developed area in the town of Riverdale. In that particular location there are some 200 to 300 houses just at the head of the project as originally visualized that would lie outside of the protection. The project has been extended to take in that area of Riverdale. Senator YOUNG. That accounts then for the more than average increase in cost of this project over others. General CHORPENING. Yes. PRICE LEVEL INCREASE Colonel STARBIRD. Actually we have both extended that Riverdale element and we have made certain other changes which result in savings. The savings result from having adjusted the navigation depth and we are providing one boat basin to serve both commercial and recreation boating. So, the increase in cost from price levels plus the extension to protect the Riverdale area is offset somewhat by savings elsewhere. Senator YOUNG. Are you permitted to do that within your authorization? Colonel STARBIRD. We are, sir, in connection with the project. A project is normally authorized permitting such modification as deemed appropriate by the Secretary of the Army, in certain cases, and in other cases, by the Chief of Engineers. STATE CONTRIBUTION Senator ELLENDER. As I recall, when this project was discussed last year we were told by the proponents of this project that if we spend a certain amount, say, a half million or a million, that the State of Maryland would immediately expend some $3 or $4 million, I think, that they had available. Is that still true? Colonel STARBIRD. That is still true and there is a very heavy contribution on this project by local interests over $5 million. Senator ELLENDER. Would you suggest language either in the bill or in the report to the effect that when the Federal Government contributes its share the State shall put up its share? I tell you why I say that. I understand that they were willing to provide the whole amount if the Federal Government spent as much as a million dollars and the position was taken that they realized the Federal Government may not be in a position to spend as much as it should spend, but that by the spending of a million dollars they would be willing to put up whatever their contribution is so as to hurry up the project. Do you think that is possible? Colonel STARBIRD. I do not think it is a requirement for this reason, sir. We do not go ahead with work until they accomplish their share of the work. In this particular case the State of Maryland has passed enabling legislation that directs the immediate availability of about $4.25 million as soon as the Federal Government appropriates money to go ahead with construction. I might point out also that they have already acquired 73 percent of all the land that will be needed. Their expenditures will follow then in a logical sequence. They will undertake the relocations necessary, complete the acquisition of lands and the like. Senator ELLENDER. Whatever money they are going to appropriate would be spent by them and not by the Federal Government? Colonel STARBIRD. That is correct, sir. Senator YOUNG. I think the record should show that the people in Maryland indicated on page 1749 of the hearings of 1954 what they themselves would spend with an appropriation of $500,000. I really think part of that statement should go in the record. (The statement referred to follows:) The information referred to is contained in a letter dated May 25, 1953, addressed to Hon. William F. Knowland from Mr. L. S. Roy, Commissioner, Washington Suburban Sanitary Commission and was recorded on page 1749 of the hearings before the Subcommittee on Civil Functions Appropriations for fiscal year 1954. A reprint of this letter follows: WASHINGTON SUBURBAN SANITARY COMMISSION, Hon. WILLIAM F. KNOWLAND, Chairman, Subcommittee on Army Civil Functions United States Senate, Washington 25, D. C. DEAR SENATOR KNOWLAND: Pursuant to the inquiry of members of the committee at the hearing before the Subcommittee on Army Civil Functions on May 15, 1953, we are submitting this letter concerning the amount of money, contributed locally, which might be expended advantageously should the Congress authorize $500,000 for the beginning of construction of the Anacostia River Basin flood-control project. After a review of the work contemplated by the Army engineers as the initial step in the construction of this project, this commission is of the opinion that the following portions of the work, involving the expenditure of the sums indicated which would be contributed by local agencies, could be begun: Under chapter 728 of the acts of the General Assembly of Maryland of 1949, this commission is designated as the organization to contract with the Federal Government in matters relating to any projects for flood control and navigation in the valleys of the Anacostia River and tributaries within Prince Georges County, Md. The act, as amended in 1953, authorizes and directs the county commissioners of Prince Georges County, the Washington Suburban Sanitary Commission, and the Maryland-National Capital Park and Planning Commission to issue bonds in the respective amounts of $1,500,000, $750,000, and $500,000 for financing the Anacostia River flood-control and navigation project whenever an appropriation shall have been made by the United States of America for the construction in whole or in part of any such project. It also authorizes and directs the State Roads Commission of Maryland to pay out of its general funds sums up to $1,500,000 under the same condition. Subsection (d), section 1, of the 1949 act, which is not amended, reads as follows: "The proceeds from all bond issues hereinbefore authorized to be issued under this act shall be turned over to the Washington Suburban Sanitary Commission, with which proceeds it shall establish a separate fund to be designated as the flood-control and navigation fund, from which fund all costs of said flood-control and navigation projects, other than costs to be borne by the Federal Government and the State roads commission shall be paid. The proceeds from the bonds authorized to be issued by this act shall be applied toward the cost of constructing and relocating all county highways and bridges complete, the construction of recreational and commercial boat basins and the construction of necessary internal drainage facilities, the relocation of utility structures and for the acquisition of land and buildings which it is necessary to acquire for the flood-control and navigation projects." It will be seen from the above that whenever the Federal Government appropriates any moneys for the construction of the Anacostia River flood-control project the moneys are available from the Maryland agencies for the construction and/or relocation of State and county highways and bridges, boat basins, internal drainage facilities, and utilities, and for the acquisition of lands and buildings within the limits of the project. As stated above, such projects aggregating $2,667,700 can be started once a construction appropriation is made by the Congress for the Anacostia River flood-control project. The total local contributions authorized by the General Assembly of Maryland aggregate $4,250,000. The remaining portion of this amount, which will not be used at this time, is available whenever the Federal Government carries out the construction remaining after the initial construction step is completed. It is understood that the construction of a commercial navigation terminal, consisting of a basin, wharves, and attendant facilities, as set forth in House Document No. 202, 81st Congress, is not now contemplated by the Army engineers in connection with this project. Respectfully, WASHINGTON SUBURBAN SANITARY COMMISSION, Senator ELLENDER. I think I brought it up and I hope it will be done along the lines that we had agreed upon last year. Colonel STARBIRD. Yes, sir. Senator YOUNG. Any further questions? You may proceed to the next project. CENTRAL AND SOUTHERN FLORIDA (FIRST PHASE) Colonel STARBIRD. The next project is the "Central and southern Florida project, first phase." This is a comprehensive project, a project for flood control, drainage, and for improved water usage through a large section of central and southern Florida. It is also a cooperative venture, one in which the local interests are contributing toward the actual cost of construction and local interests are also undertaking certain works that they must complete on their own to make the project function. I will mention one point more. In connection with this project, the original recommendation for authorization was for an overall project, a project then estimated to cost in the neighborhood of $210 million. Congress at that time saw fit to direct and approve construction of a so-called first phase, an element for the protection of particular areas, and to direct that we go ahead with planning toward additional phases. That is the reason that on your justification sheet the wording appears "Central and Southern Florida, first phase." The estimated cost of the first phase, exclusive of the contribution in cash which the local interests are to make, is $96,345,900. There has been appropriated to date in Federal funds, against that $96 million, approximately 19 percent of the cost, $18,774,000. There was no appropriation toward this project in fiscal year 1954. The budget recommendation for this project in fiscal year 1955 is for $3,620,000. The project has a very high benefit-to-cost ratio of 6.55 to 1. UNEXPENDED FUNDS There were unexpended funds at the end of fiscal year 1953, Federal funds, in the amount of $6,348,759. That unexpended amount was reduced by December 31, 1953, to $3,729,293-I am still talking only Federal costs and not costs to include local contributions and by the end of the fiscal year the unexpended amount will be reduced to the small sum of $301,000, approximately. Senator ELLENDER. Is it not a fact that the large carryover you had last year was the reason why we did not appropriate any money? Colonel STARBIRD. I believe that is a fact. Senator ELLENDFR. You said that by June 30 of this year the amount will be what? Colonel STARBIRD. It will be reduced to $301,000, sir, and every bit of that will be obligated, of course. Senator ELLENDER. How much was your within-ceiling request? Colonel STARBIRD. The within-ceiling request, sir, was equal to the $3,620,000. Senator ELLENDER. So that for this project the Bureau of the Budget allowed you exactly the amount that you desired or requested within ceiling? Colonel STARBIRD. They approved what we recommended within ceiling as the minimum to continue. BUDGET REQUEST Senator HOLLAND. What was your total request this year? Senator HOLLAND. On what basis did you classify this larger part which was not allowed by the budget of $3,880,000 as beyond ceiling? Colonel STARBIRD. Sir, we had a certain ceiling figure which we had to allocate to the projects that we felt were urgently necessary to carry on. In addition there were certain other higher sums that we felt were necessary also that we could not fit into the ceiling. Senator HOLLAND. As a matter of fact, you wanted more than the $7.5 million; did you not? Colonel STARBIRD. We could have used a little more than the $7.5 million, sir. Senator HOLLAND. As a matter of fact, there is no difference as to the necessity for early construction between the $3,620,000, which was classified as within ceiling and which is allowed by the budget, and the $3,880,000, which you classify as beyond ceiling and which was not allowed by the budget? Colonel STARBIRD. All of those we considered as features that should be built as early as budget ceilings would permit. General CHORPENING. I think probably you could express it this way: Within an overall ceiling of funds that was given to us we had to review our entire program countrywide and then determine what we believed was the most reasonable allotment of those urgent parts of the projects countrywide which would fit in with the ceiling imposed. It was quite difficult. Therefore, from our knowledge of the project, the construction under way, and the overall picture nationwide, that was our conclusion-that the amount of $3,620,000 on this project was a proper allocation within that overall ceiling and within the instructions given to us over all by the Bureau of the Budget. Senator HOLLAND. I understand that. My question is to bring out this point, if it be apparent, and I believe it is: That so far as necessity for early construction there is not any difference in the opinion of the engineers between the $3,620,000, which is a rather arbitrary figure placed as within ceiling under your nationwide amount that was allowed you, and the $3,880,000 which completed your total request of $7.5 million. General CHORPENING. That is essentially true on so many of these projects when we have asked for these funds, within and over ceiling. We thought there were really other limitations, monetary and construction aside, which should be taken care of to go ahead on the most economical construction program. ESTIMATED LOCAL CONTRIBUTION Senator HOLLAND. Let me ask another question or two. The total estimated local contributions on this first phase are stated by you here as $15,343,000; are they not? Colonel STARBIRD. That is correct. Senator HOLLAND. In addition to that is not the State and its local agencies going ahead with other construction which forms an integral part of this program and which is not reflected in this $15,343,000? Colonel STARBIRD. That is absolutely right, sir. Senator HOLLAND. And did not the State and local units expend about $29 million prior to this project in the accomplishment of the general overall objectives of this project which related to the lands immediately surrounding Lake Okeechobee? Colonel STARBIRD. That is correct, sir. Senator HOLLAND. Is it not true that on the last year, or the current year recommendations, the engineers requested a substantial amount and that even the budget allowed, as I recall, $1.5 million and the Senate enacted $800,000 which was stricken out in conference. BUDGET REDUCTION Colonel STARBIRD. The revised budget reduced it to $800,000. You are thinking of the original budget, sir, which had the $1.5 million in it. Senator HOLLAND. Would it be burdensome for you to prepare a brief recital of what the engineers requested for the current year and what the Senate allowed, and then what the engineers have requested for this year and then a statement of what the State agency has expended both this year and is prepared to expend for next year? |