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N' HEARING

Lr) BEFORE THE

COMMITTEE ON

;OR AND PUBLIC WELFARE

JNITED STATES SENATE

< NINETY-THIRD CONGRESS

FIRST SESSION

ON

MICHAEL P. BALZANO, JR., OF VIRGINIA, TO BE

DIRECTOR OF ACTION

MARCH 28, 1973

Printed for the use of the Committee on Labor and Public Welfare

U.S. GOVERNMENT PRINTING OFFICE

95-514 WASHINGTON : 1973
COMMITTEE ON LABOR AND PUBLIC WELFARE

HARRISON A. WILLIAMS,

JENNINGS RANDOLPH, West Virginia

CLAIBORNE PELL. Rhode Island

EDWARD M. KENNEDY, Massachusetts

GAYLORD NELSON, Wisconsin

WALTER F. MONDALE, Minnesota

THOMAS F. EAGLETON, Missouri

ALAN CRANSTON, California

HAROLD E. HUGHES, Iowa

WILLIAM D. HATHAWAY, Maine

JR., New Jersey, Chcvirman

JACOB K. JAVITS, New York

PETER H. DOMINICK, Colorado

RICHARD S. SCHWEIKER, Pennsylvania

ROBERT TAFT, JR., Ohio

J. GLENN BEALL, JR., Maryland

ROBERT T. STAFFORD, Vermont

STEWART E. MCCLURE, Chief Clerk

ROBERT E. NAGLE, Genera/ Counsel

ROY H. MILLENSON, Minority Chief Clerk

EUGENE MITTELMAN, Minority Counsel
NOMINATION

WEDNESDAY, MARCH 28,1973

U.S. SENATE,

COMMITTEE ON LABOR AND PUBLIC WELFARE,

T V a,shington, D.0 .

The committee met, pursuant to notice, at 2 :09 o'clock p.m., Senator Harrison A. Williams, Jr., chairman, presiding.

Present: Senators Williams, Randolph, Cranston, and Javits. Committee staff members present: Robert E. Nagle, general counsel; and Roy H. Millenson, minority chief clerk.

The CHAIRMAN. The committee will come to order to consider the nomination of Michael P. Balzano to be Director of ACTION.

In the past year Mr. Balzano has been a staff assistant to the Presi- dent, prior to which time he served in various positions in the Office of Economic Opportunity. We will have printed in the record a copy of Mr. Balzano's biography at this point along with a copy of Reor- ganization Plan No. 1 of 1971 creating the position for which he has been nominated.

[The information referred to follows:]

(I)
2

MICHAEL P. BALZANO, JR.

Director-designate, ACTION

Michael P. Balzano, Jr., 37, was born in New Haven,

Connecticut, where his parents were Italian-speaking immigrants.

At the age of 16 he dropped out of high school and

worked in odd jobs in New Haven. For two and a half years he

was a refuse and garbage collector until a serious back injury

made extensive physical labor impossible. He then became an

apprentice lens grinder for the American Optical Company.

Feeling handicapped by his inability to read or write

English, he enrolled in night classes at his former high school

at the age of 21. Upon graduation four years later he passed

the Connecticut state optical examination and became manager of

an optical company in Darien, Connecticut.

Subsequently he undertook part-time studies at the

University of Bridgeport and later left his business career to

become a full-time student there. As a history major he was

graduated at the top of his class, was named the outstanding

senior and received the University's Top Scholar Award in addition

to his magna cum laude degree.

Extremely interested in astronomy, he was given a

lectureship at the Bridgeport Planetarium where he taught astronomy

to school, community and university groups.

Georgetown University offered Balzano a fellowship to

continue on for a master's degree. A, political theory major, he

became president of the Pi Sigma Alpha National Honor Society and

was awarded the Outstanding Young Man of America Award in 1969.

1
3

-2-

He went on to earn his Ph.D. in political philosophy.

His dissertation was based on an analysis of the VISTA, program

entitled "The Socal and Political Ramifications of the VISTA

Program,"later retitled "Whatever Happened to VISTA?"

In 1971, after President Nixon created ACTION --

bringing together VISTA, Peace Corps and other volunteer programs --

Balzano served as a consultant and made his VISTA study available

to officials planning the new agency. He later accepted a position

as a special assistant to the director of the Office of Economic

Opportunity.

In February, 1972, Balzano became a staff assistant to

the President. On March 1, 1973, President Nixon announced his

intention to nominate Balzano as Director of ACTION.

##
4

REORGANIZATION PLAN No. 1 OF 1971, To CONSOLIDATE VARIOUS VOLUNTARY

ACTION PROGRAMS

REORGANIZATION OF CERTAIN VOLUNTEER PROGRAMS

SECTION 1. Establishment of agency. (a) There is hereby established in the

executive branch of the Government an agency to be known as "Action".

b) There shall be at the head of Action the Director of Aetion. Ile shall be appointed by the President. by and with the advice and consent of the Senate. and

shall be compensated at the rate now or hereafter provided for Level III of the

Executive Schedule Pay Rates (5 U.S.C. 1314).

(c) There shall be in Action a Deputy Director of Action who shall be appointed by the President. by and with the advice a nil consent of the Senate. and

shall be compensated at the Tate now or hereafter provided for Level IV of the

Executive Schedule Pay Rates (5 U.S.('. 5315). The Deputy Director shall perform such functions as the Director of Action shall from time to time assign or

delegate, and shall act as Director of Action during the :display or disability of

the latter or in the event of a vacancy In the office of Director of Action.

(d) There shall be in Action not to exceed four Associate Directors who shall

be appointed by the President by and with the advice and consent eif the Senate,

and shall be iompensated at the rite now or hereafter provided for Level V of

the Executive Schedule Pay Rates (5 U.S.V. 53161. Each Associate Direetor shall

perform such funetions as tile Director of Action shall from time to time assign

or delegate.

Hex. 2. Transfer of functions. (a) The following described functions are hereby

transferred to the Director of Action :

(1) The functions of the Director of the Office of Economic Oppivrt unity under

Title VIII I if the Economic opportunity Act of 1964, its amended. 42 U.S.e. 2991-

299-ki (relating to Volunteers in Service to America and Auxiliary and Special

Volunteer Progratns, including the National Student Volunteer Program).

(2) The functions of the Secretary of Health. Education. and Welfare under

Title VI of the Older Americans Act of 1965, as amended, 42 U.S.C. 3044-3044e

(relating to the Retired Senior Volunteer Program and the Foster Grandparent Program).

(3) The functions of the Small Business Adtninistration under section S( bl of

the Small Business Act, as amended (15 U.S.C. 637 (b) ), insofar as they relate to

individuals or groups of persons cooperating with it in the furtherance of the

purposes of that section: Provided. That such individuals or groups of persons. iti

providing technical and managerial aids to small business concerns, shall remain

subject to the direction of the Adininistration.

(4) So much of other functions or parts of funetions of the transferor officers

and agencies affected by the foregoing provisions of this section as is incidental

to or necessary for the performance by Action or by the Director of Action of

the functions transferred by those provisions, respectively, including:In- the same

extent, the functions conferred upon the Director of the Office of -Eobnotnie Opportunity by section 602 of the Economic Opportunity Act of 1964. as _amended

(42 U.S.C. 2942).

(b) The function conferred upon the Director of the Peace Corps by section

4(e) (41 of the Peace Oorps Act, as amended (22 U.S.C. 2503(e) 1411, is hereby

transferred to the President of the United States,

SEC. 3. Performance of transferred. functions. The Director of Action may

from time to time make such provisons as he shall deem appropriate authorizing

the performance of any of the functions transferred to him by the provisions of

this reorganization plan by any other officer, or by any organizational entity or

employee, of Action.

Sko. 4. Incidental transfers. (a) So much of the personnel, property, records,

and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with the functions transferred to the Director of Action or to Action by this reorganization plan

as the Director of the Office of Management and Budget shall determine shall be

transferred to Action at such time or tithes as the latter Director shall direct.

(b) Such further measures and dispositions as the Director of Office of Management and Budget shall deem to be neecssary in order to effectuate the transfers

referred to in subsection (a) of this section shall be carried out in such manner

as he shall direct and by such agencies as be shall designate.

Sec. 5. Interim officers. (a) The President may authorize any person who

immediately prior to the effective date of this reorganization plan held a position

in the executive branch of the Government to act as Director of Action until the

office of Director is for the first time filled pursuant to the provisions of this reorganization plan or by recess appointment, as the case may be.

(b) The President may similarly authorize any such person to act as Deputy

Director, authorize any such person to act as Associate Director, and authorize

any such person to act as the head of any principal constituent organizational

entity of Action.

(c) The President may authorize any person who serves in an acting capacity

under the foregoing provisions of this section to receive the coznpensation attached

to the office in respect of which he so serves. Such compensation, if authorized,

shall be In lieu of, but not in addition to, other compensation from the United

States to which such person may be entitled.

Sec. 6. Effective date. The provisions of this reorganization plan shall take

effect as provided by section 906(a) of title 5 of the United States Code, or on

July 1. 1971, whichever is later.
5

The CHAIRMAN. Mr. Balzano, do you have any statement that you

would like to open the hearing with?

STATEMENT OF MICHAEL P. BALZANO, JR., DIRECTOR-DESIGNATE

OF ACTION

Mr. BALZANO. Not really. I am very happy to be here. The only thing

I would like to say is that I regret not having the opportunity to meet

with all the members of the committee. I hope to do so over the next

few weeks.

The CHAIRMAN. As you can see, some of the members who wanted to

be present are participating in other meetings and are unable to be

here.

You certainly have an interesting background. As I read your

biography, it looks to me as though a serious back injury that you

suffered turned out to be a very good thing.

Mr. BALZANO. Last week I might not have agreed with you. I spent

the better part of last week in agony. My injury returned once again. I

was meeting with regional directors, and I think they thought they

were getting a Director who was half crippled at the time.

The CHAIRMAN. Was this a flareup of the same injury you had

when you were younger?

Mr. BALZANO. Yes; about every 2 or 3 years I am reminded of it.

The CHAIRMAN. You were in manual labor in New Haven?

Mr. BALZANO. Yes.

The CHAIRMAN. And out of that you changed to a labor that was

less demanding physically, and then proceeded to sort of self-educate

yourself as I read the record. Could you tell us a little bit about yourself and your background.

Mr. BALZANO. I would not say that I came from a very poor family,

but I came from a family that one might characterize today as culturally deprived. As the record indicates, I was illiterate when I was

20.

I think the back injury was probably the prime mover in getting me

out of physical labor into something else. I returned to school when I

was 20 and graduated from high school when I was 25. The only thing

I can say is that with more and more education I was better able to

evaluate my own ignorance, and I became what is known today as a

perennial student. I would like to show the entire society my report

card. I feel I owe it to them since they paid my entire way through

school.

I am a very strong supporter of the program which helps people do

things like that, which makes me a supporter of the ACTION Agency.

The CHAIRMAN. One of the questions that we now ask all nominees

is about their willingness to respond to requests to testify before committees of Congress. It is necessary in all areas, and particularly in the

area that you will work in, that we will have your full cooperation in

responding to requests to appear before this committee or indeed any

of the other committees that bear upon your work.

Could you state what your attitude is about appearing before

committees?

Mr. BALZANO. It is my intention to cooperate in whatever manner

the committee deems necessary.
6

The CHAIRMAN. And would respond to our request for your appearance to testify?

Mr. BALZANO. Yes, sir.

The CHAIRMAN. There is no reservation or hesitation about this?

Mr. BALZANO. No.

The CHAIRMAN. I have no further questions at this moment. Senator

Randolph.

Senator RANDOLPH. Thank you, Mr. Chairman. I have been visited

by the nominee, as have other members, I am sure, of the committee.

We have talked over certain subject matter, which gives me the opportunity to further question our nominee.

As I indicated to you, I am intensely interested in the Foster Grandparent Program. I believe that that program holds a promise of bringing considerably greater numbers of older people—the elderly—a

measure of increased self esteem, certainly in many instances added

income, and valuable companionship for many unfortunate children. I

think there is the combination here that is involved.

I am not sure that you have in your own mind now any plans or programs that you feel might be developed, but if you do, I think that it

would be helpful, Mr. Balzano, to have you tell us what you think

about the possibility of an expansion, if it is desirable, and improvement—certainly improvement is always acceptable—in the Foster

Grandparent Program to which I make reference. Would you address

yourself to that?

Mr. BALZANO. Senator, as to the specifics of the Foster Grandparent

Program, I am not that well versed in the specifics of the program. In

the past 2 weeks I have been looking into various programs and examining them, as time would permit, and I see tremendous potential in

terms of expanding the programs. The senior citizens have a tremendous amount to contribute to this country.

They have a reservoir of unused talent at this point. They want to

make a contribution, and I see these programs as being very, very

important. I think they could be expanded, and I am looking forward

to expanding them as fast as I can.

Senator RANDOLPH. Mr. Chairman, I should also like the response

of Mr. Balzano to the proposed cut in the budget for the VISTA

volunteer training program. I want to explain to you, Mr. Chairman,

that VISTA doesn't have too many friends sometimes in certain sections of West Virginia. I want to be very frank with you. We have had

trouble in the past sometimes with the VISTA programs, because we

are never able to run these down in every case, have not attempted to

work with the people within the State, so the charge is, and whether

substantiated in all cases that is another matter. I am not going into

those situations, personnel, all these problems which exist. But if we

are to have a training program for this volunteer effort, a good effort

we will say, and it is to be cut 50 pexcent, why there must be a reason

why it would be cut 50 percent, because if the program is to be of

value, it must have a proper base in which to operate.

Would you make a comment?

Mr. BALZANO. Number one, I am not aware of the exact percentage

of the cut of training program. Are you referring to last year's budget

or the proposed budget?

Senator RANDOLPH. It is the proposed budget, as I understand.
7

Mr. BALZANO. The cuts were made in the training program on the

basis of savings. I can assure you, Senator, that we are not attempting

to put volunteers into the field untrained.

We have reduced the training from $1,100 to $800 per trainee, and

we have tried to look toward more staff training in the field. But in

terms of reducing the budget for training, all we have done there is

reduce the cost.

I would like to say this, Senator, there have been problems in the

past putting untrained volunteers in the field. I hope to spend some

time on two aspects of training, not only training for the volunteers,

in terms of their producing harmony within the community, but staff

training. While talking with some of the people in the regions this past

week, I was led to believe that we could do more in the area of staff

training and preparing the regional people for doing some of this.

Certainly there will not be a deemphasis on training.

Senator RANDOLPH. I have the figures that may help clarify this.

If this is in reference to social services under VISTA. The fiscal 1973

estimate for training is $4.68 million. The fiscal 1974 estimate is $2.4

million, roughly a 50 percent reduction. That is the figure we are referring to.

Mr. BALZANO. We expect to have fewer trainees next year than this

year. This does not represent, however, an overall reduction in VISTA,

for there will still be slightly more than 4,200 VISTA man-years in

fiscal year 1974.

Senator CRANSTON. I understand that the Agency is committed to

maintaining a level of 4,200 man-years in VISTA and that the budget

you are proposing will enable this. Can you maintain this level even

though you are reducing the amount requested for training?

Mr. BALZANO. That is correct, Senator. The 4,200 man-years of service will be maintained.

Senator CRANSTON. That is approximately the present level, am I

correct?

Mr. BALZANO. Yes.

Senator RANDOLPH. A final question. As I understand it, the development program, as far as the budget indicates, will have a substantial increase for fiscal year 1974. If you could, tell the committee

whether there are specific programs that would be affected by this

increase, and just what they are?

Mr. BALZANO. Senator, ACTION's Office of Policy and Program

Development is currently conducting a number of cost-shared programs, the local/county/regional governments Volunteer Programs

Coordinator Program, and the Program for Local Service. That office

was budgeted $5 million in fiscal year 1973 and we are requesting $8

million for fiscal year 1974. These are our new programs. Our Office of

Policy and Program Development will be briefing me in more detail

on their current activities as well as their plans for the next fiscal

year. However, the programs I have just mentioned are the ones they

are engaged in now.

Senator RANDOLPH. How long have you had knowledge of your

appointment?

Mr. BALZANO. It has been 3 weeks, sir.

Senator RANDOLPH. Mr. Chairman, this is not a criticism. I do not

say he should have known these matters in more detail. I do not think
8

he has had the opportunity to go into these matters very thoroughly—

and this is not a criticism. I think what you are trying to tell us is

that you are new and you are going to look into these matters and you

are going to get a feel of it, is that it?

Mr. BALZANO. Let me phrase it this way, sir. It would seem to me

terribly presumptuous upon being nominated by the President to walk

into an agency and in effect take command without having had the

approval of the Senate. What I have done in the last 3 weeks is simply

make myself available to staff people. I have met every person in the

Washington office, all three buildings. I have communicated by phone

ivith everyone in the 10 regional offices and I have met now with 6.of

the 10 regional directors in order to personally acquaint myself with

some of their problems.

I really felt somehow that I could not, until I was confirmed, begin

asking people to present me with reams of material concerning their

activities and programs.

But at any future time, I would expect that you would call me, and

I would answer any questions you have.

Senator RANDOLPH. I think you are very forthright. I appreciate

what you have said now, because I do recognize the propriety that you

believe you have followed in these matters.

That is all, Mr. Chairman.

The CHAIRMAN. Senator Cranston.

Senator CRANSTON. I would like to say, first, Mr. Balzano, that I am

delighted your nomination is now before the committee. As others on

the committee, I had the pleasure of visiting with Mr. Balzano and I

was very favorably impressed and was very delighted with the depth

and substance of our lengthy discussion.

I have great hopes for the Agency under your leadership, Mr.

Balzano, and if you do as well directing the Agency as you have done

tackling other challenges since that back accident, ACTION is going

to be in very fine shape. I think a very pleasant relationship between

the Senate, and this committee in particular, and the ACTION Agency

is sure to develop under your leadership.

I also like the approach you have taken, touching base so carefully

and thoroughly with all the people with whom you are going to be

working.

I do have a few specific questions that I would like to ask you.

In your thesis you have stressed very strongly the importance of

carrying out the law in strict accordance with congressional intent.

Can we, therefore, expect if you are confirmed that you will bring to

your responsibility as the Director of ACTION Agency this same high

respect for the law and for the congressional intent as expressed in

committee reports, floor debate and so forth?

Mr.. BALZANO. Absolutely. I expect to work very closely with this

committee and from time to time to apprise you of exactly what I am

doing. If the members of the committee want to have an input, I want

that input. I will need the benefit of their experience.

Senator CRANSTON. I am pleased to hear that.

What personnel changes do you plan to make in the Agency?

Mr. BALZANO. My intent right now is to examine the Agency from

top to bottom with respect to functions that are being performed. I

plan to make no personnel changes unless I see that there are people
9

who could be performing a different function, in terms of working in

another program area.

But in terms of specific personnel changes, I have no present plans.

Senator CRANSTON. Since your name was proposed as the Director,

have any individuals in high agency positions in ACTION been told

that they are going to lose those positions?

Mr. BALZANO. Not by me.

Senator CRANSTON. Have they been told so by any other people?

Mr. BALZANO. No.

Senator CRANSTON. How do you feel generally about the need for

continuity of personnel and program direction?

Mr. BALZANO. Well, Senator, again I would like the benefit of everyone's experience. My deputy is sitting right here. I told him I would

like a freeze on all people who are planning to leave—I want to be

sure that everyone has a chance to meet with me and get my views of

the Agency before they decide to leave. There are many people, I am

sure, who are somewhat uneasy because I am a new director. They do

not know what my plans are, but I am hoping that the majority of

the people are going to want to stay on board and work with me.

Senator CRANSTON. I would think they would want to, and I hope

that is the case.

What are your personal intentions as Director with respect to making political speeches or appearances or engaging in political fund

raising activities?

Mr. BALZANO. I do not intend to engage in partisan politics, as the

Hatch Act requires, nor do I want any of my people doing it.

Senator CRANSTON. The Hatch Act does not apply to you.

Mr. BALZANO. In terms of making statements that support the

President of the United States, I expect to do that. However, I do not

plan to make statements at campaign rallies. I assume that is what

you are talking about?

Senator CRANSTON. Would you expect to become a defender of the

President's position in a political context in areas other than those

where you have responsibilities?

Mr. BALZANO. No; I think the cares of the day are sufficient to themselves quite frankly.

Senator CRANSTON. Getting back to personnel for one moment, what

are your views and intentions with respect to filling ACTION Agency

personnel positions on the basis of partisan political considerations?

What weight would those considerations play as you fill positions?

Mr. BALZANO. That is a tough one for me to answer. I am a Democrat myself. I assume you are talking about Democrats and Republicans. I do not plan to move or remove anyone from a job on the basis

of his being a member of one political party or another.

Senator CRANSTON. Would that same principle apply to filling

vacancies?

Mr. BALZANO. I think I would extend the same courtesy to other

Democrats that the President has extended to me.

Senator CRANSTON. What are your views concerning the need to

maintain—perhaps I should say restore—the apolitical, nonpolitical

orientation of the ACTION Agency's programs?

Mr. BALZANO. Well I could not agree with that aim more. I think

over the past years that VISTA's experience has taught us that on the
10

domestic side we could have gotten more cooperation from local citizens and local governments if we had cooperated with them. I alp

not saying noncooperation was widespread but there were communities where there was friction between local government and the programs. It is my intention that should such friction occur, I would remove the volunteers involved and place people on those projects who

could develop a more harmonious relationship.

Senator RANDOLPH. I want to just add, if I can at that point, Mr.

Balzano, that was the major problem in West Virginia, as reported

constantly to Senator Byrd, to members of our delegation, and of

course to me by letter, in person, and I did go into one or two of these

problems, you know, on the basis of trying to find the facts. I did discover this situation unhappily existed in at least one or two points

where I looked. So I commend you for what you have just said, because I think it is important that the program not be political in any

sense, but that it be responsive insofar as possible working with the

people there who have been on the ground and understand the problems and hopefully are helped by those volunteers who come in to join

them.

Thank you very much.

Senator CRANSTON. I would like to ask you one more question in this

area. What is the role of Alan May, who was formerly director of personnel of the ACTION Agency, in deciding on ACTION Agency's

staffing at the present time? As I understand it, Mr. May is now on

the White House staff.

Mr. BALZANO. I have seen him at the White House. What his role

is, I do not know. He has no control over me.

Senator CRANSTON. Will he have any voice in staffing within the

Agency?

Mr. BALZANO. Not over me he will not.

Senator CRANSTON. Not over you, if you are Director. Then will it

be your decision, not Mr. May's as to who stays and who arrives?

Mr. BALZANO. Senator, as you know there are some positions in

ACTION that are schedule C, and are subject to the approval of the

President. If the President should want to remove someone, I will not

go against his decision. If the President should want to replace someone, I suppose that to a significant degree I am not going to stand in

the way. With regard to any other personnel changes, however, they

will be made by the Director.

Senator CRANSTON. The problem is not in dealing with the President's authority. The question is Mr. May's authority in the Agency.

Mr. BALZANO. No; I will defer to the President's authority.

Senator CRANSTON. Would you please provide us for the record any

information you have regarding any action or nonaction by Mr. May

in regard to personnel within the ACTION Agency since the time he

left as director of personnel?

[The information subsequently supplied by Mr. Balzona follows:]

To my knowledge, Mr. May has taken no action with respect to personnel since

leaving the Agency. Furthermore, he has no authority for or connection with

ACTION.

Senator CRANSTON. Moving from that topic, how do you personally feel about the antipoverty mission of the VISTA program and

the other programs presently carried out under the authority of title

VIII of the Economic Opportunity Act?
11

Mr. BALZANO. I think it is a necessary function. I think it is something we should be doing. In terms of how I feel about it, I think in

the discussion we had prior to this hearing that I expressed to you that

I think these programs should be expanded. I am somehow disturbed,

as you know, by the strict use of a dollar poverty guideline, that is, defining poverty in a dollar figure. There are people who may not qualify

under the 0E0 poverty guideline dollar figure, but who are indeed

just as poor.

So in terms of the mandate I am given in current legal authority, I

believe this should be expanded.

Senator CRANSTON. Do you personally expect to focus more of your

attention on domestic rather than Peace Corps aspects?

Mr. BALZANO. Again, there has been so much interest in trying to

put the domestic side of the equation in order, let me just say this, that

I think that for my first 3 or 4 months as Director, I would hope to

put the domestic side in order.

The CHAIRMAN. Would you yield to Senator Javits ?

Senator JAVITS. I have no questions. I was just going to suggest to

the Senator that we can come back after the vote.

Senator CRANSTON. I have just a few more questions. I would like

to return after the vote.

The CHAIRMAN. We will return after the vote.

[ Short recess.]

The CHAIRMAN. We will reconvene. Senator Cranston.

Senator CRANSTON. Again getting back to the matter of your own

emphasis, do you expect to be focusing more on VISTA because of

your own background and interest in this program, rather than on the

other programs in the ACTION Agency?

Mr. BALZANO. Several other ACTION programs are lesser known

but nonetheless have so much potential. What I want to do is focus

on these programs and build them up. I am interested in VISTA. I

spent 31/2 years of my life studying it. However, I see the great potential in all the ACTION programs and want to be sure they all get

adequate attention.

Senator CRANSTON. If, after you have served as Director for a year,

you feel that some of the programs need expanding in order to really

perform their mission, will you go to the President and seek to get

more funding for those programs?

Mr. BALZANO. Oh, absolutely; I think if we do a good job, there is

no reason at all why the President would not want to invest more

money in these programs.

Senator CRANSTON. Do you view the ACTION Agency, in terms of

being a problem solving agency or as being a volunteer recruitment

agency?

Mr. BALZANO. Well, I understand the term "problem solving"

Agency. However, I am not sure what you mean by "volunteer recruitment" agency.

Senator CRANSTON. Do you feel the ACTION Agency should be mission oriented or oriented toward recruiting as many volunteers as possible?

Mr. BALZANO. Very much in terms of mission.

Senator CRANSTON. What type of people do you feel should be recruited?
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Mr. BALZANO. The various stages of deprivation among some people in this country is so serious that I think anybody who wants to

make a contribution toward solving these problems should be able to

do so. I am hoping to broaden the base of participation both in terms

of the volunteers who serve and the community being served.

Senator CRANSTON. Would you place a greater emphasis on recruitment of manually skilled volunteers rather than generalists?

Mr. BALZANO. I tend to favor more manual skills than generalists,

however, obviously both are needed. In terms of enabling people to

earn a better income and improve their lives, certainly hard skills are

going to benefit these people more.

Senator CRANSTON. Would your own emphasis be on an older person

rather than younger persons?

Mr. BALZANO. My own emphasis would not be on either one or the

other. There are more than enough opportunities for anyone who

wants to make a contribution to do so.

Senator CRANSTON. How do you feel about the recruitment into the

VISTA program of low-income volunteers who are themselves members of the poverty community? As you know, such volunteers account

for about 49 percent of the present VISTA strength.

Mr. BALZANO. I am very much in favor of that. I think a person who

lives in or has lived in an impoverished community and has experienced the kind of deprivation that exists there is often a better

judge of what his community needs than those on the outside.

Senator CRANSTON. There has been some controversy in recent years

over the role of VISTA volunteers in community organizing. What

is your view on that?

Mr. BALZANO. It depends on what the volunteers are organizing for.

If they are organizing for economic and social improvement and the

advancement of people, I have no objection to it. However, if they are

organizing to simply harass the establishment, I am against it.

Senator CRANSTON. Well we are really talking about organizing to

accomplish a certain goal.

Mr. BALZANO. I have no problem with that.

Senator CRANSTON. As Director of the ACTION Agency, do you

plan to consult with volunteers, the National VISTA Alliance, or

other volunteer groups concerning policies and program changes?

Mr. BALZANO. I am sorry, would you please repeat that.

Senator CRANSTON. Do you intend as Director of the ACTION

Agency, to consult with volunteers, the National VISTA Alliance, or

other volunteer groups concerning policies and program changes?

Mr. BALZANO. There is an organization called the National VISTA

Alliance. The question of their representativeness is something that I,

as well as a great many others, am not sure about. I do not know what

their present state is. I do know that I have consulted with all of the

ACTION regional directors around the country, and they tell me

they have groups of representative volunteers who consult with them

from time to time. I certainly intend to encourage the continuation of

this exchange of views. I think volunteer input is needed.

Senator CRANSTON. My last question is a very general one. What

new directions do you feel the ACTION Agency should take or do

you hope it will take under your guidance?

Mr. BALZANO. I hope to expand cooperation and harmony with the

local political establishment, whether it be city mayor, city council or

what have you.
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I think that ACTION programs could be three times more effective

if they take in more supporters and encourage and enable these supporters to participate. A program is lost if it views itself as an independent entity placed in a community. Another way of saying

it is that the volunteer really is a guest in a community and that the

more cooperation he can engender with that local community and the

local leaders, the farther the program can go. If there is a role, I intend

to play, it is a harmonizing one. I have been called naive, but I believe

that there are more people who want to cooperate than want to confront. I think if we conduct ourselves in that manner, we can engender

an awful lot of progress.

Senator CRANSTON. I want to thank you very much for your very

helpful and responsive answers. That same harmonious attitude is the

way we are starting off together, you in your role and we in ours in the

committee, and I am grateful for this and I have very high hopes for

the future of ACTION under your guidance.

Mr. BALZANO. Senator Cranston, you have been most kind.

Senator CRANSTON. Thank you very much.

The CHAIRMAN. Senator Javits.

Senator JAVITS. Thank you very much, Mr. Chairman.

Mr. Balzano came to see me in New York at great personal inconvenience, and I greatly appreciated it. I think the committee should

know that the reason for my great interest in this particular assignment for which we are asked to confirm Mr. Balzano is that when the

reorganization plan of which it is a part was before the Government

Operations Committee, I stipulated particularly that his job and one

other should be chosen as to its incumbent from those who would have

a particular and sympathetic interest to the subject. Accordingly, I

felt a special responsibility to pass on him myself, and I am fully satisfied with what I have seen and heard.

I would like to point out for the benefit of my colleagues that Mr.

Balzano comes from the school of "hard knocks," which we are very

proud of in this country. His parents spoke Italian, just as my parents

spoke Yiddish, and other people's parents spoke another foreign

language, and here he is at an early age, only 37 years of age, with a

Ph. D. in political philosophy, and with a dissertation on the very subject which he will handle, if we confirm him—as I hope we will—and I

am very pleased.

There is only one question that I have, Mr. Balzano. There has

been a great interest in the participation of the poor in antipoverty

programs. This has been the whole key to the community ACTION

effort and one of the really stormy parts of the whole antipoverty

program. I would like to ask my question in two parts.

First, do you see and will you lend yourself in complete good faith

as a part of the administration with respect to the substantive functions which the antipoverty program contains going on, rather than

being aborted? Even if we should ultimately see 0E0 dismantled,

you would use your every effort in good conscience to see that the functional responsibilities which were carried out, health, education, welfare or child care, were actually in good faith being carried out?

Second, what role do you see for the poor themselves in the antipoverty program for these programs for the future?

Mr. BALZANO. To answer your first question, it is not my intention

to preside over a wake or to see any of the ACTION programs deescalated. To answer your second question, I think that participation
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of the poor is most welcome and necessary to the success of any programs designed to serve their needs.

I would like to add this, you pointed out—in fact you were the very

first person to ask me a certain question and I found it shocking that

day—you said a person like yourself who works his way up sometimes

might overlook the fact that others cannot do it. Well you did a good

job of it yourself, Senator. You worked your way up. You have not

forgotten. I worked my way up, and I have not forgotten either.

Senator JAVITS. Thank you very much.

The CHAIRMAN. Just one observation, Mr. Balzano. It impresses me

that it would be very helpful to you if you had some time to visit in the

field where the programs are, and see the people who are being served

in the various areas of your responsibility. You are going to be an

advocate of this effort.

Mr. BALZANO. Very much SO.

The CHAIRMAN. Well, that we want to be convinced of, and you are

convincing.

Mr. BALZANO. Thank you, sir.

The CHAIRMAN. Because you will find there are people who have

been positioned above you in the administrative structures of the executive branch who regard many of the efforts almost solely as a

very heavy budgetary burden, and look for ways to reduce this by

striking figures and coming in with lower figures, and sometimes even

striking the total figure. If you are going to be that advocate, nobody

is a better advocate than one who has been there and who has seen the

people served by the Foster Grandparents or by the other programs

you will be administering.

I just wanted to unburden myself of this observation. I have been

to the Job Corps, and I have seen what it meant, and I pleaded as an

advocate for that program with Mr. Shultz when he was Secretary of

Labor and I failed. That was nearly 4 years ago now. That failure is

still a continuing loss of opportunity for a lot of poor young people

who could have learned a skill, a skill that was needed, because it

would have led to a job that they could get.

I have used this example many times since that experience but I

use it as a good example of what can happen to an action man like

yourself in the ACTION program. One hour in an institution for

greatly retarded young people, seeing the foster grandparents bring

just a little bit of the light of life into youngsters who are really the

living dead, is what makes a good advocate. I wish you well.

Mr. BALZANO. I think, Senator, I will need the benefit of your help

and experience. You indicated to me when we met in private that yott

were willing to help me, and I intend to call on you.

The CHAIRMAN. We will be here, God willing. Thank you.

Mr. BALZANO. May I just inject one final comment, Mr. Chairman.

I want to reiterate what I said before concerning my reluctance to begin making substantive decisions until I am confirmed by the Senate,

I feel that would be terribly presumptuous of me. I do expect to spend

time informing myself of what the Agency is doing. However, in terms

of actually moving people and programs, I intend to limit myself until

I am told otherwise.

The CHAIRMAN. That is refreshing. Glad to hear it. The hearing is adjourned.

[Whereupon, at 3:15 p.m. the hearing was adjourned.]

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