A-56038, JUNE 19, 1934, 13 COMP. GEN. 451

A-56038: Jun 19, 1934

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EXISTING AT THE TIME THE PROMOTION IS PROPOSED. THAT IS. AN AMOUNT EQUAL TO THE AMOUNT THAT WOULD HAVE BEEN NECESSARY TO COVER THE INCREASES MADE EFFECTIVE JANUARY 1. AS FOLLOWS: REFERENCE IS MADE TO SECTION 24. PROVIDING THAT ADMINISTRATIVE PROMOTIONS MAY BE MADE DURING THE FISCAL YEAR 1935 TO THE EXTENT THAT SUMS ARE AVAILABLE FROM SAVINGS MADE IN THE AMOUNTS APPORTIONED FOR PERSONAL SERVICES. I WOULD LIKE TO HAVE YOUR ADVICE AS TO HOW THIS PROVISION WILL BE INTERPRETED IN ITS APPLICATION TO EMPLOYEES OF THE ALASKA RAILROAD. IS AS FOLLOWS: WITH REFERENCE TO SECTION 24 (E) OF TITLE II "INDEPENDENT OFFICES APPROPRIATION ACT. THAT ADMINISTRATIVE PROMOTIONS MAY BE MADE DURING THE FISCAL YEAR 1935 TO THE EXTENT THAT FUNDS ARE AVAILABLE THEREFOR.

A-56038, JUNE 19, 1934, 13 COMP. GEN. 451

COMPENSATION - ADMINISTRATIVE PROMOTIONS - PERIODIC INCREASES OF ALASKA RAILROAD EMPLOYEES AS A CONDITION PRECEDENT TO THE PROMOTION OF AN EMPLOYEE OF THE ALASKA RAILROAD, FROM $2,600 TO $3,200, EFFECTIVE JULY 1, 1934, OR THEREAFTER DURING THE FISCAL YEAR 1935, THERE MUST BE SHOWN (1) THE APPORTIONMENT FOR SERVICES FOR THE FISCAL YEAR 1935 FROM THE FUNDS AVAILABLE FOR THE ALASKA RAILROAD (ACT OF MARCH 2, 1934, 48 STAT. 392, AND ACT OF MARCH 12, 1914, 38 STAT. 307); (2) THE AMOUNT OF SUCH APPORTIONMENT NECESSARY TO PAY THE SALARIES FOR AN ENTIRE YEAR OF ALL POSITIONS, WHETHER FILLED OR VACANT, EXISTING AT THE TIME THE PROMOTION IS PROPOSED; AND (3) A DIFFERENCE BETWEEN THE TWO AMOUNTS OF AT LEAST $600. IN ORDER TO JUSTIFY PERIODIC INCREASES IN COMPENSATION OF CERTAIN EMPLOYEES OF THE ALASKA RAILROAD DURING THE FISCAL YEAR 1935, PURSUANT TO ADMINISTRATIVE PRACTICE OF GRANTING SUCH INCREASES EVERY 6 MONTHS, THERE NOT ONLY MUST BE SUFFICIENT SAVINGS ON AN ANNUAL BASIS TO COVER SUCH INCREASES TO BE MADE EFFECTIVE JULY 1, 1934, BUT ALSO SUFFICIENT SAVINGS TO MAKE THOSE INCREASES EFFECTIVE JANUARY 1, 1935; THAT IS, THERE MUST REMAIN UNOBLIGATED ON JUNE 30, 1935, AN AMOUNT EQUAL TO THE AMOUNT THAT WOULD HAVE BEEN NECESSARY TO COVER THE INCREASES MADE EFFECTIVE JANUARY 1, 1935, FOR THE PRECEDING 6 MONTHS, OR FROM JULY 1, 1934.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, JUNE 19, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF JUNE 7, 1934, AS FOLLOWS:

REFERENCE IS MADE TO SECTION 24, SUBSECTION (E), PARAGRAPH 2, OF THE INDEPENDENT OFFICES APPROPRIATION ACT, 1935, PROVIDING THAT ADMINISTRATIVE PROMOTIONS MAY BE MADE DURING THE FISCAL YEAR 1935 TO THE EXTENT THAT SUMS ARE AVAILABLE FROM SAVINGS MADE IN THE AMOUNTS APPORTIONED FOR PERSONAL SERVICES. I WOULD LIKE TO HAVE YOUR ADVICE AS TO HOW THIS PROVISION WILL BE INTERPRETED IN ITS APPLICATION TO EMPLOYEES OF THE ALASKA RAILROAD. THIS CONNECTION I AM ATTACHING A COPY OF A LETTER RECENTLY RECEIVED FROM THE GENERAL MANAGER OF THE ALASKA RAILROAD ON THIS SUBJECT.

THE LETTER TO YOU FROM THE GENERAL MANAGER OF THE ALASKA RAILROAD, DATED MAY 16, 1934, IS AS FOLLOWS:

WITH REFERENCE TO SECTION 24 (E) OF TITLE II "INDEPENDENT OFFICES APPROPRIATION ACT, 1935" AMENDING SECTION 7 OF THE TREASURY-POST OFFICE APPROPRIATION ACT, FISCAL YEAR 1934 AS FOLLOWS:

"PROVIDED FURTHER, THAT ADMINISTRATIVE PROMOTIONS MAY BE MADE DURING THE FISCAL YEAR 1935 TO THE EXTENT THAT FUNDS ARE AVAILABLE THEREFOR, ON AN ANNUAL BASIS, FROM SAVINGS MADE IN THE AMOUNTS APPORTIONED FOR PERSONAL SERVICES FROM THE APPLICABLE APPROPRIATIONS FOR THE FISCAL YEAR 1935.'

WILL YOU KINDLY ADVISE HOW THIS AMENDMENT WILL BE INTERPRETED IN ITS APPLICATION TO THE ALASKA RAILROAD AND WHAT SHOWING WILL BE REQUIRED TO SUPPORT THE REQUIREMENT "FROM SAVINGS MADE IN THE AMOUNTS APPORTIONED FOR PERSONAL SERVICES.'

AT PRESENT I HAVE UNDER CONSIDERATION THE FOLLOWING SALARY CHANGES TO BE EFFECTIVE JULY 1, 1934, OR WHEN PERMITTED:

RALPH TUCK, GEOLOGIST, $2,600 PER ANNUM, TO BE CHANGED TO GEOLOGIST $3,200 PER ANNUM. DR. TUCK'S SERVICE WITH THE ALASKA RAILROAD HAS BEEN ENTIRELY SATISFACTORY AND WITH HIS INCREASED EXPERIENCE AND THE DUTIES THAT HE IS CALLED UPON TO PERFORM I BELIEVE THAT $3,200 PER ANNUM WOULD BE A FAIR SALARY FOR THE POSITION. HIS WORK CORRESPONDS TO P. AND S. GRADE 3.

CARPENTER AND MACHINIST APPRENTICES EMPLOYED AT THE SHOPS IN ANCHORAGE START WORK AT A SALARY OF $100 PER MONTH AND ARE GIVEN AN INCREASE IN SALARY EACH SIX MONTHS. AS THE ECONOMY ACT AND AMENDMENTS PREVENTED THIS INCREASE SUBSEQUENT TO JULY 1, 1932, CAN THOSE WHO HAVE BEEN WORKING SINCE THAT DATE AND ARE NOW IN THE SERVICE, BE GRANTED AN INCREASE OF $20 PER MONTH ON THE BASIS OF $5 INCREASE FOR EACH SIX MONTHS OF SERVICE SINCE SALARY STARTED OR PREVIOUS INCREASE GRANTED AND CAN APPRENTICES ENTERING THE SERVICE SINCE JULY 1, 1932, BE GRANTED AN INCREASE EQUIVALENT TO $5 FOR EACH SIX MONTHS OF SERVICE.

IN DECISION OF JUNE 9, 1934, A-54807, 13 COMP. GEN. 419, TO THE SECRETARY OF THE NAVY, IT WAS STATED:

CONSEQUENTLY, AS A PREREQUISITE TO ANY SUCH ADMINISTRATIVE PROMOTIONS DURING THE FISCAL YEAR 1935, THERE MUST BE A SHOWING OF THE AMOUNT SPECIFICALLY APPROPRIATED OR APPORTIONED FOR PERSONAL SERVICES FOR THE PARTICULAR OFFICE OR ACTIVITY INVOLVED, AND A SHOWING AS TO THE AMOUNT THEREOF NECESSARY TO PAY THE SALARIES FOR AN ENTIRE YEAR OF ALL POSITIONS, WHETHER FILLED OR VACANT, EXISTING ON JULY 1, 1934. THE DIFFERENCE, IF ANY, BETWEEN SAID TWO AMOUNTS MAY BE REGARDED AS A SAVING AVAILABLE FOR PROMOTIONS WITHIN THE MEANING OF THE PROVISION IN QUESTION. LIKEWISE, ANY SAVINGS RESULTING FROM THE NONFILLING OF VACANCIES EXISTING ON JULY 1, 1934, OR WHICH MAY OCCUR DURING THE FISCAL YEAR, PROVIDED IMPOUNDING THEREOF BE WAIVED BY THE PRESIDENT, AND ANY SAVINGS RESULTING FROM REDUCTIONS IN SALARIES OR FROM ABSENCES WITHOUT PAY, WHETHER VOLUNTARY OR INVOLUNTARY, WILL BE AVAILABLE FOR SUCH PROMOTIONS. HOWEVER, IN DETERMINING TO WHAT EXTENT PROMOTIONS MAY BE MADE FROM SUCH SAVINGS, THE AVAILABILITY IS TO BE CONSIDERED ON AN ANNUAL BASIS. FOR INSTANCE, IF AT THE BEGINNING OF THE SECOND QUARTER THERE CAN BE SHOWN A SAVING IN A PARTICULAR OFFICE OF $1,200 FOR THE ENTIRE FISCAL YEAR, THAT ENTIRE AMOUNT MAY NOT BE EXPENDED IN PROMOTIONS FOR THE THREE REMAINING QUARTERS BY GIVING EIGHT PROMOTIONS OF $200 EACH EFFECTIVE OCTOBER 1, 1934. IN OTHER WORDS, PROMOTIONS ARE NOT AUTHORIZED TO SUCH AN EXTENT THAT THE ENTIRE COMMITMENTS AT ANY ONE TIME WOULD, WHEN CONSIDERED ON AN ANNUAL BASIS, EXCEED THE TOTAL AMOUNT APPROPRIATED OR APPORTIONED FOR THE PARTICULAR SERVICE FOR THE ENTIRE FISCAL YEAR.

ACCORDINGLY, AS A CONDITION PRECEDENT TO THE PROPOSED PROMOTION OF RALPH TUCK FROM $2,600 TO $3,200, EFFECTIVE JULY 1, 1934, OR THEREAFTER DURING THE FISCAL YEAR 1935, THERE MUST BE SHOWN (1) THE APPORTIONMENT FOR SERVICES FOR THE FISCAL YEAR 1935 FROM THE FUNDS AVAILABLE FOR THE ALASKA RAILROAD (ACT OF MAR. 2, 1934, 48 STAT. 392, AND ACT OF MAR. 12, 1914, 38 STAT. 307); (2) THE AMOUNT OF SUCH APPORTIONMENT NECESSARY TO PAY THE SALARIES FOR AN ENTIRE YEAR OF ALL POSITIONS, WHETHER FILLED OR VACANT, EXISTING AT THE TIME THE PROMOTION IS PROPOSED; AND (3) A DIFFERENCE BETWEEN THE TWO AMOUNTS OF AT LEAST $600.

IT IS UNDERSTOOD THAT THE PRACTICE OF INCREASING THE COMPENSATION RATES OF THE CARPENTER AND MACHINIST APPRENTICES EVERY 6 MONTHS WAS MERELY AN ADMINISTRATIVE PRACTICE AND THAT SAID INCREASES WERE NOT IN THE NATURE OF AUTOMATIC INCREASES AUTHORIZED UNDER REGULATIONS HAVING THE FORCE AND EFFECT OF LAW. IF SUCH ARE THE FACTS, SECTION 201 OF THE ECONOMY ACT SUSPENDING ALL LAWS AUTHORIZING AUTOMATIC INCREASES IN COMPENSATION AND THAT PORTION OF SECTION 24 OF THE ACT OF MARCH 28, 1934, 48 STAT. 523, REMOVING SUCH SUSPENSION DURING THE FISCAL YEAR 1935, AND THE DECISIONS OF THIS OFFICE RELATIVE THERETO, WOULD HAVE NO APPLICATION HERE. HOWEVER, THE PERIODIC INCREASES IN COMPENSATION UNDER ADMINISTRATIVE PRACTICE DURING THE FISCAL YEAR 1935 MAY BE RESUMED ONLY TO THE EXTENT OF AVAILABLE SAVINGS IN APPROPRIATIONS OR APPORTIONMENTS FOR PERSONAL SERVICES AS ABOVE INDICATED ON AN ANNUAL BASIS. THEREFORE, TO JUSTIFY THE PROPOSED PERIODIC INCREASES, THERE NOT ONLY MUST BE SUFFICIENT SAVINGS ON AN ANNUAL BASIS TO COVER SUCH INCREASES TO BE MADE EFFECTIVE JULY 1, 1934, BUT ALSO SUFFICIENT SAVINGS TO MAKE THOSE PROPOSED TO BE MADE EFFECTIVE JANUARY 1, 1935. THAT IS, THERE MUST REMAIN UNOBLIGATED ON JUNE 30, 1935, AN AMOUNT EQUAL TO THE AMOUNT THAT WOULD HAVE BEEN NECESSARY TO COVER THE INCREASES MADE EFFECTIVE JANUARY 1, 1935, FOR THE PRECEDING 6 MONTHS, OR FROM JULY 1, 1934.