STATEMENT BY THE PRESIDENT TO THE CABINET ON THE BUDGETARY SITUATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000100130021-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: September 27, 2002
• Sequence Number: 21
• Publication Date: June 18, 1965
• Content Type: STATEMENT

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Washington, D. C. Executive Registry
June 18, 1965 63- 3s-7 iJ
STATEMENT BY THE PRESIDENT
To The Cabinet
On the Budgetary Situation
Each of you will be meeting shortly with the Budget Director
on your agency's 1967 budget plans, so I want to say a few words
about our budgetary problems in general.
When I first discussed the 1967 budget preview with you on
May 13, I said that we had to make a major effort in two directions
First, imaginative new ideas and programs, and
Second, hard-hitting, tough reforms in existing
programs.
The Budget Director tells me that in general there has been
no dearth of new and expensive ideas. In fact, the Budget Bureau
estimates that the costs of the program goals and objectives which
all of you have just submitted cannot conceivably be fitted into
a reasonable budget total in fiscal 1967. The excess cost of your
program submissions over any kind of realistic budget total is about
twice what it was at this stage of budget-making last year.
Budget outlays will rise sharply from a number of causes,
including
the second-year costs of this year's new
legislation
the added costs of serving a growing popula-
tion, and
. pay increases
Moreover, the budgetary leeway which we have enjoyed in the
last few years from
declining defense expenditures, and
large increases in financial asset sales
may not be with us in 1967.
Let me repeat that the answer to this problem does not lie
in the direction of declaring a moratorium on new programs or pro-
gram improvements.
That way lies stagnation.
We still have a long way to go to achieve the Great Society.
There are still unmet needs for which we must design imaginative
new programs.
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But we cannot simply add the costs of these programs on top
of everything we are already doing. We have to carry forward the
second part of my prescription. We have to make room for the new
ideas by
a tough and hard-headed weighing of priorities
among existing programs -- weeding out the
obsolete and the lower priority activities
a thorough and continuing search for more
efficient means of carrying out on-going
activities.
The Budget Director tells me that while there have been some
improvements in. this regard, the preview submissions still do not
full reflect the kind of hard choices which we are going to have
to make.
Over the next several months, each of you is going to have
to make these choices one way or the other -- they cannot be avoided.
And they will have to be made expeditiously as we move through the
budget cycle.
In the longer run we are going to have to equip ourselves to
make these choices in the most effective way. You simply cannot
conduct the vigorous and painstaking program analysis and weighing
of priorities during the one month prior to the budget preview
exercise or during the end-of-the-year budget season.
Program review is a year-round affair.
Furthermore, it needs the continuing attention of a high-
caliber program and management evaluation staff, reporting to the
top officials in the Department.
All of you are going to have to make hard choices. You need
the best analysis you can get in order to make them wisely.
I urge each of you to review the adequacy of your arrange-
ments for central program and management analysis to make sure
that you are in a position to conduct an intensive evaluation of
Departmental programs on a year-round basis.
One further point in this regard. Starting immediately, the
Budget Bureau will be working with a selected number of agencies
and bureaus throughout the Government to establish, on a formal
basis,
program and
cost effectiveness analyses in depth.
These analyses have paid great dividends where they have been
adopted.
I ask each of you who are involved to give your fullest co-
operation in this effort.
I believe it will pay off handsomely.
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EXECUTIVE MEMORANDUM
OFFICE OF THE DIRECTOR
EXECUTIVE MEMORANDUM No. 144
DATE 21 June 1965
TO:
Deputy Director (Plans)
Deputy Director (Intelligence)
Deputy Director (Science & Technology)
Deputy Director (Support)
C }I &I&X D / NI PE
Inspector General
General Counsel
Assistant Director for National Estimates
Members of Long-range
Planning Group
LB K: drm
Distribution:
0&13-- As above
DCI
- DDCI
1 - ExDir
1 -ER
ROOM NO.
This memorandum contains information for the addressees. Ad-
dressees may give this memorandum additional circulation within
their components as required. All copies should be destroyed, not
filed, upon completion of circulation. A master file will be kept in
the Executive Director's Office and will be available upon request.
Approved For Releasdg6d '/ '1%22T. akA-F , B01676R0001
AT, TIS ; ONLY,
(CLASSIFICATION)
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CENTRAL INTELLIGENCE AGENCY