June 19, 1998
HEARINGS AND MEETING OF THE PRESIDENT'S COMMISSION TO STUDY
Hearings of Friday, May 8, and Meeting of Saturday, May 9
The hearings and meeting were transcribed. Copies of the transcriptions
and written testimony are available upon request to Dick Emery, the Executive
Director of the Commission.
Hearings of Friday, May 8
Introduction. Kathleen Brown opened the meeting at 9:30 a.m.
on Friday, May 8, at the U.S. Courthouse, Conference Room 850, at 500 Pearl
Street in New York City. Commissioners not present for the entire day were
Mr. Stein, Mr. Lynn, and Mr. Rubin. Sitting at the table with the Commissioners
was William Dinkelacker, Designated Federal Official from the Department
of the Treasury. As required by the Federal Advisory Committee Act, the
meeting had been announced in the Federal Register, and the meeting was
open to the public.
Several items were distributed to the public and the Commission or were
available at the meeting:
-- an agenda;
-- biographical information about
the witnesses to testify before the Commission;
-- the fact sheet about the Commission;
-- a list of written testimony and
statements received by the Commission;
-- Modern Financial Management Practices,
-- the Federal Register notice announcing
-- remarks to the Capital Budgeting
Commission by Gary Gensler, Assistant Secretary for
Department of the Treasury (April 24, 1998); and
-- the press release announcing
In addition, written testimony of witnesses was distributed during the
Purpose. The purpose of the hearings was to take testimony from
the witnesses about capital budgeting, and discuss capital budgeting issues.
Testimony. The following persons appeared before the Commission:
9:40 Frank Lewis, Partner, Price Waterhouse
10:20 Martin Ives, formerly a member of the Governmental
Accounting Standards Board
(GASB), which establishes accounting standards for State and local governments,
the Federal Accounting Standards Advisory Board (FASAB), which recommends
accounting standards for the Federal Government.
11:00 Dave Mosso, Chairman, FASAB; formerly member
(1978-87) and Vice-Chairman
(1986-87) of the Financial Accounting Standards Board (FASB), which sets
accounting standards for the private sector; and Fiscal Assistant Secretary,
of the Treasury (1975-77).
11:40 Richard Swanson, Executive Director, Institute
of Management Accountants.
1:30 Jim Abel, Chairman, Financial Executives
Institute, and Executive Vice President and
Chief Financial Officer, The Lamson and Sessions Company, Cleveland.
2:10 Ronald Tillett, Secretary of Finance,
State of Virginia.
2:50 George Troup, Deputy Chief of Mission,
Written testimony was submitted by all of the witnesses.
The Commission took a short break, reconvened at 3:15, and discussed
capital budgeting issues. They also decided to change the agenda for Saturday,
May 9. They agreed to meet at 8:30 a.m. to discuss capital budgeting issues
and adjourn about 10:30 a.m.
The hearings Friday adjourned at 3:55 p.m.
Meeting of Saturday, May 9
Introduction. Co-chair Jon Corzine opened the meeting at 8:30
a.m. in the U.S. Courthouse, Conference Room 850, at 500 Pearl Street in
New York City. The meeting was open to the public. All Commissioners were
present except Ms. Metzler, Mr. Stein, and Mr. Rubin. Sitting at the table
with the Commissioners was William Dinkelacker, Designated Federal Official
from the Department of the Treasury. As required by the Federal Advisory
Committee Act, the meeting had been announced in the Federal Register.
The same handouts were available to the public as those on May 8, plus
-- draft minutes of the April 24
and April 25 sessions;
-- reports on budgeting for capital
by GAO, CBO, and OECD;
-- draft table of contents for the
Commission's report to the NEC; and
-- assignments to work with Commission
Executive Director. Mr. Corzine announced that Dick Emery was
selected to be the new Executive Director for the Commission. Mr. Emery
sat at the witness table for the morning session.
Minutes of April 24 and 25. The Commission approved the draft
minutes of the April 24 and April 25 hearings and meeting.
Discussion. A draft outline for the Commission's report was distributed.
Woody Brittain led a wide-ranging discussion of the outline, which lasted
until the meeting adjourned. The Commission requested, among other things:
1) case studies of how decisions are made and how the process works today
for selected programs; 2) a list of about 20 practical recommendations
that the Commission could consider and that the recommendations be related
to the outline; 3) summaries of existing testimony; and 4) that the outline
be redrafted in the next week or ten days and distributed to the Commissioners.
The meeting adjourned at 10:40 a.m.
President's Commission to Study Capital