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B-133182 1 (1970-11-13)

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B-133182                    RELLASD                 NOV 13 1970

                                                         REL EASED




Dear Mr. Chairman

     We refer to your letter of October 22, 1970, requesting
information concerning the amount of Federal funds expended for
the operation of the Federal-State employment service adminis-
tered by the Department of Labor and the Interstate Conference of
Employment Security Agencies (Conference).

     In a subsequent discussion we agreed to obtain the funding
data relating to the administrative costs of the Federal-State
employment service for fiscal year 1970, identifying separately
the Federal and State portions, and of the Conference for the same
period and on the same basis. We later learned that the data on
Conference activities was maintained on a calendar-year basis and
that the most current data available related to calendar year 1969.

     We made inquiries of Department of Labor officials at the
Washington headquarters and of officials of the Conference at both
the Washington and the State levels to obtain data for calendar
year 1969. The cost information presented in this report was ob-
tained from Department of Labor records or, where records were not
available, from estimates provided by Department of Labor officials.
We prepared cost estimates for certain Conference activities, on
the basis of other information available. Because of the limited
time available, none of the cost information contained in this re-
port was verified by us.

     Data provided by Department of Labor officials showed that
about $785.8 million of Federal funds had been obligated for ad-
ministration of the employment security program for fiscal year
1970. Of this amount, $718.6 million was obligated by State
employment security agencies and $67.2 million by the Department
of Labor.

     Funds for financing the activities of the Conference are not
specifically identified in either the allocation from the Depart-
ment of Labor to the States or the States' budgets but are included





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