which have been offered by the National Governor's Association and the National Association of State Units on Aging. May we note moreover: that our experience suggests that states should be permitted to selectively apply cost-sharing principles to those programs which are funded by the Older Americans Act. that input received from our aging network does not support changes in the age formula for allotting Older Americans Act funds. - that there is widespread agreement that the Older Americans Act must reflect a stronger commitment to the protection of older adults from abuse, neglect, and exploitation; to community based long term care services; and to the support of family members and others who are providing care to older persons. Thank you once again for the opportunity to comment upon the changing needs of older Americans as they relate to the reauthorization of the Older Americans Act. Senator MATSUNAGA. Thank you very much, Dr. Takamura. We will be happy now to hear from you, Dr. Phelps. You may proceed, Dr. Phelps. Welcome to the Committee. Dr. PHELPS. Thank you very much. Members of the Committee and ladies and gentlemen, on behalf of the Association, I would like to outline some trends in aging in America and share with you some of our recommendations regarding the reauthorization of the Older Americans Act. The Act has been the only Federal social and community service statute designed exclusively for older persons. In order to foster maximum independence, the mission of the Act has been to provide a range of services to those older persons with the greatest economic and social needs. As Congress deliberates the reauthorization, it is important for the aging community and policy-makers to consider demographic and social changes in the aging population, and this will provide a framework for policy recommendations on the immediate and future needs of older persons. I think everyone is aware of the rapid growth in the Nation's older population. By 1980, the number of persons 55 and over increased by 141 percent, and those 65 and over by 183 percent. By the year 2035, every fifth American will be 65 years of age and over. As the older population has increased, there has been a substantial shift in the sex and racial compositions. Older women now outnumber men three-to-two. By 1990, 11.3 million women 65 and older will be single and living alone, compared to the 8 million today. These changes will have a great impact on the demand for income supports, social services, and health care. Although older minorities will continue to comprise a smaller group in absolute numbers than older whites, their numbers are increasing at a faster rate than the older white persons. Major changes in public policy are essential to cope with the trends in aging. Today, there are about 20 persons 65 years and over for every 100 persons of working age, and after the baby boomers turn 65 around 2030, however, this ratio is expected to double. Such changes will have a significant impact on the provision of adequate housing, health and social services, employment and social security, since there will be fewer workers to support publicly funded programs for older persons. The Older Americans Act program can respond to the needs of this changing older population in a variety of ways. First, health and long-term care; second, income maintenance; third, housing; fourth, social services; and last, the extension of the Older Americans Act and heightened visibility of the Administration on Aging, AARP strongly believes that the legislation should be extended for at least three years. We strongly believe that the aging agenda should be elevated within HHS by having the Commissioner report directly to the Secretary, rather than to the Office of the Secretary. To maximize the benefits derived from each OAA dollar, AAA should be required to reaffirm their commitment to a coordination, facilitation advocacy role. Sometimes AAAs have to assume the role of service providers, but the use of OAA funds for service delivery should not take priority over the coordination mandate of the Act. AARP opposes consolidating funds for OAA programs with funds for other programs within the Office of Human Development Services. Further, the association opposes consolidating funds of different programs under the same titles within the Older Americans Act. An allotment formula is used in computing the amount of Federal money each State will receive under the OAA. Any proposal to raise the population threshold for the allotment of funds under section 303 from age 60 to 70 should consider the service needs of special populations such as minorities, frail elderly persons, and the rural elderly poor who do not meet the arbitrary age threshold for the allocation of funds. Our concern should focus not only on those who manage to survive to age 70, but to assure that as many as possible live as long as possible. The association believes that the current allocation formula has served its usefulness. AARP continues to support a policy of voluntary contributions for service. We recommend that no broad fee for service plan be adopted prior to carefully monitored demonstrations where the impact on minorities and low-income elderly populations can be ascertained. Due to lower minority participation rates in OAA programs, the association urges that stronger statutory language be used to promote participation. AARP believes that legal services for older persons should be reauthorized as a priority service under the Older Americans Act. Senator MATSUNAGA. Dr. Phelps, we have a vote on the floor now proceeding. Could you finish up in a minute? Dr. PHELPS. In less than a minute. Senator MATSUNAGA. Thank you. Dr. PHELPS. Mr. Chairman, because of time constraints, I would like to refer the Committee to the association's other recommendations in our written statement. In conclusion, AARP urges prompt reauthorization of the Older Americans Act. Our suggested changes to the Act and its administration require little statutory change, but greatly improve services for all other Americans. The elderly of our Nation deserve our most careful attention to this important legislation. Thank you very much. [The prepared statement of Dr. Phelps follows:] AARP TESTIMONY OF DR. KERMIT C. PHELPS, CHAIRMAN ON BEHALF OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS BEFORE THE U.S. SENATE COMMITTEE ON LABOR & HUMAN RESOURCES SUBCOMMITTEE ON AGING REGARDING REAUTHORIZATION OF THE OLDER AMERICANS ACT MARCH 31, 1987 For further information contact: Sana Shtasel Director of Federal Affairs American Association of Retired Persons 1909 K Street, N.W. Washington, D.C. 20049 (202) 728-4730 American Association of Retired Persons 1909 K Street, NW., Washington, D.C. 20049 (202) 872 4700 EXECUTIVE SUMMARY The Association strongly supports the Older Americans Act (OAA). It should continue to target services to special populations while providing sufficient flexibility to state and local agencies to meet local needs. AARP believes the legislation should be extended for at least three years, and authorized at such sums as necessary. The Commissioner should report directly to the Secretary rather than to the Office of the Secretary. Sometimes AAAs have to assume the role of service providers, but use of OAA funds for service delivery should not take priority over the coordination mandate of the Act. AAAs should be involved in case or care management only as part of a carefully controlled demonstration that includes a broad array of other non-profit entities besides AAAS. AARP opposes consolidating funding for OAA programs with funds for other programs within the Office of Human Development Services. Further, the Association opposes consolidating funds of different programs under the same Title within the Older Americans Act. Any proposal to raise the population threshold for allotment of funds under Section 303 from age 60 to 70 should take into account the service needs of such under 70 groups as older minorities, frail elderly persons, and the rural poor. The Association also urges that stronger language should be incorporated in Title III to promote increased participation by aged minorities. Legal services for older persons should be reauthorized as a priority service under the Older Americans Act with a requirement that at least 6% of Title III (B) money be spent on each priority service. Congress should also authorize a private right of action for procedural violations of the Act, a study to determine compliance with priority service requirements, and reauthorize Section 424 of the Act. The Association recommends that no national fee-for-service plan be adopted prior to a carefully monitored demonstration being implemented and evaluated to determine impact on the neediest older populations. Service to older Indians under Title II should be more accessible. Similarly the Administration on Aging and the Labor Department should devise a more effective strategy for meeting the enormous employment needs of older Native Americans. The increased number of individuals receiving institutional care |