstler, and Her that human rights are not Umilted to free all agencies of the Federal Government bert Marcuse, one of the radical philosophers which have large impacts on the eco dom of expression." of the far left. One of the cochairmen of That is precisely the position taken over a USLA to which Mr. Tyson lends his name is nomic life of cities and towns across the decade of writing and speaking by Brady Dave Dellinger, associated with almost every country to help those communities adjust Tyson. He and less-publicized newcomers to Communist orgwnization of major impor to termination of Government programs the foreign-policy bureaucl'lacy may soon tance in recent years, including the Com or facilities in their areas. We have been apply a definition orf "human rights"-popu mittee to Abolish the House Committee on troubled by the impact of such cut l,ar in Havana but not in Buenos Aires, Santi Internal Security, which was successful in offs of Federal funds on business firms ago or Br:as111a-more narrow and material doing so a few years ago. istic than Jimmy Carter ever intended. and their payrolls, as well as the often Also associated with Mr. Tyson and USLA major blow such cutoffs deal to the entire Mr. Speaker, I believe that some elabo was one Michael Locker, also a member of NACLA, as well as one of the original in local community. Our bill would require ration is in order regarding the extraor corporators of the radical education project. Federal agencies to develop plans for ad dinary background of Mr. Tyson. For Mr. Locker is also a member of the first staff justing to funding cutoffs in cooperation example, in my remarks before the House of the National Mobilization Committee with contracting agencies and local com on March 10, I pointed out: which had a large part in disrupting the munities well in advance of any signifi I firmly believe that the Members of the 1967 Democratic Convention. Mr. Dellinger, cant change in the Government's pro Congress as well as the President himself himself, was one of the defendants at the curement or spending patterns. Planning should take a much closer look at the life and so-called Chicago Seven. and advance notification of cutbacks times of Mr. Brady Tyson. Mr. Tyson is an Mr. Tyson's recently stated views on Chile ordained Methodist minister, who received have caused quite a stir, but no one should would allow time for businesses and their his B.A. degree from Rice University in Hous be surprised. In 1968, Mr. Tyson told a gath employees to convert to other productive ton, and a divinity degree from Southern ering of the National Council of Churches: economic activities. In addition, our leg Methodist University. He has taught at and We are living in a pre-fascist pre-totalitar islation, commonly referred to as the is presently on leave from the School of In ian world. If we fail to prevent such a world Economic ConversiJn Act, would provide ternational Service at American University from developing, it will not be just the fail direct benefits to workers who were ab in Washington, where he has been a professor ure of millions of comfortable Christians but ruptly thrown out of work because of of Latin American studies. I have had oc our failure to help hundreds of mlllions of cancellation of a Government contract casion to talk to people who have heard Mr. non-comfortable persons in the world. Tyson's lectures as well as had discussion As recently as 1972, a coalition of some and their employer could not immediate with him, and they describe him as an national political figures, left-wing radical ly find alternative production contracts. "avowed Marxist." activists and even some Communists, began This sensible, but admittedly sweeping, Examination of Mr. Tyson's background a drive for relaxing tensions with Fidel Cas proposal has not yet been enacted into shows that in 1966 he was teaching at the tro's Cuba. In a 2-day seminar held in the law, perhaps because the costs it implies Escola de SociQlogia e Politica in Sao Paulo, new Senate Office Building, which was coor to the Federal Treasury would clearly be Brazil. He was expelled by the Government dinated by Michael Myerson, secretary of the of Brazil, because he had "offended the dig New York State Communist Party's Peace significant. I have nonetheless continued nity of the country," and "disturbed the so Commission, one of the mllltant panelists to reintroduce this bill and I am still cial and political order," according to govern was Rev. Tyson. At that time he called for hopeful that the Congress will soon rec ment officials. Mr. Tyson had publically called the mob111zation of American public opinion ognize how sensible and fair a proposal the Braz111an Government "a. front" for to persuade the U.S. Government to ease it is. May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13913 The bill I am introducing Monday is a of earned income or unemployment insur players who hire workers eligible for bene more limited application of the Economic ance which he receives after total or partial fits under this Act. Conversion Act's essential principles. It separation. Section 203. Time Llmitations on Readjust would authorize smaller scale programs ment Allowances. Payments to eligible work LEAVE OF ABSENCE designed to retrain and provide financial ers shall not be made for a total of more than benefits to employees seriously affected 52 weeks. However, individuals undergoing By unanimous consent, leave of ab by the early termination of a major Gov retraining are entitled to an additional 26 sence was granted to: ernment procurement program. Titled weeks of benefits. In no case shall a worker Mr. CoRMAN <at the request of Mr. the "Conversion Adjustment Assistance receive payments for more than 78 weeks or WRIGHT), for today, on account of offi Act," this bill would apply ideally to such more than 2 years after the date of total or cial business. contracts as the one for the B-1 bomber. partial separation. Mr. JoNEs of Tennessee <at the request Section 204. Application of State Unem of Mr. WRIGHT), for today, on account of Tens of thousands of people working ployment Insurance Laws. either for Rockwell or its many subcon official business. Part 11-Training and Related Services Mr. PEPPER <at the request of Mr. tractors will be thrown out of work if Section 211. Establishes in the Department President Carter decides, as I have urged of Labor a Job and Retraining Information WRIGHT), for today, on account of offi him to do, to terminate the production Service to coordinate Federal, State and lo cial committee business. of this gold-plated and cost-ineffective cal employment services; provide workers Mr. FisH <at the request of Mr. ANDER airplane. The legislation I am introduc with special counseling, testing, retraining SON of lliinois), for after 5 p.m. on May ing would insure that the Federal Gov and placement services in conjunction with 5 and the balance of the week, on ac ernment does everything possible to providing employment not related to defense count of illness in the family. or m1Utary production; and prepare a Job Mr. YOUNG of Alaska <at the requ.est minimize the personal hardship such a Sk111 Conversion Handbook. The Handbook decision would force on these employees shall outline the basic requirements for per Of Mr. ANDERSON Of illinois), for today, and bring them back into the productive sonnel retraining and reorientation programs. on account of illness. mainstream of the economy as quickly as State agencies and training institutions will Mr. MARRIOTT <at the request of Mr. possible. be provided copies of the Handbook. BAUMAN), for today, on account of official Section 212.-Approval of Training. The business. Mr. Speaker, I would like to include a Secretary may approve retraining program section-by-section analysis of this legis for a period not longer than 18 months, lation at this point in my remarks: provided that the re-training provides a SPECIAL ORDERS GRANTED SECTION BY SECTION ANALYSIS, SHORT TITLE: worker with non-military employment. The CONVERSION WORKER ADJUSTMENT ASSIST Secretary may enter into cooperative agree By unanimous consent, permission to ANCE ACT ments with local colleges and universities address the House, following the legisla TITLE I-PETITIONS AND DETERMINATIONS which wlll develop and provide retraining tive program and any special orders programs. The Secretary shall determine re heretofore entered, was granted to: Section 101. Notifications. Any Department imbursement rates for such programs in or agency of the United States which termi cluding costs of transportation, tuition and <The following Members <at the re nates a major government procurement pro books. quest of Mr. CAPUTO) to revise and ex gram must inform all contractors and sub Part III-Job Search and Relocation Allow tend their remarks and include extrane contractors providing goods and services ances. ous material:) under such program of the terms and provi Section 221. Authorizes job search allow Mr. BAUMAN, for 15 minutes, today. sions of this Act. Such contractors and sub ances which may not exceed $500 for any contractors shall be responsible for inform <The following Members <at the re worker. quest of Mr. PEASE) to revise and ex ing their employees or their union that they Section 222. Authorizes relocation allow may be eligible for assistance under this Act. ances of up to $1500 for workers who have a tend their remarks and include extrane Section 102. Petitions for certification of bona fide job offer and an expectation of long ous matter:) ellgib111ty for assistance must be filed with term duration in the area in which he Mr. ANNUNZIO, for· 5 minutes, today. the Secretary of Labor by a group of workers wishes to relocate. Mr. GoNZALEZ, for 5 minutes, today. or by their certified union. Part IV-continuatlon of Certain Em Mr. KocH, for 10 minutes, today. Section 103. Five or more workers in a ployee Benefits. Mr. BINGHAM, for 15 minutes, today. firm or subdivision of a firm must have been Section 231. The Secretary shall provide Mr. CAVANAUGH, for 5 minutes, today. or are about to be totally or partially sepa pension credit under any applicable pension rated in order to be eligible for assistance plan maintained by the employee at the time under this Act. Cancellation of a major gov of his separation during the 52 weeks he ernment procurement contract must have receives compensation under this legislation, EXTENSION OF REMARKS contributed importantly to such separations. and maintenance of any medical and life in By unanimous consent, permission to Section 104. The Secretary of Labor must surance coverage. revise and extend remarks was granted decide within 60 days of receiving a petition TITLE m--GENERAL PROVISIONS on the applicants' eligibility. to: Section 301. Agreements with States. The Mr. BAUMAN to revise and extend his TITLE II-PROGRAM BENEFITS Secretary shall enter into agreements with remarks prior to vote on House Resolu Part !-Readjustment Allowances. States or state agencies to act as agents of 541. Section 201. Qualifying requirements for the United States and receive applications for tion workers. A worker must have had, in the 52 compensation and provide payments to eligi <The following Members <at the re weeks immediately preceding separation, at ble workers. States shall require employers quest of Mr. CAPUTO) and to include ex least 26 weeks of employment at wages of whose employees may be eligible for bene traneous matter:) $30 or more a week in adversely affected em fits under this Act to provide workers with Mr. STEERS in two instances. ployment with a single firm or subdivision of information necessary to obtain both com Mr. GRASSLEY. a firm. pensation and retraining programs. Mr. DoRNAN. Section 202. Weekly Amounts. (a) Read Seotion 302. Payments to States. The Sec (The following Members (at the re justment allowance shall be equal to (1) an retary of the Treasury shall make such pay quest of Mr. PEASE) and to include ex amount equal to the sum of (A) 90 percent ments as may be necessary to States or state agencies to carry out the programs authorized traneous material:) of so much of a worker's average weekly Mr. JAcoBs in two instances. wage as does not exceed $385, plus (B) 50 in this act. percent of so much of an individual's aver Section 303. Recovery of Overpayments. Mr. SOLARZ. age weekly wage as exceeds $385 but does not Sets conditions by which an unjust pay Mr. KocH in two instances. exceed $480, over (2) 50 percent of the ment shall be repaid to the Federal govern Mr. ANDERSON of California in three in- amount of the remuneration for services ment. stances. performed during such week. (b) If a worker Section 304. Authorization of such sums Mr. GoNZALEZ in three instances. is involved in retraining, including on-the as may be necessary to carry out the pur Mr. GINN. job training, he receives a readjustment al poses of this Act. Mr. STEED. lowance in an amount equal to the amount Section 305. Definitions. Section 306. The Secretary shall prescribe Mr. AsHLEY. computed under subsection (a) above or the Mr. FARY. amount of any weekly allowance for such such regulations as may be necessary to carry training to which he would be entitled under out the provisions of this Act. Mr. BRADEMAS in 10 instances. any other Federal law. (c) through (f) The TITLE IV-TAX CREDIT FOR EMPLOYING CERTAIN Mr. PATTEN. amount of readjustment allowance paid to RETRAINED WORKERS Mr. LoNG of Louisiana. any worker under subsection (a) shall be Section 401. Provides a tax credit of 10 Mr. RoGERS in five instances. taxable and shall be reduced by any amount percent of the employment expense !or em- Mr. YoUNG of Missouri. 13914 CONGRESSIONAL RECORD-HOUSE May 6, 1977 capped Act; with amendment (Rept. No. 95- SENATE BILL REFERRED a request for a fiscal year 1978 budget amend ment to finance the purchase of Northeast 268). Referred to the Committee of the A bill of the Senate of the following corridor properties, pursuant to section 601 Whole House on the State of the Union. title was taken from the Speaker's table (b) of the Rail Passenger Service Act; to the Mr. PERKINS: Committee on Education and, under the rule, referred as follows: Committee on Interstate and Foreign and Labor. H.R. 6774. A bill to make certain Commerce. technical and miscellaneous amendments to s. 773. An act authorizing the Wichita provisions relating to higher education con Indian Tribes of Oklahoma, and its affiliated 1436. A letter from the Director, Adminis trative Office of the U.S. Courts, transmitting tained in the Education Amendments of bands and groups of Indians, to file with the 1976; with amendment (Rept. No. 95-269). Indian Claims Commission any of their a draft of proposed legislation to amend the Federal Rules of Criminal Procedure to pro Referred to the Committee of the Whole claims against the United States for lands House on the State of the Union. taken without adequate compensation, and vide for appellate review of sentences; to the for other purposes; to the Committee on In Committee on the Judiciary. · 1437. A letter from the Chairman, U.S. terior and Insular Affairs. Water Resources Council, transmitting the REPORTS OF COMMITTEES ON PRI fifth annual report of the Council, pursuant VATE BILLS AND RESOLUTIONS ADJOURNMENT to section 209(b) of Public Law 92-500; to the Committee on Public Works and Trans Under clause 2 of rule XIII, reports of Mr. PEASE. Mr. Speaker, I move that portation. committees were delivered to the Clerk the House do now adjourn. 1438. A letter from the General Counsel, for printing and reference to the proper Department of Transportation, transmitting The motion was agreed to; accordingly calendar, as follows: (at 1 o'clock and 5 minutes p.m.), under the Department's position on a variety of legislative proposals submitted by the pre Mr. EVANS of Georgia: Committee on the its previous order, the House adjourned vious administration; jointly, to the Com Judiciary. H.R. 1428. A bill for the relief until Monday, May 9, 1977, at 12 o'clock mittees on Interstate and .Foreign Com of Mrs. Angelita Short; with amendment noon. merce, Merchant Marine an<l Fisheries, Post (Rept. No. 95-255). Referred to the Commit Office and Civil Service, Public Works and tee of the Whole House. Transportation, and Ways and Means. Mr. EILBERG: C.ommittee on the Judici EXECUTIVE COMMUNICATIONS, ETC. ary. H.R. 1750. A bill for the relief of Abdelah Under clause 2 of rule XXIV, executive Ahmed Chrayah; with amendment (Rept. No. communications were taken from the REPORTS OF COMMITTEES ON PUB 95-256). Referred to the Committee of the LIC BILLS AND RESOLUTIONS Whole House. Speaker's table and referred as follows: Mr. SAWYER: Committee on the Judi 1428. A letter from the Comptroller Gen Under clause 2 of rule XIII, reports of ciary. H.R. 1936. A bill for the relief of Joseph eral of the United States, transmitting his committees were delivered to the Clerk Lee Soryung; with amendment (Rept. No. review of the deferrals of budget authority for printing and reference to the proper 95-257). Referred to the Committee of the and the supplementary report revising a Whole House. previously reported deferral contained in the calendar, as follows: Mr. EILBERG: Committee on the Judi message from the President dated April 4, Mr. MURPHY of New York: Committee on ciary. H.R. 2253. A bill for the relief of Ruben 1977 (House Document No. 95-118), pursu Merchant Marine and Fisheries. H.R. 2817. A P. Din (Rept. No. 95-258). Referred to the ant to section 1014(b) and (c) of Public bill to provide for certain additions to the Committee of the Whole House. Law 93-344 (H. Doc. No. 95-147); to the Tinicum National Environmental Center Mr. EVANS of Georgia: Committee on the Committee on Appropriations and ordered to (Rept. No. 95-253). Referred to the Commit Judiciary. H.R. 2553. A bill for the relief of be printed. tee of the Whole House on the State of the Young Gun Kim (Rept. No. 95-259). Referred 1429. A letter from the Acting Assistant Union. to the Committee of the Whole House. Secretary of Defense (Manpower, Reserve Af Mr. MURPHY of New York: Committee on Mr. EVANS of Georgia: Committee on the fairs, and Logistics), transmitting the third Merchant Marine and Fisheries. H. R. 6206. Judiciary. H.R. 3217. A bill for the relief of annual reporrt; on the Defe,nse Industrial Re A bill to authorize appropriations for fiscal Meeja Sa Foster (Rept. No. 95-260). Referred serve, covering calendar year 1976, pursuant years 1978, 1979, and 1980 to carry out the to the Committee of the Whole House. to section 809 of Public Law 93-155; to the Commercial Fisheries Research and Develop Mr. EILBERG: Committee on the Judi Committee on Armed Services. ment Act of 1964; with amendment (Rept. ciary. H.R. 3313. A bill for the relief of Mark 1430. A letter from the Chief of Staff, De No. 95-254) . Referred to the Committee of Charles Mieir and Liane Maria Mieir (Rept. fense Mapping Agency, transmiting notice the Whole House on the State of the Union. No. 95-2651). Referred to the Committee of of plans to study the feasibility of combin Mr. ULLMAN: Committee of conference. the Whole House. ing the Defense Mapping Agency (DMA) Conference report on H.R. 3477 (Rept. No. Mr. EILBERG: Committee on the Judi Hydrographic Center and the DMA Topo 95-263) . Ordered to be printed. ciary. H.R. 4246. A bill for the relief of Hee graphic Center; to the Committee on Armed Mr. UDALL: Committee on Interior and Kyung Yoo, with amendment (Rept. No. Services. Insular Affairs. H.R. 5562. A blll to authorize 95-262). Referred to the Committee of the 1431. A letter from the Acting Assistant the establishment of the Eleanor Roosevelt Secretary of the Army (Manpower and Re National Historic site in the State of New Whole House. serve Affairs), transmitting a draft of pro York, and for other purposes; with amend posed legislation to amend title 37, United ment (Rept. No. 95-264). Referred to the States Code, to authoize family separation Committee of the Whole House on the State PUBLIC BILLS AND RESOLUTIONS allowance for members in the pay grade of of the Union. E-4 and below with dependents; to the Com Mr. MURPHY of New York: Committee on Under clause 5 of rule X and clause 4 mittee on Armed Services. Merchant Marine and Fisheries. H.R. 6205. A of rule XXII, public bills and resolutions 1432. A letter from the Acting Assistant bill to authorize appropriations for fiscal were introduced and severally referred Secretary of Commerce for Administration, years 1978, 1979, and 1980 to carry out the as follows: transmitting notice of a proposed new rec Atlantic Tunas Convention Act of 1975 (Rept. ords system, pursuant to 5 U.S.C. 552a(o); No. 95-265). Referred to the Committee of the By Mr. ASHLEY: to the Committee on Government Operations. Whole House on the State of the Union. H.R. 6979. A bill to amend the Federal 1433. A letter from the Assistant Secretary Mr. TEAGUE: Committee on Science and Food, Drug and Cosmetic Act to modify the of State for Congressional Relations, trans Technology. H.R. 6669. A bill to establiish a definition of "food additive"; to the Commit mitting notice of the proposed issuance of national climate program, and for other pur tee on Interstate and Foreign Commerce. a license for the export of significant combat poses; with amendment (Rept. No. 95-266). By Mr. AuCOIN (for himself and Mr. equipment sold commercially to Iran (Trans Referred to the Committee of the Whole DUNCAN Of Oregon) : mittal No. MC-40-77), pursuant to section House on the State of the Union. H.R. 6980. A bill to provide for addition to 36(c) of the Arms Export Control Act; to Mr. PERKINS: Committee on Education the Fort Clatsop National Memorial of the the Committee on International Relations. and Labor. H.R. 6668. A bill to amend the Age site of the salt cairn utilized by the Lewis 1434. A letter from the Assistant Secretary Discrimination Act of 1975 to extend the and Clark Expedition, and for other purposes; of State for Congressional Relations, trans date upon which the U.S. Commission on to the Committee on Interior and Insular mitting notice of the proposed issuance of Civil Rights is required to file its report under Affairs. a license for the export of defense articles such act, and for other purposes; with By Mr. BROOKS (for himself and Mrs. sold commercially to Morocco (Transmittal amendment (Rept. No. 95-267). Referred to SCHROEDER) : No. MC-43-77), pursuant to section 36(c) the Committee of the Whole House on the H.R. 6981. A bill to amend chapter 53 of of the Arms Export Control Act; to the Com State of the Union. title 5, United States Code, to increase the mittee on International Relations. Mr. PERKINS: Committee on Education salaries of the Chairman and members of 1435. A letter from the President, National and Labor. H.R. 6692. A bill to extend certain the Federal Reserve Board; to the Committee Railroad Passenger Corporation, transmitting programs under the Education of the Handi- on Post Office and Civil Service. May 6, 1977 CONGRESSIONAL RECORD-HOUSE 13915 By Mr. CONTE (for himself, Mrs. curring after April 1, 1977, and before June 6, TSONGAS, Mr. MINETA, Mr. RANGEL, HECKLER, Mr. JEFFORDS, and Mr. Mc 1977; to the Committee on Small Business. Mr. NIX, Mr. HAWKINS, Mr. BADILLO, HuGH): By Mr. ROYBAL: and Mr. SIMON) : H.R. 6982. A bill to amend the Social Se H.R. 6992. A bill to establish the Federal H.J. Res. 446. Joint resolution to require a curity Act to provide for inclusion of the Protective Service Police force within the review of U.S. practices with respect to the services of licensed (registered) nurses under General Services Administration, provide embargo on arms shipments to the Republic medicare and medicaid; jointly to the Com minimum training, pay, and other benefits of South Africa in order to insure that such mittees on Ways and Means and Interstate for such police force, and for other purposes; embargo is effective; to the Committee on to the Committee on Public Works and and Foreign Commerce. International Relatlons. Transportation. By Mr. JACOBS (for himself, Mr. ABo By Mr. CRANE (for himself, Mr. DoR By Mr. SHARP: NOR, Mr. ARMSTRONG, Mr. BADHAM, NAN, Mr. YOUNG of Alaska, and Mr. H.R. 6993. A bill to amend title 13, United Mr. BAUCUS, Mr. BLOUIN, Mr. BROY WHITEHURST) : States Code, to require that population cen HILL, Mr. BURGENER, Mr. CORCORAN H.R. 6983. A bill to declare the public pol sus records be transferred to the National of Illinois, Mr. CORNWELL, Mr. DuN icy of the United States and to remove all Archives within 50 years after a census, and CAN of Tennessee, Mr. EvANs of Indi legal obstacles to the use of gold clauses; to that such records be made available after 75 ana, Mr. FITHIAN, Mr. FLOWERS, Mr. the Committee on Banking, Finance and years to persons conducting research for ge FOUNTAIN, Mr. GILMAN, Mr. Goon Urban Affairs. nealogical, historical, or medical purposes; LING, Mr. GUDGER, Mr. HANSEN, Mr. By Mr. CRANE (for himself, Mr. DuN to the Committee on Post Office and Civil KELLY, Mr. KOSTMAYER, Mr. LEGGETT, CAN of Tennessee, Mr. WmTH, Mr. Service. Mr. LENT, Mr. LEVITAS, and Mrs. ROBINSON, and Mrs. HECKLER): By Mr. STEERS: LLOYD of Tennessee) ; H.R. 6984. A bill to provide for the con H.R. 6994. A bill to amend title II of the H.J. Res. 447. Joint resolution to amend the fidentialty of medical and/or dental records Social Security Act to increase to $5,040 the Constitution of the United States to provide of patients not receiving assistance from the amount of outside earnings which (subject for balanced budgets and elimination of the Federal Government, and for other purposes; to further increases under the automatic ad Federal indebtedness; to the Committee on to the Committee on Interstate and Foreign justment provisions) is permitted an indi the Judiciary. Commerce. vidual each year without any deductions By Mr. JACOBS (for himself, Mr. Lu from benefits thereunder; to the Committee JAN, Mr. MCCLOSKEY, Mr. MARRIOTT, By Mr. CRANE (for himself, Mr. En on Ways and Means. WARDS of Oklahoma, Mr. COLLINS of Mr. MONTGOMERY, Mr. NOLAN, Mrs. Texas Mr. ROUSSELOT, and Mr. BA By Mr. STEERS (for himself, Mr. BA SCHROEDER, Mr. SNYDER, Mr. SYMMS, FALIS)': DILLO, Mr. BAUCUS, Mr. BEDELL, Mr. and Mr. WAGGONNER): CLAY, Mr. CoHEN, Mr. CoRMAN, Mr. H.J. Res. 448. Joint resolution to amend H.R. 6985. A bill to amend title XI of the DUNCAN Of Tennessee, Mr. EDWARDS the Constitution of the United States to pro Social Security Act to repeal the provision of California, Mr. EMERY, Mr. FISHER, vide for balanced budgets and elimination for the establishment of professional stand Mr. FASCELL, Mrs. KEYS, Mr. LEHMAN, of the Federal indebtedness; to the Commit ards review organizations to review services Mr. MITCHELL of New York, Mr. RIN tee on the Judiciary. covered under the medicare and medicaid ALDO, Mr. RODINO, Mr. SIMON, Mr. By Mr. CEDERBERG: programs; jointly, to the Committees on SOLARZ, Mrs. SPELLMAN, Mr. STARK, H. Res. 547. Resolution that Congress move Ways and Means and Interstate and Foreign Mr. THOMPSON, and Mr. WmTH): expeditiously to resolve pending issues re Commerce. H.R. 6995. A bill to amend the Federal em garding national telecommunications policy, By Mr. CRANE (for himself, Mr. En ployee health insurance provisions of title and for other purposes; to the Committee on WARDS of Oklahoma, Mr. LUKEN, and 5, United States Code, to require that notice Interstate and Foreign Commerce. Mrs. HECKLER) : and hearing be provided before the effective By Mr. CONTE (for himself and Mr. H.R. 6986. A bill to provide for congressional date of any reduction of health benefits or EARLY): review of all regulations relating to costs and any exclusion of any type of provider of H. Res. 548. Resolution directing the Com expenditures for health care, reimbursements health services; to the Committee on Post mittee on International Relations to conduct to individuals or providers of health care, Office and Civil Service. hearings to determine the nature and extent and for other purposes; jointly, to the Com By Mr. YOUNG of Alaska: of any U.S. involvement in the hostilities in mittees on Interstate and Foreign Commerce, H.R. 6996. A bill to amend section 9441 of Northern Ireland; to the Committee on Rules. Ways and Means, and Rules. title 10, United States Code, to provide for By Mr. STEIGER (for himself, Mr. By Mr. DERWINSKI: the budgeting by the Secretary of Defense, WYDLER, and Mr. WmTH): H.R. 6987. A blll to amend the Omnibus the authorization of appropriations, and the H. Res. 549. Resolution to require that the Crime Control and Safe Streets Act of 1968 use of those appropriated funds by the Sec Congressional Record contain a verbatim ac to require as a condition of assistance under retary of the Air Force, for certain specified count of remarks actually delivered on the such act that law enforcement agencies purposes to assist the Civil Air Patrol in pro floor, and for other purposes; to the Com mittee on Rules. have in effect a binding law enforcement of viding services in connection with the non ficers' bill of rights; to the Committee on the combatant mission of the Air Force; to the Judiciary. Committee on Armed Services. MEMORIALS By Mr. KOCH: H.R. 6997. A bill to authorize the Secretary of the Interior to convey all right, title, and Under clause 4 of rule XXII, memorials H.R. 6988. A bill to amend title XIX of interest of the United States in and to a were presented and referred as follows: the Social Security Act to permit the Secre tract of land located in the Fairbanks Re 138. By the SPEAKER: Memorial of the tary of Health, Education, and Welfare to cording District, State of Alaska, to the Fair Legislature of the state of Alabama relative waive the freedom of choice requirement of a banks North Star Borough, and for other to labeling beef as to origin; to the Commit State medicaid plan; to the Committee on purposes; to the Committee on Interior and tee on Agriculture. Interstate and Foreign Commerce. Insular Affairs. 139. Also, memorial of the Legislature of By Mr. MARTIN: By Mr. CEDERBERG (for himself and the State of Hawaii, relative to reparations H.R. 6989. A bill to amend the Internal Mr. LAGOMARSINO) : to Hawaiians for damages suffered at the Revenue Oode of 1954 to exempt from taxa H.J. Res. 444. Joint resolution designating time of annexation; to the Committee on the square dance as the national folk dance Interior and Insular Affairs. tion certain associations providing reserve 14<>. Also, memorial of the Legislature of funds for and insuring the deposits in savings of the United States of America; to the Com mittee on Post Office and Civil Service. of the State of Arizona, relative to diplo and loan associations and credit unions; to matic relations with the Republic of China; the Committee on Ways and Means. By Mr. CEDERBERG (for himself, Mr. to the Committee on International Relations. By Mr. NEDZI (for himself and Mr. EVANS of Delaware, Mr. RHODES, and WHITEHURST): Mr. McEwEN) : H.R. 6990. A bill to authorize certain con H.J. Res. 445. Joint resolution to provide PRIVATE BILLS AND RESOLUTIONS struction at military installations, and for for the establishment of a Joint Committee other purposes; to the Committee on Armed on Intelligence; to the Committee on Rules. Under clause 1 of rule XXII, private Services. By Mrs. COLLINS of Illlnois (for her bills and resolutions were introduced and self, Mr. FASCELL, Mr. CONYERS, Mr. severally referred as follows: By Mr. RAHALL (for himself, Mr. BE MITCHELL of Maryland, Mr. CAVA By Ms. OAKAR: VILL, and Mr. LONG of Louisiana): NAUGH, Mr. PEPPER, Mr. PRICE, Mr. H.R. 6998. A bill for the relief of Maria H.R. 6991. A blll to amend the Small Busi HARRINGTON, Mr. DELLUMS, Mr. CLAY, Sroka; to the Committee on the Judiciary. ness Act to reduce the rate of interest on dis Mr. FARY, Mrs. BURKE of California, By Mr. STEED: aster relief loans under such act, to apply Mr. PATTERSON Of California, Ms. H.R. 6999. A bill for the relief of Ronald special provisions of such act to such loans HOLTZMAN, Mr. McCLOSKEY, Mr. Ellis Leath; to the Committee on the Judici made in connection with major disasters oc- STUDDS, Mr. REUSS, Mr. ROYBAL, Mr. ary. 13916 EXTENSIONS OF REMARKS May 6, 1977 EXTENSIO·NS OF REMARKS NOISE IS ONE OF THE MAJOR Because the decibel scale is loJrithmic, that excessive sound does affect the emo HEALTH HAZARDS FACING THE the difference between 85 and 90 repre tional tone of the individual, and that the sents a doubling in loudness. One estimate harm often occurs without awareness of the AMERICAN PEOPLE is that full enforcement of the 90-decibel source," Dr. Westman says. "You fiy off at standard would prevent a hearing loss of your wife and children presumably because 25 decibels or more for 770,000 workers, and of their behavior, when it's really the noise HON. STEPHEN J. SOLARZ that an enforced standard of 85 would pre in the house that's getting to you." OF NEW YORK vent the same loss for almost double that Richard Marco, president of Local 588 of IN THE HOUSE OF REPRESENTATIVES number. the United Automobile Workers, shares the concern over psychological damage. "People Friday, May 6, 1977 Dr. Nicholas A. Ashford of the Center for Policy Alternatives at the Massachusetts prefer to work the midnight shift just to get Mr. SOLARZ. Mr. Speaker, the New Institute of Technology thinks the greatest away from the noise a bit,'' Mr. Marco says. York Times recently ran an article on danger in occupational noise may stem from "And workers and supervisors on the late the health hazards of noise which con an impairment of the body's ability to handle shift get along, play golf and bowl together. toxic material. On the day shift, any kind of social inter tains fresh information about the spe "There are 13,000 toxins in use in Amer action is stified. They can't hear each other, cial hazards of noise. ican industry and business," he says. "Ozone and they shout, and pretty soon they're I think the American people welcome from office copying machines, to name one. angry." action to lower noise levels, whether it Under stress, the body's intake of toxins is Against the background of such concerns, be from an airport or whether it comes accelerated. It's been shown that amphe campaigners against noise find hope in a from noise at the workplace. tamines are 10 times more toxic under number of developments. The Congress enacted a Noise Control stress. What do you think the noise in a The Concorde still can't land in New York. Act. thanks largely to the pressure from metal stamping plant is doing to a worker New jetliners (Concorde, perhaps, aside) are citizens enraged by airport noise. But taking pep pills to keep up with the work? quieter than earlier ones. <a href="/tags/New_York_City/" rel="tag">New York City</a>'s Noise is the most pervasive health hazard in Transit Authority, prodded by a sister this law also was intended to protect the workplace, and noise as a stressor in agency, the Environmental Protection Ad citizens generally. combination with toxins may turn out to be ministration, is beginning work to cut down Many corporations with a vested in the most serious health hazard workers the screech and roar and howl of the subway terest in noise have been able to post face." system, which in spots can reach 110 deci pone the day of reckoning to lower the When noise assaults the body, the heart bels, the noise level of a fairly loud jet. noise levels which beset us everywhere. rate increases and blood pressure rises. Blood Through enforcement of recent regulations is diverted from the digestive system to at both the Federal and local levels, truck It is my hope that the Carter adminis and railroad noise is being reduced. In New tration in both the Environmental Pro muscles, the brain and other organs. Produc tion of adrenaline and other hormones is York and many other cities, construction tection Agency and in the Occupational steeped up, increasing the fiow of fatty acids equipment is quieter than it used to be. Safety and Health Administration will and glucose into the blood. The body's re Is America getting quieter? Most author embark on actions which will lessen the action to infection is changed. ities seem doubtful or pessimistic. As Charles noise levels. We will all live longer if All those involuntary reactions, vestiges of L. Elkins, director of the E.P.A. Office of Noise they do. Certainly we will live better. man's primeval "fight or fiight" response to Abatement and Control, puts it: I ask that the article ''Noise: Physical a threat, are part of the reason noise is "A lot of technology that could reduce Harm Is Only Part of lt," which ap thought of as an insidious danger. In addi noise isn't being used. The population of peared in the Sunday, April 24th, 1977 tion, the ear, unlike other sense organs, can vehicles is going up, new machines keep not adjust to excessive stimulation, even in coming out. A quieter country? We'll have a issue of <a href="/tags/The_New_York_Times/" rel="tag">the New York Times</a> be placed sleep. Finally, people tend to accommodate better fix on that in about a year." in the RECORD: to noise and even enjoy it-witness rock NOISE: PHYSICAL HARM Is ONLY PART OF IT musicians and their fans. (By Evan Jenkins) "You adjust to maladjustment, but the THE LEGISLATIVE PRIORITIES OF A rhesus monkey named Mars recently biological effects are the same,'' says Dr. Samuel Rosen, emeritus professor of otology THE NEW YORK HISPANIC COM spent 12 hours a day for 30 days being MUNITY: II buffeted by the sounds any passerby might (the science of hearing) at the Mount Sinai hear at noon outside Jackson Memorial Has School of Medicine in New York. "You may pital in Miami. forgive the noise, but your system won't for Her experience is part of a research project give you." HON. HERMAN BADILLO on "acoustical physiology" now being con What's to forgive? Because it acts as a OF NEW YORK ducted at the University of Miami Medical long-range stressor, noise is suspected of IN THE HOUSE OF REPRESENTATIVES School with financial help from the Office of contributing to cardiovascular disease, dia Noise Abatement and Control of the En betes, arthritis, fetal damage and even cancer. Friday, May 6, 1977 vironmental Protection Agency. The experi Research has offered tantalizing clues in all Mr. BADIT..LO. Mr. Speaker, last week, ments reflect sharply rising concern that those areas, but no conclusive proof. noise may be a serious general health Preliminary findings in the Miami re I placed in the RECORD the first of what hazard, though· an insid.ious one often un search, designed to determine whether there will be a series of reports on the first recognized even by its' victims. Noise, ex is a direct, provable link between noise and congressional conference on the prob perts say, not only damages hearing but may cardiovascular damage, are typically pro lems of the Puerto Rican and Hispanic create psychological troubles and contribute vocative. community in New York. These reports to such diverse physical ailments as heart "It was like the original white-knuckle when put together, form a comprehen disease and cancer. fiight," Dr. Ernest A. Peterson, a psychol sive picture of the problems and legisla In industry, an ancient battle over noise ogist, says of the experiments with Mars. tive priorities of the Hispanic community in the workplace is still going on. WhUe no "For the first three or four days, the poor one denies that excessive noise over long animal just gripped the arms of her chair, in New York. periods causes hearing loss, there is wide refusing to look away from the noise source. This week, I would like to present a disagreement over what is excessive, given Her blood pressure and heart rate shot up to paper prepared by the Task Force on variations in individual susceptibiUty. But about 30 percent above normal and stayed Higher Education, under the leadership using 85 decibles, which many authorities there, during the noise periods, for the whole of Victor Alicea, the president of Boricua consider too high for hearing safety, as an 30 days. For the first two weeks or so, the College, the first private Hispanic bi upper Unlit, it is esti~nated that more than rates stayed high even at night with the 12 m1111on American workers are "overex noise off." But Dr. Peterson and his colleague lingual university on the mainland, posed" to noise. Dr. Jeffrey Augenstein, a physician, do not which is located in New York. The Permissible exposure under the current yet know whether or not Mars has been per paper discusses the tact that open en Labor Department standard is 90 decibels, manently harmed. rollment and all the various types of roughly equivalent to the low range of jet Dr. Jack Westman, a professor of psychi Federal and State financial aid programs plane noise, over an eight-hour da.y. (Mars atry at the University of Wisconsin, is satis fall short of truly helping the low-income the monkey was hearing about 75 decibels, fied that noise contributes to mental student because they do not take into comparable to the sound a subcompact car troubles. He notes that schoolchildren have account the full range of living ex makes at 60 miles an hour and quieter than been shown to develop learning and emo some portable hair dryers.) Labor unions tional ditllcultles in noisy environments, and penses a college student incurs even after want enforcement of the standard, now is particularly concerned about an almost the tuition has been paid, and suggests spotty at best, and then a reduction to 85 universal trouble: noise in the home. solutions through both the public and decibels. "My work with fa.m111es has convinced me private sector that will increase oppor- May 6, 1977 EXTENSIONS OF REMARKS 13917 tunities for low income students to com past decade, the battle of access to higher education for most students, little effort is plete their education: education for low income students has been made to pin down the magnitude of those won. On that assumption educational admin costs for various types of students or to deal THE LEGISLATIVE PRIORITIES OF THE NEW istrat9rs are justifying a diversion of atten realistically with the financial problems they YORK HISPANIC COMMUNITY: il tion, and of funds, towards a situation in present. I. INTRODUCTION which private colleges, at least, end up serv For purposes of this discussion I will not For the past several years my colleagues ing only the very rich and the very poor. deal with the economists' notion of "oppor and I have been working on the problem of While I am syympathetic with the prob tunity cost" (or what the student might the low rate of participation, and high rate lem of middle income parents trying to meet most profitably do with his time and money of failure, of mainland Puerto Ricans in skyrocketing college b11ls, it is importan1;, I if he weren't in school) but, rather, with the higher education. Some of the roots of that think, to deny the assumption that we have solved the problem of low income access to narrower notion of how much various types problem, such as unfamiliarity with the of low income students must earn each year English language, are unique to newly im the higher education enterprise. Quite the migrated, or culturally isolated populations. opposite seems to be true, especially 1f we to live and to meet necessary family obliga But one problem which affects Puerto Ricans include adults among the population of po tions. In doing so I am assuming that the in particular but which is common to all tential low income students to be served. typical low income student can secure enough low income students and which may pose Rather than juggling available financial state or federal support to cover the direct the greatest single barrier to their participa aid funds between low and middle income cost of his tuition at a public or private in tion in the higher education enterprise, is populations, then, I w111 argue that we need stitution, but that grants are rarely avail that of the cost of education. a structural solution to the problem of ac able to support the living costs of the student There appears to be a growing belief, at cess which will meet the needs of both or his dependents. least in private education circles, that with groups. A quick calculation, then, comes up with the massive increase in governmental sup n. THE PROBLEM OF FOREGONE WAGES these rough estimates for four types of low port to higher educational institutions and While foregone wages have long been rec income students whom I frequently en their students which occurred during the ognized to be a part of the costs of higher counter: </p><p>INCOME NEED AND POTENTIAL: TRADITIONAL EDUCATION MODEL </p><p>Possible Income Good student Avg. student (20 hr p.w. (8 hr p.w. Gap Needed plus plus Type of student income summer) summer) Good student Average student </p><p>No dependents; housing provided by others ______$2,500 $2,750 $1,750 0------$750 times 4 yr equals $3,000. Wholly independent______------___ ------__ _ 4, 000 2, 750 1, 750 $1,250 times 4 yr equals $5,000 ______$2,250 times 4 yr equals $9,000. 2 dependents __ ------7, 000 3, 500 2, 250 $3,500 times 4 yr equals $14,000 ______$4,750 times 4 yr equals $19,000. 4 dependents. ______9, 000 4,000 2, 500 $5,000 times 4 yr equals $20,000 ______$6,500 times 4 yr equals $26,000. </p><p>Several comments may be helpful: the key restraint on student employment If educational loans are to form part of 1. Throughout the little table I am refer during the academic year. the solution to the problem, some change ring to net take-home pay. B. Lighter Academic Loads with Stretch in their structure may be required, as will 2. In the first category, "no dependents; Out of Undergraduate Program to Six of be discussed hereafter. housing supplied by others," there are prob Eight Years: IV. AN ALTERNATIVE APPROACH TO THE PROBLEM ably fewer low income students, even of Although this is a. common pattern for adult students in public institutions, it is A. Work Study: Using the job Site as a traditional college age, than is generally as Central Learning Resource: sumed. Although parents may be willing, followed at a. high price to student morale and to any possible coherence in educational We belleve that the best, and perhaps the and even anxious, for the student to continue only feasible, solution to the problem of to live at home, quarters are often so cramped experiences which are already too disjointed in most undergraduate programs. Should be foregone wages for low income students Hes and noisy as to provide no suitable place in the concept of work/study, one of the for rest, recreation, or study. a. solution of last resort. C. Increase in Federal and State Financial oldest Mld soundest notions to emerge from 3. Although the typical low income stu Aid Grants to Cover Living Costs of Students the nontraditional education movement. But dent of my acquaintance attempts to work and Dependents: by work/study we mean more than brief at least 20 hours per week during the school We see no likelihood of the massive in exposures to work experiences interspersed year when employment is available, I believe crease in governmental appropriations which within a predominately campus-based edu it is unrealistic to believe that the average would be required. We will be fortunate 1f cational program. We mean, rather, a pro student can do so without risking academic BEOG funds simply catch up, and keep up, gram which converts the student's job site failure, or sharply reduced benefits from his with rising tuition costs. Short of large tui into a. central learning resource, with more educational experience in a. traditional insti tion increases in public institutions (which traditional instruction being viewed as a tution. Such a. schedule simply leaves too do not appear to be likely) states are not supplement to the core of job-related learn few hours for the classroom preparation re expected to appropriate large amounts of ing. quired. So long as financial aid omcers under new financial aid funds for low income 1. The financial advantage estimate the amount of employment low in students. come students can handle, then, they set If such programs can be made education D. Closing the Gap with Federally Guar ally viable, their financial advantages are such students up for the academic failure anteed Loans: clear; for within such a context the able or discouragement which so often occurs. Within the $7,500 ceiling which applies student could work and earn a. full-time m. POSSmLE SOLUTIONS in most states this is a possible solution for salary without dfrnfnfshing the educational A. Evening or Weekend Classes: low income students without dependents. force of his four-year undergraduate pro High rates of default are already imperiling While schedule conflicts between classroom gram. Average or poorly-prepared students the loan system, however. And the more should, by our calculations, be able to work and working hours are often a. problem conscientious the low income student is, the which evening and weekend classes can avoid, greater his fear of indebtedness. His experi half-time earning a proportionate salary, the deeper problem is class preparation time, ence has taught him that borrowing is the again without overload or dilution of the especially for average or poorly-prepared stu irresponsible living beyond one's means educational strength of their programs. dents. Unless class progress is to be slowed rather than the prudent investment in fu The net financial effect, then, of such an to a. high school pace, preparation time is ture earning capacity. arrangement should be as follows: </p><p>INCOME NEED AND POTENTIAL: WORK/STUDY MODEL </p><p>Possible Income Avt;.. student Gap Needed Good student (20 hr p.w Type of student income (4 hr p.w.) plus summer) Good student Average student </p><p>No dependents; housing provided by others ______$2,500 $5,000 Wholly independent______------______4,000 5,000 2 dependents. _____ ------______7,000 7, 000 4 dependents ______------___ -- ~ - ____ •• ~: ggg $1,000 times 4 yr equals $4,000 ______$5,000 times 4 yr equals $20,000. 9, 000 8, 000 ~: ~~~ 8======h:~~ tl~:~: ~~ :~~:~~ 1~4~00. 13918 EXTENSIONS OF REMARKS May 6, 1977 While the problem of foregone wages does work situations beyond college walls may be prising nor distressing, we are unwilling to not disappear entirely, save for able students, beyond the capacity of some educators commit even as much as one-third of the it is brought within manageable bounds for drawn to their profession precisely out of a American population of potential learners to all but the adult with multiple dependents to distaste for that work-a-day world. By the the fate of having missed all opportunity support. same token, professionals, managers, and for further formal training, especially when 2. The educational advantage other persons trained outside of graduate the lives of so many others depend upon the schools who retain a taste for theoretical fortunes of precisely these individuals. It seems clear that a work/study educa integration and critical examination may be For the able student with even as many tional model, properly conceived and imple the most promising candidates for the fac as four dependents an earnings gap esti mented, has special advantages for low in ulty roles required in clinically based pro mated at $4,000 over the course of an under come students. Assuming that most of their grams. graduate career could be financed without educational goals are job related (as we have (b) Willingness of Employers and Firms to undue strain under the federally guaranteed found them to be in the typical case) clin Cooperate in the Education of Staff: student loan system. The estimated gap of ical training encourages involvement and at With the high priority which the Ameri $14,000 for an average student with two de tention by being palpably related to the stu can culture has placed on formal, pre-service pendents, or of $20,000 for an average stu dent's immediate objectives. It socializes the education, and the Willingness of families dent with four dependents, however, exceed students directly to productive roles rather and the public to support the enormous present federal loan limits by far and involve than assuming, as campus-based models costs of that enterprise, business firms and indebtedness which no adult could be ex must, that theoretical information rele other working organizations have been a.ble pected to undertake. vant to work situations can shape work to avoid most of the costs of career prepara Two alternatives are suggested for con behavior even in the absence of the tion for their labor force. Predictably, em sideration as methods of opening the doors role models and the wealth of related ployers have over-utilized the free (to them) of higher education to such individuals: cultural conditioning available to middle or service of manpower development by esca (1) Cost Sharing Through Payroll Deduc high income students. At the same time suc lating beyond reason the educational 1)re tions and Taxes: cessful internship experiences should bol requisites for employment positions, erect Through special provisions of the Federal ster the confidence and self-esteem of low in ing, in the process, massive barriers to the Direct Student Loan Program, students of come students whose deprivations in those integration 9f low income persons into the the kind described might borrow the $14,000 regards often pose formidable barriers to ed economic life of the nation. to $20,000 required with repayment to be ucational growth. The capacity of employers and their firms made over the 15-year period following 3. The basic notion to educate workers has never been in doubt, graduation, one-half of monthly payments to What we conceive, then, is a form of higher however. At least large business organiza be withheld from the employee's wages (as education to which a student could be ad tions provide highly sophisticated training, Social Security Taxes are), the other half to mitted only if he were located (with neces sometimes in cooperation with educational be paid by employers as a payroll tax (again sary institutional help) in a work situation institutions, for employees in managerial on analogy to the Social Security System) . offering: and professional positions. High technology The federal government would subsidize in (a) The possibility of educational growth industries train an even broader segment of terest at 3%, and no debt service would be up to professional or managerial levels and; their labor forces for highly skilled, albeit payable during any month in which the (b) The cooperation of the employer in narrow functions. The question, then, is former student was unemployed. whether employers can be brought to as forming a partnership with the educational (2) Stretching Length of Undergraduate institution to promote the student's devel sume cooperative responsibility for forms and levels of employee training which have Career with Senior Sabbatical Year: opment to the fullest extent possible. traditionally been performed at a pre-service A special 6-year undergraduate program out of that partnership should emerge a stage of life by other agencies. would be designed for the described category three-part educational agenda reflecting: Although there are aspects of a sound un of student. During the first five years the (a) The employer's specification of the dergraduate education which offer no benefit student would carry no heavier educational knowledge and skills needed by the student to the employer of a person so trained, it is load than was consistent with full-time to be qualified for a professional or man believed that a model can be developed in employment (in a work/study mode) and agerial role in the firm; which job related benefits are sufficiently re family obligations. No wages would be fore (b) The educational institution's objec sponsive, and the costs of employer coopera gone during that period. During the last year tive to stretch the student's understanding tion so modest as to make a cost-benefit of the program the student would take an and to sharpen his critical faculties by plac analysis of employer cooperation clearly per educational sabbatical for full-time, 12- ing job-related issues in ever broader con suasive on the point. To that most natural month study at the educational institution. textual frameworks; and incentive can be added, at least in the case The student's personal living expenses for (c) The student's personal learning objec of minority student/workers, affirmative ac the year-perhaps $3,000-would be bor tives which go beyond either job related or tion pressures from the federal government. rowed, and subsequently repaid, through the liberal arts goals. If the combination of these factors is not federally guaranteed student loan system. 4. Problems to be overcome sufficient to elicit the required employer co Support of the student's dependents for the The central question, of course, is whether operation, however, special tax or other eco sabbatical year would be provided through the work/study model can be made to work nomic incentives, to be explored hereafter in the Social Security System, as if the student in an educationally effective manner for low this memorandum, may be necessary. were unable to work by reason of physical income students of widely varied ages and (c) Availability of Suitable Training disability. As in the case of wage earner's aptitudes. Although the idea is now more Jobs: disability, such funds would constitute an than fifty years old, its ability to sustain The current economic recession raises the outright grant to the dependents involved. the weight we propose is subject to fair ques question as to whether the American econ tion on at least the following grounds: omy could usefully absorb into its labor (a) Ability and Willingness of Faculty to force the large number of worker/students Perform the Special Roles Involved: which the widespread adoption of work/ RAISE THE SOCIAL SECURITY Even the colleges and universities with study programs would involve. The question longest experience in work;study or "coop is akin to the one heard more frequently on EARNINGS CEILING erative" education report continuing diffi university campus as to the ability of such culty in developing faculty and willing to institutions to place students in positions (i) coordinate an educational process sig for which they are qualified once their pre HON. NEWTON I. STEERS, JR. nificant parts of which occur at distant sites service training is complete. OF MARYLAND outside their complete control and (11) There is no doubt that an economy deeply IN THE HOUSE OF REPRESENTATIVES manage a learning agenda which proceeds and chronically troubled by high rates of inductively from a "mine run" of job re unemployment would adversely affect ca Friday, May 6, 1977 lated problems and issues to a broader, more reer-oriented education, whether of a pre Mr. STEERS. Mr. Speaker, I am today theoretical understanding of self and world, service or in service nature. So long as high introducing a measure to raise the an rather than the other way round. er education has the economic benefits in nual amount which can be earned as From the long history of clinically-based which Americans so devoutly believe, how medical training and the case oriented train ever, workers-in-training should be able to outside income by social security retir ing in other fields such as business and law compete on favorable terms with others for ees, people who have earned their re there would appear to be no doubt that such jobs as our economy provides. tirement, from $3,000 to $5,040. This clinically-based education need not threaten d. Financing and Balance of Foregone would increase the average monthly fig the theoretical integrity of an educational Wages: A Cost-Sharing Scheme: ure to $420 from $250. My distinguished program, whether at the undergraduate or As Table B reveals, even the successful im colleague from Maryland, Senator professional level. It seems equally clear, plementation of work/study education for CHARLES "MAc" MATHIAS, has introduced however, that traditionally trained educators low income students would leave persons cannot be expected to function in clinical with multiple dependents with an unman a measure to similarly raise the penalty settings without comprehensive and con ageable burden of foregone wages as the level of earned income to $5,040. tinuing training in the skills and procedures price of access to a higher education. While Under present law, each beneficiary involved. Indeed, a fac111ty in dealing with that result may strike some as neither sur- under 72 may earn as much as $3,000 May 6, 1977 EXTENSIONS OF REMARKS 13919 without reduction in OASDI benefits. cab driver was saying when-fortunately for The bill authorizes the Attorney Gen However, if an individual's earnings ex his passenger-the end of the trip ended the eral to bring actions for injunctive relief harangue. ceed this limit, benefits will be reduced Unlike their chatty New York counter when violations occur and confers juris by $1 for every $2 of earnings. parts, cabbies in the capital are disposed to diction on U.S. district courts to restrain In practical terms, I am introducing sulk silently, but the subject of new con violations. this measure because social security ben gressional salaries unleashes a tirade of bitter On June 12, 1975, during the con efits are simply not sufficient to live on. words from even the most closed-mouth sideration of the energy conservation bill The average payout is $52 a week; the drivers. reported by the House Ways and Means However, a look at the schedule of Rep. Committee, I offered an amendment al maximum is $100. Richard Bolling of Missouri makes it seem Large numbers of social security ben possible that at least a few members of Con most identical to H.R. 6627. With onlv eficiaries-through no fault of their gress may come as close to earning the $57,500 minimal preparation and little debate own--do not have other retirement as anyone can. the proposal received 79 votes. moneys to draw on. Perhaps their life Tuesday, a day only slightly busier than This proposal is a realistic one both savings were wiped out by a single cat usual for Bolling, the Kansas City Democrat politically and technologically. Studies astrophic illness. Perhaps their earn began by sitting as chairman of the House from the Federal Energy Administration Senate Joint Economic Committee, the Brit show that automobile manufacturers can ings were not sufficient to put aside ish chancellor of the exchequer was on hand enough to accumulate a "nest egg" or to to talk about international trade and mone meet the requirements imposed by this invest in income-earning stocks and tary policies. legislation. bonds. Or perhaps, pension rights were An hour later Bolling was sitting as the We agree with those who say that the lost in a company failure after many ranking Democrat on the House Rules Com American people are probably facing the years of payments into a plan. mittee to clear strip-mining legislation for stiffest domestic challenge during our floor debate. At noon he was on the House lifetime. And that the failure to develop It is not surprising, then, that social floor handling a rule on the first budget security beneficiaries living on no more recommendations for fiscal1978. a comprehensive national energy plan than $250 a month look for other ways His afternoon began with a session of the will be disastrous. However, we cannot to supplement this meager income House Democratic Steering Committee where endorse the most recent proposal which work or welfare. Should beneficiaries strategy was planned for the strip-mining would tax gas guzzlers while providing choose to work, they soon find them debate. In midafternoon Bolling was meeting rebates on automobiles that are fuel ef selves in a position where they begin to with the House Ethics Committee to draw ficient. Such a program would not only the line on gifts representatives may receive. be an administrative nightmare, but also lose the benefits they worked to earn for At 4 p.m. the new House Energy Commit 20, 30, 40 years or more. tee held its first meeting to prepare for the would undermine public support for the This situation not only holds the so President's massive energy proposal. For the conservation effort. A system which im cial security recipient to a poverty level fourth time that day Bolling was sitting as poses excise taxes on fuel inefficient cars existence, but also deprives him or her the ranking Democrat on a committee-first allows the more affluent to purchase an of his or her right to work without pen in line behind the chairman. exemption from patriotism. alty, deprives him or her of the right to As the day stretched into late afternoon, We believe that our national purpose Bolling canceled an appearance at a dinner of energy conservation requires a pro continue to make a valuable contribu where honored guests included the Rev. tion to society and receive an equitable Maurice Van Ackeren, president of Rock gram that is easily understood but more remuneration for that contribution. hurst College in Kansas City. Pacing him importantly one that applies equally, to In short, the $3,000 limit is too con self turned out to be the right decision-the all Americans. fining both economically and in human House session Wednesday was to run past 1 a.m. terms. Bolling's schedule is the penalty he pays While I believe that the philosophy THE ST. LOUIS AIRPORT for hanging around a seniority-conscious CONTROVERSY of the earnings test is not wholly accept Congress 30 years. At the end of a legislative able, I also realize that eliminating the day he has little enthusiasm for social events test immediately would be costly and preferring to stay at home, where a room was HON. ROBERT A. YOUNG further exacerbate the grave situation enlarged recently for leisure activities. we currently face with respect to fund Along with his assignments come the priv OF MISSOURI ileges of power. On Bolling's schedule this IN THE HOUSE OF REPRESENTATIVES ing the cash benefits program. week are two White House sessions with the It is in this vein of taking one more President, one today on an unannounced Friday, May 6, 1977 practical step toward equity for the so subject and another Wednesday with the Mr. YOUNG of Missouri. Mr. Speaker, cial security recipient that I propose House Energy Committee. Secretary of Transportation Brock raising the work clause to $5,040, or $420 Is the veteran lawmaker earning his $57,500? Or half of it? After all, Missouri's Adams ended years of controversy re a month. 5th district gets two for the price of one. cently with his announcement that Lam I hope that the House Ways and Bolling's wife, Jim, makes the daily trip to bert Field would remain as the St. Louis Means Committee and the Senate Fi the capital from Maryland with her husband area's chief airport for at least the next nance Committee will see the urgent and as an unpaid aide keeps substantially several decades. The decision reversed an need to act on this matter. the same hours. earlier Department of Transportation plan to construct a new airport at a dis CONGRESSIONAL PAY RAISE tant site in southern lllinois. MANDATORY AUTOMOTIVE FUEL Secretary Adams' decision reflected ECONOMY ACT weeks of intensive study that followed HON. GILLIS W. LONG meetings with the Missouri and Illinois OF LOUISIAN A congressional delegations. It was a IN THE HOUSE OF REPRESENTATIVES HON. ANDREW JACOBS, JR. thoughtful and reasonable statement OF INDIANA that, above all, pinpointed one crucial Friday, May 6, 1977 IN THE HOUSE OF REPRESENTATIVES reason for keeping Lambert: public sup Mr. LONG of Louisiana. Mr. Speaker, port for the facility. This is a tribute not in all the furor over the recent congres Friday, May 6, 1977 only to the thousands of eastern Mis sional pay raise, very little has been said Mr. JACOBS. Mr. Speaker, on Tues sourians who fought to save Lambert, but about the ratio of the value of work day, April 26, 1977 Representative also to the news media that shaped pub versus the amount of pay of Members. MARTHA KEYS and I introduced H.R. lic opinion. Several news outlets played One article, in the Kansas City Times of 6627, the Mandatory Automotive Fuel active roles in informing the public of the May 2, 1977, by Henry Clay Gold gives a Economy Act of 1977. This legislation advantages of retaining Lambert; I be vivid example of 1 day's scheduled activi prohibits the sale or distribution of any lieve that two outlets, KMOX Radio, the ties of Representative RICHARD BOLLING. passenger automobile in the United CBS station in St. Louis, and the Journal Following is the article: States which does not meet the following Newspapers have not received su:tiicient CAPITOL HILL minimum fuel economy standards: 1982, credit for their efforts. (By Henry Clay Gold) 19 miles per gallon; 1983, 21 miles per In editorials broadcast by Robert Hy WASHINGTON.-No one, absolutely no one, gallon; 1984, 23 miles per gallon; and land, regional vice president of CBS, should be paid $57,500 a year, a Washington 1985, 25 miles per gallon. KMOX outlined the case for Lambert in 13920 EXTENSIONS OF REMARKS May 6, 1977 a cogent and comprehensive manner. June 17, 1970. "The East-West Gateway of citizenship is participation through in The North County Journal, St. Charles Coordinating Council's Executive Advisory formed opinion. And we're expected to in Journal, and sister publications cham Committee recommended that the agency form ourselves; the founding fathers made pioned the Lambert cause for nearly a become involved in planning a second major sure we'd have sources of information to airport but declined to become involved in make decisions-that's why we have a free decade. Following are excerpts from their picking an airport site. Darby Tally, editor editorials and news stories over the last press. of the St. Charles Journal, urged that the Thomas Jefferson thought of this when several years : advisory committee push for a Missouri air EDITORIALS he wrote (quote) "If a Nation expects to be port site." ignorant and free, in a state of civilization, KMOX Radio Editorials-November 12, it expects what never was and never will 1975. "We should ... take note of the fact be." (Unquote) that many cities are now rethinking their FUTURE ROLE OF Mil.JITARY Your greatest contribution is a genuine positions in regard to plans for super-airports interest in our affairs. I am honored you've such as the one proposed at Cohimbia asked me to share some thoughts with you Waterloo (Illinois). San Francisco, Cleve HON. TOM STEED tonight. I know you're familiar with the land, Seattle, Philadelphia, and Atlanta are OF OKLAHOMA MAC mission, so tonight I'll share some all giving serious consideration to abandon IN THE HOUSE OF REPRESENTATIVES thoughts from a different perspective. ing plan.S for superports in favor of expan I've just come from an assignment in sion of existing facilities ...." Friday, May 6, 1977 Washington, D.C. I don't need to remind you January 12, 1976. "As this station has Mr. STEED. Mr. Speaker, recently I that a key topic in Washington for some stated in many previous editorials, we be months now is "change," "transition." In lieve Lambert Field is the right choice for had the distinct privilege to hear the ad dress delivered by Lt. Gen. William G. the Air Force the subject is the same-almost our airport for many reasons. To name a identical words-"change," "transition" few, Lambert is a more convenient location M·oore, Jr., at the 68th annual banquet the impact of it all. for most St. Louis area residents who travel of the Altus, Okla., Chamber of Com Contrary to a popular perception . . . the by air. And surveys show that present facili merce. m111tary is not staid, conservative, and tradi ties can be modified to serve the area's needs As Commander in Chief of the Mili tionalist. We're dynamic-always in a state until the year 2000 or beyond . . ." tary Airlift Command, General Moore of transition. We have to be. The society September 10, 1976. "Greater St. Louis is provided a realistic insight to the future that supports us is changing. The threat one metropolitan area, stretching out on we face is changing. The technology we rely both sides of the Mississippi. Growth and role of the military in our ever changing society. on is changing. Running through the web of progress in any part of that area helps the transition are common threads of purpose. entire region. I am pleased to present his comments These time tested principles weave the tradi "We do not oppose the Illinois site be for the consideration of my colleagues. tions, or-better said-the points of ref cause we are against progress in Illinois. REMARKS BY GEN. WILLIAM G. MOORE, JR. erence of ra competent military force. We oppose it because we are against decay Briefly stated, they are-know your in Missouri. And decay and economic hard I'm delighted to be here this evening. Your city and chamber of commerce have orga enemy-be ready to engage him-be pro ship would surely result in a large portion fessionally and technically able to defeat of St. Louis County, if the airport were nized a marvelous tribute to the Air Force. We appreciate your efforts. him. In this sense, the military man is indeed moved. a tradition.alis·t--history vindiootes this kind "No final decision regarding the airport Altus AFB enjoys an outstanding relation ship with the local community. This is not a · of conservatism. site will please everyone. But we hope any Our society is rightfully concerned about final decision will be made on the basis of fleeting romance: It's a marriage spanning 35 years that began with the Army Air Corps the welfare of all. We try to balance our re the most benefit for the greatest number." sources between the needs of national de March 31, 1977. "After years of tension and today we need your support more than ever. fense and the needs of the individual. The and contention, the long battle over the St. mUitary does not, and should not, decide its Louis airport is over. Transportation Secre And some of the support your military wm tary Brock Adams has decided in favor of need in the future you, as concerned citizens, share of resources. Priorities are decided, and Lambert Field. This choice reverses the de provide. You're good neighbors-that's im resources are allocated, by our elected leaders. cision of his predecessor, William Coleman, portant. And even more important, yolm" oon Our elected officials also decide national who favored the Illinois site. cem shows the mUitary that you oore-that policy. The military does have a very special "For many years KMOX radio has edi you're interested-and this is vital. More responsibUity. We provide our best judg torialized on behalf of the Missouri site. We than your tax dollars, more than this mar ment--our advice, 1d' you w1ll-as to what re are gratified, of course, that Secretary Adains velous Air Force appreciation month, we need sources-manpower, equipment, and techno agrees with our position. It not onLy makes your informal day-to-day dealings with our logical development--we need to provide na sense, but it saves over a billion dollars for base people. The mUitary is not a separate tional security in the future. the taxpayers." society. We are comforted and inspired by a Inherent in this relationship is the hazard NEWS STORIES genuine appreciation for our efforts. of delay-of too little too late. Perhaps this Altus is a fine base-and we're making it delay is caused by disbelief of mmtary assess Journal Newspapers-May 27, 1970. "The better. Fifty new duplex houses costing al Journal questions selection of the ( Colum ments (both threat and need)-perhaps by most 3 million are nearly finished. We've just the perception of some that the military is bia-Waterloo, Ill.) .area as site for the St. broken ground for a new 7.5 mlllion dollar Louis area's . . . major airport. . . . self serving-perhaps our society lacks an hospital. A 981 thousand dollar base opera appreciation of the magnitude of the threat. "The population explosion, together with tions building is nearly completed, as is a industrial growth, is overflowing into this We solve proble.ms by public debate and it 432 thousand dollar cockpit procedures takes time to reach a consensus. Whatever section, particularly along the Interstate 70 building. corridor. Growth and progress is moving the reasons, too frequently in the past we west, not east. That is with the exception of A fine base and a great mission are still have entered conflict ill-prepared-and suf plans for Metropol:itan St. Louis' second not enough. The key ingredient of military fered more casualties than would otherwise major airport. . . . Why should $350 mil effectiveness is morale, and that depends im ·have been necessary. Sometimes we almost lion be spent for an Eas·t Side airport, in portantly on the support and understanding lost before the enormous power of the nation opposite direction from where growth and of the American people. Our military forces could be focused. This is a problem for a progress is taking place in leaps and bounds?" are citizen-soldiers, part of--and responsible democracy that Sir Winston Churchill de June 3, 1970. "Statistics, logic and just to-the society they serve. The founding scribed: his commentaries concerning Eng plrain commonsense tend to disprove any fathers carefully avoided any semblance of land during the 1930s have a contemporary wisdom in building Greater St. Louis' . . . a traditional military elite. This was a novel ring. major airport on the Illinois side of the idea in the late 1700s--so was the idea of Now I do not suggest that we change our Mississippi. a United States-and for 201 years they've democratic processes-to the contrary-our "An impartial feasibility study on usage worked. However, when the American people processes are a major source of national and site, conducted on the entire St. Louis tended to treat the military as a sepa.rate strength. I do suggest that considering our metropolitan area, would probably eliminate society-or downgraded the profession of abhorrence of war, our preference for individ all . . . Illinois potentials. The East Side arms-morale and capabiUty have suffered. ual pursuit, and the demands of domestic may need and warrant a top airport, but You help to sustain this key ingredient causes upon our treasury, that the allocation it does not appear to be most logical or of morale in our Altus people. This 1s a of resources to national defense will likely practical site for St. Louis' airport of tomor vital contribution. Although it's diffi.cult to always--in peacetime-be nearer the lower row." measure-it's here, it's important, and I end, rather than the higher end, of the June 10, 1970. "Millions of dollars in pay salute your-concern. prudence scale. rolls for Missourians, new jobs and a huge Your active Chamber of Commerce and We have to allocate our resources wisely. amount of valuable tax money for the state, service clubs show that you think as a com Congressman Melvin Price (democrat, TIU local counties, cities and school districts are, munity, you talk to each other. This dis nois, Chairman of the House Armed Serv in a real sense, at stake." cussion is important-a prime responsibiltty ices Committee) has noted: "National de- May 6, 1977 EXTENSIONS OF REMARKS 13921 fense is not in competition with social pro preparations and our own. We calculate the that. Today's force is a. ready force-we stress grams. USSR is spending more than a billion dol readiness-we are working hard to insure "There is no and/or conjunction in the lars a year on just this one facet of their that we can counter aggression anywhere Jn U.S. Constitution. military preparations. They disperse popu the world, and thus maintain the peace. We "The constitution says we shall •promote lation and manufacturing centers, stockpile test our operational readiness 1n a number the general welfare and provide for the com food, build bomb-resistant fac1llties, and of ways-from the most reaUstic "aggressor" mon defense.' It does not say we should do their people undergo realistic disaster train training in the Nevada desert (some of our one or the other.'' ing that begins in grade school. own people think and fight like the Soviets) This, of course, places a high premium on This is an international, high stakes poker to the cold of Alaska, to increased deploy judgments concerning national security and game. The other players have some pretty ments to NATO bases in Europe. A good test on what the military does with the resources good cards-and they don't mind backing was the Korean incident when those two it is allocated. Any future conflict wlll prob them up with the blue chips. They don't good people were murdered in the DMZ. We ably come suddenly-there will be no time mind reaching into the family food money demonstrated our resolve. The day it hap to divert resources to a military buildup such to stay in the game; they believe that the pened, w~ had an additional F-4 squadron as we saw in World War II. We'll have to fight ultimate pot will make it all worthwhile. on the ground in Korea-it came in from with what we have. Under these conditions, These changes in the threat have got to Okinawa. The next day, we haci an F-11 there is very little margin for judgmental be a concern to the American people and fight-er bomber squadron in place-the result error. to the military they expect to counter it. of a non-stop trJp from Idaho to Korea, and With th8>t in mind, let's review Soviet and Yet--our response to the increased threat on alert immediately. And, of course, the United States capab111ties and how the U.S. has been a decreased military budget--not in B-52s from Guam were over South Korea has responded. We see important changes in absolute dollars which we all know reaches quickly. Peace was maintained because we the Soviet threat and the relative position a new record each year-but in the all im had the right kind of power where and when of the U.S. Perhaps the most fundamental portant buying power which has declined it was needed to keep the peace. change lies in America's strength vis-a-vis some 40 percent since 1964. Yes, we're spend Command and control, industrial readi the Russians. We no longer have the nuclear ing more dollars but, thanks to inflation, ness, and modernization all have claimed our monopoly we enjoyed in the 50s-that's tho.se dollars buy less. interest and time as we strive for an in changed. We no longer have the nuclear su Some important changes flow from that, creased state of readiness-and we are periority we enjoyed in the 60s: That likewise as you might expect. Let me describe a few achieving it. Two factors have been a key is a change. Today, we seek to maintain of them. First, numbers of people. In the to the readiness picture-have helped offset nuclear parity--essential equivalence early 1960s-before the southeast Asian the quantitative trends by making qualita whichever term you prefer-and of course war-the Air Force had some 856 thousand tive improvements: machinery and people. that is a change. people on board. During the Vietnam era, We're developing and buying a number of Historically, the Russian military was pri we peaked at about 905 thousand. Today's outstanding new weapons. Each brings tre marily a defense force-their defeats of peacetime Air Force numbers about 572 mendous qualitative improvements for today Napoleon and Hitler were defensive victories. thousand-and we may reduce more. We and for years to come. Each brings increased For a time after WW II, the Soviet force have now the smallest Air Force since the readiness-increased capability at a lower structure supported that logic. That 1s not Korean War days. Twenty years ago, we were cost for maintenance and support. the case today. operating out of 280 bases. Today, right at I am speaking about new aircraft like the One does not have to see Soviets lurking half that many. Twenty years ago we had F-15, the world's best air superiority fighter behind every bush to take note of their ex 22,000 aircraft--today we have about a third aircraft. I'm referring to the A-10--especially traordinary military buildup-steadily, over of that. During the last several years, our designed to attack and destroy enemy tanks the last several years, they've developed a procurement of new aircraft has been aus and provide close in support for our troops new family of fourth generation ballistic mis tere. The Air Force has been buying new who will be slugging it out on the ground. siles. Today we see the result--four new aircraft at a rate of about 150 aircraft per And we look forward to the Ughtweight, low missiles, the SS-16, 17, 18 and 19. Now they're cost air combat fighter-the F-16; to im year since 1971. This year we plan to buy provements in airlift through the advanced working on fifth generation missiles; they 181 new aircraft. We are reversing this down think ahead. Likewise, they've developed a medium short takeoff and landing aircraft- ward trend: In fiscal year 1977 the Air Force the AMST-as well as the much needed ad very long range submarine launched ballistic plans to buy 223 new aircraft followed by missile-it's already in service, and has a vanced tanker-cargo aircraft-the ATCA. We 335 in fiscal year 1978. So, we have seen are looking at stretching the C-141-making range of over 4,000 nautical miles. At least downward quantitative changes. The Air two kinds of large nuclear submarines carry a good airpLane even better. Fot:ce has changed over the past decade The airborne warning and control system them. In addition, they are testing two en and, like transition operations anywhere tirely new ballistic missiles for their grow the AWAC8-will afford us the opportunity impact is always a concern. to locate and attack an enemy's Air Force ing submarine fleet. They have two super The answer for the Air Force has been a sonic bombers (one, the Backfire, is new) before he is in a position to strike our forces and they have several new high performance close, hard look at ourselves. We found and troops. This system is a technological fighter aircraft. They continuously re-equip standard management options weren't the breakthrough housed in a Boeing 707-and their large armies with all the latest equip whole answer. I've told you we've cut people. it has been described as the single greatest ment and at the same time, they continue For example, during fiscal year 1973 and 1974, advance in command and control since war to develop even newer equipment. The Soviet the DOD was reduced by about 100 thousand fare began. Navy has developed-in the last twenty people a year, but we found that the percent And, of course, the B-1 Bomber, a years-from a defensive coastal patrol force of our budget going to people remained the thoroughly tested and capable aircraft. same. to a technically and operationally compe If we can continue to acquire hardware tent blue water navy. We now see the Soviets Resource cutback produced the same phe nomena. Since fuel costs were so high, we of this type, aircraft that are far more ca in large exercises and global manuevers, de pable as well as cheaper to operate and easier veloping tactics and command and control cut back flying hours. We used simulators and retired some 400 support aircraft. Al to maintain, we can continue to offset the and training their forces. Soviets' quantitative trends with our So, not only is there a change in the size though we cut our fuel consumption by 50 percent, we didn't save any money--our fuel qualltative improvements. of the threat--there is a change in its dimen We believe we are on the right course to sion. No longer are aircraft and ships de costs doubled. We have been challenged to economize in readiness-whatever the composition of the signed for a purely home defensive oriented force, it will be ready to fight with what it role-the Soviets now have great offensive every area-trying to make the right reduc tions so that we minimize any harm to our has. capab1llties and the mobility to project their The pace of our modernization program is power far from their homeland. effectivenes~~in fact-to somehow improve I don't claim to know how the Soviets plan our effectiveness to meet the changing chal dependent upon resources allocated by na to use their enormous military power. Trend lenge. We have reduC'ed some headquarte..-c;, tional policy makers. Recent signs have been lines indicate they intend to have the most totally eliminating c.thers, and sought great encouraging. At long last--our society is powerful military force in the world. They er efficiency through better organization. supporting defense budgets that reverse the understand fully the use of the military to We've consolidated troop trg,nsport and car downward trends in real buying power we've project national power and influence other go aircraft into one airlift force. We've sought seen for the Last several years. We hope we nations. And they can pose very serious prob increased productivity, reliability, and main are seeing a change which will abide at least lems to any who choose to confront them. tainab111ty. We did well I think-because through our modernization program. And permit me to point out one more when you get to <a href="/tags/The_Bottom_Line_(venue)/" rel="tag">the bottom line</a>-the result With respect to change, our people have change in the threat-a change in strategic of changing times is the leanest, trimmest also been significant. The Air Force has thinking about nuclear war. According to air force in history-but one that is combat benefitted from the all volunteer concept. We some analysts, there is some evidence that capable--one that can do a big job, an air imposed stiff recruiting standards and these the Soviets now belleve-and may have for force second to none. standards have produced measurable divi some time--that nuclear war is both think We have traded off people, resea.rch, de dends-in terms of reduced attrition and able and survivable--even capable of pro velopmenl;, and some modernization-traded fewer dlscipllnary problems. Today, over 95 ducing a victor. A major factor in this belle! the future !or today and of course, sooner percent of our enllsted people are high school is the wide gulf between Soviet civU defense or 18iter, you have to do something about graduates-not that a high school diploma 13922 EXTENSIONS OF REMARKS May 6, 1977 makes for a better airman-but we do find the peace. In the past, we have offset the in PRECLEARANCE OF FOOD people who have completed high school have creased change in the t h reat and the down ADDITIVES a better record of completing whatever else ward changes in buying power by qualitative they undertake. efforts in modernization, readiness and peo However, we are now having to work ple. We try hard to serve our country well HON. THOMAS L. ASHLEY harder to obtain the high quality recruit and that won't ever change. OF OHIO we want. Competition from other services We need the help of the American people. and industry is getting tougher. Waiting The interest and understanding this commu IN THE HOUSE OF REPRESENTATIVES lines which once characterized Air Force re nity shows, as you have for 35 years, is our Friday, May 6, 1977 cruiting no longer exist. We have to work best insurance that this Nation will survive harder to convince young people that we rep and prosper. Mr. ASHLEY. Mr. Speaker, when the resent a "way of life" that offers challenge Federal Food, Drug and Cosmetic Act and opportunity for growth. was amended by the Food Additives Our nation benefits from a close affinity between the civilian and military sectors of Amendment of 1958 to require preclear our society. CONSUMER PROTECTION ance of food additives, no one seriously The motivation of professional m!litary believed that substances which present men and women has not been remuneration, ed essentially "no risk" would be sub as much as has been a "calling" or dedica HON. BO GINN ject to preclearance requirements. The tion to the higher principles. I know of none bill that I am introducing today would who undertook a military existence because OF GEORGIA establish, consistent . with the public they expected large material benefit. On the IN THE HOUSE OF REPRESENTATIVES other hand, military people are sensi.tive to health, an objective standard for deter their benefits. Benefits represent not just Friday, May 6, 1977 mining when preclearance requirements equity-but importantly also--a manifes Mr. GINN. Mr. Speaker, the Savannah are truly necessary and appropriate to tation of society's empathy and interest. Morning News earlier this year com protect public health. When our military was larger and praCJtically The practical importance of this bill every family had its own military represent mented in an editorial on the proposal cannot be emphasized too strongly; the ative-brothers, sons, sisters, nephews-the to create a Consumer Protection Agency. uncertainty in the definition of a food society also felt the "calling," albeit in a As a matter for information, I ask that surrogated · way. A fusion was present be this article be reprinted in the RECORD additive fostered by the Food and Drug tween the military and civilian sectors. We at this point: Administration generates an expensive, unjustified regulatory burden which may now be seeing a change in this very CONSUMER PROTECTION basic part of being in the service-a subtle must ultimately be paid for by the al shift where the values of the "market place" During the Ford administration both ready overburdened consumer. Costly are threatening to replace the values of the houses of Congress passed bills to create a Consumer Protection Agency, but the threat toxicological studies on substances which "calling." find their way into food in vanishingly We may now be entering an era in which of a Ford veto prevented final action on this our society, having "hired" a military force measure. small quantities and the inefficiency in to handle its security-and wi·th a less Now that President Carter is in office it herent in conducting business in an un broadly based family connection-will lose seems likely that the agency will come into certain regulatory environment increase interest and the fusion will diminish. As existence. Many people will no doubt applaud the cost of food packaging without con military people perceive their benefits erod this development because being pro-con tributing one iota to insuring its safety. ing (and right now they do) and they per sumer is almost like being pro-motherhood. The type of direct financial impact ceive little appreciation of their siturution, Nevertheless, we are not convinced. Attach that this uncertainty can cause to the some will be tempted to turn to the unions ing a noble idea to a plan does not always waiting in the wings. insure the nobility of those who support and average businessman is demonstrated by So far, several unions have shown interest implement it. data recently sent to me by a manufac in organizing military pe.rsonnel-but moot What bothers us about many "consumer turer of polyvinyl chloride-PVC-pack recent activities have been aimed at reserv advocates" is that their dislike for business aging for food and drug products who ists. One major Federal employee union sometimes seexns to exceed their concern for employs over 200 people in my district. amended its constitution to permit military consumers. Rarely in their discussions tloes As a direct result of a 1975 FDA pro membership, and is currently conducting a one hear how our market system has served posal-yet to be finalized by the Agency referendum- to determine rank and file sup the public with a rich abundance of goods. to ban PVC packaging for certain food port before an organizing drive is approved. Instead they often give the impression that contact applications based on what I be Still, if there were an attempt to unionize business is a consumer-swindling ogre that the services in the sense most of us under lieve was an erroneous interpretation of must be strictly controlled and regulated. the phrase "may reasonably be expected,,. stand "unionize"; that is-strikes, collec Such an outlook, we fear, would tend to tive bargaining, compulsory consultation guide policy-making at the proposed Con this manufacturer has suffered a loss of rights, etc.,-it could obviously jeopardize sumer Protection Agency. The results would $1,400,000 of business, has only tenuously our basic ability to fight and would under be of dubious value to the American people. maintained another $2,000,000 and has mine the readiness we have been talking been effectively precluded from expand about. If consumer advocates really want to ren There are no easy answers. Too many econ der a service we suggest that they broaden ing into new marl{ets. omists work this problem from a short term their range of indignation. Along with de The number of jobs and amount of perspective and without an understanding of nouncing the sins of business, which cer capital investment riding on FDA's day deeper requirements of military service or tainly exist, they might also look to the to-day interpretation of this key juris the long term implications of their actions. hiring and work practices of labor unions dictional phrase is enormous. Only by The m11itary must move forward with so which increase the cost of living for every establishing an objective standard for ciety, but not in the image or fact of "hired one. hands." defining an indirect additive can stable, They might also want to look at the growth efficient operation of this important seg Our nation's military leaders will continue of government. Were it not for excessive looking out for our people's welfare. We will ment of the food packaging industry be continue working to maintain those aspects public spending consumers would have more restored and the original intent of Con of service that separate the traditional Amer hard-earned money to consume with. Other gress reestablished. ican concept of the citizen-soldier from a matters for their attention are the govern mercenary force. ment agencies and regulations that inhibit In 1958 the minimum detectable quan Let me wrap this up for you. Most change competition. Here again, the effect is higher tity of a substance which migrates into we welcome-one change we hope happens prices. food was generally several parts per mil quickly is reversing the decreasing buying It 1s significant that even leading con lion and it was reasonable for FDA to power trend that has cut into our research sumerist Ralph Nader has commented on act on the basis that safety could be and development and new procurements. this situation. Still his conviction is un equated to detectability; however, state The present budget gives us a hope that it shaken that more government is the solution of-the-art analytical techniques are now is changing. Some changes we don't want to to consumer problexns. capable of detecting concentrations of see-like a change in the quality of our peo ple. This 1s a faith we cannot share. No human substances well below the level at which In a world of change-the Air Force will system will afford perfect protection for con there is any common sense question of stay very much involved-a veteran of tran sumers, but the best hope is an informed safety. FDA's continued reliance on de sition-with a record of doing it smoothly, buyer and e. market system that functions tectability as a shortcut to safety is now and with the support of our society we wm effectively. The creation of a new agency is contrary to public policy; each improve not lose the ability to do our job-preserve just one more step in the wrong direction. ment in the sensitivity of analytical May 6, 1977 EXTENSIONS OF REMARKS 13923 techniques further impugns the validity ment fails to recognize that substances erated. I feel that we have a duty to re of its approach. In addition, the problem which are present at levels high enough store the rule of reason to the regula of defining a food additive is complicated to accomplish a technological objective, tion of indirect food additives. I intend by the fact that FDA's concept of what that is, direct additives, present an al to devote as much time and energy as is constitutes a proper test for nondetect together different risk than substances necessary to assure the passage of this ability is apparently subject to change which only incidentally become compo bill and hope that my colleagues will without notice. What is urgently needed nents of food in miniscule quantities, work with me to put an end to this un are workable criteria by which one can that is, indirect additives. necessary regulation of safe packaging determine how the requirements of the Analytical techniques are already suf materials. act will be applied. ficiently sensitive to confirm that sub For the interest of the Members, the Mr. Speaker, fundamental fairness stances migrate to food from every bill reads as follows: requires an objective standard for manu known packaging material. Although the Be it enacted by the Senate and House facturers of packaging materials to de concentration of these migrants may of Representatives of the United States of termine whether a given packaging be as close to zero as man can determine America in Congress assembled, that section material is a food additive or not; they with very sophisticated analytical tech 201{s) of the Federal Food, Drug and Cos niques, the FDA position would require metic Act, as amended, [21 U.S.C. 321(s)], is cannot be required to chase a moving amended by striking out the period at the target. The strict standard for criminal a ban of the material if a single carcino end thereof and adding as an additional ex liability under the act demands that a genic molecule is found to migrate to clusion from the definition of substances precise, reliable standard be established. food despite the fact that no real risk which are food additives the following: Once the need for such a standard is is associated with use of the substance "; or, (6) any substances used as a com appreciated, it is imperative that it be at extremely low levels and without con ponent of food-contact articles provided it 1s set at a low enough level so that the risk sideration of the relative safety of al not reasonably expected to contribute more to human health presented by these ternative materials. Without an objec than 0.05 parts per million to the contacted tive level of insignificance, scientific food as determined by analysis of the food trace migrants from packaging materials after storage under intended u se conditions, can be safely dismissed as insignificant. progress could require that all packaging or by appropriate extraction studies which As far as I know, the concept of toxi materials be banned for food contact ap properly simulate intended conditions of use cological insignificance was first pro plications since it is probably reason (in terms of time, temperature and type of posed by Dr. John P. Frawley in 1967. able to assume that there is at least one food contacted), or by calculation assuming Since then, with some modifications, the carcinogenic molecule in every packag 100 percent migration: Provided, That the concept has been endorsed by the Food ing material and that eventually it will Secretary may by regulation establish a lower Protection Committee of the Food and be detectable. limit for a substance where a determination 1s made that such action is required to pro Nutrition Board of the National Re The principal feature of the bill which tect the public health." search Council and, for a brief time, by I am proposing is the establishment of FDA. an objective level of insignificance. A I am advised that, at present, with standard of five-hundredths parts per respect to PVC packaging of the type million is proposed as a reasonable basis GAS SHORTAGES PREDICTED manufactured in many of my colleagues' for further consideration and evaluation 17YEARSAGO districts, the residual amount of unre since it is one that FDA's staff pro acted starting material, vinyl chloride, posed-but never followed through on, that might migrate from PVC packaging for what I am told was purely admin HON. BILL ARCHER into food is not detectable with the most istrative inconvenience-as early as advanced analytical procedures at a level 1969; a proviso would permit the Secre OF TEXAS of 1 to 2 parts per billion. Assuming that tary of Health, Education, and Welfare IN THE HOUSE OF REPRESENTATIVES 2 parts per billion of vinyl chloride were to establish exceptions to the presump Friday, May 6, 1977 tive level of toxicological insignificance to get into food from PVC packaging, Mr. ARCHER. Mr. Speaker, for many the risk associated with this level of ultimately adopted. Public health is fully years knowledgeable people in the oil migration should properly be ignored by protected since substances which do pre and gas industry forecast the kind of en FDA. sent a hazard at extremely low levels can ergy problems we are now experiencing. The dietary concentration of vinyl still be subjected to all of the preclear A good friend of mine, Lester Van Pelt, chloride which corresponds to the safe ance requirements of the act above Jr., of Midland, Tex., recently brought level established by FDA--one possible whatever level is sensibly considered tox to my attention some comments made in cancer in a population of one million icologically insignificant for that sub 1960 by John G. Winger, vice president, for animal drug residues is approximate stance. Chase <a href="/tags/Manhattan/" rel="tag">Manhattan</a> Bank, and I believe ly 30 parts per billion. Even if one were The bill also emphasizes that a deter his accurate predictions are well worth to assume the gross exaggeration that 10 mination that a substance is reasonably reading by my colleagues in Congress: percent of the diet might someday be expected to become a component of food [From the Dallas Morning News, Feb. 12, packaged in PVC, the risk of many devel at a level greater than five-hundredths 1960] oping a cancer from PVC packaging is parts per million must be based on in ECONOMIST TELLS INSTITUTE GAS GROWTH roughly 1 in 10 billion. Not even a coun tended conditions of use. The fact that, POSES PERIL try as advanced as ours can afford to given sufficient time and temperature, a "Serious setbacks" are in store for the bother itself with such concerns. Surely, component may ultimately be extracted petroleum indUstry if the expanding natural there are matters more deserving of into some food simulating solvent in ex gas market isn't brought into proper per FDA's attention than such "nonadditive" cess of five-hundredths ppm is irrelevant spective, the Southwestern Legal Founda situations. to the safety of such material under in tion's oil and gas institute was told Thurs In a prepared statement to the Sub tended conditions of use. FDA has selec day. tively chosen to ignore this principle in John G. Winger of New York, vice-presi committee on Health and the Environ dent and petroleum economist for Chase ment of the House Committee on Inter the past; the specific language of this bill Manhattan Bank, declared the price of gas is state and Foreign Commerce presented should assure that the intent of Congress "much too low," and that most of the profits by Sherwin Gardner, Acting Commis is faithfully administered. therefrom are winding up outside the oil in sioner of FDA, on March 21, 1977, FDA Mr. Speaker, I feel very strongly that dustry. stated its position that regardless of the the time has come for a responsible Con "Most of what the consumer pays for gas," insignificance of the risk to man, the gress to come to grips with issues of this the New Yorker said, "goes to non-industry Delaney clause would prohibit the pos kind. For 20 years FDA has demonstrated companies such as the transmission lines and distributers. sible presence of any substance known its inability to deal responsibly with food "This money is taken completely out of oil to cause cancer in animals to be present contact materials that may not reason industry operations, removing revenue for in food. Ignoring the fact that regula- ably be expected to migrate to food. The future exploration. If this trend continues, tions to permit just such a result had incredible overregulation of trace mi the United States could eventually become been published for animal drug residues grants from food packaging materials deficient in oil and gas reserves." less than one month earlier. this state- which has evolved can no longer be tol- Petroleum industry leaders, Winger ob- 13924 EXTENSIONS OF REMARKS May 6, 1977 served, have failed for many years to "under civil servant in the dark when it comes guidelines concerning the employment of stand that g·as is a serious competitor, even to negotiations conducted in his behalf. the handicapped, as required by the Rehab.il more serious than foreign oil." itation Act of 1973. The law prohibLts all The banker suggested removal of wellhead From my experience as a State insurance types of discrimination in employing han price regulation for gas as a solution, but commissioner, I can say unequivocally dicapped persons by requiring employers added he saw little likelihood such happen that private negotiations will more often with Federal contracts of $2,500 or more to ing in the near future. than not work to the disadvantage of the take affirmative action in hi-ring, training, "Eventually, however, action must be consumer and that Federal employees and promoting qualified handicapped people. taken or the oil industry will suffer serious and annuitants will be better served The Rehab111tation Act, judging from its setbacks," Winger declared. "Cheaper gas under an open process. effects in Marshallttown, seems to be a giant power will continue to displace crude until It is simply giving the subscribers who step forward in employing disabled people. the situation gets out of hand." However, when first versions of the regula Winger said Southwest gas prices are low pay hundreds of millions of dollars for tions gave exacting rules, hundreds of in because producers stm consider it a /by-prod this insurance a rightful say in these dustry representatives complained bitterly uct and allocate discovery costs to oil. As plans which so crucially affect their about the amount of extra hours, paperwork, gas displaces oil, the result is lower produc health care. and money needed for compliance with the ing allowa.bles, he added. Members sponsoring this measure with bill. "This is frightening away capital that me are: Mr. BADILLO, Mr. BAUCUS, Mr. Because industries insisted upon develop otherwise would have been put toward de BEDELL, Mr. CLAY, Mr. COHEN, Mr. COR ing their own programs in hiring the handi velopment of additional reserves," Winger capped, the Federal Government has issued stated. "Much of this capital is now going MAN, Mr. JOHN DUNCAN of Tennessee, final regulations which represent a philo abroad." Mr. DoN EDWARDS of California, Mr. sophical shift. These new regulations do not Were it not for this "cheap natural gas," EMERY, Mr. FISHER, Mr. FASCELL, Mrs. demand goals or timetables, nor do they re he noted, crude oil would have taken the KEYS, Mr. LEHMAN, Mr. DONALD MITCHELL quire companies to submit a copy of their markets lost in recent years by coal. of New York, Mr. RINALDO, Mr. RODINO, Affirmative Action Program with the govern Mr. SIMON, Mr. SOLARZ, Mrs. SPELLMAN, ment (a copy of the company's program Mr. STARK, Mr. THOMPSON, and Mr. must be on file in each plant): FEDERAL El.\IPLOYEE HEALTH WmTH. Many groups that act in the interests of SUNSHINE ACT the handicapped favor the Rehab111tation Act in its original form. Mrs. Helen Settle, a member of the Governor's Committee on IOWA'S ABILITY COUNTS WINNER Employment of the Handicapped, claims the HON. NEWTON I. STEERS, JR. committee is not satisfied with the law as OF MARYLAND HON. CHARLES E. GRASSLEY it is. IN THE HOUSE OF REPRESENTATIVES "The Rehab111tation Act is not as effective OF IOWA as we would like it to be," says Mrs. Settle, Friday, May 6, 1977 IN THE HOUSE OF REPRESENTATIVES "because it doesn't mandate specific policies Mr. STEERS. Mr. Speaker, today I Friday, May 6, 1977 and rules as it should. We will be agitating am introducing the Federal Employee in Iowa State Legislature for more teeth in Health Sunshine Act along with 22 co Mr. GRASSLEY. Mr. Speaker, equal the law." opportunity is one of the great promises Even with the present loopholes in the sponsors. I am especially pleased to note law, spokesmen for local agencies that deal that Congresswoman SPELLMAN, chair of the United States to its people. Un fortuna,tely, the promise is not always with the handicapped have very few, if any, man of the House Subcommittee on complaints concerning the total employment Compensation and Employee Benefits kept. In the Thitd District of Iowa, how situation of handicapped people. Harry Lake, which has jurisdiction over this matter ever, a number of businesses have initi a speciali1st from the Marshalltown branch of is sponsoring this measure with me. ated training programs to provide equal the Job Service of Iowa, claims that he finds opportunity to one disadvantaged class, very few employers who wm not do every Six years ago as Maryland State in the handicapped. thing possible to hire qualified handicapped surance commissioner, I opened up to A young man from my district, 17- people. Jack Tompkins, President of United the public previously closed rate-hike Auto Workers Local 893, reports that all of hearings. I took this action well before year-old Todd Ailts of Marshalltown, the eleven major industries the Local 893 "sunshine" laws became the vogue, rec Iowa, won third place in the nationa! serves have "real good attitudes" regarding l()gnizing the senselessness of keeping "Ability Counts" writing contest, for handicapped employment. Government decisionmaking processes describing handicapped hiring, training, My community is one of leaders in assist-, from the very people they are meant to and promotion programs in his home ing the handicapped, not only in employ benefit. town. Todd, the son of Mr. and Mrs. Jack ment, but in helping them solve their day to Ailts, is a student at Marshalltown day problems. The local committee for Em I am dismayed to learn that despite Senior High School. I would like to share ployment of the Handicapped has, since its the enactment of the "Government in !)is prize-winning essay with my col establishment in 1973, changed the city sunshine'' law by this distinguished body leagues: building code so that it now requires all last Congress, the Civil Service Commis buildings constructed for publlc use to be sion is still allowed to negotiate Federal HANDICAPPED PEOPLE AND EMPLOYERS AFFIRM made accessible to handicapped persons. The ATIVE ACTION IN HIRING, TRAINING, AND committee has also established a "sticker employee heath benefit packages with PROMOTING QUALIFIED HANDICAPPED PEOPLE policy" which allows handicapped people to major insurers in secret. As a result of Within the last few years, business and in- park close to local businesses, and, as a re such secrecy, substantial benefit cuts dustry in my community have taken great sult of the committee's action, the city has have been made in the past few years, strides in opening their doors to handicapped formed over 70 ramped curves in the down and I suspect that more will be effected people, who comprise an estimated 18 per town business district enabling handicapped in the near future. cent of the total local population.l Affirm persons, espech.lly those in wheelchairs, to ative Action policies and non-discriminatory shop with much less difficulty. This is why I am introducing legisla regulations are fast <a href="/tags/Becoming_(book)/" rel="tag">becoming</a> corporate pol Marshalltown is setting an excellent ex tion to inject a little "sunshine" into this icies in many of the leading companies in ample for other cities to follow, for both civic closed negotiating process. My bill, an Marshalltown. achievement and public awareness are ex identical version of which was spon Spokesmen for Lennox Industries say that tremely high in my community. Affirmative sored by my predecessor Congressman the company has nothing but total good will Action programs with non-discriminatory Gilbert Gude with many other sponsors feelings toward handicapped people. "If a policies and total good will feeling!'!, such as in the 94th Congress, requires that sub handicapped person is qualified for the job," Fisher Controls and Lennox Industries, re scribers be made aware of the proposed says Doug Brewster, Industrial Relations spectively, are giving handicapped people a Manager from Lennox, "there is no doubt promising future in their quests for normal, benefit reductions and proposed exclu about it; he'll get that job." sions of health providers. In addition, the productive lives. Fisher Controls of Marshalltown, which BmLIOGRAPHY Civil Service Commission would be re employs nearly 2,400 people in Central Iowa, quired to provide a forum for subscrib claims that they are probably the only com Interviews ers to voice their concerns about such pany in Iowa that currently has written Brewer, Jay, Supervisor, Vocational Re hab1Utation Center, Marshalltown, Iowa. changes. This forum would not serve Lake, Harry, Job Placement Specialist, Job as a veto, but merely as a vehicle for 1 A Government Census, taken in 1975, re Service of Iowa, Marshalltown, Iowa. consumer input. vealed that there are 26,506 people living in Hartley, Rhonda, Personnel Representa I see no justification for keeping the Marshalltown, Iowa. tive, Fisher Controls, Marshalltown, Iowa. May 6, 1977 EXTENSIONS OF REMARKS 13925 Settle, Helen, Governor's Committee on ing the minority members of the Budget 3. Do you think that the minimum wage the Employment of the Handicapped, Committee--have a more intellectually should be tied to the cost-of-living? Yes; Marshalltown, Iowa. honest way of providing for a strong, No; Undecided. Brewster, Doug, Industrial Relations Man 4. Would you favor mandatory detention ager, Lennox Industries, Inc., Marshalltown, healthy economy and balanced budget. They would: for those who are charged with committing Iowa. crimes when they are out on bail in con Tompkins, Jack, President of United Auto First. Provide for an across-the-board nection with an earlier crime? Yes; No; Un Workers Local 893, Marshalltown, Iowa. individual tax rate deduction of 10 per decided. Reference cent so that the crippling tax load borne 5. Do you think the U.S. should reduce "Affirmative Action To Employ Handi by our citizens would be lightened. its financial support of the United Nations capped People", The President's Committee Second. Cut the deficit by 20 percent (U.N.)? Yes; No; Undecided. on Employment of the Handicapped, Wash so that the strain on the budget caused 6. Do you approve of the Admlnlstration ington, D.C. 20210. by back-breaking interest payments making Human Rights a primary factor in "Amicus", the National Center for Law would be relieved. u.s. relations with foreign governments? and the Handicapped, South Bend, Indiana Third. Control the growth of the Yes; No; Undecided. 46617. money supply so that inflationary pres "Our Hidden Population, Who? What? Why?", Pennsylvania Governor's Committee sures would be eased. on Employment of the Handicapped, Harris Fourth. Business taxes--so that there COST EFFECTIVENESS AND QUALITY burg, Pennsylvania. would be money left for new jobs. PATIENT CARE: AMENDMENT TO "Congressional Quarterly, 1974," Congres This approach would provide for a H.R.3 sional Quarterly, Inc., Washington, D.C. steady upward growth in the economy 20035. by increasing investment, expanding production, and opening up millions of HON. EDWARD I. KOCH new permanent private sector jobs. By OF NEW YORK NOTALWAYSBETTERTHESECOND limiting the growth of the money supply, IN THE HOUSE OF REPRESENTATIVES T:nv.tE AROUND inflationary pressures would be stabilized in an expanding economy. Friday, May 6, 1977 HON. ROBERT K. DORNAN In conclusion, Mr. Speaker, I must say Mr. KOCH. Mr. Speaker, the existence that I am extremely disappointed and of widespread fraud, waste, and ineffi OF CALIFORNIA discouraged by the actions of the major ciency in the medicaid program is a mat IN THE HOUSE OF REPRESENTATIVES ity on the Budget Committee. ter of public record. H.R. 3, the medi Friday, May 6, 1977 Real growth requires real solutions. care-medicaid antifraud and abuse Mr. DORNAN. Mr. Speaker, about Real solutions will not be found in the amendments, of which I am a cosponsor, sheltered halls of committees and Con will soon be before the House for consid House concurrent resolution 214, the first gress or in pork-barrel programs. They concurrent resolution on the budget. eration. The bill is a giant step toward The profligate spending habits of the will be found only within the framework insuring the financial integrity of the of a market economy. The continued ex medicaid program, but, unfortunately, Democrat members of the Budget Com pansion of the deficit of the Federal mittee were again demonstrated in the relies almost exclusively on expansion of Government, as contained in this reso Federal bureaucracy to protect the pub legislation passed yesterday, May 5. lution, means more economic uncer The second time around, it was still lic treasury from shameless profiteering bad. tainty, increased inflationary pressures, and bumbling administration. Escalating and sustained long-term unemployment. Government involvement in health de The projected spending levels set in I voted against the budget measure, that resolution are based upon the faulty livery must mean more than creating and I respect my colleagues of both new squadrons of medicaid auditors and notion that the Congress can, through parties who did likewise. The American larger Federal deficits, further stimulate reams of new regulations. We must re taxpayers are screaming get off our move from the legislation requirements the economy without fueling inflation. backs, leave the market alone and cut Not only is this approach a discredited that have precluded the effective admin Government spending. Why are we not istration of the billions of dollars that one, but the majority party's adherence listening? to it in this body has proven costly to the have been invested in the medicaid pro American public in terms of reduced pro gram over the past decade. duction, increased unemployment and 1977 LEGISLATIVE QUESTIONNAIRE When H.R. 3 reaches the floor of the higher rates of inflation. House, I will seek to correct one of the Had President Ford's budget proposals legislative provisions that was incor for the past 2 years been accepted by the HON. EDWARD J. PATTEN porated into the medicaid program at. its inception-"freedom of choice." This majority in Congress, we would now be OF NEW JERSEY within grasp of a balanced budget. The provision permits a medicaid recipient actual achievement of that goal might IN THE HOUSE OF REPRESENTATIVES to receive federally reimbursed health have been a reality by fiscal year 1979. Friday, May 6, 1977 care at any time from any number of Instead, the new administration, with Mr. PATTEN. Mr. Speaker, each year providers wishing to participate in the more than ample assistance from the I mail a legislative questionnaire to my medicaid program. The motivation for majority cohort on the Budget Commit constituents, because their views on both the freedom of choice provision was laud tee has decided that it would be "appro domestic and foreign matters are im able: it was designed to prevent the cre priate" for the country to increase def portant to me, as well as to them. ation of a class-based medical care sys icit spending by 12 percent and run up a Four of the questions cover domestic tem in which poor people would be seg deficit of $66.2 billion in fiscal year 1978. issues, and tw<' are related to foreign regated to specific health care providers This course of action-if accepted areas. The six questions follow: while the upper and middle class re would put a balanced budget completely mained free to choose any desired treat 1977 LEGISLATIVE QUESTIONNAIRE ment source. out of reach for the foreseeable future. Congressman Ed Patten Would Like Your In view of this fact, I cannot see how Opinion On These Questions: In practice however, freedom of choice President Carter intends to keep his 1. President Carter's energy plan would in has not had the result intended by the promise to the American public and bal crease the gasoline tax by 5 cents a gallon original legislation. Indeed, quite the op ance the budget by the end of his term a year until 1988 if people do not conserve. posite: in New York City, 63.9 percent of in office. It reminds me of the fat lady Would you be w111ing to cut your use of gaso all medicaid reimbursement payments who promises to lose 20 pounds in be line by about 25% to avoid such a tax In to physicians in the second quarter of tween mouthfuls of chocolate cake. crease? Yes; No; Undecided. 1975 were made to 10 percent of the total Mr. Speaker, there are some clear 2. To help reduce unemployment, do you number of physicians treating medicaid favor the following programs? headed Members of Congress who know Yes; No; Increase public service jobs. patients. Among dentists, 68.3 percent of that one cannot promise a balanced Yes; No; Put people to work on construc the funds went to 10 percent of the prac budget in between mouthfuls of $60 bil tion of public works projects. titioners involved. In clinical laborator lion deficits. Yes; No; Cut individual and business taxes ies, 17 of the 253 clinical laboratories lo Some Members of Congress-includ- to spur the economy. cated in New York City accounted for 13926 EX.TENSIONS OF RE~IARKS May 6, 1977 more than 60 percent of the total medi By contracting with specific pharma eral moneys. But because of the free caid billing. In addition, the require cies, bulk purchasing rates could be used dom of choice requirement, a suit filed in ment has grossly inflated the cost of the as the basis for determining reimburse Federal Court by lab owners successfully medical assistance program. As Gover ment rates, insuring the realization of prevented the implementation of this nor Carey said in his state of the health savings by the Government. Quality cost-saving program. Even the U.S. at address to the New York Legislature: could also be more closely monitored if torney appearing on behalf of HEW ad Freedom of choice has not guaran t eed to a fixed number of pharmacies were pro mitted that freedom of choice did not Medicaid recipients equal access to our finest viding services. meaningfully exist in the provision of health providers, what it has done has been My final example of an area where lab services. to guarantee that all providers, even those freedom of choice presently encourages A 2-year pilot in one borough of the who are incompetent or inefficient, have equal excess cost and inferior service is that city was authorized by the court, but has access to Medicaid dollars. of clinical laboratory service. The prin not been implemented. Instead, the city In order to insure that cost-effective ciple here is even more meaningless than department of health cut the fees for quality care is offered to all medicaid in the provision of primary care. Dr. clinical laboratory services by 50 to 60 patients, I will offer an amendment to Martin Paris, associate commissioner percent, demonstrating the inflated level H.R. 3 that will permit the Secretary of and director of the Bureau of Health of the reimbursement schedules. The the Department of Health, Education, Care Services of the New York City De saving achieved by the lower reimburse and Welfare to waive the freedom-of partment of Health, recently stated in ment schedules, estimated at $3.75 mil choice requirement if a State can demon testimony before the Subcommittee on lion annually is welcome. Unfortunately, strate that it can offer health services Health and the Environment of the the savings will be achieved at the risk through an alternative method which is House Interstate and Foreign Commerce of lowered quality. The lower rates will cost effective and of the same quality. Committee that patients never choose encourage smaller labs, whose tech Let me share with you some of the sug the clinical lab at which their tests are nology does not permit the efficiency gested alternatives. done, and that, in fact, a patient has no needed to provide service at low rates, A recent proposal outlined by Richard basis on which to make such a choice. to cut costs by cutting corners, at the W. Nathan and James Po.3ner, consult Dr. Paris aptly likened a patient's free expense of the medicaid patient. ants to the New York City comptroller dom of choice of a clinicallaQ to permit In conclusion, Mr. Speaker, because of on health care issues, would require that ting the patient to choose his physician's the failure to employ good business prac medicaid patients select a licensed pri stethoscope model. tices, the cost of medicaid is like a mill mary care physician in their borough of Yet, freedom of choice is enforced in stone around our necks. We must use residence. The patient would be entitled this area, preventing an attempt last year Federal dollars to restructure our health to change the name of the selected doc by the New York City Department of care system. The enormous leverage of tor, but while enrolled with a particular Health to implement a cost-saving qual public funds can actively prod our health physician, whose name would be recorded ity enhancing program of centralized care providers to deliver efficient and in on the medicaid card, reimbursement for clinical lab services. novative care. As the Medicaid Task primary care would only be made to that In 1975, the New York City Depart Force of the National Governor's Con doctor. ment of Health initiated a program to ference chaired by Governor Busbee rec The chosen physician would provide reduce its $12 million annual payments ommended: all primary care and would be responsi to independent clinical labs, by letting States must be allowed in certain cases to ble for referring patients to secondary out a contract for lab services to one determine which health service providers a care sources as needed. Women could laboratory in each borough, selected on recipient may use, if the same quality care choose a gynecologist and families with the basis of competitive bidding. The $12 can be purchased at a lower cost . children could choose a pediatrician. Re million figure represents only a part of all My amendment will give the States imbursement for emergency care would medicaid lab costs-it does not include the flexibility they need to reduce costs always be made to any provider. services performed by hospital outpatient while at the same time insuring adequate This modification of the freedom-of departments, emergency rooms, or free Federal monitoring to guarantee quality choice provision would help eliminate standing clinics, nor the free services of care. It is incredible that the States want "doctor shopping," "ping ponging," and the New York City Department of Lab to control prices and they are prevented the use of more expensive hospital facili oratories. The contract price was to be from doing so by a Federal law. ties for nonemergency care while at the set at the lowest of either fixed annual I append the text of my amendment: same time insuring that quality care is cost or a per test price, multiplied by the A bill to amend title XIX of the Social Secu being offered to medicaid recipients. One number of tests actually performed. All rity Act to permit the Secretary of Health, physician would be familiar with and the tests were to be charged at the same Education, and Welfare to waive the free responsible for a patient's care, encour unit price eliminating the impetus to dom of choice requirement of a State aging a greater continuity of care and the order more complex procedures. The an medicaid plan development of a more stable relation nual price ceiling would also discourage Be it enacted by the Senate and House of ship between doctor and patient. The the performance of unnecessary tests. Representatives of the United States of estimated annual savings to the New The terms of the contract required the · America in Congress assembled, That (a) York City medical assistance program in five participating labs to meet stand section 1902 (a) of the Social Security Act ards far higher than present neigh (42 U.S.C. 1396a(a)) is amended by adding this area of primary care alone is $37 inost at the end thereof the following paragraph: million. borhood labs meet; to maintain patient "The Secretary may waive the requirement Prescription drug provision is an profiles to be provided to physicians by of paragraph (23) if he determines that the other facet of medical treatment where telephone; to keep records by physician State plan provides for a method of making freedom of choice is unnecessary and of test ordered, and to participate in a medical assistance available to eligible in costly. One alternative to the present blind specimen quality control program dividuals which is cost effective and which system of permitting patients to go to stricter than any in operation in the is of the same or better quality in comparison the pharmacy of their choice would be to United States. with the method under such paragraph.". contract with a set number of pharma The bids on the contract were extraor cies in each postal zone to fill prescrip dinary, coming in at a maximum of $5.7 tions for medicaid patients. This modifi million for services which under the free JUSTICE FOR THE HANDICAPPED cation would permit the contracting dom of choice system were costing the AMERICANS pharmacies to purchase drugs at bulk city $12 million annually. Furthermore, rates. The difference between wholesale the contract was to be renewable at the and bulk purchases is significant. For city's option for 2 additional years at the HON. JOHN BRADEMAS example, for 100 tabs of 500 milligrams same price, preventing for 3 years a con OF INDIANA of Ampicillin there is a difference be tinuation of what had been an annual IN THE HOUSE OF REPRESENTATIVES tween the wholesale and bulk rates of 31 percent increase in cost. Dr. Paris esti Friday, May 6, 1977 90.4 percent. Price differences on other mated that the savings over a 3-year standard drugs range from 13 to 305 contract period would be $30 million, 50 Mr. BRADEMAS. Mr. Speaker, the percent. percent of which would have been Fed- promise of equality of opportunity for May 6, 1977 EXTENSIONS OF REMARKS 13927 handicapped people has been long regulations unnecessary. They are an attempt colors will be done by the Our Boys overdue, but with the signing last week by the central government to improve soci Post No. 4684 VFW. of regulations to implement section 504 ety's treatment of the handicapped in face During the testimonial Mr. Johnny to-face situaltions, and to manage this im Hyzny will present Stan Lee with the of the Rehabilitation Act of 1973, the provement by codifying standards of be first major Federal law guaranteeing the havior that are better than prevailing stand 1977 Mr. Personality Award. Every year civil rights of disabled individuals has ards. the award is presented to someone who been put into action. A new era of oppor Modern government has extended the citi has been active and popular in the polka tunity has begun for millions of handi zen's claims of entitlement, and now the field for at least 25 years. Mr. Johnny capped Americans, for section 504 in handicapped are moving toward full citizen Hyzny is the founder of the Personality ship. This has been a long time in coming Award and a popular Polka Deejay on sures the rights of disabled people to lead because the handicapped are a varied and productive, useful lives. Chicago's WTAQ radio. The great "Joe often invisible minority, invisible in pa.rt be Pat" Paterek and his International As chairman of the Subcommittee on cause of dlscrimination. This discrimina.tion Select Education, with responsibility for often involves a natural human failure of Stars Orchestra will perform at the tes section 504 and for Public Law 94-142, "ixnaginative sympathy," a failure by the timonial and the entire affair will be the Education for All Handicapped Chil majority to ixnagine how life looks to persons broadcast live over radio WTAQ. dren Act of 1975, guaranteeing the rights less fortunate. Stan and his impressive band have of handicapped children to an education, I collect comical examples of such failure. been heard on local radio stations I have been privileged to participate in In the 1920's a Bea.con Hill dowager, told that throughout the Chicago area-WLEY, many Boston homes lacked indoor plumbing, WHEZ, WHFC, WGES, WOPA, and the formulation of this legislation that exclaimed: "You would think the people who can help fulfill our country's promise to WTAQ-and the band appeared fre live in them would have found out before quently on the Ron Terry TV Show, its disabled citizens. moving in!" In the 19308 an industrialist WGN-TV, the Zenon Kwaitkowski tele I am pleased at this point, Mr. Speaker, declared that it didn't pay to run ra.dio ad to insert in the RECORD a thoughtful ar vertising on Sunda.y because "everybody is vised polka party, WCIU-TV, and on ticle by George F. Will on the section 504 playing polo." Gov. Nelson Rockefeller told WGR-TV West Buffalo, N.Y. regulations which appeared today in the an audience that the tax burden falls "on Stan Lee and his orchestra also record for the Chicago Record Co. and Melodia Washington Post: the average person like you and me." Charles Reich, a Yale professor trendy in the 1960s Records. His recording of "Oj Dig A Dig" [From <a href="/tags/The_Washington_Post/" rel="tag">the Washington Post</a>, May 5, 1977] (he wrote "The Greening of America"), said was one of the first recordings to bring SYMPATHETIC JUSTICE he had attended prep school, an Ivy League him recognition in the polka field. Bill (By George F. Will) college and law school, "like everyone else." board magazine gave a four-star rating Handicapped persons are acquainted with But failure of "imaginative sympathy" by to his rendition of "Happy Birthday goverrunent is common, and not comical. disappointment, and they have experienced Polka," and most popular with those in much of it since 1973, when Congress grandly A society deficient in "imaginative sym pathy" surrounds the crippled with thought dividuals and polka groups who follow declared that "no otherwise qualified handi Stan Lee regularly are his three "Sing capped individual ... shall solely by reason lessly designed facllities that provide no con of his handicap" suffer discrimination under venient access for wheelchairs, facilities tha.t Along With Stan" albums. any program or activity receiving federal fi shout society's indifference. A society defi Stan resides on the South Side of Chi nancial assistance. In this heavily subsidized cient in "imaginative sympathy" consigns the cago with his wife Irene <Majewski) and society, that can have a broad reach. retarded to "education" programs thrut rein and his three lovely children, Barbara, But such broad sweeps of sentiment are force rather than ameliorate the cruel ca Loretta, and Stanley Steven. Stan was law only in a hollow, technical sense. They priciousness of nature, and express through born in Chicago to Joseph and Stephanie require the executive branch to make regula exclusions from basic rights the barbarous thought that weakness is akin to crime in the Lyskawa. tions that "make" the law. His years of education were all The Department of Health, Education and kingdom of the strong. Welfare, which is not reluctant to write reg The new regulations announce the begin achieved in Chicago starting with St. ulations, wrestled with the task of giving ning of a costly but welcome era. Nothing the John of God School and later on to at substance to Congress sentiments. Re Carter administration will do in the next tend Kelly High School. cently, after more than three years, it pro three years will touch so many lives that are Stan recalls that his musical interest duced 48 dense pages of rules, plus 106 pages ready for a touch of justice. started at 9 when he received a one-row of related documents. button accordion for Christmas. He re With feigned precision, HEW guesses that MR. PERSONALITY OF 1977 ceived no formal music instruction but the new requirements will cost society (es learned to play songs by ear. pecially sohool systems) $2.4 billion. Actu ally, no one knows even how xnany people While attending Kelly High School, he (it's probably more than 40 million) are HON. JOHN G. FARY made the decision that changed his life, "handicapped" in the sense of having "a phy OF n.LINOIS and the lives of thousands of his fans sical or mental impairment that substan IN THE HOUSE OF REPRESENTATIVES he decided that the drums were meant tially limits one or more major life activi for him. He then began drumming under ties." But the significance of the regulations Friday, May 6, 1977 the direction of Capt. Frank Borger, for is that now the nation must stop rationing Mr. FARY. Mr. Speaker, I would like ::ner bandmaster of Kelly High School. citizenship, must stop allocating to the han to pay a special tribute to a talented and Later he studied under AI Vaitis <AI dicapped only as much as is convenient. Carter) ; then with Barret Deems The regulations require elimination of skilled musician, Stan Lee <Wesoly Stas) physioa.l barriers to the handicapped wher Lyskawa of Chicago. Stan Lee, as he likes world's faste::;t drummer; and finally ever federal funding is involved. And they to be called, has the rare ability to use with Ma.x Mariash, the popular staff stipulate that handicapped children, regard his musical skills and combine them with radio-TV drummer with the Art Van less of the nature or severity of the handi his special flair of humor that has lifted Damme Quintet. cap, are enti.tled to free public education his audiences into merriment since he Stan then began on the long road to appropriate to their needs. first began performing. fame, playing in lounges, at weddings, Public education has been the distinctive In attaining great success as a musi and at dances. He then moved up to American right. The extension of it, espe cian, bandleader, composer, vocalist, re rathskellers and fine ballrooms playing cially to the mentally handicapped, will gen erate legitimate controversy. Imagine, for cording artist, and comic, it is easy to with various popular groups in Chicago. example, the agonizing judgments required understand why Chicago is recognizing Finally he organized his own band and by the rule that the ha.ndicapped must be Stan as "Mr. Personality of 1977 ." began attracting large crowds with his educated with the non-handicapped in reg On Mother's Day he will be honored jovial and humorous brand of entertain ular classrooms "to the maximum extent ap with a testimonial dinner and dance at ment and musical skill-it has been that propriate." the Personality Lodge. The Most Rev way ever since. The new rules require an endless exercise erend L. Abramowicz, auxiliary bishop Beyond his exceptional musical talent of sensitive discretion by public officials, es of Chicago and pastor of Five Holy Mar Stan has always had one attribute that pecially at the local level. In this regard, tyrs Church will give the invocation. Rev. has set him apart from other musicians they demonstrate the difficulty of much of Walter Szczytula, chaplain of the Inter what modern government does. and endeared him to his fans-his jovial To be fully effective, the new HEW regu national Polka Association and associate personality. Chicago now recognizes Stan lations really require a degree of social pastor of St. Florians Church will be officially as "Mr. Personality"-a title sensitivity that, if it existed, would make the master of ceremonies. The posting of well placed. 13928 EXTENSIONS OF REMARKS May 6, 1977 POSTAL REORGANIZATION ACT must have more money in order to do a THE NATIONAL ENERGY PROBLEM AMENDMENTS OF 1977 proper job, and that job must be one of sumcient service to the peopLe. This ought to be a Government service to the people HON. ANDREW JACOBS, JR. HON. JOHN BUCHANAN like other public services, and substan OF INDIANA OF ALABAMA tially funded from the general Treasury IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES rather than totally funded through post al rates. Friday, May 6, 1977 Friday, May 6, 1977 I am therefore joining my colleague, Mr. BUCHANAN. Mr. Speaker, prob Congressman WILSON of California, in Mr. JACOBS. Mr. Speaker, one of my lems of the U.S. Postal Service have sponsoring legislation which would pro constituents has written with precision increased greatly since its inception in vide substantive reform of the Postal on the subject of American energy. I 1970, and the public and the Congress Service, return a degree of accountability believe our colleagues ought to peruse have seen the necessity of correcting for decisions a1Iecting it to the President his views. The statement follows: them. My experiences over the years have and the Congress, and which would man RECOMMENDED GOVERNMENT ACTION REGARD made me very aware of this need, if the date a 6-day delivery of mail by the Pos ING THE NATIONAL ENERGY PROBLEM 'American people are to attain the quality tal Service. I urge my colleagues to join (By Robert P. Atkinson, P.E.) of postal service they need and deserve. me in support of this legislation which Our present energy problem is no doubt Last year, the Congress enacted legis would insure the continuance of the serv one of the most critical confronting the lation which was originally designed ices now provided to the people by the United States today. It has a major in to fluence on so many other major national correct some of these deficiencies. How Postal Service. issues, such as, our nationaJ. defense, our ever, the final version of it, in my judg unemployment • rate, lnfiation and our ment, accomplished very little in the way BUREAUCRATIC GROWTH standard of living. of substantive reform within the Postal The Federal Government must take im Service. Its main objective was twofold CONTINUES mediate action to direct our efforts to con to give the Postal Service an additional serve fossil fuels and to expand develop $1 billion subsidy and to establish the HON. BILL ARCHER ment programs on other new energy sources, or we will suffer severe conse Commission on Postal Service. This Com OF TEXAS mission was to study the Postal Service quences. This corrective action may require and make recommendations on how it IN THE HOUSE OF REPRESENTATIVES individual sacrifices in addition to those Friday, May 6, 1977 penalties experienced this past heating could be improved. season and during the oil embargo. These On April 18 of this year, the Commis Mr. ARCHER. Mr. Speaker, the Hous unfortunate situations are due to our past sion's report was sent to the Congress ton Chronicle very wisely pointed out mistakes and delays. and to President Carter. In it, the Com the continual growth of the Federal bu The direction of our efforts should fol mission indicates that according to its reaucracy and the danger of adding an low these guide lines. studies, the public would rather have de other level to it. I thought aU of my 1. Price increases. While this sounds dis livery of mail only 5 days a week rather colleagues would benefit by rea.ding this tasteful both politically and economically, it than 6 days, in order to keep down rate editorial: is fortunate that a conservation program wtll reduce our fuel needs and will, in increases. BUREAUCRACY STn.L AHEAD Since the creation of the Postal Serv whole or in part, compensate for increases During the presidential campaign and af in home heating and automotive fuel ice, complaints by postal patrons coming terward, Jimmy Carter frequently talked of into my office have increased tremen rates. how he would streamline the federal bu 2. Oil industry. Encourage industry to dously. Presently, they are about this reaucracy. increase oil recovery from old wells and to very suggestion of the Commission to re "We must give top priority to a drastic search for new wells in the more difficult duce the number of days of delivery. and thorough revision and reorganization of areas by providing additional profit incen The repercussions for such action the federal bureaucracy," he told the Demo tives because of the increased risks and would be extensive. Not only would peo cratic platform committee !ast year. the need for development of new tech After taking office, Carter ordered the nologies. ple at home be inconvenienced by delayed White House staff cut by 30 percent from delivery, but many businesses, which de the Ford days as a starter. He also asked 3. Gasoline tax. Increase the consumer pend on Saturday deliveries in order to Congress for-and this week was granted tax of automobile fuels on a prescribed continue their work and enhance their authority to reorganize the bureaucracy to schedule, such as 10 cents per gallon to profits, would suffer. Also, it is estimated "make government more responsive, efficient be added each year for the next five years. that approximately 23,000 jobs within and open." The consumer can then plan his next car the Postal Service would be lost as a re But developments in Washington indicate purchase in line with needs and capablllties. sult. Carter is having as tough a time as his pred 4. Public transportation. Use part of the ecessors with that tenacious creature, the gas tax to develop public transportation, es While the Postal Service was created federal bureaucracy. pecially in the larger cities. This will result as an independent agency in 1970, it is The Carter White House staff, tt turns out, in the added benefit of reduced air pollu not economically independent and never is now about 30 percent larger than the tion. will be. Nor, in my judgment, should it be. Ford White House entourage, and Carter is 5. Decontrol of natural gas prices. This Financial support for the Postal Service almlng at a 10 to 12 percent overall cutback should be done on a progressive basis over has continued to come from the Congress rather than the original 30 percent. a period of three to five years so that the over the years and thus from the people And just about the time the reorganiza consumer can make changes in existing whom the Service is mandated to serve. tion blll was completing its journey into homes to conserve fuel which will compen law, Carter was asking Congress to create an sate for increased fuel rates. New construc Since this is the case, I believe that the other independent agency that would stlll tion should immediately incorporate fuel people are entitled to adequate and neces further bloat the bureaucracy. saving changes. The government must pro sary service from it. The President, in endorsing the creation vide technical help to show how heat losses In the past, the problem has not been of an Agency for Consumer Advocacy, said can be reduced in eXisting homes, and in the fact of participation of the Govern the agency would not be "another regulatory some cases provide financial help in the ment in the Postal Service, but that Con agency" but instead would "improve the 'Vay form of low interest loans. The consumer gress would not appropriate adequate rules, regulations and decisions are made can recover his expense from fuel savings funds for modernization, improvements and carried out." and repay such loans over a ten to twelve No matter, the agency stlll would add year period. to facllities, or for proper handling of another echelon of government bureaucracy mail; nor would Congress agree to an 6. Solar energy. Provide technical informa that could, in the long run, hurt the con tion, develop new technologies and provide increase in rates to make these changes sumer as much as it helps. Im'lgine one possible. This shortage of necessary funds agency attempting to fulfill the i:>road in financial incentives to both manufacturers crippled the Post O:tnce Department and junction of represeL.tine; the best interests and consumers to incorporate solar heat of all American consumers. ing equipment in homes. caused it to lag far behind the times. · The way things are P"Oing now J.n Wash 7. The 1970 Clean Air Act. This act was lll Thus, while I am certainly not sympa ington, it appea:rs the bureaucracy will man conceived and most untimely, based on the thetic with politices and actions of the age to stay a few steps ahead in the numbers emotions prevailing at that time. True, we present Postal Service, I do feel that it game. need to reduce pollution but this was a sui- May 6, 1977 EXTENSIONS OF REMARKS 13929 cida.l approach to the problem. The solution trict, the avenue to governmental service. Walter Freeman of Gadsden, Ala.., said he 1s not so simple as to "legislate it". This act He knows it all when it comes to govern liked his work and was looking forward to has had the direct result of accelerating our ment, and I speak of every level. qualifying for a. job as a heavy-equipment energy shortage, our infia.tion and our un driver. employment problems due to resulting price He was the sheriff of Union County Clements, a native of Morganfield who now increases for many products. Immediate the high sheriff they used to say-and is head o! the Tobacco Institute in Washing changes must be made such as the following: he was the clerk of the county, and he ton, encouraged Freeman and many others, No power to be generated with natural was the judge of the county. He went to as he went from group to group, to "do your gas, and convert to coal, at government ex the State senate, and became majority very best to learn this job. Once you learn pense, all power generating equipment that leader, all before he came to the House it, you'll have no trouble getting a good job is now using natural gas as a result of the as a prelude to his service as Governor. when you graduate." passage of this 1970 Act. His hallmark was progressiveness, and Clifford Alston, a graduate of the center in Finance a. crash program to develop new 1973 and now a. teacher at the project, technologies !or the use of high-sulphur coal he left every office he ever got elected to stopped the big earth-mover he was on to without excess air pollution. with his record enhanced by a string of meet Clements. Augment the programs to develop public achievements. Presidents, as well as Clements also saw a. football field bunt by transportation in certain critical large cities young students of the art of politics and the trainees, and he visited the spot where and encourage the in-city use of small cars Government, have continued to come to they'll soon start to dig a large lake to be to reduce pollution. him for counsel, and sometimes for con filled with rain water from runoff. Of future automobile production, incor solation. He also saw trainees, closely supervised by porate only the optimum anti-pollution de Mr. Speaker, I make these remarks teachers, clearing trees !rom the peaks of high spoil banks in preparation for leveling vices and systems which will result in not about Earle Clements because just last more than a 10% loss in gasoline mileage, as the land. compared to a state-of-the-art engine design month, at the age of 80, he visited the The project was started in 1972. The gov having optimum fuel economy. Breckenridge Job Corps station in Muhl ernment spent $550,000 to construct the 8. Atomic power. Exert a major effort to enberg County, to see Job Corps members shells of barracks, a. dining hall, gymnasium, develop power generating equipment of the being trained in strip mine reclamation, administrative center and other buildings. nuclear and breeder-reactor types and de and he made some interesting comments The students, learning construction skills, velop necessary safe-guards from waste ma in an interview there with the Louisville have completed the buildings. About 150 terials and "nuclear blackmail" and any Courier-Journal. I think these com trainees have completed the program as heavy-machine operators or mechanics. other associated problems. It requires at ments have value, and I am inserting least 20 years to build effective systems of "We have a mtllion dollars worth of equip them in the RECORD: ment, but have not bought a dime's worth,'' this type, so we must move promptly to meet Ex-GOVERNOR TOURS JOB CORPS PROJECT future needs. If we do not-other countries said Jim Smith, director of Satellite Center, will. (By Bill Powell) the formal name of the satemte program. GREENVILLE, KY.-Earle C. Clements said All of the equipment is government sur 9. Conclusion. The availability of adequate plus. Much of it has come to the center as energy is so critical to all aspects of the he wished every member of Congress and "every person who makes decisions in the junk; trainees restore worn-out machines future well-being of these United States that to what Smith say is "first-class shape." this program must be given the attention executive branch of government" would do The Job Corps members started reclaim that we gave to the "moon shot" program what he did yesterday. ing 260 acres bought by the state at a. token even approaching that of our defense effort The SO-year-old former Kentucky governor price from a coal company, which was not during World War II. We must be extremely and United States senator visited about 170 responsible for any orphan banks. The state cautious of those that would put the envi Job Corps members who are reclaiming old has bought 305 acres adjoining the first ronmental problems ahead of our energy strip-mine "orphan banks" in Muhlenberg tract, and the trainees now are working problems. The "environmentalist" movement County while learning to operate heavy there. is a. good place for a subversive group to equipment. The state will fert1lize and seed the land "hide". The FBI must know the constituents "If they would come down here, and see after it is properly prepared. The state is of such groups so as to know who they really and hear what I have, I don't think there considering using the land for a park, wild are. The well-being of our country involves would be any doubt but what they'd expand life refuge, farmland "or something on that much more than our environment and no every Job Corps center in the nation that order," according to Gerald Oettle, director decision sho~d be made on that basis alone. has a good record," Clements said. o! Breckenridge Job Corps Center. He also said, in a luncheon speech during For Clements, the day was a. homecoming. his visit, that Breckenridge Job Corps Center Although he maintains a. legal residence in in Morganfield, which operates the reclama Morganfield, he lives in Washington. EARLE C. CLEMENTS tion-training center as a. satellite program, is Clements served as county clerk, sheriff better managed than it ever has been. and judge-and also was volunteer football "It is beautifully run (by the Singer Co. of coach at Morganfield-before entering state New York). It is the only kind of thing that and national politics. He was elected state HON. CARL D. PERKINS needs to be done (to provide jobs) in a senator, congressman, governor and U.S. OF KENTUCKY country that has too many people unem senator, before he suffered his only loss in ployed," he said. IN THE HOUSE OF REPRESENTATIVES 10 political races. That was for re-election to The Job Corps program, established in the Senate in 1956. Friday, May 6. 1977 1965, has faced many crises because of mixed Yesterday, he spoke of the "old days." i!eelings about it in the Nixon White House "Why, when I started in public omce, we Mr. PERKINS. Mr. Speaker, some of and in Congress. President Carter said in had never heard of strip mining around the Members of the House who have March that he advocated doubling the size here," he said. served a few terms probably know Earle of the program. He said "it is good to see these young men C. Clements of Morganfield, Ky., and I However, Clements said Congress and doing something for public land, but better am sure he is known in the Senate also. others have to be sold on it. to see them learning a trade." He served in the House from January 3, "I like what I have seen here. I like what He said that he saw no way of using such 1945, until he resigned on January 6, I've heard. I am impressed, and I believe all a program on private land, but that perhaps the critics would be too, if they saw what is spoil banks can be eliminated some other 1948, to become Governor of Kentucky. way. Kentucky has thousands of acres of During his term as Governor he won happening here and at the main center," he said. the orphan banks lying useless, covered with election to the Senate to fill Alben Bark shale and meager growth. ley's seat. Clements, wearing a dark business suit and Clements said he could think of no better using a. light cane, walked over parts of the But to Kentucky political life, those way than the Job Corps to "take young men raw, rough earth where the corpsmen are o1f the streets, young women from places bare-bone statistics about a little bit of erasing the old mining scars made before they ought not to be, and teach them a Earle Clements• life do not begin to tell Kentucky's strip-m.ine reclamation laws were skill. It will restore their dignity." the story. By just about anybody's ac passed. He said "people in Washington say Breck counting, Earle Clements is Kentucky's Some trainees, who were building an air enridge Job Corps Center is the best one in superb political figure-a teacher to strip for the state where ugly, shale-covered the nation. (It is the largest.) Well they're thousands of the practices of progressive banks and acid lakes used to be, stopped their saying that, I'm not. But I can tell you that Government and practical politics. huge earth-moving machines to talk with lf it isn't the best, lt 1s damned close to it." Clements. David Lynn, 17, of Florida said He said many people-he singled out Rep. Mr. Speaker, he showed a lot of people, with a big grin that he already had qualified <a href="/tags/Carl_Perkins/" rel="tag">Carl Perkins</a>, D-7th District-had done a lot not excluding this Member from the to graduate from the center and would leave to keep the Breckenridge center alive. In Seventh Kentucky Congressional Dis- next week. 1973, the center faced a reduction to about 13930 EXTENSIONS OF REMARKS May 6, 1977 </p><p>1,000 students, and uncertain financing. But so on, through, maybe, another half-dozen STATEMENT BY HON. L. H. FOUNTAIN the enrollment of more than 2,000 was re stages, until at last someone is found who I am pleased to present H.R. 6810, the clean stored in July 1973, and financing was made is in urgent need of copper wire. This un bill approved by the Intergovernmental Re secure through this year. official supply system requires a good work lations and Human Resources Subcommittee As of yesterday, the center had an enroll ing "capital" of surplus equipment or ma for the purpose of amending and extending ment of 2,432. All students are from disad terials. Over-ordering, already necessary to Title II of the Public Works Employment vantaged families. ensure a sufficiency for one's own experi Act of 1976. Clements said he hoped the Carter ad ment, becomes escalated to provide this ex I think it very important that we under ministration and Congress, on the basis of pendable reserve. The strain upon the offi stand the origin and nature of this program. such a record, would continue the Job Corps cial supply system increases, and it becomes Title II came before the House in a Confer program on a larger scale "regardless of increasingly difficult to obtain necessary ence Report last year as a Senate Floor what they call it." supplies through official channels. Inevitably, amendment to the House-passed public "Welfare may be a way of life with some a certain equilibrium is reached, with shifts people," he said. "But the more welfare you works employment bill. No House hearings from time to time towards the official or to were held on this measure which authorized have the less dignity you have in m an or wards the unofficial network. woman. People are proud when they make $1.25 billion of temporary, emergency assist There is always, however, considerable ance for the purpose of helping State and their own way.... I have seen a lot of pride bureaucratic delay with the official requisi here today." local governments impacted by the recession tion procedure, while, on the other hand, to maintain their basic services. Title II was the unofficial system, although often accepted by the House as a 15-month pro quicker, st111 may suffer hold-ups while one gram because our Conferees insisted that the or two important linkages in the chain are public works bill could not be enacted with A COMMENT ON SOVIET SCIENCE completed. Either way, experiments are held out this concession to the Senate. POLICY FROM "SCIENCE & GOV up, plans fall behind schedule, and the inno As part of his economic stimulus package, ERNMENT REPORT INTERNA vations required for expanding the economy President Carter recommended extending the TIONAL ALMANAC-1977" may not be ready on time. Whether the Title II program beyond its present expira difficulty is inherent in the system of state tion date of September 30, 1977, with sub planning, or whether it is simply a matter stantially increased funding. of administrative inefficiency, it seems clear The Intergovernmental Relations and Hu HON. JOHN BRADEMAS that difficulty with supplies is one of the man Resources Subcommittee has m ade an OF INDIANA greatest problems which besets Soviet ex in-depth study of the Title II program, as perimental science. It is also clear that with IN THE HOUSE OF REPRESENTATIVES well as of the problems that prompted the out the unofficial supply network, the situa proposal of this type of assistance. Compre Friday, May 6, 1977 tion would be considerably worse. hensive hearings were held during March to obtain the essential information required for Mr. BRADEMAS. Mr. Speaker, one of evaluating the Title II program and for de the most frequent complaints voiced by signing an improved economic stimulus American scientists is that a prolifera FOUNTAIN SUBCOMMITTEE CLEAN measure. tion of bureaucratic regulations is im BILL TO AMEND AND EXTEND THE These hearings supplemented the very ex peding the conduct of their research. COUNTERCYCLICAL ASSISTANCE tensive and detailed hearings previously held The extent of the problem is difficult to PROGRAM by the subcommittee on the subject of fiscal assess. But for the purpose of recogniz relations in the American federal syst em. In ing that it is at least a potentially seri addition, the subcommittee staff, in coopera tion with the minority staff, has worked ous one, I think it is useful to consider HON. L. H. FOUNTAIN closely over the past several months with the the example of what is undoubtedly the OF NORTH CAROLINA most knowledgeable experts in both t he Ex most overbureaucratized scientific sys IN THE HOUSE OF REPRESENTATIVES ecutive Branch and the GAO in the design of tem in the world, that of the Soviet appropriate and equitable formulas for eco Union, which subjects its scientists to a Friday, May 6, 1977 nomic stimulus and antirecession assistance rigid and highly centralizing planning Mr. FOUNTAIN. Mr. Speaker, I am purposes. The bill before t he Committee system. including in the RECORD, for the infor today represents a carefully thought -out ap A penetrating insight into the burdens mation of my colleagues, the statement proach for dealing with these m at t ers. that the Soviet system creates is to be Before explaining the subcommittee's clean I made yesterday at the markup of H.R. bill, I want to take a few minutes to correct found in a newly published and highly 6810 by the Committee on Government some myths, or misrepresentat ions, that have valuable booklength study of the science Operations. H.R. 6810 is the clean bill been circulated about the present Title II policies of over 30 nations: "Science & reported by the Intergovernmental Rela program. Government Report International Alma tions and Human Resources Subcommit First, Title II is not an antirecession or nac-1977," published by Science & Gov tee, which I chair, for the purpose of countercyclical program. This legislat ion was ernment Report, of Washington, D:C. amending and extending title II of the enacted more than two years after the 1974- The article on the Soviet Union, from Public Works Employment Act of 1976. 75 recession had ended. While it is true that which the following excerpt is taken, was this last recession-the most severe one since My statement points out why the pres the Great Depression-may have produced written by Vera Rich, a noted English ent title II program is a failure, and how more lasting effects in certain communities, authority on Soviet scientific affairs: the subcommittee bill would provide a the fact is that the financial accounts of SOVIET SCIENCE POLICY much more effective a.nd equitable alter State and local governments as a whole had Since science forms part of the State Plan, native. returned solidly into the black by the fourt h all requisitions for equipment are subject I regret to say that the committee ap quarter of 1976, with a surplus estimated at to bureaucratic procedures. All requisitions $5.8 billion (excluding social insurance ac must, in theory, be made through official proved, by a very close vote, to extend counts) at an annual rate. The primary fac channels at the start of a given project, so the present program, with a higher level tor responsible for this turnabout, according that proper authorization is obtained before of funding, through fiscal year 1978. The to testimony at our hearings, has been growth work begins. Since it is clearly impossible to committee did not face up to the demon in the State and local sector's own revenue know how much, say, copper wire will be re strated need for reforming the title II sources in response to the economy's recovery. quired, the scientist will over-order. Half-way program now to prevent the further The economists who testified before the through his experiment, he finds that he waste of money and the grossly unfair subcommittee were unanimous in emphasiz has a sudden need for, maybe, platinum foil. treatment of thousands of local and ing the unfortunate tendency to confuse the Rather than fill out complicated forms, ex secular or long-term decline of certain com plaining why he needs this material, and State governments. munities and regions with the effects of why he failed to request it at the proper I urge my colleagues to read my state recession. time, he Will approach the local "fixer." This ment in order to understand the facts As those who have followed the debate on unofficial but highly important individual in this important matter. It is my inten the Snowbelt vs. the Sunbelt are aware, the will know that Comrade B in a neighboring tion to introduce the subcommittee older urban areas, and especially the large laboratory has the foil, and is willing to ex sponsored bill <H.R. 6810) as a substitute central cities of the ~ortheast and North change it for high-grade photographic film, Central States, have been experiencing special but needs precision ball-bearings. The re for the committee bill <H.R. 6810, as financial problems in recent years. While the search department of such and such fac amended) when this legislation is cause of their financial stress is in dtsoute. it tory has ball-bearings to spare, but needs brought to the :floor next week. is clear that they have been impacted for the loan of five thermo-couples ... and My statement follows: many years by the continuing loss of popula- May 6, 1977 EXTENSIONS OF REMARKS 13931 tion and taxable wealth while their service unemployment rates assigned to communi relation to their populations), the remain costs have increased. I believe it is important ties of less than 50,000 population may be no ing local share is divided among the general that these long-term, secular problems be better than "random numbers." Yet, it is purpose governments in proportion to their dealt with. However, an antirecession pro these arbitrary, concocted numbers that de adjusted taxes (that is, exclusive of school gram is not the appropriate vehicle for that termine which of our local communities re taxes) and relative tax effort. A special limi purpose. ceive Title II funds and the amount of that tation is applied to prevent industrial en Second, Title II is not a jobs program. assistance. While BLS is now supplying un claves and resort communities from gaining Payments can be used for virtually any pur employment rates for all counties at the di excessive payments. poses the recipients choose. This is discre rection of the Congress, we should bear in Taxes collected and tax effort are two tionary money. It is fungible, or substitutable mind Commissioner Shiskin's warning that of the factors presently included in the for local money, just as in the general reve "Congress has legislated requirements for general revenue sharing formula. The sub nue sharing program. Indeed, the Congress local area unemployment rates that are years committee selected these factors for the eco has already created a variety of other pro ahead of the data base available." I hope nomic stimulus formula because they are grams designed specifically for increasing the this Committee will not be a party to this the best available measures of the size of number of jobs, including the public service cha.rade. each jurisdiction's service responsibilities employment titles under CETA and the Pub The limitations of existing unemployment and the extent to which each government lic Works Employment Act. rates relate not only to the poor quality of taxes its citizens for the support of public The GAO has informed the subcommittee, the data, but to their usefulness as well. services. on the basis of its field study of the impact While unemployment figures are useful While these measures are certainly not of Title II payments on state and local gov for some purposes, they are not a good in ideal, they are far more objective, equitable, ernments, that it has found relatively few dicator of the impact of economic recession and representative of local fiscal need than instances in which these funds have actually on State and local governments. Because the unemployment rates or other currently been used to create new jobs or to maintain estimated rates are not comparable between available data. As such, they are likely to existing jobs. In other words, any connection governmental units, their inclusion in for target funds effectively to those governments between the Title II program and the reduc mulas for distributing Federal assistance that can absorb additional Federal assistance tion of unemployment is wholly speculative. leads to serious distortions and inequities. for current purposes, and therefore, help ac Third, as presently constituted, Title n is In addition, focusing exclusively on unem complish the President's economic stimulus not an economic stimulus program. The ployment and ignoring the present record objective. only reliable information on the actual use or level of employment throughout the Nation, I should point out that most of the older impact of Title n money is provided by the creates a very misleading picture of the fiscal central cities that are suffering from secular field investigation conducted by the General situation even in those State and local gov decline rather than the effects of the busi Accounting Office. ernments where unemployment remains ness cycle, will receive more funds under As of February 28, 1977, the GAO had high. the subcommittee bill than they would re visited 51 recipient governments constitut I could continue at length about the arbi ceive under the bill proposed by the ing a good cross-section of the States, cities trary and discriminatory effects of using un President. and counties participating in the program. employment rates to allocate funds in a However, I want to state very frankly that For the first three quarters of Title ll pay program that is essentially another form of the evidence from the present Title IT pro ments, these 51 governments had received general revenue sharing. I am surprised that gram raises serious doubts that any program $262 million, or more than 30 percent of the Members of Congress and other public of of this kind can serve as an effective in total paid to some 23,000 governments. ficials from States such as Iowa, Kansas, strument for stimulating the economy. It is The GAO found that only 18 percent of Wyoming, South Dakota, North Dakota, and most likely that the funds allocated for the the total amount available from the pay New Hampshire have not protested the ex July and any succeeding quarters will enter ments for July and October 1976, and Janu clusion of their State governments, as well the economy long after they are paid, if they ary 1977, had been spent by those govern as many local communities, from the Title are spent at all for enlarged programs rather ments. The GAO also found that the govern II program. These States received no pay than substituted for State and local money. ments with unemployment rates above 8 per ments for some calendar quarters simply In this case, we may be fueling inflation cent for the first three quarters were spend because they estimated unemployment rates rather than stimulating the economy. ing the funds only slightly faster than those were below the meaningless 4.5 percent cut The extension of the program for two off. The fact that unemployment tends to calendar quarters in fiscal 1978 was a com with lower unemployment rates. promise between those members who favored The GAO study disclosed that most recip be understated in rural States due to the way the rates are estimated is not taken terminating it when the current program ients are putting their Title n money into expires next October, and those who favored bank accounts rather than spending it to into account. This is neither a sound nor an equitable way to allocate Federal funds. a one-year or longer extension. The two addi stimulate the economy. You may have heard tional quarters were thought to be justified that a Senate subcommittee questionnaire I will now turn to an explanation of the because the Administration had raised ex found the Title II funds being used for a clean bill approved by the subcommittee. pectations of an extended program, and, variety of program purposes. However, what H.R. 6810 consists of two parts: a transi consequently, many local governments have you have not been told about that survey is tional economic stimulus component, and built some funds from this source into their that it asked recipients only how they an innovative antirecession measure. new budgets. The two quarters are intended planned to use the money-not how or Title I amends the Public Works Employ to be a transitional bridge between the eco whether the funds were spent. ment Act of 1976 by amending the present nomic stimulus title and the proposed new The GAO findings are not unexpected, if Title n program and extending it for two antirecession program. we examine the provisions of Title n. Since additional calendar quarters through What we are seeing, I fear, is the develop these funds must be spent in accordance March 31, 1978, for economic stimulus pur ment of an increasing dependency on the with the laws and procedures applicable to poses. The bill accepts the funding level pro Federal Government for the general support the expenditure of each government's own posed by the President for the July quarter of State and local governments. I do not revenues, delays are inevitable until legisla as well as the first two quarters of fiscal year view this as a healthy development in our tive bodies can meet to decide on their dis 1978. The actual amount of funding for the federal system. position. In addition, local and State gov July quarter will be $515 million, as com In addition to adopting a tax-based for ernments cannot plan ahead to include pared with $312.5 million distributed for mula, the subcommittee made the following Title n funds in their budgets, as they do the current April quarter. The funding level changes in the present program: revenue sharing, because payments are for the two additional quarters will be de geared to fluctuating unemployment rates. termined by future national unemployment 1. Restrictions were removed on the use In many instances, payments are turned on rates, as requested by the President. of these funds, except for complying with State and local laws, because the Federal and off like a water faucet when unemploy In place of the faulty unemployment rates ment rates fluctuate around the 4.5 percent Government cannot realistically control the now assigned to State and local governments, purposes for which they are spent unless level. the subcommittee bill bases the interstate we go to a strict categorical program. Another very serious deficiency of the Title and local distributions on two objective and n program is that the unemployment rates readily available measures. The funds are 2. The requirement that payments be ap used to determine who receives money, and to be distributed among State areas in pro propriated within six months of receipt was how much, are highly unreliable and of portion to the relative amount of taxes col also eliminated, since this is also an un questionable appropriateness for an assist lected within each State, weighted by the enforceable restriction. ance program of this kind. relative tax efforts for those State areas. 3. The nondiscrimination provisions were We simply do not have acceptable unem The allocation to each State area is then made to conform to the provisions adopted ployment figures below the State level, and divided one-third for the State government last year for the general revenue sharing even the State figures are not reliable on a and two-thirds for general purpose local gov program, and monthly basis. The Commissioner of Labor ernments. After allocating a share for In 4. The provision applicable to Davis-Bacon Statistics told the subcommittee that the dian Tribes and Native Alaskan Villages (in wage standards for construction projects was 13932 EXTENSIONS OF REMARKS May 6, 1977 also brought into line with the general reve in the base period In other words, Federal J. E. SffiRINE CO. CELEBRATES nue sharing act assistance would be paid untU the economy 75TH YEAR Title n of H.R. 6810 adds a new Title IV recovered to its previous state of health 1m to the State and Local Fiscal Assistance Act mediately before the recesston. That iS, pay for the purpose of providing fiscal assistance ments would be continued for a number HON. JAMES R. MANN during periods of national recession. This ts of quarters after the economy turned around. OF SOUTH CAROLINA We have distributed three exhibits to help a. logical a.nd desirable addition to the baste IN THE HOUSE OF REPRESENTATIVES general revenue sharing legislation. Ulustra.te how this new program would work. Exhibits I & II are charts illustrating how Friday, May 6, 1977 Thts new program, authorized for 5 years closely the trigger mechantsm we have se beginning April 1, 1978, represents an inno lected-private real wages and salartes--co Mr. MANN. Mr. Speaker. Greenville, vative approach to helping offset the revenue incides with GNP changes, and how well S.C., is proud to celebrate the 75th anni losses State and local governments experi both these measures outline periods of re ence when the economy turns down and pur versary of one of its corporate citizens, cession. the J. E. Sirrine Co., which has contrib chasing power falls off. If you will look at Exhibit III, you wm Payments would be activated by two con see how this program would have operated in uted much to the progress of South secutive quarterly declines of private sector the last recession. Carolina and the U.S.A. real wages and salaries (i.e .• dollars adjusted The column to the right shows that real With headquarters in Greenville, S.C., for infiation). provided that these declines wages and salaries declined !or 9 quarters, J. E. Sirrine Co. has grown into the Na follow. or occur simultaneously with, two as measured against the base period, beg1n tion's 19th largest architectural-engi consecutive quarterly declines ln real gross n1ng in January 1974 through the flrst quar neering firm, with 1,300 employees in national product (GNP). Two consecutive ter of 1976. five divisions-pulp and paper, South quarterly declines in real GNP is generally The aggregate wage loss amounted to $130.3 accepted as the definition of a. recession. blllton. Had H.R. 6810 been operative during Carolina, Architect-Engineer, North The amount of funds authorized for na this period, it would have authorized 3.5% Carolina, and Texas Divisions. tional distribution would be determined by of this amount or $4.56 billion in payments I am certain that much of the success two steps: ( 1) calculating the dollar decline !or the 9 quarters involved. of J. E. Sirrine Co. is due to the fact tn real wages and salaries each quarter in re You will note from column two that the that management and personnel recog lation to a. base period (the average amount economy had turned around by the third of real wages and salaries for the four quar quarter of 1975, after stx quarters Our bill, nize the value, both to the client and to ters preceding the first quarter of decline), however, would have continued paiments !or the company, of a job well done. It is my and (2) multiplying the resulting dollar de three additional quarters until wages and information that the company experi ollne by 3.5 percent to represent the potential salaries recovered to the level of the 1973 ences 85- to 95-percent repeat business, tax loss experienced by State and local gov base period which preceded the recession. and this is a resounding endorsement for ernments due to the recession. The 3.5 per Once the amount of money !or cllstr1bu any type of business. cent ts an emplrlca.l figure, probably on the tton has been determined, the interstate and It is a privilege to have such a com high side, to permit the Appropriations com local allocations would be made exactly as 1n mittee suftloient leeway to conform payments the economic stimulus part of this b111 pre pany and such people in the Fourth Con to tlscal poUoy at the time. Antirecession viously described. In addition, all of the pro gressional District, and I am proud to payments would continue for all quarters m visions concerning the use of funds would congratulate them on their diamond which real wages and salaries are less than also apply here. anniversary. </p><p>{ ( ) J / </p> </div>
</div>
</div>
</div>
</div>
</div>
</div>
<script src="https://cdnjs.cloudflare.com/ajax/libs/jquery/3.6.1/jquery.min.js" integrity="sha512-aVKKRRi/Q/YV+4mjoKBsE4x3H+BkegoM/em46NNlCqNTmUYADjBbeNefNxYV7giUp0VxICtqdrbqU7iVaeZNXA==" crossorigin="anonymous" referrerpolicy="no-referrer"></script>
<script src="/js/details118.16.js"></script>
<script>
var sc_project = 11552861;
var sc_invisible = 1;
var sc_security = "b956b151";
</script>
<script src="https://www.statcounter.com/counter/counter.js" async></script>
<noscript><div class="statcounter"><a title="Web Analytics" href="http://statcounter.com/" target="_blank"><img class="statcounter" src="//c.statcounter.com/11552861/0/b956b151/1/" alt="Web Analytics"></a></div></noscript>
</body>
</html>