Chairman ELLENDER. Can't this moving around be absorbed? Why should more money be appropriated?

Mr. FROEHLKE. Because in the past we have had a fairly stable—we have not been cutting down and, therefore, we did not have to move in the past-there wasn't as much moving in the past as there is now. Chairman ELLENDER. How many offices do you expect to have to construct and alter? $200,000 is quite a large sum.

Mr. FROEHLKE. Could I supply that for the record, Mr. Chairman? (The information follows:)

Because of the multiplicity of sizes of rooms within the space occupied, it is not possible to project how many rooms would be constructed. It should be noted that the $300,000 requested in FY 1972 is only $18,000 more than our actual costs experienced in FY 1970. In FY 1971 we made stringent efforts to reduce all types of expenditures and were therefore forced to defer many desired changes in relocation as well as minor alteration improvements. The reduced staffing now in process in OSD has dictated changes in our organizational structure and requires the reconfiguration of our space resources. Considering increased costs. changes in our organizational structure due to reduced staffing and to preparing new space requirements for top level positions requested by the Secretary of Defense, we believe the $300,000 estimate to be essential and in fact conservative

COMPUTER SERVICES AND CENTRAL SERVICE ACCOUNT

Chairman ELLENDER. Proceed.

Mr. FROEHLKE. In addition, we requested $300,000 for computer services that will provide all elements of the Office of the Secretary of Defense computer access to public statements made by various DOD officials on major items of interest to the Department. The remaining $37.000 increase is made up of miscellaneous changes in the central services account.

SUMMARIES

For your convenience a detailed summary of the Office of the Secretary of Defense financial requirements, attachment 1, and a summary of personnel requirements, attachment 2, are provided.

Chairman ELLENDER. Your military personnel are paid from the regular budget of the respective departments?

Mr. FROEHLKE. Right.

Chairman ELLENDER. Will you classify these as to how many are generals, admirals and other ranks?

Mr. FROEHLKE. Yes, sir; we can supply that for the record.
Chairman ELLENDER. Also include the cost, as I requested.

Mr. FROEHLKE. As I indicated earlier, the cost would not be included in this budget.

Chairman ELLEKDER. I understand.

Mr. FROEHLKE. I will supply that for the record.

(The information follows:)

The FY 1972 budget estimates were formulated to include 622 military personnel in OSD. During the budget review process our strengths were reduced to 608. The 14 space reduction was not intended to be an arbitrary across-theboard cut but rather is to be implemented during the budget year so as to cause the least possible disruption. Because the exact positions to be abolished have not been determined, the grade structure of the previously planned 622 spaces is submitted.

ORGANIZATION OF THE JOINT CHIEFS OF STAFF

PERSONNEL REDUCTIONS

Chairman ELLENDER. Mr. Secretary, before you begin with your discussion of the $7,524,000 requested for the Organization of the Joint Chiefs of Staff, I will include pages 1 through 5 of the justifications in the record.

(The information follows:)

DEPARTMENT OF DEFENSE

OPERATION AND MAINTENANCE, DEFENSE AGENCIES, FISCAL YEAR 1972 (Budget Activity: Administration and associated activities-Budget Project: Organization of the Joint Chiefs of Staff)

Purpose and Scope

This budget project provides the civilian salaries and other necessary expenses for the Organization of the Joint Chiefs of Staff. The Joint Chiefs of Staff are the principal military advisors to the President, the National Security Council and the Secretary of Defense.

Pay and allowances for the military personnel assigned to the Organization of the Joint Chiefs of Staff are not included in the estimate for this appropriation, but are provided in the military personnel appropriations. Other necessary costs include the transportation and per diem expenses for both civilian and military personnel assigned, their office supplies and equipment, communication expenses, printing and reproduction, and miscellaneous purchased services.

ORGANIZATION OF THE JOINT CHIEFS OF STAFF

The Chairman serves as a member of and presides over the Joint Chiefs of Staff. He is responsible for the Organization of the Joint Staff, the subordinate structures of the Joint Chiefs of Staff, and the management of the Joint Staff and its Director on behalf of the Joint Chiefs of Staff. The Chairman furnishes the Secretary of Defense with periodic reports on important considerations of the Joint Chiefs of Staff and provides military advice to the Office of the Secretary of Defense.

The Joint Staff is composed of the Director, Joint Staff and five directorates responsible for providing assistance to the Joint Chiefs of Staff in the fields of personnel, operations, logistics, plans and policy, and communications-electronics. The other JCS activities include the Joint Secretariat, the Directorate of Administrative Services, the Special Assistant for Arms Control, the U.S. Deiegation, United Nations Military Staff Committee and the Studies, Analysis and Gaming Agency. In addition, there are four Deputy Directors for Operations responsible for providing assistance to the Operations Directorate in the fields of command and control, environmental services, reconnaissance and electronic warfare, and counterinsurgency and special activities.

ORGANIZATION OF THE JOINT CHIEFS OF STAFF SUMMARY OF YEAR-END PERSONNEL STRENGTH

ORGANIZATION OF THE JOINT CHIEFS OF STAFF SUMMARY OF OBLIGATION BY ELEMENT OF EXPENSE

Chairman ELLENDER. Proceed. Mr. FROEHLKE. Next, I invite your attention to the budget requirements of the Organization of the Joint Chiefs of Staff. You will find attached to this statement two tabulations pertaining to OJCS, a summary of financial requirements (attachment 3) and a summary of personnel requirements (attachment 4).

The revised fiscal year 1971 column of this budget reflects a 15 percent reduction based on June 30, 1969, employment. Total employment has dropped from 2.035 at the end of fiscal year 1969 to 1,750 at the end of fiscal year 1970 and is projected to be at 1,729 by the end of the current fiscal year.

MILITARY PERSONNEL PAY COST

Chairman ELLENDER. Your justification shows that 430 civilians and 1.299 military are included. Of the total requested, approximately $5.6 million will be required for the pay and compensation of these 430 civilian employees. Could you give us an estimate of the cost of the 1,299 military personnel assigned to the Joint Chiefs of Staff during fiscal year 1972?

Mr. FROEHLKE. Yes, I will, Mr. Chairman.

Chairman ELLENDER. Can you give me their ranks also?

Mr. FROEHLKE. Yes, I will.

Chairman ELLENDER. I have visited the Pentagon. There seem to

be a large number of people in that building.

Mr. FROEHLKE. There are a substantial number.

(The information follows:)

Estimate of Cost to Military Personnel Appropriations of Military Personnel Assigned to the Joint Chiefs of Staff.

Organization of the Joint Chiefs of Staff Military Personnel by rank
Fiscal year 1972 estimate

Mr. FROEHLKE. With average employment dropping in relation to yearend employment, we feel that we must maintain these levels in fiscal year 1972 to be responsive to the Secretary of Defense and to adequately accomplish the OJCS mission. The dollar requirement to operate this organization in fiscal year 1971 is $7,296,000, or $166,000 greater than reflected in the President's fiscal year 1971 budget. The January 1971 and other legislative actions amounted to $496,000 and more than offset savings attributable to reduced employment.

BUDGET REQUEST: MANDATORY INCREASES

In fiscal year 1972 we are requesting $7,524,000 for this organization. This is an increase of $228,000 over our revised fiscal year 1971 estimate and is primarily attributable to fact-of-life increases that offer little or no flexibility for control. These fact-of-life increases include $159,000 to annualize the pay raise that was effective in January 1971, and $118.000 to provide for one extra day of pay for civilian employees, their normal within-grade salary adjustments, the annualization of increased rates for guard services resulting from pay raises granted in fiscal year 1971, and for the increase in amount of Gorernment contribution for employees' health benefits as provided in Public Law 91-418.

The only increase in the fiscal year 1972 estimates of other than a personnel cost nature is $20,000 for security detection alarm service required to protect communication terminals which handle classified materials. These increases are partially offset by a decrease of $69,000 associated with reduced employment.

This completes my portion of the "Operation and Maintenance, Defense Agencies" appropriation statement. Thank you again for the opportunity to appear before this committee.

(Attachments 3 and 4 follow :)