The new catalog, issued in March by the Office of Economic Opportunity under policy guidance and monitoring by the Bureau of the Budget, is the only comprehensive, Government wide document of its type and replaces other overlapping and duplicative documents previously issued by several agencies. We believe this catalog represents a substantial improvement over the catalog issued by the Office of Economic Opportunity in June, 1967. The total coverage of programs is more extensive, adding well over 100 programs, subdividing a large number of programs to give them greater visibility, and combining some programs where consolidated treatment is more appropriate. The catalog is designed to assist potential users or beneficiaries in identifying the types of Federal domestic assistance available and determining eligibility for particular assistance being sought. It also provides guidance on how to apply for specific types of assistance. In addition, the catalog should improve communications between the Federal Government and State and local governments and aid program managers at all levels of government. The kinds of information covered by the new catalog include various forms of financial and nonfinancial assistance and services. The catalog contains program descriptions, which include identification of the administering agency, eligible applicants, and intended benefits and beneficiaries. It also contains references to authorizing legislation and available printed information, a subject index, and regional office addresses of departments and agencies. We believe, however, that further improvements are needed to make the document more useful to potential beneficiaries. We have initiated plans for substantial improvements to be incorporated in the next issue. These include: (1) an improved index to provide the user with better access to the programs to serve his needs, (2) more precise and specific descriptions of benefits and eligibility requirements, (3) more detailed description of application processing, and (4) the addition of financial information. Many of the changes planned are consistent with the provisions of the proposed legislation. In general, we believe that the evolutionary approach which we are taking is the most practical and economical way to continue to improve the catalog given its complexities and the high investment cost of changes that will be needed in the agency information systems which must provide data for it. Although we agree with the intent and purpose of the proposed legislation, we believe that any legislation on this subject should provide flexibility necessary to permit both construction of the catalog under present circumstances and its improvement in a progressive and orderly manner. To accomplish what we believe to be our mutual objectives, we recommend certain changes to S. 60. We are also enclosing specific amendatory language for your consideration. First, we believe the catalog's coverage and scope should be limited to domestic assistance, and should not cover foreign aid or assistance except as such programs have an impact on States, local government, and organizations or individuals in the domestic economy. Later it may be desirable to compile a similar or integrated catalog for foreign assistance programs. Second, beyond the question of scope, the specific problem of definition of a Federal domestic assistance program is of prime importance. Many of these programs are multi-purpose in nature, providing more than one type of benefit, having more than one type of beneficiary with different qualification requirements for the various types of benefits, based on multiple legislation, and funded from multiple sources. The definition of an assistance program as prescribed in section 2 (a) of the proposed bill would require separate identification of programs on the basis of legal authority, specific purpose, specific benefit, or specific qualifications of beneficiaries. We believe that adherence to this definition would result in an unnecessary fragmentation of the catalog and that this fragmentation would unnecessarily complicate the task of obtaining concise and meaningful information on available programs. Third, although we agree that the addition of some financial information would be desirable, we do not believe the data required by sections 6 (3) and 7 (a) of the proposed bill are practical or feasible at the present time. Agency accounting and other supporting information systems do not carry this type of data in the required form or detail, or with sufficient currency. Alternatively, we recommend inclusion of obligations incurred for past years and an indication of the general range of financial assistance where appropriate. Fourth, while the simplification of application procedure as discussed in section 8 is certainly desirable in the context of the intergovernmental coordination and cooperation legislation, and as one aspect of the simplification of grant administration, we are pursuing this objective already. Fifth, section 9 of the bill would require the President to revise the catalog at no less than monthly intervals. The logistic complexities and cost of such frequent revisions does not appear to us to be justified. Major program changes do not occur frequently, and some of the data that would have to be included in revisions of the catalog is not available on a monthly basis from agency information systems. While we would agree that more frequent intervals than annual appears desirable, we believe that the optimum frequency can best be determined after we have further experience in developing and improving the catalog and after users gain more familiarity with its contents and uses. Sixth, we would recommend additional language to section 10 in order to make the catalog the single, authoritative, government-wide compendium of Federal assistance programs. However, the language should recognize that there may be periodic needs for the assembly of specialized catalogs for specific purposes or target groups. These specialized catalogs should, however, be developed within the framework (or as a supplement to) the government-wide compendium and be allowed only when specifically authorized and developed within specified guidelines and criteria. Finally, the intent of sections 11, 12, and 13 would permit the President to delegate his functions under the bill only to the Bureau of the Budget. We believe these restrictions on the President's administrative discretion are inappropriate and undesirable. The President should be able to delegate his statutory functions to the agency or agencies which he believes to be the most appropriate to carry out those functions. In addition to the above, we have recommended a few editorial and minor substantive amendments which are reflected in the enclosure. In summary, we are in agreement with the objectives of the bill and, with the amendments we have proposed, we would recommend enactment of S. 60. Sincerely, [Enclosures (2)] PHILLIP S. HUGHES, Deputy Director. [Enclosure 1] EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, To: The heads of executive departments and establishments. 1. Purpose. This Circular establishes policies for the development and periodic issuance of a "Catalog of Federal Domestic Assistance." The catalog will provide information on all Federal domestic assistance programs and activities in a single authoritative document. The primary purpose of the catalog is to assist potential users or beneficiaries in identifying the types of Federal assistance available and determining eligibility requirements for particular assistance being sought. It will also provide guidance on how to apply for specific types of assistance. The catalog should also serve as a useful reference for Federal program managers and for others concerned with intergovernmental programs. 2. General policies. (a) A comprehensive catalog which describes all Federal domestic assistance programs and activities will be issued for the executive branch of the Government, by the Office of Economic Opportunity, on an annual basis in accordance with the requirements of this Circular. (b) This catalog, to be identified as the "Catalog of Federal Domestic Assistance," will be the only comprehensive, Government-wide document of its type. The Office of Economic Opportunity "Catalog of Federal Assistance Programs" (June 1, 1968, edition) will serve as the starting point for the development of the "Catalog of Federal Domestic Assistance." The new catalog will supersede similar documents of a more limited scope currently published by various executive departments and agencies. Similar or related documents will not be updated and republished or reprinted without specific approval of the Bureau of the Budget. Also, planning for new publications and documents in this area will not be undertaken without prior consultation with the Bureau of the Budget. 34-951-692 3. Scope of catalog.-The "Catalog of Federal Domestic Assistance" will provide a guide to domestic programs and activities of the Federal Government, whether or not they are formally designated as "programs" which provide assistance to State and local governments, public and private or quasi-public organizations and institutions, private business and industry, or individuals. Assistance covered will include, but will not necessarily be limited to: (a) Financial assistance (grants, loans and advances, loan guarantees, shared revenues). (b) Assistance in the form of direct construction or provision of Federal facilities, goods, or services. (c) Donation or provision of surplus real and personal property. (d) Technical assistance and counseling. (e) Statistical and other informational services. 4. Contents of catalog.-The "Catalog of Federal Domestic Assistance" will contain the following information: (a) Table of contents. (b) Introductory section explaining the nature of the catalog and its contents. (c) Program descriptions. Each program description will provide the following information: Program title, nature and purpose of program, intended benefits and beneficiaries, eligible applicants, authorizing legislation, administering agency, and sources of additional information or assistance. (d) Summary of major changes in Federal domestic assistance since the previous issue of the catalog. (e) Regional office addresses of departments and agencies. (f) Alphabetical index. 5. Relation to other publications and information systems. As the single and authoritative Government-wide catalog, the "Catalog of Federal Domestic Assistance" will be expected to meet the needs previously filled by a variety of overlapping and duplicative publications issued or contemplated by several executive agencies. However, it is not intended to be a substitute for agency publications which deal with the details of their own programs, such as the Department of Health, Education and Welfare "Grants-in-Aid" book. The catalog will serve as a base for specialized catalogs or handbooks, such as the "Vice President's Handbook for Local Officials". Material contained in the catalog should relate to and be derived from the basic data in individual agency information systems, and should not be prepared independently of an agency's internal information systems. It is recognized that agencies may produce the required information through different program, financial, or other internal management information systems and that some modifications to agency internal information systems may be required to provide data of the nature and format requested. However, agencies should proceed as rapidly as possible to make such modifications and to insure that the information required for the catalog will eventually be an integral part of their internal systems. At the present time, financial data are not planned for inclusion in the catalog, However, inclusion of such data is a definite objective for future editions, and agencies should plan their internal systems development with this objective in mind. 6. Agency responsibilities. (a) The Bureau of the Budget is responsible for establishing policies with respect to the development and issuance of the catalog and similar or related publications; also it is responsible for monitoring the development and annual issuance of the catalog. (b) The Office of Economic Opportunity will collect information for, compile, and publish the "Catalog of Federal Domestic Assistance." The Office of Economic Opportunity, working with the Bureau of the Budget, will issue written instructions to the departments and agencies spelling out criteria for inclusion of material in the catalog, explaining and delineating the information required for each program included in the catalog, and providing specific reporting instructions. (c) Executive departments and agencies will provide information on their programs and activities and will review material assembled for publication. Each department and agency will designate an appropriate individual who will act as the agency's representative to the Bureau of the Budget and the Office of Economic Opportunity on catalog matters. This designation will be made in writing to the Director of the Bureau of the Budget no later than September 20, 1968. 7. Issuance and distribution. The catalog will be issued annually as a bound volume. The issue date will ordinarily be late in the calendar year so that it may reflect Congressional action on legislative and appropriation matters. The first issue is scheduled for late 1968 or early 1969. A comprehensive scheme for distribution of the catalog will be developed by the Office of Economic Opportunity, after consultation with the Bureau of the Budget, representatives of other executive agencies, and representatives of user groups. Although the catalog will have a bound format, provision will be made to enable agencies to obtain separately particluar pages which could be made up into program packages to serve various specialized clienteles. In this context it is important that each page be designed and written so that it will be complete in itself when removed from the catalog. 8. Effective date.-The provisions of this Circular are effective immediately. CHARLES J. ZWICK, Director. [Enclosure 2] RECOMMENDED AMENDMENTS TO S. 60 1. Delete subsections (a) through (e) of section 2 and insert in lieu thereof the following: (a) The term "Federal domestic assistance program" means any function of a Federal agency which provides assistance or benefits that can be requested or applied for by a State or States, or subdivision thereof, county, city, other political body, or grouping thereof, any domestic profit or nonprofit corporation, institution, or individual, other than an agency of the United States. (b) A Federal domestic assistance "program" may in practice be called a program, an activity, a service, a project, or some other name regardless of whether it is identified as a separate program by statute or regulation. A "program" shall be identifiable in terms of its legal authority, its administering office, its funding, its financial outlays, its purpose, its benefits, and its beneficiaries. (c) "Assistance or benefits" includes but is not limited to grants, loans, loan guarantees, scholarships, mortgage loans and insurance or other types of financial assistance; assistance in the form of provision of Federal facilities, goods or services; donation or provision of surplus real and personal property; technical assistance and counseling; statistical and other expert information; and service activities of regulatory agencies. "Assistance or benefits" does not include conventional public information services. (d) "Requested or applied for" means that the potential applicant or beneficiary must initiate the process which will eventually result in the provision of assistance or benefits. The term, therefore, excludes solicited contracts, shared revenues, automatic payments, and indirect assistance or benefits resulting from Federal operations. (e) "Federal agency" means any executive department, agency, or instrumentality of the Government and any wholly owned Government corporation. (f) "Administering office" means the subdivision of any Federal agency that has direct operational responsibility for managing a Federal domestic assistance program. 2. Page 3, line 5, Insert "DOMESTIC" after "FEDERAL" and before "ASSISTANCE". 3. Page 3, line 8. Insert "domestic" before "assistance". 4. Page 3, line 9. Delete the second sentence in section 4. 5. Page 3, line 16. Insert "domestic" after "Federal" and before "assistance". 6. Page 3, line 22. Insert "domestic" after "Federal" and before "assistance". 7. Delete subsection (3) of section 6 and insert in lieu thereof the following: "(3) provide financial information. This information may include the obligations incurred for past years, the range of financial assistance where appropriate, or other pertinent financial information designed to indicate the magnitude of the program." 8. In the first sentence of subsection (4) of section 6 delete the words "costs to the recipient of" and insert in lieu thereof "obligations on the part of the recipient." 9. Delete subsection (6) of section 6 and insert in lieu thereof the following: "(6) provide a general description of the application process. This description may include application deadlines, coordination requirements, processing time requirements, and other pertinent procedural explanations.' 10. Delete subsection (7) of section 6. 11. Delete subsection (a) of section 7 and redesignate subsections (b), (c), and (d) as (a), (b), and (c) respectively. 12. In redesignated subsections (a) and (b) of section 7 substitute "Federal domestic assistance" for "Federal assistance" in each place that it appears. 13. Delete sections 8, 9, 12, and 13 and redesignate sections 10 and 11 as sections 8 and 9 respectively. 14. In redesignated section 8, substitute the following: PUBLICATION AND DISTRIBUTION OF THE CATALOG Sec. 8(a) The President (or an official to whom such function is delegated pursuant to section 9 of this Act) shall prepare, publish and maintain the catalog on a current basis and shall make such catalog and any revisions thereof available to the public at prices approximately equal to the cost in quantities adequate to meet public demand, providing for subscriptions to the catalog and revisions thereof in such manner as he may determine. Gratis distribution of not to exceed 10,000 copies, in the aggregate, is authorized to Members of Congress and Resident Commissioners, Federal department and agency officials, State and local officials, and to local repositories as determined by the President or his delegated representative. (b) The catalog shall be the single, authoritative, Government-wide compendium of Federal domestic assistance program information produced by a Federal agency or department. Specialized catalogs for specific ad hoc purposes may be developed within the framework, or as a supplement to, the Government-wide compendium and shall be allowed only when specifically authorized and developed within guidelines and criteria to be determined by the President. (c) Any existing provisions of law requiring the preparation or publication of such catalogs are superseded to the extent they may be in conflict with the provisions of this Act. 15. In redesignated section 9, substitute the following: "Section 9. The President may delegate any function conferred upon him by this Act, including preparation and distribution of the catalog, to the head of any Federal department or agency, with authority for redelegation as he may deem appropriate." Hon. EDMUND S. MUSKIE, CIVIL AERONAUTICS BOARD, Chairman, Subcommittee on Intergovernmental Relations, Committee on Government Operations, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: This is in reply to your request for the Board's views on S. 60, a bill "To create a catalog of Federal assistance programs, and for other purposes." The bill would require the President to transmit annually to the Congress a catalog of Federal assistance programs, setting forth the required program information for each Federal assistance program and such other matter as the President determined. The existing functions of the Office of Economic Opportunity with respect to the preparation of a catalog of Federal assistance programs would be transferred to the Bureau of the Budget, and the Bureau would be responsible, under rules and regulations prescribed by the President, for preparation of the catalog provided by the bill. The purpose of the bill is to enable potential beneficiaries of Federal assistance programs to determine whether particular assistance is available for their purposes. As you know, subsequent to your request for the Board's views, the Bureau of the Budget advised your Subcommittee that it was in agreement with the objectives of S. 60. The Bureau also advised that, subject to certain amendments which it proposed, it would recommend enactment of the bill. In light of this, the Board defers to the views of the Budget Bureau with respect to the bill. The Bureau of the Budget advises that there is no objection to the submission of this report from the standpoint of the Administration's program. Sincerely, JOHN H. CROOKER, Jr. |