BOARD00018

• Board Meeting Date: 3/20/1977
• Description: Agenda, Minutes, Resolution
• Board Meetings - Doc Type: Meeting

If you will recall, Congress had some past trouble during the adminis-
tration of President Nixon concerning impoundment of appropriated funds.

In order to terminate that type of practice by any President, the Con-
gress passed an act in 1974 which set up a budgetary procedure for both
Congress and the President. That act was signed by the President; at
that time it was President Ford. It prohibits the President from I.
impounding funds or terminating funds appropriated by Congress. unless
the President first notifies the Congress. The Congress has a certain
time period in which to respond to the President's request to terminate
the funds. If Congress tells the President that those funds cannot be
impounded or terminated, then it is illegal for the President to ter-
minate those funds.

Mr. Andrus was asked serveri'll questions concerning the impoundment of
funds. He stated that the President did not intend to impound the funds
for these projects. That answer appears to be entirely a matter of
semantics because, in fact, the funds have been impounded. The Bureau
of Reclamation has been told, "The funds are not impounded, but you can't
spend them." So what is it but an impoundment if you can't spend the
funds?

This is the exasperating situation that we are in. Apparently, the
administration thinks it can get around the law of this. country by say-
ing that it is not impounding funds, but they can't be spent. The
truth is that the. Bureau of Reclamation cannot spend the funds that have
been appropriated this year for any construction activity.: They can
continue planning, but no :construction activity. You will recall that
the Senate by an overwhelming vote recently attached a provision to the
public works bill advising the President that he had no authority to
impound funds presently appropriated and directing that he spend those
funds as .appropriated.

That Senate effort has no real legal effect that I can see, except that
the Senators did advise the President that they expected him to carry out
the laws of this country.

I have stated in this memorandum that we consider that the President's
budget, President Ford's budget, for fiscal '78 is adequate. In some
cases the Bureau would actually have the capability of spending more I
funds than was in President Ford's budget. I have some reservations
about asking for additional funds in view of the rather critical situ-
ation that we are faced with by the present administration, and per-
haps reluctance on the part of the Congress to exceed the Ford budget
when, in fact, President Carter has already requested a substantial
reduction in the Ford budget. I think it's a matter we should discuss
here tOday as to whether any of you from these project areas think that
you should request more funds. At this time, Mr. Chairman, it is the

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