are on a quarterly basis except that payments to States are scheduled in monthly installments. Any balance of funds not granted to States at the end of a fiscal year reverts to the U.S. Treasury.

Regular appropriation, 1964 fiscal year.

Supplemental appropriation request, fiscal year 1964..

Total budget estimate, 1964 fiscal year__

$2,725, 000, 000

159, 600, 000

2, 884, 600, 000

In accordance with the antideficiency provision in paragraph 2 of subsection (e) of section 3679 of the Revised Statutes, as amended, a report was made on November 22, 1963, to the President of the Senate and the Speaker of the House by the Director of the Bureau of the Budget. This report stated that approval of the apportionment of grants to States for public assistance indicated the necessity for a supplemental appropriation.

PROGRAM DEVELOPMENTS

The Department of Health, Education, and Welfare is requesting a supplemental appropriation, under the provisions of titles I, IV, X, XIV, and XVI of the Social Security Act, as amended, of $159,600,000 for grants to States for oldage assistance, medical assistance for the aged, aid to families with dependent children, aid to the blind, and aid to the permanently and totally disabled. This amount is in addition to the regular appropriation of $2,725 million previously made available for this purpose. The need for the supplemental appropriation arises because expenditures under all programs are larger than anticipated in the appropriation approved by the Congress. In approving an appropriation below the amount requested by the Department, the Congress stated that the request for 1964 appeared to be overstated. The estimates on which the supplemental request is based reflect the most recent program trends and fund requests from States for the first three quarters of the fiscal year 1964. the program of old-age assistance, the estimate is considerably below the amount initially requested; for two programs, aid to the blind and aid to the permanently and totally disabled, the amounts are about the same; and for two programs, medical assistance for the aged and aid to families with dependent children, the estimates are larger than those submitted a year ago. Detail, by program, is given below.

Payments to or on behalf of recipients

For

Old-age assistance. The supplemental request includes $26.6 million for old-age assistance payments. The estimate assumes that the number of recipients in 1964 will be 42,700 fewer than in 1963 and that the average monthly payment will be higher by $2.15. The Federal share of assistance payments is estimated to increase more proportionately than total assistance payments because the higher rate of Federal participation authorized under the 1962 amendments will be in effect for the full year in 1964 in contrast to only three-quarters of the fiscal year 1963. The Federal share of assistance payments is estimated to be $19.7 million more than in 1963.

The revised estimate of Federal funds for 1964 is $56 million below that submitted a year ago, primarily because the increase in number of recipients that was anticipated as a result of a 1962 ammendment permitting some exemption of earned income has not occurred.

Medical assistance for the aged. The supplemental request includes $32.9 million for assistance payments under this program. Revised estimates submitted by the States in August 1963, indicate that both the number of recipients and the average annual payment per recipient will be higher than in 1963. The Federal share of assistance payments is estimated to increase by $53.7 million in 1964.

The revised estimate of Federal funds for 1964 is $22.1 million above the amount included in the original estimate submitted a year ago. The original estimate considerably understated the average annual payment and somewhat overstated the number of recipients.

Aid to families with dependent children.-The supplemental request includes $64.7 million for assistance payments under this program. The number of recipients in 1964 is estimated to exceed that for 1963 by 122,700. Included in this number are about 40,000 who will be aided in the three States that in 1964 are extending their programs for the first time to chlidren whose parents are unemployed; and the equivalent of about 31,000 unemployed or incapacitated parents included for the full year 1964 but for only three-quarters of 1963 (there are an

estimated 125,000 such parents). Federal sharing in payments to these parents was authorized under the 1962 amendments. The rest of the increase, 52,000 recipients, represents the net effect of continued growth in the child population (75,000) offset by additional closures (23,000) due to improvement in administrative procedures and controls. A small increase-55 cents-in the average monthly payment is estimated in 1964. The Federal share of assistance payments is estimated to rise by $31.5 million in 1964.

The revised estimate of Federal funds for 1964 exceeds the original estimate by $12.9 million. The original estimate understated the number of recipients and overstated the average payment per recipient.

Aid to the blind.-The supplemental includes $3.9 million for assistance payments under this program. The revised estimate assumes that the number of recipients in 1964 will be 2,400 fewer than in 1963 and that the average monthly payment will be larger by $2.90. The Federal share of assistance payments is estimated to increase more proportionately than total assistance payments because the higher rate of Federal participation authorized under the 1962 amendment will be in effect for the full year in 1964 in contrast to only three-quarters of the fiscal year 1963. The Federal share of assistance payments is estimated to be $1.3 million more than in 1963.

The revised estimate of Federal funds for 1964 is $1.1 million more than that originally estimated. Both the number of recipeints and the average monthly payment were underestimated in the original estimate.

Aid to the permanently and totally disabled.—The supplemental request includes $16.7 million for assistance payments under this program. The estimated number of recipients in 1964 is 37,700 larger than the number for 1963. Part of the increase is attributable to transfers to this program of individuals who formerly received old-age assistance but who, in the future, will receive small cash payments for their personal needs under the program of aid to the permanently and totally disabled and will receive medical care under the program of medical assistance for the aged. The average monthly payment is expected to exceed that for 1963 by $2.45. The Federal share of assistance payments is estimated to be $30.6 million more than in 1963 and to increase more proportionately than total assistance payments because the higher rate of Federal financial participation authorized under the 1962 amendments will be in effect for the full year 1964 instead of for only three-quarters of the year as in 1963.

The revised estimate of Federal funds for 1964 is $1.9 million more than the amount originally estimated. The number of recipients was understated and the average monthly payment was overstated in the original estimate.

Costs of administration, services, and training

The supplemental request includes $13.8 million for this activity, with most of the additional amount requested for the program of aid to families with dependent children.

The Federal share of State and local costs for this activity in 1964 is estimated to be $36.9 million more than in 1963. The increase is due principally to the growing proportion of total costs that will be for social services defined by the Secretary of Health, Education, and Welfare and for staff training in which the rate of Federal financial participation is 75 percent. For all other costs the Federal share is 50 percent. All but three States will have costs subject to the higher rate in 1964. The revised estimate of Federal funds for 1964 exceeds the original estimate by $1.6 million. The amounts for old-age assistance, aid to the blind, and aid to the permanently and totally disabled were overestimated, and, for the programs of medical assistance for the aged and aid to families with dependent children, they were underestimated.

TABLE 2.—Old-age assistance: Estimates of Federal, State, and local expenditures for assistance payments and for administration, services, and training, and the Federal share thereof, fiscal years 1963 and 1964

TABLE 3.-Medical assistance for the aged: Estimates of Federal, State, and local expenditures for assistance payments and for administration, services, and training, and the Federal share thereof, fiscal years 1963 and 1964

TABLE 4.-Aid to families with dependent children: Estimates of Federal, State, and local expenditures for assistance payments and for administration, services, and training, and the Federal share thereof, fiscal years 1963 and 1964

TABLE 5.-Aid to the blind: Estimates of Federal, State, and local expenditures for assistance payments and for administration, services, and training, and the Federal share thereof, fiscal years 1963 and 1964