1 Balances of selected resources are identified in the statement of financial condition. Federal credit unions are privately owned, cooperative associations organized for the purpose of promoting thrift among their members and creating a source of credit for provident or productive purposes, authorized by the Federal Credit Union Act (act of June 26, 1934), as amended. The Bureau finances its activities out of fees for services performed. The Bureau's activities consist of (a) chartering new Federal credit unions, (b) supervising established Federal credit unions, (c) making periodic examinations of their financial condition and operating practices, and (d) administrative services. Data relating to activities are shown below. Number of Federal credit unions chartered..... Retained earnings.... 1,362 1,394 1,384 1 1.557 estimate Number of examinations. 10,463 600 11,121 600 11,399 Number operating Federal credit unions as of December 31 of the previous calendar Analysis of Government Equity (in thousands of dollars) year... Assets of Federal credit unions as of De cember 31 of the previous calendar year (thousands) $3,916,541 $4,445,000 $5,045,000 Operating results. Fees from receipts cover the cost of operations. Retained earnings are expected to increase to $1,557 thousand by June 30, 1966. 1 Reimbursements from non-Federal sources are derived from furnishing earnings and employment data for pension purposes to private pension plans; from State agencies for employment statistics and from furnishing wage record information to individuals for purposes other than establishing eligibility or entitlement to benefits (42 U.S.C. 1306). WELFARE ADMINISTRATION General and special funds: GRANTS TO STATES FOR PUBLIC ASSISTANCE For grants to States for old-age assistance, medical assistance for the aged, aid to families with dependent children, aid to the blind, and aid to the permanently and totally disabled, as authorized in titles I, IV, X, XIV, and XVI of the Social Security Act, as amended (42 U.S.C. ch. 7, subchs. I, IV, X, XIV, and XVI), [$2,780,000,000 $3,242,100,000, of which such amount as may be necessary shall be available for grants for any period in the prior fiscal year subsequent to March 31 of that year [: Provided, That none of the funds contained in this paragraph shall be available for carrying out section 1115 of the Social Security Act, as amended]. (Department of Health, Education, and Welfare Appropriation Act, 1965.) Program and Financing (in thousands of dollars) a. President's Committee on Equal Employment Opportunity.. b. Other Federal agencies.. Identification code 138 143 143 09-35-1471-0-1-653 1. Payments to or on behalf of recipients: (a) Old-age assistance__ (b) Medical assistance for the aged. (c) Aid to families with dependent children.... (d) Aid to the blind.. (e) Aid to the permanently and totally disabled...... Total, payments to or on behalf of recipients... 1,320,214 1,268,100 1,328,300 195,455 227,400 329,300 884,363 766,200 967,800 46,616 44,600 46,600 252,331 256,900 294,400 2,698,979 2,563,200 2,966,400 disabled are made to States that have plans for these programs approved by the Department of Health, Education, and Welfare. Effective October 1, 1962, as an alternative to separate plans for each program, it became possible for States to receive grants under a combined single plan for the adult assistance programs, that is oldage assistance, medical assistance for the aged, aid to the blind, and aid to the permanently and totally disabled. As of December 1, 1964, 14 jurisdictions had a combined single plan for the adult assistance programs and 3 additional jurisdictions were expected to have such plans during the year 1965. Fifty-four jurisdictions including all the States, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands have approved plans for aid to families with dependent children; 37 jurisdictions, separate plans for old-age assistance and for aid to the blind; and 36 separate plans for aid to the permanently and totally disabled. Under the Social Security Amendments of 1960, Federal participation in programs for medical assistance for the aged became effective on October 1, 1960. State legislation was necessary in most States before they could initiate programs for medical assistance for the aged. The number of jurisdictions expected to have approved plans for this program is 44 in 1965 and 45 in 1966, including the 15 jurisdictions that will administer this program in each year under a combined single plan for the adult assistance programs. Provisions for determining the Federal share of assistance payments-1. Provisions applicable under separate plans for programs of old-age assistance, aid to the blind, and aid to the permanently and totally disabled. The amount of assistance payments subject to Federal participation is limited to a monthly average expenditure of $70 per recipient. (In addition under old-age assistance the Federal Government participates in up to an additional $15 per month in the form of payments for medical or remedial care, as described under item 3.) The average monthly amount is based on expenditures for money payments to recipients and direct agency payments to vendors for medical or remedial care. Within this maximum, the Federal share is twenty-nine thirty-fifths of the first $35 per recipient plus a proportion of the balance, which varies among States from 50 to 65% depending upon the per capita income of the State. The foregoing provisions apply in all jurisdictions except Guam, Puerto Rico, and the Virgin Islands; for these jurisdictions the Federal share is one-half of total expenditures within a maximum monthly average of $37.50 per recipient subject to an overall limitation on the total annual Federal funds for assistance and administration for all programs combined for each jurisdiction. 2. Provisions applicable under a single plan for the adult assistance programs.-Except for recipients of medical assistance for the aged, the provisions are the same as those applicable under the separate plans, as described in item 1. (Provisions for additional Federal participation in assistance payments, based on the amount of direct agency payments to vendors for medical or remedial care, known as vendor medical payments, are described under item 3.) 3. Provisions applicable under separate plans for old-age assistance and under a single plan for the adult assistance programs. Additional Federal participation in assistance payments, beyond that described in items 1 and 2, is based on the amount of direct agency payments to vendors for medical or remedial care (vendor medical payments). WELFARE ADMINISTRATION-Continued General and special funds—Continued GRANTS TO STATES FOR PUBLIC ASSISTANCE-Continued For States with average monthly payments over $70, the Federal Government participates in the expenditures in excess of that amount except that such participation is limited to the amount of the average vendor medical payment, with a maximum of $15. The Federal share in the excess expenditure consists of the "Federal medical percentage" for the State, which ranges from 50 to 80% under a formula based on per capita income, For States with average monthly payments of $70 or less, the additional Federal share in average vendor medical payments up to $15 is an additional 15% over the usual "Federal percentage" (based on per capita income) applicable to the amount of payments falling between $35 and $70. This percentage, when added to the usual "Federal percentage" for the second part of the payment, results in a total Federal share of from 65 to 80%. The additional Federal share of 15% also is available to States with average monthly payments over $70 when it is advantageous to them as an alternative to the method described in the preceding paragraph. For Guam, Puerto Rico, and the Virgin Islands, comparable provisions for direct agency payments to vendors for medical or remedial care are in effect. 4. Provisions applicable in medical assistance for the aged. For all 54 jurisdictions the Federal share of expenditures for the program of medical assistance for the aged is the "Federal medical percentage" of the amounts expended by the State for such assistance. The "Federal medical percentages" for the individual States range from 50 to 80% under a formula based on per capita income. The Federal share is the same regardless of whether the program is administered under a separate plan or under a single plan for the adult assistance programs. among 5. Provisions applicable in aid to families with dependent children. For the 50 States and the District of Columbia, the amount of assistance payments subject to Federal participation is limited to a monthly average expenditure of $30 per child or adult recipient in the family. The average monthly amount is based on expenditures for money payments to recipients and payments to vendors for medical or remedial care. Within this maximum, the Federal share is fourteen-seventeenths of the first $17 per recipient plus a proportion of the balance, which varies States from 50 to 65%, depending upon the per capita income of the States. For Guam, Puerto Rico, and the Virgin Islands the Federal share is one-half of total expenditures within a maximum monthly average of $18 per recipient and within an overall limitation on total annual Federal funds for assistance and administration for all programs combined for each jurisdiction. For purposes of determining the amount of payments subject to Federal participation, the count of recipients in all jurisdictions includes dependent children under 18 years of age, one relative caring for the children (usually the mother), and a second parent living in the home, if incapacitated or unemployed. Provisions for determining the Federal share of administration, services, and training.-The Federal share is 75% of: (1) The cost of providing preventive and rehabilitative services that are specified by the Secretary of Health, Education, and Welfare as (a) services that will help dependent persons to develop their capacities for self-care and self-support and to achieve greater family stability, and (b) services that may be provided, at their request, to persons likely to become dependent; and (2) the cost of staff training, including educational leave, and agency training sessions. The Federal share of costs, other than those specified above, is 50%. These provisions are applicable in all programs and all jurisdictions. Provision for demonstration projects. Section 1115 of the Social Security Act provides that for 1963-67 up to $2 million of the amount appropriated for any year may be used to help meet the State share of costs of demonstration projects that could be expected to contribute significantly to existing knowledge about the kinds and scope of services or methods of work which enhance the agency's capacity to assist needy persons in solving problems that threaten the stability of family life and prevent persons from attaining self-support or self-care. The 1965 Appropriation Act contains a proviso, however, which prohibits the use of funds appropriated for 1965 for grants to States for public assistance to carry out the provisions of section 1115 of the act. It should be noted that prior to August 17, 1964, the date the Senate Appropriations Committee reported out the 1965 appropriation bill containing the above mentioned prohibition, grants totaling $279,650 for demonstration projects commencing in 1965 had been approved under Joint Resolution Authority. In addition, $1 million was transferred from the Office of Economic Opportunity, pursuant to Supplemental Appropriation Act of 1965 (Public Law 88-635) for the continuation of demonstration projects approved in the prior year under section 1115 of the Social Security Act, as amended. Amount of request.-For 1966, the total amount of Federal, State, and local expenditures for assistance, for administration, services, and training, and for demonstration projects is estimated at $5,598.8 million of which $3,264.1 million represents the Federal share. The appropriation request of $3,242.1 million is $22 million less than the estimated Federal share, because the States will have available for expenditures $22 million representing the Federal share of collections and adjustments for prior years. Of the total Federal share, $1,403.8 million is for old-age assistance; $351.4 million for medical assistance for the aged; $1,125.7 million for aid to families with dependent children; $52 million for aid to the blind; $329.2 million for aid to the permanently and totally disabled; and $2 million is for demonstration projects. Of the total amount of $2,136.4 million for the adult categories, about $508.2 million represents the amount that will be spent in the States claiming Federal funds under title XVI, which permits States to have a combined single plan for the adult assistance programs. It is estimated that a supplemental appropriation of $407.9 million will be required for 1965 in addition to the $2,781 million already appropriated. The supplemental is needed to finance costs beyond the amount appropriated under each of the public assistance programs for 1965 and to complete requirements for the fiscal year 1964. The appropriation request of $3,242.1 million for 1966 is $53.2 million more than the adjusted appropriation of $2,781 million plus the supplemental request of $407.9 million for 1965. Excluding the amount of $41.9 million used from the 1965 estimate to complete requirements for 1964, and allowing for an increase of $11.9 million in the estimated amount of collections and adjustments for prior years in 1966, the amount of the increase from 1965 to 1966 is $106.9 million. All programs contribute to the increase for 1966 over 1965, with the largest increases, 2. State and local administration, services, and training.The Federal share is 75% of State and local costs of providing preventive and rehabilitative services, as defined by the Secretary of Health, Education, and Welfare; and of the costs of training State and local personnel for more effective performance in administering the public assistance programs; and 50% of the other costs of State and local administration that are found by the Department of Health, Education, and Welfare to be necessary for the proper and efficient administration of the State public assistance programs. The Federal share contributes toward the salaries and expenses of about 76,200 (including 1,900 additional staff to be hired in 1966 to give preventive and rehabilitative services) State and local personnel. Total costs in 1966 are estimated at $26 million more than in 1965; $23 million of this increase will come from Federal funds. The increase in costs is attributable primarily to (1) staff increases to handle a larger number of recipients including those who are to receive medical assistance for the aged and to provide social services to recipients directed toward self-care, self-support, and strengthened family life; and (2) salary increases given to keep pace with rising living costs and to compete successfully with other professions and agencies for staff. [In millions of dollars] 1964 actual 1965 estimate 1966 estimate OAA.. MAA.. AB APTD Total..... Number of recipients 1965 434, 100 (in millions) 1966 431, 100 1965 $268.6 1966 $269.7 (b) Medical assistance for the aged... (c) Aid to families with dependent children.. 203, 100 237, 700 16, 100 16,000 155, 700 166, 300 (d) Aid to the blind.. 9.4 10.0 10.2 89.3 62.4 |