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General and special funds:

1964 actual

Identification code 09-35-1471-0-1-653

-399 -437

2

Program by activities: State expenditures:

834 -836

-2

-2

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...

593

45

114

20

28

34

834

126

116

6.5 $6,321

WELFARE ADMINISTRATION

1965 1966 estimate estimate

-421

-474

1964 actual

895 -895

650

49

107

20
34

34

1

895

132

120

6.4 $6,652

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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).

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)

930

133

124

6.5

$6,702

1966 1965 estimate estimate

1,320,214 1,268,100 1,328,300 227,400 195,455 884,363 766,200 46,616 44,600 252,331 256,900

329,300 967,800 46,600 294,400

Total, payments to or on

behalf of recipients. 2,698,979 2,563,200 2,966,400

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1964 actual

70,094
14,400

1964 1963 adjustments

126,794
4,745

28,404

Total program costs, funded. Change in selected resources 2. Adjustment between State requirements and Federal grants to States for fiscal year...

-3,430

Total obligations (object class 41.0)... 3,012,266 2,851,669 3,242,100

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1965 estimate

71,600
13,700

$41,853

118,700

3,900

30,900

244,437 238,800 295,700 1,305 11,280 2,000 2,944,721 2,803,280 3,264,100 -17,050 -22,280 -22,000 2,927,671 2,781,000 3,242,100 88,025 70,669

1966 estimate

-719,331-790,000 -790,000
591,665 719,331 790,000
2,884,600 2,781,000 3,242,100

75,500
22,100

2,884,600 2,780,000 3,242,100

1964

1.000
2,884,600 2,781,000 3,242,100

Relation of obligations to expenditures:

71 Total obligations (affecting expenditures). 3,012,266 2,851,669 3,242,100 capita income of the State.

72 Obligated balance, start of year.....

74 Obligated balance, end of year..

414,357 482,572 790,135 -482,572-790, 135-790, 135

90

Expenditures.

2,944,052 2,544, 106 3,242,100

Includes: (a) $1 million transferred from Office of Economic Opportunity, pursuant to Supplemental Appropriation Act of 1965 (Public Law 88-635) for continuation of demonstration projects approved in prior year under section 1115 of the Social Security Act, as amended, and (b) $280 thousand for demonstration projects approved in 1965 prior to Senate action on the HEW Appropriation Act for 1965 on August 19, 1964, restricting use of funds for this purpose.

1 Selected resources as of June 30 are as follows:

157,900
5,400

34,800

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$719, 331 $790,000 $790,000

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.

589, 453 41, 853 719,331 790,000 790,000

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

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

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THE UNIVERSITY OF MICHIGAN LIBRARIES.

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.

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 among 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 one for the children the mother), and a second parent living in the home, if incapacitated or unemployed.

Provisions for determining the Federal share of adminis tration, 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 1965 to estimated amount of collections and adjustments for prior increase for 1966 over 1965, with the largest increases, All programs contribute to the

1966 is $106.9 million.

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$43.6 million and $32.2 million, occurring in the programs of medical assistance for the aged and aid to families with dependent children, respectively.

The figures used in the tables appearing under the activities below include an anticipated supplemental request of $407.9 million for 1965; the figures shown in the program and financing schedule include only the $2,781 million already appropriated ($2,780 million in the regular 1965 Health, Education, and Welfare Appropriation Act and $1 million transferred from the Office of Economic Opportunity).

1. Payments to or on behalf of recipients (a) Old-age assistance. The average number of recipients per month for 1966 is estimated to be 15,000 smaller than in 1965. The estimated average monthly payment is $1 more than the estimate for 1965.

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1

2,179,000

$78.10

1966 $269.7 102. 1 9.2

89.3

Total.....

470. 3

(c) Aid to families with dependent children.-The average monthly number of persons estimated to receive assistance per month for 1966 is 0.8% greater than that estimated for 1965. The estimated average monthly payment per person is $1.05 more than the estimate for 1965.

1964 actual 1965 estimate 1966 estimate

1,034,700

1,043,000

983,000
3,040,700
4,056,300
$31.85

3,219,100
4,300,000
$33.30

3,245,000
4,335,000
$34.35

$1,550.0 $884.4

$2,042.2 $2,054.1 $1.325.7 $1,328.3

$96.9 46.6

$866

$553.9

$288.3

2,164,000 $79.10

Federal share of assistance (in millions)

1965 $268.6

90.5

9.2

82.6

450.9

$1.718.3 $949.4

(d) Aid to the blind.-The average number of recipients per month for 1966 is estimated at 0.8% less than was estimated for 1965. The estimated average monthly payment is $1 more than the estimate for 1965.

97,000 $84.40

1964 actual 1965 estimate 1966 estimate 97,800 96,200 $82.60 $85.40

$1,786.3 $967.8

$98.2 46.7

$98.6

46.6

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(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 expenditures (Federal, State, and local)

Federal share......

$443.9 $252.3

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]

Identification code 09-35-1471-1-1-653

Program by activities: State expenditures:

218.1

9.4

53.3

439.6 244.4

1964 actual 1965 estimate 1966 estimate 131.2 133.0 135.5

27.6

36.0

39.8

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...

$487.6

$273.5

(d) Aid to the blind..

(e) Aid to the permanently and totally disabled..

Total, payments to or on behalf of recipients.--.

Proposed for separate transmittal:

GRANTS TO STATES FOR PUBLIC ASSISTANCE, BUREAU OF FAMILY SERVICES

Program and Financing (in thousands of dollars)

1964 actual

238.5

10.0

57.0

474.5

272.3

$527.3

$294.4

57,600

60,900

183,200

2,100

16,600

320,400

252.9

10.2

62.4

1965 1966 estimate estimate

500.8

295.7

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