Statement by the President on the Cost of the Pay Increase for Federal Employees and Military Personnel.

I AM SENDING to Congress today a supplemental request for $479 million to cover the additional cost of the fiscal 1967 pay increase authorized last year for some Federal employees and military personnel.

The total cost of these pay increases is $1,080 million. The appropriations I am requesting today, together with the $339 million supplemental appropriation requested last week, amounts to $818 million--$262 million less than the full cost of the increases.

I do not intend to ask Congress for the remaining $262 million. I am pleased to report that this amount will be met from available funds, as a result of tighter management in response to my request that agencies absorb the costs of the pay increases to the fullest possible extent without interrupting essential services and functions.

Many agencies were able to absorb 100 percent of the additional cost of the pay increase. Overall, some 24 percent of the pay increase is being met by economies and efficiencies in operations.

This is being done by leaving unfilled less essential job vacancies as they occur, by cost reduction programs, and other management improvements.

These actions are the result of a growing cost consciousness at all levels of the executive branch. They are the fruits of our efforts to use each tax dollar wisely and well.