Evening star., 1946-10-25
Public Works Budget
Increased 165 Million
Over Economy Order


The economy program in ci-
william public works announced
by the administration in August
will be $685., 100000 under the
January. budget figures instead
of the $70o.0o0,000 originally
contemplated.
q statement hy President Truman
explaining the xasipns already
made, including $25, ,000,000 more for
reclamation projscts and another
$4,000, 900 for Hood control.
At the same time, the President
made known that he does not plan
any further cuts In military spend
ing.
The increases in flood control and
reclamation projects - announced
several days ago-c came approx
mately a month after a congress
sional delegation of IS members met
at New Orleans to ask Mr.. Truman
to reconsider his August decision
to lop $700,000,00 worth of flood
control, highway construction, riv-
ers and harbors development, recla-
nation and power development
projects off the budget for the cur
rent fiscal year.
Agency Heads Back Protest.
Not only had the Congressional
group protested the cutbacks. Some
heads of executive agencies of the
Government alsoz had said that
much of the work was essential to
the public welfare.
In his original announcement OF
the reduction in the public works
programs, Mr.. Truman said such
cut-backs were desirable in order
to combat imitation and conserve
scarce materials.
But with elections coming up
soon, members of Congress have
shown persistence in clinging to
benefits they consider they might
have won for their constituents in
getting congressional sanction for
the various projects.
Text Of Truman Statement.
I However, in slicing the funds for
various projects, Mr.. Truman had
not specifically identified those
which he considered not desirable
now. That task he left for the
various bureaus to tackle.
The text of Mr.. Truman's state
ment follows:
"On August I L placed an over
all expenditure limitation for fiscal
year 1947 OF $4,000, ,0OO, 900 for the
military functions of the War De-
partment, thereby requiring a say
ing of 81 100000 900.
At the same time $5,150, ,000, 900
limitation for the Navy Department
required a saving of $3.50, ,000, 900 in
this fiscal year.
These limitations have not been
changed and no further military
cutbacks for the fiscal year 1947 are
under consideration at this time.
The responsible officials of the Bu-
reau of the Budget, the War De-
partment, and the Navy Department
are working together in effecting the
required curtailments.
Study Shows Need for Increase.
"At the time expenditure linaita-
tions were imposed on nonmilitary
Federal public works for the fiscaI
year 1947, it was necessary to esti-
mate the effect of the screening OF
construction projects by the office
for war mobilization and reconyer-
sion. These limitations were very
rigid and reduced the overall Fed
eral public works programs from
81 800, 900 900 to 100000, 900, requir-
ing a saving of $700, 900 900.
Further study of the whole public
works program by Reconversion Di-
rector John r. Steelman and Budget
Director James E. Webb has indi-
Gated the necessity for increasing
the expenditure limitation for the
War Department Corps of Engineers
from $4,000, 900 to $4,000, 900, with
an additional limited provision for
new projects approved by Recover
sion Director Steelman, and for the
Department of the Interior recla-
nation program from $85, ,000, 900 to
$110, 200, 600.
These, together with an increase
for IVA of $13,00o,0o0 and for
the Department Of Agriculture of
s5,OO0o00 are the only increases in
expenditure limitations on Federal
construction projects which have
been authorized to date, and were
it not for increases in programs
over which I have no authority to
place limitations, a saving of $780,
100000 would be made good.
I'm those programs on which ]
could not impose a limitation, such
as public roads grants and rural
electrihcation loans, current ex-
penditure estimtes are up $95,O00,-
600.
Despite these unavoidable revi-
sions, our savings on nonmilitary
public works will be $685., 600 900 be-
inu, the January budget estimates"