Evening star., 1927-04-29
Nine Changes Recommended
to Promote Efficiency
and Economy.
WOULD END PERMANENT
FUNDS FOR EXPENDITURE
Curtailment of Special Revenue and
Restrictions on Legislation
Included in Program.
BY WILL p. KENNEDY.


Nine suggestions for improvement
of the appropriations system i'm Con-
gress as one of seven ways in which
the national budget system can be
strengthened are awaiting the return
of Congress. They are recommended
by the Institute of Government Re
search, which Is an association of citi-
zens cooperating with public officials
in the scientific study of government
with a view to promoting efficiency
and economy in its operations and ad-
vancing the science of administration.
The report was written after extern
sive study by DR.. William F. Will
loughby, director of the institute
The nine suggestions are: ~ Aboli-
ton of permanent appropriations; (2)
curtailment of special revenue and
expenditure funds; (3) change in treat
ment OF uneXpended balances of APP
preparations; (D financing of supply
services; (5) restriction of appropria-
tions generally available for de-
partments; (6) revision of appropria-
ton heads: (0 elimination of perma-
nent legislation from appropriation
acts; (8) authorization of transfers be-
tween appropriation heads, and (9) linn
itation of general debate on appropria-
tlon bills to subject matter of the bills.
Emphasize Distinction.
The distinction between the budget
and the appropriation acts, which rep
resent action on the budget proposals,
must be made clear. The budget is an
information document, and as such
can scarcely enter into too great de-
tail in reporting upon past action
and in making known future needs.
Though the appropriation acts should
be based upon and follow the general
scheme of presentation of estimates
no greater mistake could be made, Dr.
Willoughby says. than in making the
appropriation acts conform in detail
to the budget presentation. This
brings up the problem of determining
the character of the Governments
appropriation system, which, though
related to, is distinct from that of de.
termining the character of the budget
Many improvements have already
been made In the appropriation sys-
tenn OF the National Government as 4
result Of the adoption OF tbs budget
system. The raors important OF these
are. ~ The vesti44g of sfff AUTHORITY
to frame appropriation bills in the
hands of a single committee in each
house of Congress; (2) the adoption. of
the unit, of organization as the pri.
mary basis for the classification of
appropriations, and go the adoption
or lump-sum appropriations for sal
aries and wages, and to a large ex-
tent for public works. These nina
suggestions specifically named above
are the other ways in which the Instf
tute for Government Research believes
the appropriation system can be great.
ly improved.
Chairman Madden of the House an
preparations committee is convinced OF
the desirability of abolishing many of
the permanent appropriations, and il
is expected that he, working in co.
operation with Gen Lord, the director
or the Bureau Of the Budget. with
Secretary Mellon of the Treasury De-
partment and Controller General
McCari, will succeed in accomplish.
ing something toward improving the
present swollen system of permanent
appropriations.
Urges Complete Statement,
Arguing for this reform. DR.. Will
loughby points out that logically the
budget should contain a complete
statement of the expenditure needs OF
the Government for the wear to be
financed, and the appropriation acts
complete statement OF the funds
voted for that purpose. The achieve
ment of that end is prevented bv the
existence at the present time of a
large number of so-called permanent
appropriation acts. These acts in.
stead of providing for the grant OF
specific funds for a given fiscal wear.
give a permanent authorization to ex.
pend covering a number of years or
running indefinitely. and they NAV be
definite in that they fix the amounts
that may be expended each year, or
indefinite" in that they authorize the
expenditure of such sums as may be
necessary for the achievement of the
specified purpose.
The budget makes its presentation
complete by including the expendi.
lures called for by these acts of perma.
nent legislation, being careful to indi.
cate, however, the items that are
already provided for by such acts.
The annual appropriation acts, how
ever. do not include such items, since
appropriations therefor have already
been made by permanent statute. The
result is that the total of the appropri-
alton acts does not represent the total
of the moneys that have been voted
Tor carrying on the operations OS the
Government during the year.
The Importance of this system OF
permanent appropriations can be seen
from the statement of such appropri-
ations given in the budget. that docu-
ment listing 80 such appropriations
calling for a total expenditure, during
1926, of $1.405. .719.773 3.24-practicallv
billion and half dollars.
Finds Defense Difficult.
DIR. WillOughby is Of the opinion
that the whole system of permanent
appropriations is difficult of defense,
with the possible exception of a few
cases where the Government has as
sumed obligations of a permanent
contractural character or adopted a
permanent policy, such as reduction
of debt through a sinking fund. The
objections to this system that he cites
are that it complicateS the problem of
determining and making provision for
the financial needs OF the Government.
an element of uncertainty
in determining the total funds voted
for the support of the Government or
for particular purposes for a given
year, and seriously impairs the power
of Congress in respect to the exercise
of its function of direction and con-
troll over the spending services OF the
Government. The fact that the ex.
penditures called for by these acts
are permanently authorized means
that items for them cannot be in.
cluded in the annual appropriation
h Iaw