A-48784, MAY 12, 1933, 12 COMP. GEN. 632

A-48784: May 12, 1933

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AMENDED - IMPOUNDING OF SAVINGS ALL THE NET SAVINGS ARE REQUIRED TO BE IMPOUNDED WHICH RESULT FROM THE OPERATION OF THE CHANGES MADE BY THE ACT OF MARCH 20. AS FOLLOWS: YOUR DECISION IS RESPECTFULLY REQUESTED ON THE FOLLOWING POINT. IN SUBMITTING THE ESTIMATES UPON WHICH THESE APPROPRIATIONS WERE BASED THIS DEPARTMENT WAS REQUIRED TO DEDUCT EIGHT AND ONE THIRD PERCENT FROM THE ORIGINAL ESTIMATES FOR SALARIES AND WAGES TO PROVIDE A SAVING EQUIVALENT TO THE SAVINGS WHICH WERE BEING IMPOUNDED DURING THE PRESENT FISCAL YEAR. IS IMPOUNDED AND RETURNED TO THE TREASURY. THE APPROPRIATIONS FOR SALARIES AND WAGES FOR THE FISCAL YEAR 1934 WILL BE REDUCED APPROXIMATELY TWENTY-THREE AND ONE THIRD PERCENT.

A-48784, MAY 12, 1933, 12 COMP. GEN. 632

ECONOMY ACT, AMENDED - IMPOUNDING OF SAVINGS ALL THE NET SAVINGS ARE REQUIRED TO BE IMPOUNDED WHICH RESULT FROM THE OPERATION OF THE CHANGES MADE BY THE ACT OF MARCH 20, 1933, 48 STAT. 12, IN THE LAW AS IT EXISTED PRIOR TO THAT DATE, INCLUDING 6 2/3 PERCENT REDUCTION IN SALARIES PROVIDED IN APPROPRIATIONS ENACTED ON OR PRIOR TO MARCH 4, 1933, REPRESENTING THE DIFFERENCE BETWEEN 8 1/3 PERCENT WITHHELD BY THE CONGRESS FROM THE APPROPRIATION AND 15 PERCENT REQUIRED TO BE DEDUCTED BY SECTIONS 2 AND 3 OF THE ACT OF MARCH 20, 1933, AND EXECUTIVE ORDER OF MARCH 28, 1933.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF WAR, MAY 12, 1933:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF APRIL 26, 1933, AS FOLLOWS:

YOUR DECISION IS RESPECTFULLY REQUESTED ON THE FOLLOWING POINT.

THE WAR DEPARTMENT APPROPRIATION ACT APPROVED MARCH 4, 1933, CARRIED APPROPRIATIONS FOR THE NONMILITARY ACTIVITIES OF THE CORPS OF ENGINEERS FOR THE FISCAL YEAR 1934. IN SUBMITTING THE ESTIMATES UPON WHICH THESE APPROPRIATIONS WERE BASED THIS DEPARTMENT WAS REQUIRED TO DEDUCT EIGHT AND ONE THIRD PERCENT FROM THE ORIGINAL ESTIMATES FOR SALARIES AND WAGES TO PROVIDE A SAVING EQUIVALENT TO THE SAVINGS WHICH WERE BEING IMPOUNDED DURING THE PRESENT FISCAL YEAR, UNDER THE ECONOMY ACT OF JUNE 30, 1932.

SECTION FOUR (D) OF THE ACT "TO MAINTAIN THE CREDIT OF THE UNITED STATES GOVERNMENT," APPROVED MARCH 20, 1933, STATES:

"THE APPROPRIATIONS OR PORTIONS OF APPROPRIATIONS UNEXPENDED BY REASON OF THE OPERATION OF THE AMENDMENTS MADE IN SUBSECTION (A) OF THIS SECTION SHALL NOT BE USED FOR ANY PURPOSE, BUT SHALL BE IMPOUNDED AND RETURNED TO THE TREASURY.'

SECTION EIGHT OF THE SAME ACT ALSO PROVIDES:

"THE APPROPRIATIONS OR PORTIONS OF APPROPRIATIONS UNEXPENDED BY REASON OF THE OPERATION OF THIS ACT SHALL NOT BE USED FOR ANY PURPOSE, BUT SHALL BE IMPOUNDED AND RETURNED TO THE TREASURY.'

IF THE FULL AMOUNT OF THE DEDUCTIONS REQUIRED BY THE ACT OF MARCH 20, 1933, FIFTEEN PERCENT, IS IMPOUNDED AND RETURNED TO THE TREASURY, THE APPROPRIATIONS FOR SALARIES AND WAGES FOR THE FISCAL YEAR 1934 WILL BE REDUCED APPROXIMATELY TWENTY-THREE AND ONE THIRD PERCENT. IT IS BELIEVED, THEREFORE, THAT THE PROVISIONS OF THE ABOVE-MENTIONED ACT SHOULD BE CONSTRUED SO THAT THE AMOUNT TO BE IMPOUNDED IN THE TREASURY DURING THE FISCAL YEAR 1934 ON ACCOUNT OF SAVINGS, DUE TO FIFTEEN PERCENT REDUCTION IN SALARIES AND WAGES, SHOULD BE THE DIFFERENCE BETWEEN THE FIFTEEN PERCENT DEDUCTION AND THE AMOUNT DEDUCTED FROM THE ORIGINAL ESTIMATES.

THE HEARINGS ON THE WAR DEPARTMENT APPROPRIATION BILL INDICATE THAT IT WAS UNDERSTOOD BY CONGRESS THAT THE ORIGINAL ESTIMATES FOR SALARIES AND WAGES HAD BEEN REDUCED BY EIGHT AND ONE THIRD PERCENT, TO PROVIDE A SAVING EQUIVALENT TO THE SAVINGS IMPOUNDED DURING THE FISCAL YEAR 1932 (1933) UNDER THE ECONOMY ACT OF JUNE 30, 1932. IN THE ACT OF MARCH 20, 1933, CONGRESS SPECIFICALLY PROVIDED FOR THE COMPUTATION OF THE PERCENTAGE DEDUCTION TO BE FIXED BY THE PRESIDENT ON THE BASIS OF THE TOTAL SALARY OF THE INDIVIDUAL EMPLOYEES. SINCE CONGRESS THUS PROVIDED THAT THE EIGHT AND ONE THIRD PERCENT DEDUCTION PROVIDED BY THE ECONOMY ACT OF JUNE 30, 1932, SHOULD BE REPLACED BY THE PERCENTAGE DEDUCTION TO BE FIXED BY THE PRESIDENT, IT SEEMS REASONABLE TO BELIEVE THAT IT WAS INTENDED THAT THE EIGHT AND ONE THIRD PERCENT WITHHELD FROM THE APPROPRIATIONS IN ANTICIPATION OF AN EIGHT AND ONE THIRD PERCENT DEDUCTION FROM THE PAY OF EMPLOYEES SHOULD BE CREDITED AGAINST THE FIFTEEN PERCENT TO BE IMPOUNDED.

THE IMPOUNDING REQUIRED BY THE ACT OF MARCH 20, 1933, PUBLIC NO. 2, 48 STAT. 15, IS OF THE AMOUNT UNEXPENDED BY REASON OF THE OPERATION OF THAT ACT. THAT IS, THE DIFFERENCE BETWEEN THE AMOUNT THAT WOULD HAVE BEEN EXPENDED UNDER THE PROVISIONS OF THE ACT OF MARCH 3, 1933, PUBLIC 428, 47 STAT. 1515, AND OTHER LAW APPLICABLE, IF THE SAID ACT OF MARCH 20, 1933, HAD NOT BEEN ENACTED, AND THE AMOUNT THAT WILL BE EXPENDED NOW THAT SAID ACT OF MARCH 20, 1933, WAS ENACTED. MANIFESTLY, IF 8 1/3 PERCENT OF A BASIC SALARY WOULD NOT HAVE BEEN EXPENDED DURING THE FISCAL YEAR 1934 IF THE ACT OF MARCH 20, 1933, HAD NOT BEEN ENACTED AND AS A RESULT OF THE ENACTMENT 15 PERCENT OF THE BASIC SALARY IS TO REMAIN UNEXPENDED, THE AMOUNT UNEXPENDED BY REASON OF THE OPERATION OF SAID ACT IS THE DIFFERENCE OR 6 2/3 PERCENT OF THE SALARY WHICH AMOUNT IS REQUIRED TO BE IMPOUNDED.

IT IS TO BE NOTED, HOWEVER, THAT THE REDUCTION OF CERTAIN SALARY PAYMENTS BY 15 PERCENT RATHER THAN BY 8 1/3 PERCENT IS NOT THE ONLY SAVING EFFECTED BY THE SAID ACT OF MARCH 20, 1933. NOTE PARTICULARLY THE REPEAL OF SECTION 5 OF THE ACT OF MARCH 3, 1933, AND THE REPEAL OF SECTION 104 OF THE ACT OF JUNE 30, 1932, AS AMENDED BY THE ACT OF MARCH 3, 1933, AND THE SUBSTITUTION THEREFOR OF SECTION OF TITLE II OF THE ACT OF MARCH 20, 1933. ALL THE NET SAVINGS RESULTING FROM THE OPERATION OF CHANGES MADE BY THE ACT OF MARCH 20, 1933, IN THE LAW AS IT EXISTED PRIOR TO THAT DATE ARE TO BE IMPOUNDED. AND OF COURSE SECTION 110 OF THE ECONOMY ACT OF JUNE 30, 1932, CONTINUES IN EFFECT WITH RESPECT TO APPROPRIATIONS FOR THE FISCAL YEAR 1933.

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