Mr. LIVINGOOD. I think that you will find very little-there will be a lot less than that spent.

STAFF SIZE DETERMINATION

Mr. YOUNG. How do you determine what size staff, either uniformed police or uniformed parking security, you have on duty at any particular time? Is it based on the clock, certain times of the day, or is it based on the House being in session? Is it based on special orders? How do you determine that?

Mr. LIVINGOOD. It is based on several instances. First of all, it is based on is Congress in session, because that is our peak session, peak time.

Mr. YOUNG. Are you talking about on a particular day?

Mr. LIVINGOOD. Yes, sir. Then it is based on how long you are staying, and usually we work two shifts. Then we split one of the shifts also, because our peak times are early morning and then our peak times are late afternoon.

Then we go by there are certain posts we have, such as each lot has somebody in there, and that is strictly to let people in or who is authorized to come in and particularly at night for security.

Then we have in the garages, people who are stationed at the entrances and who also patrol the garages. Some of that is static by number of posts. I play with that as much as possible.

STAFFING DURING SESSIONS

Mr. YOUNG. If the House is in session on legislative business until 10 o'clock, 11 o'clock, midnight or even beyond, do you maintain a larger staff there than you would if the House had adjourned, say, at 6 o'clock?

Mr. LIVINGOOD. Yes, sir. I cut back, but I still maintain more guards than if you were not in session.

Mr. YOUNG. On occasion there are hours and hours of special orders that follow the legislative business. When the legislative business is complete, special orders begin. Do you then make a further adjustment reduction?

Mr. LIVINGOOD. Yes, sir. In my office and in parking security, we cut way back.

Mr. YOUNG. Now, when the day is complete, special orders are over, let's say at midnight, then would you further reduce the personnel?

Mr. LIVINGOOD. They would be gone, yes, sir.

WORKLOAD AND VOTE SCHEDULE

Mr. PACKARD. May I follow up with a question on that?

This year, looking over the schedule that the Whip's Office has submitted to us now, relative to days that we will be voting and days that we will not be voting, it appears that there is significantly less weekend and long week and late hour work. Will that affect your workload?

Mr. LIVINGOOD. Yes, sir, it will obviously reduce my overtime costs and the workload in those areas, especially parking.

Mr. PACKARD. Okay. Any other questions? Mr. Wicker? Julian?

Thank you very much, and I believe we will see you tomorrow along with the police board.

Mr. LIVINGOOD. Yes, sir.

Mr. PACKARD. Thank you.

All right, Mr. Faulkner, you may proceed.

CHIEF ADMINISTRATIVE OFFICER BUDGET REQUEST

Mr. FAULKNER. Thank you, Mr. Chairman.

The next 10 pages, starting with page 26, relate specifically to the Office of the Chief Administrative Officer which I'll insert for the record at this point.

[The information follows:]

OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER (See Page 64 Subcommittee Print)

For salaries and expenses for the Chief Administrative Officer, $70.464.000. Included in this request is $31,688,500 for personnel and $38.775.500 for non-personnel.

The personnel estimate is based on the salaries authorized for permanent employees. longevity and merit increases in pay, changes in position levels and steps, cost of living adjustment and the net reduction of thirteen (13) FTE's.

The Chief Administrative Officer's budget is comprised of two main parts: an operational budget and a capital budget. The operational budget is for salaries and expenses for those offices directly impacting the day to day operations of the CAO, whereas the capital budget is for expenditures impacting the entire House, such as net expenses for telecommunications.

Mr. Chairman, it has now been thirteen (13) months since the Office of the Chief Administrative Officer was created. The CAO organization can point to many accomplishments, none of which could have happened without the support of the Leadership, the Committee on House Oversight, and this subcommittee.

Last year the House implemented a one-third reduction in committee staffs. The CAO has reduced its staff by 36% compared to FY '94 actual usage. The FTE actual usage for the CAO has declined from 981 in FY '94 to 909 in FY '95. Further reductions in FY '96 have the CAO funded

at 643 FTE's and FY ‘97 requested FTE's are 630. This 36% downsizing has taken place without any interruption in service to the Members. An example of the reductions is the House Folding Room privatization effective August 31, 1995 which reduced one hundred nineteen (119) FTE's and

represents an estimated annual savings of one million dollars. In addition, we privatized the House Postal Operations resulting in an FTE reduction of one hundred thirty one (131). The House will realize annual savings from this initiative of $1.5 million. The CAO provided out placement services to staff affected by both of these measures.

The House Barber and Beauty Shops were also privatized resulting in an FTE reduction of twelve (12). The House receives 12 percent of gross service sales and 10 percent of product sales. Since October 1, 1995, the House has received $7,397.00, which has been deposited in the General Fund of the U.S. Treasury.

Another milestone for the House came with the first-ever public furniture auction. This furniture had been sitting for years in a nearby warehouse gathering dust. The trend in business, according to a 1993 industry study by the Warehousing Education and Research Council, is away from warehousing in order to eliminate unnecessary spending and enhance product tracking. With careful planning, hard work and advertising, the auction was a huge success. We earned a profit of $140,000, which was deposited in the General Fund of the United States Treasury.

Thanks to these and other efforts of Leadership, Appropriations and the Committee on House Oversight, our current projections show that the House will return to the U.S. Treasury a record amount of $50 million dollars when the funds lapse on September 30, 1997.

In regards to the overall operations of the House, the Price Waterhouse audit exposed many inefficiencies in its financial operation of the House. We have actively been involved in implementing their recommended changes. In March of this year, we will be making a significant move into the "financial electronic age." The manual-entry records of the House will be replaced by the Federal Financial System currently used by the majority of all Federal Agencies. This

continuous improvement of our financial operations.

creates greater accountability. Most importantly, for the first time in history the House will have auditable financial statements. I thank you again. Mr. Chairman, for your tremendous support with this very important endeavor.

Price Waterhouse also noted ways in which service to Members could improve. The Committee on House Oversight and this subcommittee approved a very important electronic initiative called the Wide Area Network Flagship Data Service. This service will improve communication between your Washington and district office. This service represents a major enhancement to daily Congressional office operations and is available through House Information Resources (HIR). By relocating video conferencing facilities from the Ford Building into the Rayburn radio and television studio, Members were provided easier access to these services.

The last thirteen (13) months have been very exciting for the Office of the CAO. More than two-thirds of my staff at all levels have been trained in the principles of quality management, with this and other training programs available to all House staff. Several new initiatives have been developed to enhance service to Member offices.

House Smart is a quick reference guide designed for use by the Members and staff of the House of Representatives to provide information on the services available from the various CAO operations, with a general description and a Q&A section outlining the most frequently asked questions for each department. It is available through the CAO World Wide Web page.

OneCall. CAO provides service information with one telephone call for Members and their

staffs. It acts as a liaison office with all support offices under the CAO in the coordination of services for the House of Representatives.