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1962

1963 estimate

1964 estimate

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This appropriation account covers all construction and

Program and Financing (in thousands of dollars) --Continued facility improvement items of Saint Elizabeths Hospital. 1. Construction and equipment, continued treatment

actual building (rehabilitation center).- Plans and specifications for this 450-bed treatment facility are currently being de

Financing: veloped with funds appropriated in 1959 and 1962. Con

Unobligated balance brought forward.

18
22

4 struction is expected to start in the latter part of the cur Advances and reimbursements from other rent year with funds provided in the 1963 appropriation.

48

12

--22 The facility will replace three smaller buildings constructed

Unobligated balance carried forward ( during the period 1853–72.

Total financing.

44

30 2. Miscellaneous improvements of existing facilities.Funds requested will provide for (a) rewiring and extension of electrical facilities in hospital buildings, (b) altera

Object Classification (in thousands of dollars) tions of hospital X-ray facilities, (c) establishment of a central sterile supply unit, (d) replacement of steam 11 Personnel compensation: Positions other

than permanent..

6
9

3 service lines, (e) replacement of insect screens in patient

25 Other services

10

9 treatment buildings, (f) alterations to the tuberculosis

26 Supplies and materials.

4

3 building, (g) replacement of sanitary sewers under the 31 Equipment.

24

9 laundry road, (h) modernization of dishwashing facilities,

44 Total obligations

30 and, (i) construction of a small addition to the Hospital powerplant. 3. Construction and equipment, treatment and cafeteria

Personnel Summary building.–This treatment facility, which replaces an antiquated building built in 1871, will house 250 patients and

Average number of employees.. provide food service for these plus 400 patients from two Number of employees at end of year.

2

0 adjacent buildings. Construction is nearing completion, Average GS grade.

7.7 7.2 8.0 Average GS salary.

$7,308 $7,176 with patient occupancy expected in the latter part of

$8.043 1963.

4. Extension and modernization of administration building.-The administration building is being modernized to furnish more adequate space and facilities. The project

SOCIAL SECURITY ADMINISTRATION will be completed during the current year, 5. Construction and equipment, maximum security build

LIMITATION ON SALARIES AND EXPENSES, BUREAU OF Old-AGE ing.--Construction of a 396-bed maximum security build

AND SURVIVORS INSURANCE ing has been completed and it is now in use. Minor finish

(Trust fund) ing-up projects will be completed during the current year.

For necessary expenses, not more than ($280, 100,000] $317,900,Object Classification (in thousands of dollars)

000 may be expended from the Federal old-age and survivors insurance trust fund: Provided, That such amounts as are required shall be available to pay the cost of necessary travel incident to medical examinations for verifying disabilities of individuals who file appli

cations for disability determinations under title II of the Social SAINT ELIZABETHS HOSPITAL

Security Act, as amended: Provided further, That $10,000,000 of the

foregoing amount shall be apportioned for use pursuant to section 25 Other services

155 203 157 3679 of the Revised Statutes as amended (31 U.S.C. 665), only to 31 Equipment.

28

the extent necessary to process workloads not anticipated in the

budget estimates and after maximum absorption of the costs of Total, Saint Elizabeths Hospital. ---- 183 203 157 such workload within the existing limitation has been achieved.

Advances to States, next succeeding fiscal year: For making, after ALLOCATION TO GENERAL SERVICES

May 31 of the current fiscal year, advances to States under section ADMINISTRATION

221 (e) of the Social Security Act, as amended, for the first quarter

of the next succeeding fiscal year, such sums as may be necessary 21 Travel and transportation of persons.

1

2

from the above authorization may be expended from the Federal 24 Printing and reproduction...

22

10

old-age and survivors insurance trust fund. (42 U.S.C. 401-425; 25 Other services.

297 320 214

70 Stat. 823; 42 U.S.C. 421; Department of Health, Education, and 3 412

Welfare Appropriation Act, 1963.) 32 Lands and structures.

790
6,730

620 Total, General Services Administration..

1,094 7,485

846

Program and Financing (in thousands of dollars) Total obligations 1,277 7,688 1.003

actual

estimate

1962 actual

1963 estimate

1964 estimate

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31 Equipment

1962

1964

1963 estimate

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1962

1963

1964 estimate

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ments

1962

1961
763

1963
777

SOCIAL SECURITY ADMINISTRATION—Continued decline following heavy filings by new eligibles under the

1960 and 1961 Amendments to the Social Security Act. LIMITATIONS ON SALARIES AND EXPENSES, BUREAU OF OLD-AGE AND SURVIVORS INSURANCE—Continued

1962 actual 1963 estimate 1964 estimate OASI claims applications: Received

3,437,804 3,259,000 3,238,000 Program and Financing (in thousands of dollars)— Continued

Processed...

3,382,910 3,301,449 3,248,700 3. Maintenance of OASI beneficiary rolls. The beneactual estimate

ficiary rolls require continuous revision so that benefit

checks may be mailed promptly each month to beneficiProgram by activities---Continued Change in selected resources !

1,425

aries who are entitled to them, and so that checks may be -391 1,290

discontinued when eligibility for benefits is interrupted or Total obligations...--

264,289 286,714 317,900 comes to an end. The number of beneficiaries increased

by 1,400,000 in 1962. The rate of increase declines in Financing:

1963 and again in 1964 as the effect of the 1960 and 1961 Unobligated balance lapsing.

3,281

amendments on new claims filings becomes less significant. Limitation..

267,570 280,400

The amount of benefit payments will continue to rise each Proposed increase in limitation due to

year as the number of beneficiaries increases. pay increases.... 6,314

1962 actual 1963 eslimate 1964 estimate

OASI beneficiaries in current pay status | Selected resources as of June 30 are as follows:

1962
at end of year..

16,128,514 17,461,000 18,551,000
adjust-
OASI benefit payments (in millions)-- $12,658 $13,865

$14,648 1964 Stores -

1,027

799 Unpaid undelivered orders.. 1, 086 - 198 1,530 1,478 2, 103

4. Processing disability claims and maintaining beneficiAdvances to State agencies..

5,665

12 6, 1966, 106 6,750 ary rolls.-The Bureau's district offices receive all disabilTotal selected resources.--- 7,514 – 186 8,753 8,362 9,652 | ity claims. In most cases State agencies, under contractual

arrangements, determine the existence of a disability. The old-age, survivors, and disability insurance pro- The Bureau reviews these determinations to assure unigram provides protection to about 9 out of 10 working formity among States. In addition, the Bureau maintains people and their families against the loss of earnings be- the beneficiary rolls for disability beneficiaries. The esticause of old-age, disability and death. Under this pro- mated volume of applications to be filed by disabled gram, people in covered employment and the self-em- workers will be higher in both 1963 and 1964. The bigher ployed make tax contributions during their working years estimates reflect two major factors: The size of the to pay for protection for themselves and their families. insured population will continue to increase. Rates of Employers match the contributions made by their em- disability among insured workers will continue at about ployees. These contributions are deposited in the the levels indicated by actual experience in the recent past. Federal Old-Age and Survivors Insurance and Federal The increase in the number of disability beneficiaries Disability Insurance trust funds, out of which benefit in current pay status is consistent with the increase in payments and administrative costs are paid.

the disability claims load. Benefit payments will rise as The volume and nature of the work received by the the number of beneficiaries increase. Bureau of Old-Age and Survivors Insurance has changed

1964 significantly during the past 12 years (1950–62) because

estimate

Claims from disabled workers: of various amendments to the Social Security Act which

Received..

440, 109 466,000 487,800 made important changes in the scope and character of Processed..

443,731 476,999 490,000 the program. These amendments have improved pro Disability beneficiaries in current pay status tection provided by the retirement and survivors insur

at end of year.-

1,151.850 1,377,000 1,580,000

Disability benefit payments (in millions). $1,011 $1,167 $1,231 ance phase of the program and added a disability program which provides for monthly insurance benefits for

5. Hearings and appeals.- Individuals whose claims are disabled workers of any age and their dependents. disallowed by the Bureau of Old-Age and Survivors

1. Maintenance of earnings accounts.-Eligibility for Insurance have a right to appeal to the Bureau of insurance benefits and the amount of benefit payments Hearings and Appeals. The decrease in the hearing are based on the lifetime earnings records maintained by requests to be filed in 1963 results from the peaking of the Bureau. The volume of earnings record work depends disability claims filed in 1961, which is reflected in hearing primarily on the level of employment and the rate of receipts in 1962. A large backlog of requests will carry labor turnover. The anticipated increase in nonagricul-over into 1964. The number of cases to be processed in tural employment and covered employment in 1963 and that year will be increased in order to reduce the backlog. 1964 is the chief reason for the expected increase in receipts of earnings items to be posted to workers' accounts.

1962 1963

1964

actual estimate estimate Requests for hearings: 1962 actual 1963 estimate 1964 estimate Received.

21,377 18,205 18,690 Earnings items:

Processed.

16,964 22,140 22,700 Received...

264,725,606 280,866,000 291,264,000 Processed. 267,580,018 279,155,035 290,000,000 6. Actuarial services.—This activity includes actuarial

research and preparation of cost estimates for long-range 2. Processing OASI claims.--Prospective beneficiaries program planning. file claims in district offices located throughout the coun 7. Administration. This activity includes Bureauwide try. When claims are approved, the Treasury Department direction and management, program planning and reis authorized to issue benefit checks. The number of search, and general management service functions. claims to be received in 1964 is lower than the 1963 esti 8. Internal Revenue Service enumeration project. This mate because the volume of life claims is expected to project involves work to be performed by the Bureau of

1962 actual

1963 estimale

1963

actual

1964 estimate

2,464 5,188 27,278 3,125 3,116

77

5 10,000

Old-Age and Survivors Insurance for the Internal Revenue

Object Classification in thousands of dollars)

Continued Service in connection with the use of social security account number cards for taxpayer identification purposes.

1962 This work in 1963 and 1964 will be financed initially from

estimate the Federal Old-Age and Survivors Insurance trust fund.

24 Printing and reproduction..

2,292 2,223 9. Contingency reserve. This reserve ($10 million) | 25 Other services.

3,775 4,246 represents funds to be made available only to the extent Advances to States

22,330 23,736 necessary to process work loads not anticipated in the

26 Supplies and materials.

2,622 2,904

31 Equipment.. budget estimates.

2,346 1,589 32 Land and structures.

366 70 42 Insurance claims and indemnities.

6

5 Object Classification (in thousands of dollars)

Contingency reserve.

6,660 1962

Total obligations -1964

264,289 286,714 actual estimate estimate 11 Personnel compensation:

Personnel Summary Permanent positions...

175, 127 192,630 210,371 Positions other than permanent. 633 689 710 Total number of permanent positions.

34,539 35,660 Other personnel compensation.. 13,353 6,453 6,044 Full-time equivalent of other positions.

82

70 Average number of all employees.

32,763 34,087 Total personnel compensation 189,113 199,772 217,125 Number of employees at end of year.

33,781 34,767 12 Personnel benefits..--. 13,479 14,778 16,165 Average GS grade.

5.8 5.9 21 Travel and transportation of persons. 4,685 4,470 4,640 Average GS salary.

$5,384 $5,769 22 Transportation of things...1,076 886 1,000 Average salary of ungraded positions

$4,828 $4,852 23 Rent, communications, and utilities. 22,200 25,375 27,718

317,900

1963

37,451

62 35,740 36,858

5.9 $5,782 $4,844

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i Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1961, $3,165 thousand; 1962, $274 thousand; 1963, $1,020 thousand; 1964, $0.

Object Classification (in thousands of dollars)

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The Bureau's headquarters building in Baltimore
County, Md., was occupied in April 1960.
Because of a series of major amendments to the Social

21 Travel and transportation of persons.
Security Act, an annex was authorized and was occupied 22 Transportation of things..
in August 1962. In September 1961 a supplemental ap-

24 Printing and reproduction..

25 Other services. propriation of $4 million was approved by Congress to 26 Supplies and materials.

31 Equipment.--extend the annex. Construction of the extension has

32 Land and structuresbeen started and should be completed in February 1964.

Total obligations ---

219

1 31

9 90

2

32 3,538

60 12 170 429

31 317

568

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1962 actual

1963 estimate

1961

1962

1963

1964

SOCIAL SECURITY ADMINISTRATION—Continued

Program and Financing (in thousands of dollars)-Continued General and special funds:

1963 1964

estimate estimate Proposed for separate transmittal: PAYMENTS FOR MILITARY SERVICE CREDITS

Program by activities Continued

State expenditures-Continued
Program and Financing (in thousands of dollars)

2. Administration, services, and training:
(a) Old-age assistance -

60,119 60,765 77,700 1962

1964

(b) Medical assistance for the aged. 6,369 10,700 12,100
actual
estimate

(c) Aid to families with dependent
children..

74,450 70,663 106,400

(d) Aid to the blind.. Program by activities:

3,868 3,477 5,200

(e) Aid to the permanently and 1. Payment to Federal OASI Trust Fund for

19,342 military service credit.

totally disabled 62,700

21,695 29,400 2. Payment' to Federal DI Trust Fund for

Total, administration, servmilitary service credits....

700
ices, and training

164, 148 167,300 230,800 Total program costs, funded-obli

3. Demonstration projects...
gations...
63,400

2,000 Financing:

Total..

2,465,562 2,490,300 2,971,000 New obligational authority (proposed supple

4. Collections and adjustments during mental appropriation).

63,400
year (-) ----

-21,183 -21,240-21,000

Total program costs, funded. 2,444,379 2,469,060 2,950,000 Under proposed legislation, 1964.-An amendment will Change in selected resources !

6,451 208,653 be proposed to legislation extending the 10-year period in

Adjustment between State expenditures and

22,595

Federal grants advanced to States... which to make payments to the Federal old-age, survivors, and disability insurance trust funds for costs to these funds Total obligations (object class 41). 2,473,425 2,677,713 2,950,000 related to non-contributory wage credits given for World War II military service.

Financing:

Appropriation available from subsequent Upon enactment, an estimated supplemental appropria

year (-) --

-580,587 -720,000 -720,000 tion of $63,400 thousand will be required to pay the Appropriation available in prior year. 508,362 580,587 720,000 initial installment.

New obligational authority (appropriation) 2,401,200 2,538,300 2,950,000 Proposed for separate transmittal:

1 Selected resources as of June 30, are as follows: HEALTH INSURANCE FOR THE AGED

Selected resources at end of year Legislation will be proposed to provide health insurance

(amount obligated in current

year for grants chargeable to apfor the aged. This program will be incorporated into

propriation for subsequent year) 508, 362 580,587 720,000 720,000

Amount of 1962 appropriation used the social security system and will be financed from in

to complete 1961 requirements. -3,466 creases in the contributions made by employers, employ

Amount of 1963 appropriation used
to complete 1962 requirements..

-69, 240 ees, and the self-employed. The proposal will also contain

Total selected resources --special 'provisions, financed from general revenues, to

504, 896 511, 347 720, 000 720,000 extend health insurance protection to those of our aged Grants for old-age assistance, medical assistance for the who are not now covered under social security. There aged, aid to families with dependent children, aid to the will, however, be no fiscal impact before 1965.

blind, and aid to the permanently and totally disabled are made to States that have plans for these programs ap

proved by_the Department of Health, Education, and GRANTS TO STATES FOR PUBLIC AssisTANCE

Welfare. Effective October 1, 1962, the Public Welfare For grants to States for old-age assistance, medical assistance for

Amendments authorized, as an alternative to separate the aged, aid to families with dependent children, aid to the blind, plans for each program, grants under a combined single and aid to the permanently and totally disabled, as authorized in plan for the adult assistance programs covering old-age amended (42' U.S.c. ch. '7, subchs. I, IV, x, [and] XIVD, assistance, medical assistance for the aged, aid to the blind, $2,538,300,000], and XVI), $2,950,000,000, of which such amount

and aid to the permanently and totally disabled. Fiftyas may be necessary shall be available for grants for any period in four jurisdictions including all the States, the District of the prior fiscal year subsequent to March 31 of that year. (Depart-Columbia, Guam, Puerto Rico, and the Virgin Islands ment of Health, Education, and Welfare Appropriation Act, 1963.)

have approved plans for old-age assistance, aid to families Program and Financing (in thousands of dollars)

with dependent children, and aid to the blind; 51 juris

dictions now have approved plans for aid to the perma1962 1963 1964 nently and totally disabled and 1 additional State is actual estimate estimate

expected to have such a plan in 1963. Under the Social

Security Amendments of 1960, Federal participation in Program by activities: State expenditures:

programs for medical assistance for the aged became 1. Payments to or on behalf of recipients:

effective on October 1, 1960. State legislation was (a) Old-age assistance

1,208.427 1,182,700 1,382,900 necessary in most States before they could initiate pro(b) Medical assistance for the aged.. 96,356 152,400 197,800 grams for medical assistance for the aged. The number (c) Aid to families with dependent children... 770,949 743,900 865,600

of jurisdictions expected to have approved plans for this (d) Aid to the blind..

43,733 41,100 45,700 program is 28 in 1963 and 35 in 1964. All these programs (e) Aid to the permanently and totally

will be in operation in 1964 either under a separate plan or disabled.

181,949 202,900 246,200 | under a combined single plan. Total, payments to or on behalf

The Public Welfare Amendments of 1962 to the public of recipients. 2,301,414 2,323,000 2,738,200

assistance titles of the Social Security Act and certain administrative actions taken by the Secretary of Health,

Education, and Welfare made far-reaching changes which assistance to the aged, the provisions are the same as are designed to strengthen and improve the public assist those applicable under the separate plans, as described in ance programs and enhance their effectiveness in preventing item 1. Provisions for additional Federal participation and reducing dependency. The major changes involving in assistance payments, based on the amount of direct additional expenditures from Federal funds are as follows: agency payments to vendors for medical or remedial

1. An increase of about $4 per month per recipient in care (vendor medical payments), are described under the Federal share of assistance payments to the aged, item 3. blind, and disabled.

3. Provisions applicable under separate plans for old-age 2. Extension until 1967 of the program of aid to fam assistance and under a single plan for the adult assistance ilies with dependent children to families in which a programs. --Additional Federal participation in assistance parent is unemployed; and inclusion of a second parent, payments, beyond that described in items 1 and 2, is if incapacitated or unemployed, in computing the based on the amount of direct agency payments to Federal share of assistance payments to families with vendors for medical or remedial care (vendor medical dependent children.

payments). 3. Provision, at a State's option, for a single plan for For States with average monthly payments over $70, the adult assistance programs.

the Federal Government participates in the expenditures 4. Exemption, at the option of States, of income in excess of that amount, to a maximum of $15, except earned by recipients of old-age assistance, up to a maxi- that such participation is limited to the amount of the mum of $30 (the first $10 and one-half of additional

average vendor medical payment. The Federal share in earnings up to $50), in determining the need of a the excess expenditure consists of the Federal medical recipient.

percentage for the State, which ranges from 50% to 80% 5. An increase from 50% to 75% in the Federal share under a formula based on per capita income. of the State and local costs of providing preventive and For States with average monthly payments of $70 or rehabilitative services, as defined by the Secretary of less, the additional Federal share in average vendor medHealth, Education, and Welfare; and in the costs of ical payments up to $15 is an additional 15% over the training State and local welfare personnel.

usual Federal percentage (based on per capita income) In addition to the foregoing changes, which occurred as applicable to the amount of payments falling between a result of legislative action, the Secretary of Health, Edu- $35 and $70. cation, and Welfare took a number of administrative This percentage, when added to the usual Federal peractions affecting the public assistance programs. The centage for the second part of the payment, results in a major action affecting Federal expenditures provides for: total Federal share of from 65% to 80% The additional

6. Extension of the public assistance programs to Federal share of 15% also is available to States with include needy persons on conditional release from average monthly payments over $70 when it is advanmental institutions.

tageous to them as an alternative to the method described The request for 1964 includes an amount of $409.5 in the preceding paragraph. For Guam, Puerto Rico, million to cover the costs of the Public Welfare Amend- and the Virgin Islands, comparable provisions for direct ments of 1962 and the administrative actions taken by the agency payments to vendors for medical or remedial care Secretary, including those mentioned above and certain are in effect. less costly items. The estimated cost of these changes in 4. Provisions applicable in medical assistance for the 1964 is $144 million more than for 1963 primarily because aged.-- For all 54 jurisdictions the Federal share of expendisome of the changes will be in effect for the entire year of

tures for the program of medical assistance for the aged 1964 whereas, in 1963, they are in effect for only part of is the Federal medical percentage of the amounts expended the year.

by the State for such assistance. The Federal medical Provisions for determining the Federal share of assistance percentages for the individual States range from 50% to payments--1. Provisions applicable under separate plans 80% under a formula based on per capita income. The for programs of old-age assistance, aid to the blind, and aid Federal share is the same regardless of whether the proto the permanently and totally disabled. --The amount of gram is administered under a separate plan or under a assistance payments subject to Federal participation is single plan for the adult assistance programs. limited to a monthly average expenditure of $70 per recipient. (In addition under old-age assistance the children.--For the 50 States and the District of Columbia,

5. Provisions applicable in aid to families with dependent Federal government participates in up to an additional

the amount of assistance payments subject to Federal $15 per month in the form of payments for medical or remedial care.) The average monthly amount is based on

participation is limited to a monthly average expenditure

of $30 per child or adult recipient in the family. The expenditures for money payments to recipients and direct

average monthly amount is based on expenditures for agency payments to vendors for medical or remedial care. Within this maximum, the Federal share is twenty-nine for medical or remedial care. Within this maximum, the thirty-fifths of the first $35 per recipient plus a proportion Federal share is fourteen-seventeenths of the first $17 per of the balance, which varies among States from 50 to 65% recipient plus a proportion of the balance, which varies depending upon the per capita income of the State.

among States from 50 to 65%, depending upon the per The foregoing provisions apply in all jurisdictions except capità income of the States. For Guam, Puerto Rico, Guam, Puerto Rico, and the Virgin Islands; for these and the Virgin Islands the Federal share is one-half of total jurisdictions the Federal share is one-half of total expendi- expenditures within a maximum monthly average of $18 tures within a maximum monthly average of $37.50 per per recipient and within an overall limitation on total recipient subject to an overall limitation on the total annual Federal funds for assistance and administration for annual Federal funds for assistance and administration all programs combined for each jurisdiction. For purfor all programs combined for each jurisdiction.

poses of determining the amount of payments subject to 2. Provisions applicable under a single plan for the adult Federal participation, the count of recipients in all jurisassistance programs.-Except for recipients of medical | dictions includes dependent children under 18 years of

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