New obligational authority, direct obligations and expenditures, fiscal years 1960–62

1 New obligational availability, including transfers of prior year balances.

NOTE.-Data are adjusted to reflect comparability with fiscal year 1962 appropriation structure.

New obligational authority, direct obligations and expenditures, fiscal years 1960–62

NOTE.-Includes estimates proposed for later transmission as follows: fiscal year 1961, $289,000,000 and fiscal year 1962, $31,000,000.

ARMY BUDGET SUMMARY

MONDAY, FEBRUARY 20, 1961.

WITNESSES

MAJ. GEN. CHARLES B. DUFF, DIRECTOR OF ARMY BUDGET, OFFICE, COMPTROLLER OF THE ARMY

HERMAN T. LaCROSSE, DEPUTY DIRECTOR OF ARMY BUDGET, OFFICE, COMPTROLLER OF THE ARMY

MAJ. GEN. S. L. MYERS, ASSISTANT TO DEPUTY CHIEF OF STAFF FOR LOGISTICS

BRIG. GEN. M. W. SCHEWE, DEPUTY ASSISTANT CHIEF OF STAFF FOR RESERVE COMPONENTS

MAJ. GEN. ROBERT S. MOORE, SPECIAL ASSISTANT, ASSISTANT SECRETARY OF DEFENSE, COMPTROLLER

Mr. MAHON. General Duff, are you prepared to speak for the Army this morning?

General ĎUFF. I am prepared, Mr. Chairman.

GENERAL STATEMENT OF DIRECTOR OF ARMY BUDGET, OFFICE OF THE COMPTROLLER OF THE ARMY

Mr. MAHON. Will you proceed with your statement?

BIOGRAPHY OF WITNESS

MAJ. GEN. CHARLES B. Duff

Charles Breckinridge Duff was born in Mount Sterling, Ky., September 22, 1908. He was graduated from the U.S. Military Academy in the class of 1931 and was commissioned a second lieutenant in the Coast Artillery Corps of the Regular Army.

General Duff's first assignment was with the 69th AAA Regiment, at Fort McClellan, Ala. Other early assignments included duty with the 91st Coast Artillery Regiment (PS) on Corregidor, P.I., and as commanding officer of Headquarters Battery, 11th Coast Artillery, at Fort H. G. Wright, NY. In August of 1935 he returned to the Military Academy, where he spent the next 4 years as an instructor in French. He then attended the Coast Artillery School regular course at Fort Monroe, Va., completing the course in 1940. He remained on duty at Fort Monroe in various troop and staff assignments, his last duty there being as S-4 of the harbor defenses of Chesapeake Bay. In the fall of 1941, General Duff was assigned to Hawaii and was in command of a 16-inch gun battery defending Pearl Harbor at the outset of World War II. He then successively held the positions of battalion and group commander and regimental and assistant harbor defense commander at Coast Artillery installations on Oahu, T.H., prior to becoming the artillery officer for the garrison force units which took part in the initial operations in the Marianas Islands. He was G-3 and artillery officer of the Saipan garrison force at the time of his reassignment to Washington in 1945. The next 81⁄2 years of his military duties were all in the Washington area. He served, successively, as a member of the Logistics Group, Operations Division, War Department General Staff; the Joint Logistic Plans Committee, Joint Chiefs of Staff; as a student at the Industrial College of the Armed Forces (1947–48); and in various assignments in the Budget Division. Office of the Comptroller of the Army (1948-53). General Duff was next assigned to Army Forces Far East as division artillery executive officer and then division artillery commander, 45th Infantry Division. He left the Thunderbird Division in February of 1954 to become commander of the 44th AAA Brigade (Prov), later designated as the 55th AAA Brigade. This brigade controlled all nondivisional antiaircraft artillery in Korea. Upon his return to the United States in August of 1954, General Duff became a member of the staff and faculty at the Industrial College of the Armed Forces, followed by assignment to the 52d AAA Brigade at Fort Wadsworth, N.Y., where he assumed command of the brigade and the post of Fort Wadsworth on September 14, 1955. He was promoted to the rank of brigadier general on September 30, 1955. In June 1958, General Duff was again assigned to the Office, Comptroller of the Army for duty with the Director of Army Budget in which office he had previously served from July 1948 to June 1953. In August 1959, he was designated Chief, Programs Analysis Group in Office, Chief of Staff of the Army and was promoted to major general in December 1959. In June 1960, General Duff was designated as D.rector of the Army Budget, thus returning for the third time to budget responsibilities at Headquarters, Department of the Army in which ares he had first served as a lieutenant colonel, and successively as colonel and brigadier general. On April 20, 1932. he was married to Sallie Hinton Edmondson of Anniston, Ala. General and Mrs. Duff have two sons.

General Duff has been awarded the Legion of Merit, Bronze Star Medal with Oak Leaf Cluster. V Device to Bronze Star Medal for Valor and the Army Commendation Ribbon.

General DUFF. Mr. Chairman and members of the committee, I am pleased to have the opportunity to meet with you as the new Director of the Army Budget. I will present significant features of the Army budget for fiscal year 1962.

As desired by the committee, the Secretary of the Army and the Chief of Staff will appear before this committee at a later date and will discuss the Army's current readiness posture and the fiscal year 1962 plans and policies which provide the basis for the budget request I will discuss today.

Appropriation directors, who will be the next Army witnesses to appear before this committee, will discuss the fiscal year 1962 budget estimates in detail. I will highlight the fiscal year 1961 budget as it is now being carried out. I will summarize the fiscal year 1962 budget estimates by appropriation, and finally, I will briefly outline the Army's financial plan for fiscal year 1962.

HIGHLIGHTS OF THE FISCAL YEAR 1961 BUDGET

I will address my remarks on the fiscal year 1961 Army budget to a general comparison between the amounts provided by the Congress for this year and those shown in the fiscal year 1961 column of the fiscal year 1962 budget. For ready reference, I have prepared charts which are printed on the back of the page opposite the text of this statement. The first chart, printed on the back of page 1, shows the direct obligations based on the amounts appropriated by the Congress as compared with the estimated direct obligations shown in the fiscal year 1961 column of the fiscal year 1962 budget request.

On January 18, the President transmitted to the Congress a supplemental request for fiscal year 1961 which included $112 million for the Army. Of this total, $84.3 million is for the civilian pay raise voted by the Congress and this amount is included in the fiscal year 1961 column of the President's budget. The balance of $27.7 million provides $7 million for an additional 2,500 man-years, a military personnel strength increase approved by the Secretary of Defense. to improve the Army's readiness posture, and $20.7 million for support of the additional strength, for increased operational costs and for extension of single managerships. These latter amounts are not shown in the fiscal year 1961 column of the fiscal year 1962 budget and appear in the President's budget as "proposed for later transmission" items. For this reason, these amounts are shown as below the line entries on chart No. 1.

Mr. SIKES. The fiscal year 1961 column of the fiscal year 1962 budget is the anticipated actual expenditures for fiscal year 1961, is that correct?

General DUFF. The anticipated direct obligations for 1961, sir, to include the pay increase. However, it does not include the other items contained in the supplemental appropriation requests of $27.7 million which are shown below the line, since they are included in the President's budget as proposed for later transmission.

This chart and subsequent charts exclude construction appropriations requests since justifications for these appropriations are to be heard before a separate subcommittee.

The Army program for fiscal year 1961 is estimated at $10,124 million, including the civilian pay raise supplemental request of $84.3 million. I will discuss, by appropriation, the difference between this amount and the $9,985 million which was provided by the Congress.

MILITARY PERSONNEL, ARMY

For "Military personnel, Army," the Congress provided $3,248 million in new obligational authority and authorized the transfer of an additional $260 million from the Army stock fund, a total of $3,508 million in direct obligations. This amount was for support of an Active Army with an end strength of 870,000. This amount is the same as that shown in the fiscal year 1961 column of the fiscal year 1962 budget request. As mentioned previously, the President transmitted to the Congress a supplemental request which included $7 million for this appropriation for the strength increase approved by the Secretary of Defense. As this amount is not included in the fiscal year 1961 column of the fiscal year 1962 budget, it is shown as a below the line entry on chart No. 1.

RESERVE PERSONNEL, ARMY

For the "Reserve personnel, Army," appropriation, the Congress provided $234 million in fiscal year 1961. Included in this total was $35 million to support a balanced program including: a paid-drill strength of 300,000, an increase of 30,000 over the strength recommended in the President's budget; an increase of 6-month trainees, from 20,000 to 46,000; and training for additional individual reinforcements. The $14 million difference between the amount appropriated and that shown in the fiscal year 1961 column of the fiscal year 1962 budget has been held in reserve by the Bureau of the Budget.

Mr. SIKES. Was there a failure to reach the anticipated strength level?

General DUFF. As far as the National Guard and the Organized Reserves are concerned?

Mr. SIKES. Yes.

General DUFF. No, sir. We will have no difficulty in reaching the average strength.

Mr. SIKES. For what reason was the amount of $14 million held in reserve by the Bureau of the Budget?

General DUFF. Sir, this amount includes $5.9 for drill participation which was provided for in the appropriation based on 1960 experience; this increase has been only partially substantiated.