Cash and Non-Cash Benefits for Persons with Limited Income: Eligibility Rules, Recipient and Expenditure Data, FY1981-83

LC ~ 4 . :a8~-99 EPJJ R e p o r t No. 84-99 EPW CASH AND NON-CASH BENEFITS FOR PERSONS WI7lti LIMITED INCOME: ELIGIBILITY RULES, RECIPIENT AND EXPENDITURE DATA, FY 1981-83 Compiled by Vee Burke Specialist i n Social Legislation Education and Public Welfare Division Updated J u n e 1 8 , 1984 The Congressional Research Service works exclusively for the Congress, conducting research, analyzing legislation, and providing information at the request of committees, Members, and their staffs. The Service makes such research available, without partisan bias, in many forms including studies, reports, compilations, digests, and background briefings. Upon request, CRS assists committees in analyzing legislative proposals and issues, and in assessing the possible effects of these proposals and their alternatives. The Service's senior specialists and subject analysts are also available for personal consultations in their respective fields of expertise. ABSTRACT T h i s r e p o r t summarizes b a s i c e l i g i b i l i t y r u l e s , a s o f May 1984, f o r more t h a n 70 c a s h and non-cash p e r s o n s o f l i m i t e d income. programs t h a t b e n e f i t p r i m a r i l y It a l s o g i v e s funding formulas, b e n e f i t l e v e l s , a n d , f o r f i s c a l y e a r s 1981-1983, r e c i p i e n t numbers and expen- d i t u r e d a t a f o r e a c h program. Update o f 83-110 EPW Cash and Non-Cash B e n e f i t s f o r P e r s o n s w i t h L i m i t e d Income : E l i g i b i l i t y R u l e s , R e c i p i e n t and E x p e n d i t u r e D a t a , FY 1981-83 82-113 EPW Cash and Non-Cash B e n e f i t s f o r P e r s o n s w i t h L i m i t e d Income: E l i g i b i l i t y R u l e s , R e c i p i e n t and E x p e n d i t u r e D a t a , FY 1978-80 81-44 EPW Cash and Non-Cash B e n e f i t s f o r P e r s o n s w i t h L i m i t e d Income: E l i g i b i l i t y R u l e s , R e c i p i e n t and E x p e n d i t u r e D a t a , FY 1977-79 79-216 EPW Cash and Non-Cash B e n e f i t s f o r P e r s o n s w i t h L i m i t e d Income: E l i g i b i l i t y R u l e s , R e c i p i e n t and E x p e n d i t u r e D a t a , FY 1976-78 Income S e c u r i t y f o r P e r s o n s w i t h L i m i t e d Income: Program Summaries, R e c i p i e n t and E x p e n d i t u r e D a t a , 76-5 ED F e d e r a l and S t a t e - L o c a l E x p e n d i t u r e s f o r Income T r a n s f e r s t o P e r s o n s w i t h L i m i t e d Income. FY 1975-76 CONTRIBUTORS The f o l l o w i n g CRS a n a l y s t s and s p e c i a l i s t s c o n t r i b u t e d program d a t a and r u l e s t o t h i s r e p o r t . Unless o t h e r w i s e i d e n t i f i e d each i s a member of t h e Education and P u b l i c Welfare D i v i s i o n of CRS. Boren, Susan Guaranteed s t u d e n t l o a n s National d i r e c t student loans Burke, Vee Aid t o f a m i l i e s w i t h dependent c h i l d r e n (AFDc) Earned income t a x c r e d i t (EITC) Emergency a s s i s t a n c e Emergency food d i s t r i b u t i o n and s h e l t e r General a s s i s t a n c e (medical c a r e and non-medical c a r e components) General a s s i s t a n c e t o I n d i a n s Supplemental s e c u r i t y income (SSI) C a h i l l , Kenneth Low-income energy a s s i s t a n c e I r w i n , Paul V o c a t i o n a l e d u c a t i o n work-study program Jones, Jean C h i l d c a r e food program. School b r e a k £ a s t program School l u n c h program S p e c i a l m i l k program S p e c i a l supplemental food program f o r women, i n f a n t s , and c h i l d r e n (WIG) Summer food s e r v i c e program f o r children Klebe, Edward Community h e a l t h c e n t e r s Crippled c h i l d r e n ' s s e r v i c e s Health professions student loans and s c h o l a r s h i p s Indian health services M a t e r n a l and c h i l d h e a l t h s e r v i c e s Migrant h e a l t h c e n t e r s Nursing s t u d e n t l o a n s and s c h o l a r s h i p s Lyke, Bob Chapter 1 m i g r a n t e d u c a t i o n program Migrant h i g h s c h o o l e q u i v a l e n c y program (HEP C o l l e g e a s s i s t a n c e m i g r a n t program (CAMP) McClure, Barbara Dependency and indemnity compensation for parents of veterans Medical care for veterans with a nonservice-connected disability Pensions for needy veterans, their dependents and survivors Milgram, Grace* Low-rent public housing Section 8 Lower-income housing assistance O'Shaughnessy, Carol Nutrition program for the elderly Foster grandparents Senior community service employment program for older Americans Senior companions Osmon, David Special programs for students from disadvantaged backgrounds (TRIO) programs Supplemental educational opportunity grants O'Sullivan, Jennifer Medicaid Richardson, Joe Food distribution program for needy families Food stamps Spar, Karen Comprehensive employment and training services (CETA Titles 11-B and 11-C) Job corps (CETA Title IV-B) Public service employment (CETA Titles 11-D and VI) Summer youth employment program Title IV-C) Youth employment demonstration programs (CETA Title IV-A) Legal services Title XX Social services Work incentive program (WIN) Stephan, Sharon Adoption assistance Foster care Headstart Stevens, Anne Follow through Ellender fellowships Tager, Evelyn Weatherization assistance Vanhorenbeck, Susan * I n d i a n housing improvement g r a n t s Sec. 101 r e n t supplements Sec. 235 homeownership a s s i s t a n c e Sec. 236 i n t e r e s t r e d u c t i o n payments Sec. 502 r u r a l h o u s i n g l o a n s Sec. 504 r u r a l h o u s i n g r e p a i r l o a n s and g r a n t s Sec. 514 farm l a b o r housing l o a n s and Sec. 516 farm l a b o r h o u s i n g g r a n t s Sec. 515 r u r a l r e n t a l h o u s i n g loans Sec. 523 r u r a l s e l f - h e l p housing technical assistance grants Joyce, V i a l e t A s s i s t a n c e t o c e r t a i n Cuban r e f u g e e s (cash) A s s i s t a n c e t o r e f u g e e s and cuban/ Haitian e n t r a n t s (cash) Medical a s s i s t a n c e t o c e r t a i n Cuban refugees Medical a s s i s t a n c e t o r e f u g e e s and ~uban/Haitianrefugees S o c i a l s e r v i c e s f o r r e f u g e e s and cuban/ Haitian entrants Wolfe, Mark C o l l e g e work-study program F e l l o w s h i p s f o r g r a d u a t e and professional study P e l 1 g r a n t s ( f o r m e r l y b a s i c educat i o n a l opportunity grants) Deborah Johnson typed t h e r e p o r t , w i t h p a t i e n c e and s k i l l . Mary P i l o t e prepared t h e g r a p h s . * Member o f t h e Economics D i v i s i o n CONTENTS ............................................ A . N a t u r e o f P r o g r a m s .................................. B . B i l l i o n - D o l l a r P r o g r a m s i n FY 1 9 8 1 .................. C . G r o w t h i n S p e n d i n g .................................. 1. S h a r e of G r o s s N a t i o n a l P r o d u c t ................ 2 . S h a r e o f F e d e r a l B u d g e t ........................ 3 . S h a r e of W e l f a r e O u t l a y s P a i d by F e d e r a l F u n d s . D . C o m p o s i t i o n o f B e n e f i t s ............................. INCOME TESTS O F THE BENEFIT PROGRAMS .................... INTRODUCTION POVERTY THRESHOLDS AND OTHER MEASURES OF NEED ................................................ CATALOGUE OF PROGRAMS OFFERING CASH AND NON-CASH BENEFITS TO PERSONS O F L I M I T E D INCOME .................. MEDICAL A I D ........................................... .............................. ........ ........................... ............................. ........................... .......................................... ............................ ....... ............................... MEDICAID MEDICAL CARE FOR VETERANS WITH A NON-SERVICECONNECTED D I S A B I L I T Y GENERAL ASSISTANCE (MEDICAL CARE COMPONENT) MATERNAL AND CHILD HEALTH SERVICES. T I T L E V O F THE SOCIAL SECURITY ACT INDIAN HEALTH SERVICES COMMUNITY HEALTH CENTERS MEDICAL ASSISTANCE TO REFUGEES AND CUBAN/HAITIAN ENTRANTS MIGRANT HEALTH CENTERS MEDICAL ASSISTANCE TO CERTAIN CUBAN REFUGEES CRIPPLED CHILDREN'S SERVICES, T I T L E V O F THE SOCIAL SECURITY ACT CASH A I D ..... ................. ..................................... AID TO F A M I L I E S WITH DEPENDENT CHILDREN (AFDC) SUPPLEMENTAL SECURITY INCOME (SSI) PENSIONS FOR NEEDY VETERANS. T H E I R DEPENDENTS. AND SURVIVORS .... .................... ........................................ ......................... ..................................... ....................................... ...................... ................................ ........................................ GENERAL A S S I S T A N C E (NON-MEDICAL CARE COMPONENT) EARNED INCOME TAX C R E D I T (EITC) F O S T E R CARE A S S I S T A N C E TO REFUGEES AND CUBANIHAITIAN ENTRANTS (CASH COMPONENT) EMERGENCY A S S I S T A N C E TO NEEDY F A M I L I E S WITH CHILDREN (EA) DEPENDENCY AND INDEMNITY COMPENSATION F O R PARENTS OF VETERANS GENERAL A S S I S T A N C E TO I N D I A N S ADOPTION A S S I S T A N C E A S S I S T A N C E TO CERTAIN CUBAN REFUGEES (CASH COMPONENT) 64 68 70 71 73 75 77 80 81 FOOD A I D ........................................ 8 2 ................................... 8 7 ....................... 90 ............................. 92 .................. 93 ........................................ 95 ............................ 9 7 ........... 99 ....... 99 ................ 101 FOOD STAMPS SCHOOL LUNCH PROGRAM ( F R E E AND REDUCEDP R I C E SEGMENTS) S P E C I A L SUPPLEMENTAL FOOD PROGRAM FOR WOMEN. INFANTS. AND CHILDREN ( W I C ) S P E C I A L FOOD DONATIONS N U T R I T I O N PROGRAM FOR THE ELDERLY SCHOOL BREAKFAST PROGRAM ( F R E E AND REDUCED-PRICE SEGMENTS) C H I L D CARE FOOD PROGRAM SUMMER FOOD S E R V I C E PROGRAM FOR CHILDREN FOOD D I S T R I B U T I O N PROGRAM FOR NEEDY F A M I L I E S S P E C I A L M I L K PROGRAM (FREE SEGMENT) HOUSING AND A I D .......... 103 ............................ 106 .................... 109 ............. 111 ............ 113 ........................... 116 ....................... 119 ........................................ 1 2 2 ............... 123 .................. 1 2 4 ........................................ 1 2 5 S E C T I O N 8 LOWER-INCOME HOUSING A S S I S T A N C E LOW-RENT P U B L I C HOUSING S E C T I O N 502 RURAL HOUSING LOANS SECTION 515 RURAL RENTAL HOUSING LOANS S E C T I O N 2 3 6 I N T E R E S T REDUCTION PAYMENTS S E C T I O N 2 3 5 HOMEOWNERSHIP A S S I S T A N C E F O R LOW-INCOME F A M I L I E S S E C T I O N 101 RENT SUPPLEMENTS S E C T I O N 504 RURAL HOUSING R E P A I R LOANS AND GRANTS S E C T I O N 514 FARM LABOR HOUSING LOANS AND S E C T I O N 516 FARM HOUSING GRANTS I N D I A N HOUSING IMPROVEMENT GRANTS S E C T I O N 523 RURAL SELF-HELP TECHNICAL ASSISTANCE EDUCATION A I D ........................... 1 2 6 ............................... 1 2 9 .......................................... 1 3 2 ......................... 134 ......... 135 ................ 136 ...................... 138 ....................... 139 ..................................... 1 4 2 ............ 143 .... 144 ... 146 ...... 1 4 7 ............................... 149 .......... 150 ............. 151 GUARANTEED STUDENT LOANS PELL GRANTS ( F o r m e r l y B a s i c E d u c a t i o n a l Opportunity Grants) HEADSTART COLLEGE WORK-STUDY PROGRAM SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT CXAPTER 1 MIGRANT EDUCATION PROGRAM NATIONAL DIRECT STUDENT LOANS SPECIAL PROGRAMS FOR STUDENTS FROM DISADVANTAGED BACKGROUNDS (TRIO PROGRILYS) FOLLOW THROUGH VOCATIONAL EDUCATION WORK-STUDY PROGRAM FELLOWSHIPS FOR GRADUATE AND PROFESSIONAL STUDY HEALTH PROFESSIONS STUDENT LOANS AND SCHOLARSHIPS MIGRANT HIGH SCHOOL EQUIVALENCY PROGRAM (HEP) ELLENDER FELLOWSHIPS COLLEGE ASSISTANCE MIGRANT PROGRAM (CAMP) NURSING STUDENT LOANS AND SCHOLARSHIPS J O B S AND TRAINING A I D COMPREHENSIVE EMPLOYMENT AND TRAINING SERVICES (CETA T I T L E S 1 1 - B AND 11-C) SUMMER YOUTH EMPLOYMENT PROGRAM (CETA T I T L E IV-C) J O B CORPS (CETA T I T L E IV-B) SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM WORK INCENTIVE PROGRAM YOUTH EMPLOYMENT DEMONSTRATION PROGRAMS (CETA T I T L E IV-A) FOSTER GRANDPARENTS PUBLIC SERVICE EMPLOYMENT (CETA T I T L E S 11-D AND I V ) SENIOR COMPANIONS ....................... 153 .. 155 ........................ 1 5 7 ........ 159 ............................. 161 ................................. 1 6 2 ................................ 164 ............................... 165 .................................. 166 OTHER SERVICES 69 70 71 72 .. . . ........................... 1 6 7 ..................................... 169 .... 1 7 1 ........................................ 1 7 3 T I T L E XX SOCIAL SERVICES LEGAL SERVICES EMERGENCY FOOD DISTRIBUTION AND SHELTER PROGRAM SOCIAL SERVICES FOR REFUGEES AND cUBAN/BAITIAN ENTRANTS ENERGY A I D 73 74 . . ....................... 1 7 5 .......................... 1 7 8 LOW-INCOME ENERGY ASSISTANCE WEATHERIZATION ASSISTANCE LIST OF TABLES Expenditures of Major Needs-Tested Benefit Programs. FY 1981-83 ................................ Total Expenditures for Income-Tested Benefits ........ Recent Trends by Form of Benefit. FY 1981-1983 ...... Share of Federal Budget Used for Need-Tested Benefits 2 8 9 ............................................ Composition of Need-Tested Benefits ................. 14 Income Eligibility Tests Used by Benefit Programs 16 10 ........................................ Bureau of the Census Poverty Thresholds in 1983 ..... 1984 Federal Poverty Income Guidelines .............. 23 Eligibility Levels for Free and Reduced-Price Meals for the Period July 1. 1984-June 30. 1985 24 Sununary of Annual Budgets for a Four-Person Family at Three Levels of Living. Urban United States. Autumn 1981 (U.S. Department of Labor. Bureau of of Labor Statistics.. issued April 16. 1982 25 Sumnary of Annual Budgets for a Retired Couple at Three Levels of Living. Urban United States. Autumn 1981 (u.s. Department of Labor. Bureau of Labor Statistics.. issued July 30. 1982 26 ........... .......... .................... Need-Based Benefits: Expenditure and Enrollment Data. by Program and Form of Benefit. FY 1980-83 22 .... 181 . .MEDICAL BENEFITS ................................. 182 . .CASH BENEFITS .................................... 183 . .FOOD BENEFITS .................................... 184 . .HOUSING BENEFITS ................................. 185 . .EDUCATION AID .................................... 186 . .JOBS AND TRAINING ................................ 187 . .SERVICES ......................................... 188 . .ENERGY AID ....................................... 189 LIST OF CHARTS 1 . . 3. 2 ....... FY68 ...... FY83 ...... Total Expenditures for Income-Tested Benefits Composition of Need-Based Benefit Dollar. Composition of Need-Based Benefit Dollar. 3 12 13 INTRODUCTION More t h a n 70 b e n e f i t programs 11 p r o v i d e c a s h and non-cash a i d t h a t i s d i r e c t e d p r i m a r i l y t o p e r s o n s w i t h l i m i t e d income. These b e n e f i t programs c o s t $127.3 b i l l i o n i n f i s c a l y e a r (FYI 1983, up 7.3 p e r c e n t from FY 1982, and e q u a l t o 3.9 p e r c e n t o f t h e g r o s s n a t i o n a l p r o d u c t . F e d e r a l f u n d s p r o v i d e d 75 p e r c e n t o f t h e t o t a l . A f t e r a d j u s t m e n t f o r p r i c e i n f l a t i o n , 1983 w e l f a r e s p e n d i n g was up 3 p e r c e n t from 1982, b u t down 3 p e r c e n t from t h e peak l e v e l o f 1981. Measured i n c o n s t a n t v a l u e d o l l a r s , 1983 o u t l a y s w e r e t h e second s m a l l e s t s i n c e 1980. C o l l e c t i v e l y , t h e s e b e n e f i t programs c o n s t i t u t e t h e p u b l i c "welfare" system, i f w e l f a r e i s d e f i n e d a s income-tested o r need-based b e n e f i t s . Most o f t h e programs b a s e e l i g i b i l i t y on i n d i v i d u a l , h o u s e h o l d , o r f a m i l y income, b u t some u s e g r o u p o r a r e a income t e s t s ; and a few o f f e r h e l p on t h e b a s i s o f presumed need. T h i s r e p o r t c o n s i s t s o f a c a t a l o g u e o f 74 need-based programs. F o r e a c h i t p r o v i d e s t h e f u n d i n g f o r m u l a , e l i g i b i l i t y r e q u i r e m e n t s , and b e n e f i t l e v e l s . A t t h e back o f t h e r e p o r t a t a b l e g i v e s e x p e n d i t u r e and r e c i p i e n t d a t a f o r FY 1981-1983 by program. Of FY 1983 w e l f a r e d o l l a r s , 61.5 p e r c e n t were s p e n t on m e d i c a l a i d and c a s h r e l i e f ( 3 4 and 27 p e r c e n t , r e s p e c t i v e l y ) . Food b e n e f i t s a c c o u n t e d f o r 14 p e r c e n t o f t h e t o t a l , and 1 5 p e r c e n t was i n t h e form o f h o u s i n g b e n e f i t s , j o b s - t r a i n i n g , and e n e r g y a i d . The r e m a i n i n g 9 p e r c e n t went f o r e d u c a t i o n a i d and o t h e r s e r v i c e s . ( S e e t a b l e 1 f o r FY 1981-1983 summary, page 2 . ) 11 The l i s t o f 74 programs i n t h e t a b l e o f c o n t e n t s i n c l u d e s one ( P u b l i c S e r v i c e ~ m p l o y m e n)t t h a t ended on September 30, 1981, and a n o t h e r ( ~ m e r g e n c yFood D i s t r i b u t i o n and S h e l t e r program) t h a t was s c h e d u l e d t o end i n 1984. The number o f programs i s somewhat a r b i t r a r y . For example, G e n e r a l A s s i s t a n c e , l i s t e d u n d e r b o t h c a s h and m e d i c a l a i d , c o u l d b e r e g a r d e d i n s t e a d a s a s i n g l e program. 15,600.0 Food b e n e f i t s 3,324.1 2,008.9 Services Energy a i d Program d a t a on which t h i s t a b l e i s b a s e d a r e found i n t a b l e 1 2 . 7,516.3 Jobs & t r a i n i n g NOTE: - 4,710.2 Education Housing b e n e f i t s 10,455.5 21,566.2 $22,091.7 Cash a i d Medical c a r e S e e page 181. Chart 1 Total Expenditures for Income-Tested Benefits ...................... Ed Current Dollars ............................................. Constant 1972 Dollars Fiscal Year A. N a t u r e o f Programs Most of t h e s e programs p r o v i d e income " t r a n s f e r s . " T h a t i s , t h e y t r a n s f e r income, i n t h e form o f c a s h , goods, o r s e r v i c e s , t o p e r s o n s who make no payment and r e n d e r no s e r v i c e i n r e t u r n . However, i n t h e c a s e o f t h e j o b and t r a i n i n g programs and some e d u c a t i o n a l b e n e f i t s , r e c i p i e n t s must work o r s t u d y f o r wages, t r a i n i n g a l l o w a n c e s , s t i p e n d s , g r a n t s , o r loans. T h i s r e p o r t e x c l u d e s income m a i n t e n a n c e programs t h a t a r e n o t income t e s t e d , i n c l u d i n g s o c i a l i n s u r a n c e , many v e t e r a n s ' b e n e f i t s , and a l l b u t one t a x t r a n s f e r program. Thus, i t e x c l u d e s s o c i a l s e c u r i t y c a s h b e n e f i t s , unemployment i n s u r a n c e , and Medicare. The f i r s t o f t h e s e programs i n FY 1983 p a i d o u t 34 p e r c e n t more t h a n a l l i n c o m e - t e s t e d programs, o r a t o t a l o f $170.7 b i l l i o n , f i n a n c e d from p a y r o l l t a x c o l l e c t i o n s . The r e p o r t a l s o e x c l u d e s payments, even though f i n a n c e d w i t h g e n e r a l r e v e n u e s , t h a t may be r e g a r d e d a s " d e f e r r e d compensat i o n , " s u c h a s v e t e r a n s ' e d u c a t i o n a l b e n e f i t s ($1.7 b i l l i o n i n 1 9 8 3 ) , v e t e r a n s ' h o u s i n g b e n e f i t s , and m e d i c a l c a r e f o r v e t e r a n s with a service-connected d i s a b i l i t y . The r e p o r t i n c l u d e s one t a x - t r a n s f e r program, t h e r e b a t a b l e e a r n e d income c r e d i t f o r low-income w o r k e r s w i t h c h i l d r e n . T h i s program r e d u c e s t h e t a x e s o f working f a m i l i e s w i t h g r o s s income below $10,000 and makes d i r e c t payments t o t h o s e whose income i s below t h e income t a x t h r e s h o l d . O t h e r t a x t r a n s f e r s a r e e x c l u d e d b e c a u s e t h e y a r e n o t income t e s t e d . Tax t r a n s f e r s ( a l s o known a s t a x e x p e n d i t u r e s ) i n c r e a s e f a m i l i e s ' d i s p o s a b l e income by r e d u c i n g t h e i r t a x l i a b i l i t y . Examples a r e t h e d e d u c t i b i l i t y o f mortgage i n t e r e s t and p r o p e r t y t a x e s on owner-occupied p r o p e r t y ($20.8 b i l l i o n and $8 b i l l i o n r e s p e c t i v e l y , i n 1983) and t h e p a r e n t a l p e r s o n a l exemption f o r s t u d e n t s aged 19 and o v e r ($1.0 b i l l i o n i n 1 9 8 3 ) . B i l l i o n - D o l l a r Programs i n FY 1983 I n FY 1983 a t o t a l o f 20 income-tested programs s p e n t more t h a n $1 b i l l i o n e a c h i n F e d e r a l , S t a t e , and l o c a l f u n d s . The l i s t was l e d by M e d i c a i d , which c o s t more t h a n t h e sum o f t h e n e x t two programs, Aid t o F a m i l i e s w i t h Dependent C h i l d r e n (AFDc) and food s t a m p s . H e r e a r e t h e 20 programs and t h e i r FY 1983 e x p e n d i t u r e s . B i 11i o n s Percent I n c r e a s e From FY 1981 - Medicaid $34.96 AFDC 15.39 Food s t a m p s 13.27 SS I 10.10 S e c t i o n 8 lower income 4.99 housing a s s i s t a n c e Medical c a r e f o r v e t e r a n s w i t h a non-service4.41 connected d i s a b i l i t y 3.89 Veterans' pensions Low-rent pub1 i c h o u s i n g 3.21 3.10 Guaranteed s t u d e n t l o a n s Pel1 grants (formerly B a s i c E d u c a t i o n a l Oppor2.86 t u n i t y Grants) General a s s i s t a n c e 2.44 ( m e d i c a l c a r e component) S c h o o l l u n c h ( f r e e and 2.41 reduced-price segments) 2.40 b / T i t l e XX s o c i a l s e r v i c e s S e c t i o n 502 r u r a l hous2.33 ing loans General a s s i s t a n c e (cash and non-medical c a r e v e n d o r 2.11 payments ) Low-income e n e r g y a s s i s t a n c e 1.90 Earned income t a x c r e d i t 1.80 Comprehensive employment and t r a i n i n g s e r v i c e s (CETA T i t l e s 1 1 - B and 11-C 1.76 S p e c i a l s u p p l e m e n t a l food program f o r women, i n f a n t s 1.16 and c h i l d r e n (WIG) Heads t a r t 1.13 - -. -a / Not a p p l i c a b l e . b/ F e d e r a l d o l l a r s o n l y . o u t l a y s a f t e r 1981. D a t a a r e u n a v a i l a b l e on S t a t e t o t a l c / S t a t e d a t a a r e u n a v a i l a b l e t o c a l c u l a t e percentage change i n t o t a l spending. C. T r e n d s i n Spending T o t a l e x p e n d i t u r e s on c a s h and non-cash w e l f a r e programs w e r e e i g h t t i m e s g r e a t e r i n 1983 t h a n i n 1968. Even a f t e r a l l o w a n c e f o r p r i c e i n f l a t i o n , s p e n d i n g more t h a n t r i p l e d d u r i n g t h e 1 3 y e a r s . Measured i n c o n s t a n t 1972 d o l l a r s , i t c l i m b e d from $19.9 b i l l i o n i n FY 1968 t o a peak of $61.3 b i l l i o n i n FY 1981, a p e r i o d when t h e U.S. p o p u l a t i o n grew by 15 percent. P e r c a p i t a w e l f a r e s p e n d i n g grew i n r e a l t e r m s ( c o n s t a n t 1972 d o l l a r s ) from $100 i n FY 1968 t o $266 i n FY 1981, an i n c r e a s e o f 166 p e r c e n t , However, i n FY 1982, w e l f a r e s p e n d i n g f a i l e d t o k e e p pace w i t h i n f l a t i o n f o r t h e f i r s t t i m e s i n c e 1973. 21 I n r e a l t e r m s w e l f a r e o u t l a y s f e l l 5 . 5 p e r c e n t ($3.4 b i l l i z n i n 1972 d o l l a r s ) . Only s l i g h t l y more t h a n h a l f o f t h i s was r e s t o r e d by i n c r e a s e d s p e n d i n g i n 1983. C h a r t 1 and t a b l e 2 show t h e c o u r s e o f w e l f a r e s p e n d i n g i n b o t h c u r r e n t and c o n s t a n t d o l l a r s . During 1968-1978, Congress l i b e r a l i z e d some o l d w e l f a r e programs and e s t a b l i s h e d new o n e s . Some o f t h e m a j o r e x p a n s i o n s follow: e f f e c t i v e i n 1969 Congress g a v e a work i n c e n t i v e bonus t o a l l m o t h e r s who r e c e i v e d AFDC c h e c k s ; t h e bonus, v i r t u a l l y r e p e a l e d i n l a t e 1981, was t h e r i g h t t o a w e l f a r e supplement even a f t e r t h e i r e a r n i n g s r o s e above t h e S t a t e s t a n d a r d o f need. I n 1969, minimum r e n t s f o r p u b l i c h o u s i n g were a b o l i s h e d ( r e i n s t i t u t e d , a t a low l e v e l , i n 1 9 7 4 ) . By 1970 amendment, t h e food stamp program was c o n v e r t e d i n t o a F e d e r a l income g u a r a n t e e i n participating counties. By 1972 amendment, b a s i c e d u c a t i o n a l o p p o r t u n i t y g r a n t s were a d o p t e d f o r a l l needy c o l l e g e s t u d e n t s ( e x t e n d e d t o "middle-income" s t u d e n t s by 1978 l a w ) . I n 1972, e f f e c t i v e i n 1974, a F e d e r a l c a s h income g u a r a n t e e ( S S I ) was e n a c t e d f o r t h e a g e d , b l i n d , and d i s a b l e d . E f f e c t i v e i n 1974, food stamps were e x t e n d e d t o a l l c o u n t i e s , p r o v i d i n g a n a t i o n a l I n 1975, a r e b a t income g u a r a n t e e i n t h e form o f food stamps. a b l e t a x c r e d i t was a d o p t e d f o r low-income w o r k e r s w i t h c h i ld ren . I n 1981, however, Congress moved t o r e s t r i c t e l i g i b i l i t y f o r some programs and t o l o w e r some b e n e f i t s . F o r example, i t imposed g r o s s income e l i g i b i l i t y l i m i t s f o r AFDC and food s t a m p s , reduced AFDC and food stamp b e n e f i t s f o r f a m i l i e s / F e d e r a l o u t l a y s f o r s i x major -2programs ( a n d program g r o u p s ) f o r income and m e d i c a l a s s i s t low income p e r s o n s , a s mesured i n c o n s t a n t d o l l a r s , d e c l i n e d 3 p e r c e n t from FY 1972 t o FY 1973. I n a l l o t h e r y e a r s , from FY 1964 t o FY 1981, s u c h o u t lays rose. The programs: m e d i c a i d , s u b s i d i z e d h o u s i n g payments, food stamp program, c a s h a s s i s t a n c e , and v e t e r a n s ' p e n s i o n s . J.S. L i b r a r y o f Congress. Congressional Research Service. 1985 budget p e r s p e c t i v e s : F e d e r a l s p e n d i n g f o r t h e human r e s o u r c e [ b y ] R i c h a r d Rimkunas and Gene F a l k [ w a s h i n g t o n ] 1984. programs. CRS R e p o r t 84-35 EPW. p. 159. ante w i t h e a r n i n g s , r a i s e d p u b l i c h o u s i n g r e n t s , and reduced subs i d i e s f o r s c h o o l l u n c h e s . E f f e c t i v e i n FY 1983, i t tempora r i l y reduced t h e food stamp g u a r a n t e e . As t a b l e 2 shows, t h e a n n u a l r a t e o f growth i n t o t a l exp e n d i t u r e s f o r need-based b e n e f i t s d e c l i n e d i n t h e l a t t e r p a r t of t h i s p e r i o d . Measured i n c o n s t a n t d o l l a r s , t h e i n c r e a s e i n s u c c e s s i v e 5-year p e r i o d s was: 1968-73, 81 p e r c e n t ; 1973-1978, 54 p e r c e n t ; 1978-1983, 7 p e r c e n t . F u r t h e r , as mentioned b e f o r e , r e a l s p e n d i n g d e c l i n e d i n 1982. TABLE 2. Fiscal year T o t a l E x p e n d i t u r e s f o r Income-Tested Benefits --I------- - Current d o l l a r s a T ( b i l l i o n s ) -- C o n s t a n t 1972 d o l l a r s b/ ( b i l l i o n s ) -- ---- a / FY 1968 and FY 1973 d a t a a r e from "Income S e c u r i t y f o r ~ m e r i c a n :s Recommendations o f t h e P u b l i c W e l f a r e S t u d y R e p o r t o f t h e Subcommittee on F i s c a l P o l i c y of t h e J o i n t Economic Committee. December 5 , 1974. T a b l e 4 , page 28. D a t a f o r o t h e r years: -- FY 1975 d a t a , CRS m u l t i l i t h 77-152 ED, p. 1. From t h e t o t a l , t h e n e t sum o f $441 m i l l i o n h a s b e e n s u b t r a c t e d - $297 m i l l i o n was added t o c o r r e c t an e r r o r i n h o u s i n g o u t l a y s , and $738 m i l l i o n was d e d u c t e d b e c a u s e o f a r e v i s e d e s t i m a t e of medical b e n e f i t s f o r v e t e r a n s witho u t a service-connected d i s a b i l i t y . -- FY 1976 d a t a , CRS r e p o r t 79-216 EPW, p. 2. From t h e t o t a l , t h e n e t sum o f $950 m i l l i o n h a s been subtracted--$I336 m i l l i o n and $142 m i l l i o n i n lower e s t i m a t e s o f m e d i c a l spending f o r v e t e r a n s without a service-connected d i s a b i l i t y and f o r G e n e r a l A s s i s t a n c e (GA) m e d i c a l a i d , r e s p e c t i v e l y , o f f s e t i n p a r t by t h e a d d i t i o n o f $28 m i l l i o n , t h e sum s p e n t on w e a t h e r i z a t i o n . -- FY 1977 d a t a , CRS r e p o r t 51-44 EPW, p. 2 . From t h e t o t a l , t h e sum o f $1.3 b i l l i o n h a s been s u b t r a c t e d - - $ 1 , 0 5 0 and $250 m i l l i o n i n lower e s t i m a t e s of m e d i c a l s p e n d i n g f o r v e t e r a n s w i t h o u t a s e r v i c e - c o n n e c t e d d i s a b i l i t y and f o r GA m e d i c a l a i d , r e s p e c t i v e l y . -- FY 1978 d a t a , CRS r e p o r t 82-113 EPW, p. 2. -- FY 1979-80 d a t a , CKS r e p o r t 83-110 EPW, p. 2 . From t h e 1979 and 1980 t o t a l s , $57 m i l l i o n and $76.1 m i l l i o n , r e s p e c t i v e l y , h a v e been d e d u c t e d t o c o r r e c t a n e r r o r i n reported outlays for n u t r i t i o n for the elderly. -- FY 1981-83 d a t a , p. 2 o f t h i s r e p o r t . b/ C u r r e n t d o l l a r s have been t r a n s l a t e d i n t o 1972 cons t a n t - v a l u e d o l l a r s by u s e o f t h e i m p l i c i t p r i c e d e f l a t o r s f o r t h e g r o s s n a t i o n a l p r o d u c t : f i s c a l y e a r s 1968, 0.80675; 1973, 1.0232; 1975, 1.2217; 1975, 1.3066; 1977, 1.3951; 1978, 1.4904; 1979, 1.5964, 1980, 1.7329, 1981, 1.9143; 1982, 2.0469; and 1983, 2.1346. ." The 1982 w e l f a r e c u t b a c k s a r e r e f l e c t e d i n t a b l e 3 , which p r e s e n t s 1981-83 s p e n d i n g t o t a l s i n c o n s t a n t d o l l a r s , by form o f b e n e f i t . A s t h i s t a b l e shows, s p e n d i n g d e c l i n e d i n r e a l t e r m s i n 1982 f o r m e d i c a l a i d , c a s h a i d , f o o d b e n e f i t s , j o b s and t r a i n i n g , s e r v i c e s , and e n e r g y a i d . Growth resumed i n 1983 f o r m e d i c a l a i d , food b e n e f i t s , and e n e r g y a i d , b u t c o n t i n u e d t o d e c l i n e f o r c a s h a i d , j o b s and t r a i n i n g , and s e r v i c e s . I n c o n s t a n t d o l l a r s , spending increased during both y e a r s f o r e d u c a t i o n a i d and h o u s i n g b e n e f i t s . TABLE 3. - Recent T r e n d s by Form o f B e n e f i t , FY 1981-1983 a / FY 1982 FY 1 9 8 3 FY 1 9 8 3 a s FY 1981 outlays outlays percentage of outlays ( b i l l i o n s o f c o n s t a n t 1972 d o l l a r s ) 1981 M e d i c a l Aid Cash Food B e n e f i t s Housing Education Jobs-Training Services Energy Aid -a / D a t a s o u r c e s a r e t h e same a s f o r t a b l e 2. b/ The r i s e i n e d u c a t i o n ' s s h a r e o f n e e d - t e s t e d b e n e f i t s from i 9 8 1 t o 1983 i s d u e i n p a r t t o t h e FY 1982 r e s t o r a t i o n o f a n income t e s t f o r t h e G u a r a n t e e d S t u d e n t Loan Program (GSLP). As a r e s u l t , t h e program was r e t u r n e d t o t h i s r e p o r t ' s i n v e n t o r y a f t e r a n a b s e n c e i n 1979-81, when i t had n o income t e s t . Share of Gross National Product A s a percentage of g r o s s n a t i o n a l product (GNP), w e l f a r e o u t l a y s more t h a n d o u b l e d from 1968 t o 1976, t h e n w e r e r e l a t i v e l y s t e a d y . I n 1981 t h e s h a r e r o s e t o a peak o f 4.07 p e r c e n t . The s h a r e o f GNP u s e d f o r i n c o m e - t e s t e d b e n e f i t programs was a s follows: 2. S h a r e o f F e d e r a l Budget The s h a r e o f t h e F e d e r a l b u d g e t u s e d f o r b e n e f i t programs f o r t h e needy more t h a n doubled from 1968 t o 1976 and peaked i n 1978-1979 a t 14.1 p e r c e n t . However, i t began d r o p p i n g i n 1980 and i n 1983 f e l l t o 12 p e r c e n t , l o w e s t s i n c e 1973. T a b l e 4 summarizes t h i s . TABLE 4. S h a r e o f F e d e r a l Budget Used f o r Need-Tested B e n e f i t s Federal spending Total Federal f or need-tested b e n e f i t s a / outlays ( b i l l i o n s o f currTnt d o l l a r s ) -a / Share of Federal budget f o r need-tested b e n e f i t s (percent) D a t a s o u r c e s a r e t h e same a s f o r t a b l e 2, p. 6. 3. S h a r e o f Welfare O u t l a y s P a i d by F e d e r a l Funds The F e d e r a l Government's s h a r e of o u t l a y s f o r n e e d - t e s t e d programs climbed 9 p e r c e n t from 1968 t o 1979 and t h e n d e c l i n e d somewhat, a s f o l l o w s : D. Composition of B e n e f i t s The l a r g e s t i n c r e a s e s d u r i n g 1968-83 i n need-based b e n e f i t e x p e n d i t u r e s were i n forms o t h e r t h a n c a s h . The r e s u l t i s a d r a m a t i c change i n t h e composition of t h e b e n e f i t d o l l a r . A t t h e s t a r t o f t h e p e r i o d 46.9 c e n t s p e r b e n e f i t d o l l a r were g i v e n a s c a s h , but by 1983 t h e c a s h s h a r e had f a l l e n t o 27.1 c e n t s , a d r o p of 20 c e n t s p e r d o l l a r (42 p e r c e n t ) . The s h a r e o f a i d provided a s food and h o u s i n g more t h a n doubled d u r i n g t h e p e r i o d , r i s i n g from 10.1 c e n t s p e r b e n e f i t d o l l a r t o 24.5 c e n t s . The s h a r e g i v e n a s medical a i d r o s e 3.5 c e n t s ( 1 5 p e r c e n t ) , b u t t h e s h a r e provided a s j o b s and t r a i n i n g and o t h e r s e r v i c e s d e c l i n e d 2.3 c e n t s (29 p e r c e n t ) . This i s summarized i n C h a r t s 2 and 3. T a b l e 5 shows, f u r t h e r , t h a t i n t h e 4 y e a r s , 1979-83, t h e r e was a s i g n i f i c a n t s h i f t toward a i d i n t h e form o f medical b e n e f i t s , food, educat i o n , and energy a s s i s t a n c e . I n t h i s p e r i o d t h e s h a r e o f a i d g i v e n a s j o b s - t r a i n i n g plunged 7.1 c e n t s p e r b e n e f i t d o l l a r (78 p e r c e n t ) . Chart 2 Composition of Need-Based Benefit Dollar Fiscal Year 1968 Services 7 Is7 Education 5.4% Housing 4.9% Jobs 4.7% - Training , - Percentages do not sum to 100% due to rounding. Chart 3 Composition of Needs-Based Benefit Dollar Fiscal Year 1983 Energy 1.6% Education 6.8% Percentages do not sum to 100% due to rounding. TABLE 5. Form o f aid Composition of Need-Tested Benefits FY 1968 FY 1979 FY 1980 FY 1981 FY 1982 (percentage share of total aid) Medical Aid Cash Food Benefits Housing Education Aid Jobs-Training Services Energy Aid -a/ -b/ a/ Data sources are the same as for table 2. Total does not add because of rounding. F Y 1983 INCOME TESTS OF THE BENEFIT PROGRAMS Almost 90 p e r c e n t o f t h e p r o g r a m s i n t h i s r e p o r t h a v e a n e x p l i c i t t e s t o f i n c o m e . The o t h e r s b a s e e l i g i b i l i t y o n a r e a o f r e s i d e n c e , e n r o l l m e n t i n a n o t h e r w e l f a r e program, o r o t h e r f a c t o r s t h a t presume n e e d . The e x p l i c i t income t e s t s a r e o f f i v e k i n d s : 1 . Income c e i l i n g r e l a t e d t o o n e o f t h e F e d e r a l Governm e n t ' s o f f i c i a l p o v e r t y measures ( c e n s u s Bureau p o v e r t y t h r e s h o l d s o r F e d e r a l p o v e r t y income g u i d e l i n e s ) . 2. tics' Income l i m i t r e l a t e d t o S t a t e o r a r e a m e d i a n income. 3 . Income l i m i t r e l a t e d t o t h e B u r e a u o f L a b o r S t a t i s lower-level budgets. 4. Income b e l o w a b s o l u t e d o l l a r s t a n d a r d . 5. Income l e v e l deemed t o i n d i c a t e "need." - T a b l e 6 c l a s s i f i e s t h e 74 programs 3 / i n t h i s r e p o r t by t y p e o f income t e s t . I t shows t h a t f o u r F e d e r a l c a s h b e n e f i t p r o g r a m s u s e an a b s o l u t e F e d e r a l d o l l a r c e i l i n g . The o t h e r s , i n c l u d i n g Aid t o F a m i l i e s w i t h Dependent C h i l d r e n ( l a r g e s t c a s h program), b a s e e l i g i b i l i t y on S t a t e d e c i s i o n s a b o u t income n e e d , a s d o e s M e d i c a i d , t h e l a r g e s t w e l f a r e p r o g r a m o f a l l . Most f o o d b e n e f i t p r o g r a m s t i e e l i g i b i l i t y t o t h e F e d e r a l p o v e r t y income guidelines. Many h o u s i n g p r o g r a m s b a s e e l i g i b i l i t y on a r e a m e d i a n income. J o b programs, on t h e o t h e r hand, t e n d t o u s e o f f i c i a l p o v e r t y m e a s u r e s o r BLS income s t a n d a r d s , w h i c h e v e r a r e higher. The b e n e f i t p r o g r a m s u s e income t e s t s t o d e c i d e e l i g i b i l i t y a n d , i n some c a s e s , t o d e c i d e w h e t h e r t o g i v e f r e e s e r v i c e o r t o charge a fee. Some p r o g r a m s a d m i t a l i m i t e d p e r c e n t a g e o f r e c i p i e n t s w i t h income a b o v e t h e i r c u s t o m a r y limits. An e x a m p l e i s H e a d s t a r t . 3/ The t o t a l number o f c l a s s i f i c a t i o n s i n t a b l e 6 e x c e e d s 7 4 b e c a u s e many p r o g r a m s h a v e a l t e r n a t i v e income t e s t s . TABLE 6. Income E l i g i b i l i t y T e s t s Used by B e n e f i t P r o g r a m s Limit related to: Program Official poverty BLS measure b u d g e t s 11 State1 area median income Dollar amount Income deemed "needy" Area Enrollment of i n other r e s i d e n c e program Other MEDICAL BENEFITS 1. Medicaid 2. 3. 4. 5. 6. 7. 8. 9. 10. .......................................................... X 2 1 -------------................................................................. ...................................... X 21 Medical c a r e f o r v e t e r a n s with non-service disability General a s s i s t a n c e( m e d i c a l ) M a t e r n a l and c h i l d h e a l t h ....................... X 41 ...................................................... -------- x y ..................................... X X services I n d i a n h e a l t h services Community h e a l t h c e n t e r s Medical a i d f o r refugees and C u b a n / H a i t i a n e n t r a n t s M i g r a n t h e a l t h c e n t e r s ---------Medical a i d f o r c e r t a i n Cuban r e f u g e e s C r i p p l e d c h i l d r e n ' s s e r v i c e s ---- ........................................ X .............................................................. ...................................................... pensions x y x 21 51 ........................................................................ X 41 CASH AID 1 1 . AFDC 1 2 . SSI 1 3 . veterans' X x 2/ x I1 X x y X x y TABLE 6 . Income E l i g i b i l i t y T e s t s Used b y B e n e f i t Programs (Cont'd) Limit r e l a t e d t o : Program 1 1 Official poverty BLS measure budget State1 area median income Dollar amount Incomr deemed "needy" HOUSING BENEFITS 33. S e c . 8 lower-income h o u s i n g 41. Farm l a b o r h o u s i n g l o a n s X Area Enral lment of in other r e s i d e n c e pragram Other TABLE 6 . Income E l i g i b i l i t y T e s t s Used by B e n e f i t P r o g r a m s ( C o n t ' d ) Limit related to: Program Official BLS poverty measure budgets I-/ JOBS AND TRAINING 6 0 . Comprehensive State/ area median income Dollar mount Income deemed "needy" Area of residence . e m.~ l o v m e n t and t r a i n i n g s e r v i c e s Summer y o u t h employment 201 Job corps 2 0 1 S e n i o r comumn i t y s e r v i c e employment Work i n c e n t i v e p r o g r a m (WIN) Youth employment D e m o n s t r a t i o n p r o g r a m s 2 2 / ---------------F o s t r r g r a n d p a r e n t s -------------P u b l i c s e r v i c e employment 261 S e n i o r companions g/------------.................... ....................... ------ - ---- ---------------- SERVICES 6 9 . T i t l e XX s o c i a l s e r v i c e s 2 5 / 7 0 . ~~~~l s e r v i c e s 71. Emergency f o o d d i s t r i b u t i o n and s h e l t e r - ....................................... x 21 ------------------X ..................................................................................... ENERGY AID Enrollment in other program Other 11 S h o r t t i t l e s and a b b r e v i a t i o n s a r e u s e d i n t h i s t a b l e . contezts for f u l l t i t l e s . -21 -3 / See t a b l e o f Need i s d e c i d e d by S t a t e ( o r l o c a l i t y ) . V e t e r a n must s w e a r t h a t h e c a n n o t pay f o r c a r e . The s t a t e d p u r p o s e o f t h e M a t e r n a l and C h i l d H e a l t h (MCH) S e r v i c e s law i s t o e n a b l e S t a t e s t o a s s u r e a c c e s s t o q u a l i t y MCH s e r v i c e s t o m o t h e r s and c h i l d r e n , p a r t i c u l a r l y t h o s e w i t h low income ( 9 r l i m i t e d a v a i l a b i l i t y o f h e a l t h s e r v i c e s ) . The law d e f i n e s low income i n t e r m s o f t h e F e d e r a l T h i s b l o c k g r a n t which t o o k e f f e c t i n FY 1981, i n c l u d e s poverty guidelines. funding f o r c r i p p l e d c h i l d r e n ' s s e r v i c e s . 41 lock- rant the -51 The -6 1 A l l non-poor. law l i m i t s f r e e c a r e t o t h o s e below p o v e r t y . r e s i d e n t s o f t h e a r e a s e r v e d a r e e l i g i b l e , b u t f e e s must b e c h a r g e d -71 -8 1 For b a s i c SSI payment from t h e U.S. 91 - For a b l i n d o r d i s a b l e d c h i l d . S t a t e s d e c i d e need f o r a n o p t i o n a l S t a t e supplement t o SSI. 101 Food stamp e l i g i b i l i t y i s a c c e p t e d a s d o c u m e n t a t i o n o f e l i g i b i l i t y f o r t h e f r e e s c h o o l l u n c h and f r e e s c h o o l b r e a k f a s t programs. 111 R e g u l a t i o n s p r o v i d e t h a t income l i m i t s s h a l l n o t b e lower t h a n t h o s e f o r f r e e o r r e d u c e d - p r i c e h e a l t h c a r e , p r o v i d e d t h e s e l i m i t s a r e between 100 and 185 percent of poverty. 121 need7 The law r e q u i r e s p r e f e r e n c e f o r t h o s e w i t h g r e a t e s t economic o r s o c i a l 131 Need i s d e c i d e d by a n e e d s a n a l y s i s s y s t e m a u t h o r i z e d by t h e H i g h e r ~ d u c x i o nAct and u p d a t e d a n n u a l l y by t h e S e c r e t a r y o f E d u c a t i o n . 141 Need i s d e c i d e d by t h e e d u c a t i o n a l i n s t i t u t i o n , by u s e o f a n e e d s a n a l F i s s y s t e m approved by t h e S e c r e t a r y of E d u c a t i o n . 151 There i s no income t e s t . t o beneedy. 16/ - M i g r a t o r y c h i l d r e n and s t u d e n t s a r e presumed Need i s d e c i d e d by t h e e d u c a t i o n a l i n s t i t u t i o n . 1 7 1 F o r f o r g i v e n e s s o f l o a n s made t o needy s t u d e n t s who f a i l t o c o m p l e t e studzs. 181 Need f o r l o a n s i s d e c i d e d by t h e e d u c a t i o n a l i n s t i t u t i o n , by u s e o f a n e e d F a n a l y s i s s y s tem approved by t h e S e c r e t a r y of E d u c a t i o n " i n c o m b i n a t i o n w i t h o t h e r i n f o r m a t i o n " a b o u t t h e s t u d e n t ' s f i n a n c e s . For a l l h e a l t h p r o f e s s i o n a l s c h o l a r s h i p s and f o r l o a n s t o s t u d e n t s o f m e d i c i n e and o s t e o p a t h y , F e d e r a l r e g u l a t i o n s d e f i n e t h e r e q u i r e d " e x c e p t i o n a l f i n a n c i a l need." 1 9 1 Law makes e l i g i b l e s e c o n d a r y s t u d e n t s who a r e "economically d i s a d v a z a g e d , " b u t d o e s n o t d e f i n e t h e t e r m . T h e r e a r e no r e g u l a t i o n s . 20/ C h a r t shows p r a c t i c e s u n d e r t h e Comprehensive Employment and ~ r a i x A n c~t (CETA), which was r e p l a c e d by t h e J o b T r a i n i n g P a r t n e r s h i p Act (JTPA), e f f e c t i v e i n FY 1984. The new law u s e s s i m i l a r e l i g i b i l i t y r u l e s f o r t h e s e programs. 211 F e d e r a l p o v e r t y g u i d e l i n e s a r e u s e d i f h i g h e r t h a n BLS income st a n z r d . 221 grant C h a r t shows p r a c t i c e s u n d e r CETA. e f f e c t i v e i n FY 1983. Program was r e p l a c e d by a b l o c k 231 I n S t a t e s t h a t p r o v i d e SSI s u p p l e m e n t s , income l i m i t s c a n exceed 125 p e r c e n t o f p o v e r t y . 24/ T h i s program was e n d e d , e f f e c t i v e FY 1982. C h a r t shows p r a c t i c e i n 1981. 251 B e f o r e P.L. 97-35, F e d e r a l law s e t a n o u t e r e l i g i b i l i t y l i m i t r e l a t e d t o ~ c t median e income and r e q u i r e d o n e - h a l f o f F e d e r a l m a t c h i n g f u n d s t o b e used f o r w e l f a r e r e c i p i e n t s . 261 - Need was d e c i d e d by v o l u n t a r y a g e n c i e s a d m i n i s t e r i n g t h e b e n e f i t s . 271 S t a t e s h a v e t h e o p t i o n o f s e t t i n g l i m i t s below o u t e r F e d e r a l c e i l i n g s i n t z s category . POVERTY THRESHOLDS AND OTHER MEASUKES OF NEED On t h e n e x t pages a r e found: E s t i m a t e d w e i g h t e d a v e r a g e p o v e r t y t h r e s h o l d s i n 1983, i s s u e d by t h e Census Bureau i n J a n u a r y 1984. F e d e r a l p o v e r t y income g u i d e l i n e s f o r 1984, i s s u e d by t h e Department of H e a l t h and Human S e r v i c e s i n F e b r u a r y 1984. 1/ - Income e l i g i b i l i t y l e v e l s f o r f r e e and reduced p r i c e m e a l s f o r t h e p e r i o d J u l y 1, 1984-June 30, 1985 (130 p e r c e n t and 185 p e r c e n t , r e s p e c t i v e l y , o f 1984 F e d e r a l p o v e r t y income g u i d e l i n e s ) . Annual b u d g e t s f o r a f o u r - p e r s o n u r b a n f a m i l y , a t t h r e e l e v e l s o f l i v i n g , autumn 1981, i s s u e d by t h e Bureau o f Labor S t a t i s t i c s i n A p r i l 1982. Annual b u d g e t s f o r a r e t i r e d u r b a n c o u p l e , a t t h r e e l e v e l s o f l i v i n g , autumn 1981, i s s u e d by t h e Bureau o f Labor S t a t i s t i c s i n J u l y 1982. 1/ P u b l i c Law 97-35 r e q u i r e s t h e S e c r e t a r y o f H e a l t h and ~ u m a n - s e r v i c e s (HHS) t o r e v i s e a t l e a s t a n n u a l l y " t h e o f f i c i a l p o v e r t y l i n e ( a s d e f i n e d by t h e O f f i c e o f Management and The u p d a t i n g methodology was d e v e l o p e d by t h e Budget). O f f i c e o f Economic and O p p o r t u n i t y , c o n t i n u e d by t h e O f f i c e o f Management and Budget, a n d , s i n c e e n a c t m e n t o f P.L. 97-35, h a s been u s e d by t h e HHS S e c r e t a r y . . ." TABLE 7 . Bureau o f t h e Census P o v e r t y T h r e s h o l d s i n 1983 Estimated weighted average t h r e s h o l d : 1983 a / - ..................... ............. .......... 2 p e r s o n s .................... 1 person Under 65 y e a r s 65 y e a r s and o v e r Householder under 65 y e a r s . . H o u s e h o l d e r 65 y e a r s and o l d e r 3 4 5 6 7 8 9 .................... .................... .................... .................... .................... .................... ............ persons persons persons persons persons persons p e r s o n s o r more ---- - - - - - - - - - _ _ ^ 4 F a c t o r u s e d t o u p d a t e 1982 t h r e s h o l d s : -a / 1 _ - 1 _ _ I . - - 1.03217 Census Bureau p r e s s r e l e - a s e , J a n u a r y , 25, 1984. - 1 - TABLE 8. - 1984 Federal Poverty Income Guidelines a/ Poverty Guidelines for All States Except Alaska and Hawaii Guideline $ 4,980 6,720 8,460 10,200 11,940 13,680 15,420 17,160 Size of Family Unit 1 2 3 4 5 6 7 8 For family units with more than 8 members, add $1,740 for each additional member. Size of Familv Unit Guideline $ 6,240 8,410 10,580 12,750 14,920 17,090 19,260 21,430 For family units with more than 8 members, add $2,170 for each additional member. Poverty Guidelines for Hawaii Size of Family Unit 1 Nonfarm Family Guideline $ 5,730 For family units with more than 8 members, add $2,000 for each additional member. -a/ Source: 49 Federal Register. No. 39. Feb. 27, 1984, p. 7152. . TABLE 9 Eligibility Levels for Free and Reduced-Price Meals for the Period July 1. 1984-June 30. 1985 Maximum income levels for free and reduced-price meals Family size 1983 Federal poverty income Free meals guidelines 130% Reduced-price meals 185% 48 States. District of Columbia. Territories excluding Guam .................. .................. .................. 4 .................. 5 .................. 6 .................. 7 .................. 8 .................. Each additional family member ....... 1 2 3 $ 4.980 6. 720 8.460 10. 200 11.940 13. 680 15.420 17. 160 +1. 740 Alaska .................. .................. .................. 4 .................. 5 .................. 6 .................. 7 .................. 8 .................. Each additional family member ...... 1 2 3 $ 6. 240 8.410 10.580 12. 750 14. 920 17.090 19. 260 21. 430 + 2 . 170 Hawaii and Guam .................. ....... 8 Each additional family member a/ 49 Federal Register . No . 77. April 18.1984 . p . 15590. TABLE 10. Summary of Annual Budgets f o r a Four-Person Family a t Three L e v e l s of L i v i n g , Urban United S t a t e s , Autumn 1981 a / (U.S. Department of Labor Bureau o f Labor S t a t i s t i c s - i s s u e d A p r i l 16, 1982) - Lower budget Intermediate budget ...................... $15,323 T o t a l f a m i l y consumption ........ 12,069 Food ......................... 4,545 Housing ....................... 2,817 1,311 T r a n s p o r t a t i o n ................ 93 7 C l o t h i n g ...................... P e r s o n a l c a r e ................. 397 Medical c a r e .................. 1,436 644 Other f a m i l y consumption ...... Higher budget $25,407 $38,060 18,240 25,008 5,843 7,366 5,546 8,423 2,372 3,075 1,333 1,947 508 719 1,443 1,505 1,196 1,972 62 1 1,021 1,718 S o c i a l s e c u r i t y and d i s a b i l i t y 1,036 1,703 1,993 Personal 1,596 4,443 9,340 T o t a l budget O t h e r items...................... ---- .. income t a x e s ........... -- NOTE: Because equal t o t a l s . ---- --- o f rounding, sums o f i n d i v i d u a l items may n o t a / L a s t r e l e a s e of 4-person f a m i l y budget d a t a . The Labor ~ e ~ a r t m e ne lti m i n a t e d t h e program a f t e r Congress passed t h e Omnibus Budget R e c o n c i l i a t i o n Act of 1981. I t s a i d funds were n o t a v a i l a b l e t o make changes r e q u i r e d t o c o n t i n u e t h e program. TABLE 11. Summary of Annual Budgets Three L e v e l s of L i v i n g , Urban United (u.s. Department o f Labor, Bureau i s s u e d J u l y 30, f o r a R e t i r e d Couple a t S t a t e s , Autumn 1 9 8 1 5 1 o f Labor S t a t i s t i c s 1982) Lower budget --- - - Intermediate budget Higher budget - -b/ ................... $7,226 T o t a l f a m i l y consumption ......... 6,914 Food ........................... 2,183 Housing ........................ 2,377 T r a n s p o r t a t i o n ................. 553 C l o t h i n g ....................... 244 198 P e r s o n a l c a r e .................. Medical c a r e c / ................ 1,085 O t h e r f a m i l y consumptions ...... 27 5 311 Other i t e m s ...................... T o t a l budget - NOTE: Because o f rounding, sums o f i n d i v i d u a l i t e m s may n o t equal t o t a l . a / L a s t r e l e a s e o f r e t i r e d c o u p l e budget d a t a . The Labor ~e~artmen d its c o n t i n u e d t h e program a f t e r Congress passed t h e Omnibus Budget R e c o n c i l i a t i o n Act of 1981. The Department s a i d funds were n o t a v a i l a b l e t o make changes r e q u i r e d t o c o n t i n u e t h e program. b/ Beginning w i t h t h e autumn 1973 u p d a t i n g o f t h e budgets f o r t z e r e t i r e d c o u p l e , t h e t o t a l budget i s d e f i n e d a s t h e sum of " t o t a l f a m i l y consumption" and " o t h e r i t e m s . " Income t a x e s a r e n o t i n c l u d e d i n t h e t o t a l budgets. c / The e s t i m a t e s f o r m e d i c a l c a r e c o n t a i n a p r e l i m i n a r y e s t i m a t e f o r "out-of-pocket" c o s t s f o r Medicare. CATALOGUE OF PROGRAMS OFFERING CASH AND NON-CASH BENEFITS TO PERSONS OF LIMITED INCOME 1. MEDICAID* Funding Formula By law, t h e F e d e r a l Government h e l p s S t a t e s s h a r e i n t h e c o s t o f Medicaid s e r v i c e s by means o f a v a r i a b l e m a t c h i n g f o r m u l a t h a t i s a d j u s t e d b i e n n a l l y . The m a t c h i n g r a t e , which i s i n v e r s e l y r e l a t e d t o a S t a t e ' s p e r c a p i t a income, r a n g e s from 50 t o 77.63 p e r c e n t i n F i s c a l Y e a r s (FYs) 1984-85. F o r FY 1983 t h e r a t e a v e r a g e d s l i g h t l y more t h a n 5 4 p e r c e n t f o r t h e N a t i o n a s a whole. The F e d e r a l s h a r e o f a d m i n i s t r a t i v e c o s t s g e n e r a l l y i s 50 p e r c e n t b u t a s h i g h a s 9 0 p e r c e n t f o r c e r t a i n i t e m s . P.L. 97-35, t h e Omnibus Budget R e c o n c i l i a t i o n Act o f 1981, p r o v i d e d f o r a r e d u c t i o n i n t o t a l F e d e r a l f u n d s t o which a S t a t e i s o t h e r w i s e e n t i t l e d i n FY82-FY84 u n l e s s c e r t a i n c o n d i t i o n s a r e met. i. F e d e r a l Medical A s s i s t a n c e P e r c e n t a g e (FMAP) The F e d e r a l s h a r e o f a S t a t e ' s m e d i c a l v e n d o r payments i s c a l l e d t h e F e d e r a l m e d i c a l a s s i s t a n c e p e r c e n t a g e (FMAP). The FMAP i s h i g h e r f o r S t a t e s w i t h l o w e r p e r c a p i t a incomes and lower f o r S t a t e s w i t h h i g h e r p e r c a p i t a incomes. I f a s t a t e ' s p e r c a p i t a income w e r e e q u a l t o t h e n a t i o n a l a v e r a g e p e r c a p i t a income, i t s FMAP would b e 55 p e r c e n t . The law e s t a b l i s h e s a minimum FMAP o f 50 p e r c e n t 11 and a maximum o f 8 3 p e r c e n t ( t h o u g h t h e h i g h e s t r a t e i n ~ y 8 4 - 8 5 i s 77.63 p e r c e n t f o r Mississippi). 11 F o r FY84 and FY85, 1 3 S t a t e s and t h e D i s t r i c t o f Columbia t h e maximum S t a t e s h a r e o f 50 p e r c e n t b e c a u s e t h e i r p e r c a p i t a must income i n t h e b a s e p e r i o d exceeded t h e n a t i o n a l a v e r a g e by more t h a n 5.4093 p e r c e n t . The S t a t e s a r e : A l a s k a , C a l i f o r n i a , C o l o r a d o , Conn e c t i c u t , Delaware, H a w a i i , I l l i n o i s , Maryland, Nevada, New J e r s e y , New York, Washington, and Wyoming. pay * R e g u l a t i o n s g o v e r n i n g Medicaid a r e found i n 42 C.F.R. 430-456. - The s t a t u t o r y f o r m u l a f o r d e t e r m i n i n g t h e FMAP f o l l o w s : 21 FMAP = 100% - S t a t e s h a r e ( w i t h a minimum o f 50% and a maximum o f 8 3 % ) ( S t a t e p e r c a p i t a income) State share = 2 x 45% ( N a t i o n a l p e r c a p i t a income) By law, between O c t o b e r 1 and November 30 of e a c h even-numbered y e a r , t h e S e c r e t a r y o f HHS p r o m u l g a t e s t h e p e r c e n t a g e t h a t w i l l b e i n e f f e c t f o r t h e 2-year p e r i o d b e g i n n i n g t h e f o l l o w i n g O c t o b e r . The p e r c e n t a g e s a r e b a s e d on t h e a v e r a g e p e r c a p i t a income o f e a c h S t a t e and t h e U n i t e d S t a t e s f o r t h e 3 most r e c e n t c a l e n d a r y e a r s f o r which s a t i s f a c t o r y d a t a a r e a v a i l a b l e from t h e Department o f Commerce. 31 - The law p r o v i d e s one e x c e p t i o n t o t h e FMAP. Family p l a n n i n g s e r v i c e s a r e f e d e r a l l y matched a t a 90 p e r c e n t r a t e . ii. A d m i n i s t r a t i v e Matching R a t e The law s p e c i f i e s a F e d e r a l m a t c h i n g r a t e o f 50 p e r c e n t f o r a d m i n i s t r a t i v e c o s t s w i t h t h e f o l l o w i n g e x c e p t i o n s : automated c l a i m s p r o c e s s i n g s y s t e m s ( 9 0 p e r c e n t f o r development, 75 p e r c e n t f o r o p e r a t i o n ) , p r o f e s s i o n a l m e d i c a l p e r s o n n e l used i n program a d m i n i s t r a t i o n ( 7 5 p e r c e n t ) , e s t a b l i s h m e n t and o p e r a t i o n o f S t a t e f r a u d and a b u s e c o n t r o l u n i t s (90 p e r c e n t f o r t h e f i r s t 3 y e a r s , 75 p e r c e n t t h e r e a f t e r ) , and u t i l i z a t i o n r e v i e w a c t i v i t i e s c o n d u c t e d by p r o f e s s i o n a l s t a n d a r d s r e v i e w o r g a n i z a t i o n s on u t i l i z a t i o n and q u a l i t y c o n t r o l peer review o r g a n i z a t i o n s under c o n t r a c t (75 p e r c e n t ) . 21 P.L. 97-35 r e q u i r e d t h e C o m p t r o l l e r G e n e r a l t o c o n d u c t a s t u d y o f t h e FMAP and r e p o r t t h e r e s u l t s t o Congress by O c t o b e r 1, 1982. The s t u d y was t o examine t h e f e a s i b i l i t y and c o n s e q u e n c e s o f r e v i s i n g t h e f o r m u l a t o t a k e i n t o a c c o u n t : ( 1 ) t h e r e l a t i v e economic p o s i t i o n s and n e e d s o f t h e d i f f e r e n t S t a t e s ; ( 2 ) t h e d i f f e r e n t amounts o f w e l f a r e payments; ( 3 ) t h e r e l a t i v e c o s t o f l i v i n g and unemployment r a t e s ; ( 4 ) t h e r e l a t i v e t a x a b l e w e a l t h and amount o f t a x e s r a i s e d p e r c a p i t a ; and ( 5 ) o t h e r r e l e v a n t f a c t o r s b e a r i n g on an e q u i t a b l e d i s t r i b u t i o n o f F e d e r a l f u n d s . The r e p o r t was i s s u e d on March 9 , 1983. 31 I n t h e FY84-FY85 p e r i o d t h e S t a t e s and t h e D i s t r i c t o f ~ o l u m F i a f a l l i n t o r o u g h l y t h r e e g r o u p s u n d e r t h e Medicaid f o r m u l a : F e d e r a l s h a r e between 50 and 55 p e r c e n t , 19 S t a t e s ; 55-65 p e r c e n t , 1 7 S t a t e s ; 65-77.63 p e r c e n t , 1 5 S t a t e s . The r a t e f o r American Samoa, Guam, P u e r t o R i c o , t h e V i r g i n I s l a n d s , and t h e N o r t h e r n M a r i a n a I s l a n d s i s s e t by law a t 50 p e r c e n t . However, t h e law e s t a b l i s h e s a n n u a l l i m i t s on F e d e r a l e x p e n d i t u r e s i n t h e s e o u t l y i n g a r e a s . iii. R e d u c t i o n s i n Payments-. t o S t a t e s P.L. 97-35, t h e Omnibus Budget R e c o n c i l i a t i o n Act o f 1981, prov i d e s f o r r e d u c t i o n s i n F e d e r a l Medicaid payments t o S t a t e s i n t h e FY82-FY84 p e r i o d . S t a t e s can l o w e r t h e r e d u c t i o n s o t h e r w i s e a p p l i c a b l e by m e e t i n g c e r t a i n c r i t e r i a a n d / o r by s p e n d i n g l e s s t h a n a s p e c i f i e d t a r g e t amount. The amount o f F e d e r a l m a t c h i n g payments t o which a S t a t e i s o t h e r w i s e e n t i t l e d i s t o b e r e d u c e d by 3 p e r c e n t i n FY82, 4 p e r c e n t i n FY83, and 4 . 5 p e r c e n t i n FY84. A S t a t e c a n l o w e r t h e amount o f i t s r e d u c t i o n by 1 p e r c e n t a g e p o i n t f o r e a c h o f t h e f o l l o w i n g : ( 1 ) o p e r a t i n g a q u a l i f i e d h o s p i t a l c o s t r e v i e w program; 41 ( 2 ) s u s t a i n i n g a n unemployment r a t e e x c e e d i n g 150 p e r c e n t o f t h z n a t i o n a l a v e r a g e ; and ( 3 ) d e m o n s t r a t i n g r e c o v e r i e s from f r a u d and a b u s e a c t i v i t i e s , and w i t h r e s p e c t t o FY82, t h i r d - p a r t y r e c o v e r i e s e q u a l t o 1 p e r c e n t o f F e d e r a l payments. A S t a t e i s e n t i t l e d t o a d o l l a r - f o r - d o l l a r o f f s e t i n i t s reduct i o n s i f t o t a l F e d e r a l Medicaid e x p e n d i t u r e s i n a y e a r f a l l below a s p e c i f i e d t a r g e t amount. I n no c a s e can t h e amount r e c o v e r e d exceed t h e t o t a l amount o f r e d u c t i o n s . I n FY82, t h e t a r g e t amount was e q u a l t o 109 p e r c e n t o f t h e S t a t e ' s e s t i m a t e f o r FY81. The law s p e c i f i e s t h a t t h e FY83 and FY84 t a r g e t s s h a l l e q u a l t h e FY82 t a r g e t i n c r e a s e d o r d e c r e a s e d by t h e p e r c e n t a g e change i n t h e i n d e x o f t h e m e d i c a l c a r e component o f t h e consumer p r i c e i n d e x o v e r t h e same p e r i o d . The FY 1983 t a r g e t e q u a l l e d 107.5 p e r c e n t o f t h e FY 1982 amount, and t h e FY 1984 t a r g e t i s e s t i m a t e d a t 116.5 p e r c e n t o f t h e FY 1982 amount. A S t a t e e n t i t l e d t o an o f f s e t w i l l r e c e i v e payment f o r s u c h amount d u r i n g t h e f i r s t q u a r t e r o f t h e f o l l o w i n g f i s c a l y e a r . The law e x c l u d e s t h e f o l l o w i n g i t e m s from t h e d e t e r m i n a t i o n o f (1) w h e t h e r a S t a t e s p e n d s l e s s t h a n i t s t a r g e t amount f o r a y e a r : a d j u s t m e n t s w i t h r e s p e c t t o p r i o r y e a r c l a i m s ; ( 2 ) i n t e r e s t p a i d on d i s a l l o w a n c e s f o r p r i o r y e a r s ; ( 3 ) any o f f s e t payments t h e S t a t e h a s r e c e i v e d f o r s p e n d i n g l e s s t h a n i t s t a r g e t amount i n t h e p r e v i o u s y e a r , and ( 4 ) any o f t h e r e d u c t i o n s i n t h e F e d e r a l f u n d s a S t a t e r e c e i v e s t h a t a r e imposed u n d e r t h e new law. 4 1 A q u a l i f i e d h o s p i t a l c o s t r e v i e w program i s one t h a t h a s been e s t a b l i s h e d by s t a t u t e , i s o p e r a t e d d i r e c t l y by a S t a t e , a p p l i e s t o s u b s t a n t i a l l y a l l non-Federal h o s p i t a l s , and r e v i e w s a l l non-Medicare i n p a t i e n t r e v e n u e s o r e x p e n s e s o r a t l e a s t 75 p e r c e n t o f a l l r e v e n u e s o r e x p e n s e s i n c l u d i n g t h o s e a r i s i n g under Medicare. Q u a l i f y i n g programs must a s s u r e t h e S e c r e t a r y t h a t e a c h e n t i t y which pays f o r h o s p i t a l s e r v i c e s , employees, and p a t i e n t s ( i n c l u d i n g t h e M e d i c a r e and Medicaid programs) i s p r o v i d e d s u b s t a n t i a l l y e q u a l t r e a t m e n t . F o r a p p r o v a l o f i t s p l a n , moreover, a S t a t e must show t h a t t h e a n n u a l r a t e o f i n c r e a s e i n a g g r e g a t e h o s p i t a l i n p a t i e n t c o s t s p e r c a p i t a o r p e r a d m i s s i o n h a s r i s e n a t l e a s t 2 perc e n t a g e p o i n t s l e s s ( u s i n g a I-, 2-, o r 3-year b a s e ) t h a n t h e r a t e o f i n f l a t i o n i n a l l S t a t e s w i t h o u t q u a l i f y i n g programs. The r e d u c t i o n and o f f s e t p r o v i s i o n s d o n o t a p p l y t o t h e t e r r i t o r i e s . 5 1 They a l s o d o n o t a p p l y t o A r i z o n a , which d i d n o t h a v e a ~ e d i c a i d - p r o g r a m when t h e s p e n d i n g r e d u c t i o n p r o v i s i o n s were approved. 6-l B. E l i g i b i l i t y Requirements E l i g i b i l i t y f o r Medicaid i s l i n k e d t o a c t u a l o r p o t e n t i a l r e c e i p t o f c a s h a s s i s t a n c e u n d e r t h e programs of Aid t o F a m i l i e s w i t h Dependent . C h i l d r e n (AFDc) and S u p p l e m e n t a l S e c u r i t y Income ( S S I ) f o r t h e aged, b l i n d , and d i s a b l e d ; t h e r e a r e two c l a s s e s o f e l i g i b i l i t y u n d e r Medicaid: c a t e g o r i c a l l y needy and m e d i c a l l y needy. A l l S t a t e Medicaid programs c o v e r t h e " c a t e g o r i c a l l y needy." I n g e n e r a l , t h e s e a r e p e r s o n s r e c e i v i n g c a s h a i d from AFDC o r SSI. Each S t a t e h a s t h e o p t i o n o f r e s t r i c t i n g Medicaid c o v e r a g e o f SSI r e c i p i e n t s by r e q u i r i n g them t o meet any more s t r i n g e n t e l i g i b i l i t y r u l e t h a t t h e S t a t e a p p l i e d on J a n u a r y 1, 1972, t o Medicaid c o v e r a g e o f needy aged, b l i n d , o r d i s a b l e d a d u l t s i n programs t h a t preceded SSI. S t a t e s c h o o s i n g t h e more r e s t r i c t i v e c r i t e r i a must a l l o w a p p l i c a n t s t o d e d u c t m e d i c a l e x p e n s e s from income i n d e t e r m i n i n g e l i g i b i l i t y . 7 1 S t a t e s a l s o may c o v e r a d d i t i o n a l p e r s o n s a s c a t e g o r i c a l l y neTdy; t h e s e i n c l u d e p e r s o n s r e c e i v i n g S t a t e supplement SSI payments ( S S P ) , p e r s o n s who would b e e l i g i b l e f o r c a s h a s s i s t a n c e except t h a t they a r e r e s i d e n t s i n medical i n s t i t u t i o n s (such a s s k i l l e d n u r s i n g f a c i l i t i e s ) , o r c h i l d r e n between a g e s 18 and 20 o r any r e a s o n a b l e c l a s s i f i c a t i o n o f s u c h c h i l d r e n . S t a t e s may a l s o e x t e n d c o v e r a g e t o unemployed f a t h e r s and t h e i r f a m i l i e s o r c h i l d r e n o f unemployed f a t h e r s . S t a t e s must e x t e n d Medicaid e l i g i b i l i t y t o aged, b l i n d , and d i s a b l e d p e r s o n s who w e r e e l i g i b l e f o r Medicaid i n December 1973 ( b e f o r e t h e s t a r t o f SSI on J a n u a r y 1, 1974) a s l o n g a s t h e y meet t h e 1973 c r i t e r i a ; p e r s o n s r e c e i v i n g mandatory S t a t e s u p p l e m e n t a r y payments; 51 As n o t e d b e f o r e , a c e i l i n g i s imposed on F e d e r a l Medicaid f u n d i z g f o r t h e o u t l y i n g a r e a s ; w i t h i n t h e c e i l i n g , t h e i r F'MAP i s 50 p e r c e n t . 6 1 Beginning Oct. 1, 1982, A r i z o n a began i m p l e m e n t a t i o n o f a t h r e e x y e a r d e m o n s t r a t i o n p r o j e c t u n d e r which s p e c i f i e d s e r v i c e s a r e t o b e p r o v i d e d t o t h e i n d i g e n t on a p r e p a i d b a s i s . 71 As of Aug. 1, 1983, t h e f o l l o w i n g 14 S t a t e s employed more r e s t r T c t i v e c r i t e r i a t h a n SSI i n d e t e r m i n i n g Medicaid e l i g i b i l i t y : C o n n e c t i c u t , Hawaii, I l l i n o i s , I n d i a n a , M i n n e s o t a , M i s s o u r i , Nebraska, New Hampshire, North C a r o l i n a , N o r t h Dakota, Ohio, Oklahoma, Utah, and V i r g i n i a . p e r s o n s who would b e e l i g i b l e f o r c a s h a i d e x c e p t f o r a S t a t e b a r r i e r d i s a l l o w e d by Medicaid law; and p e r s o n s a c t u a l l y r e c e i v i n g SSI a n d / o r SSP payments who l o s e t h e i r e l i g i b i l i t y f o r SSI o r SSP s o l e l y because of a c o s t - o f - l i v i n g s o c i a l s e c u r i t y i n c r e a s e . Medicaid coverage a l s o must b e extended f o r 4 a d d i t i o n a l months t o c e r t a i n f a m i l i e s whose AFDC c a s h a s s i s t a n c e h a s been t e r m i n a t e d provided t h e y had r e c e i v e d AFDC f o r a t l e a s t 3 o f t h e p r e c e d i n g 6 months; t h i s e x t e n s i o n a p p l i e s only t o f a m i l i e s whose AFDC c o v e r a g e h a s been t e r m i n a t e d due t o i n c r e a s e d income from, o r i n c r e a s e d h o u r s o f , employment. S t a t e s a l s o may c o v e r t h e "medically needy" under t h e i r Medicaid programs. These a r e p e r s o n s whose income a n d / o r r e s o u r c e s ( a s counted under e l i g i b i l i t y r u l e s of t h e r e l e v a n t program o f c a s h a i d ) i s above t h e S t a t e s t a n d a r d f o r c a s h a s s i s t a n c e , 8/ provided t h a t : ( 1 ) t h e y a r e aged, b l i n d , d i s a b l e d , o r members of-families w i t h dependent c h i l d r e n , and ( 2 ) t h e i r income ( a f t e r d e d u c t i n g i n c u r r e d medical expenses) f a l l s below t h e S t a t e m e d i c a l l y needy s t a n d a r d . 9 / P r i o r t o enactment of P.L. 97-35, S t a t e s having m e d i c a l l y needy programs were r e q u i r e d t o o f f e r comparable c o v e r a g e t o a l l f o u r groups ( i . e . , aged, b l i n d , d i s a b l e d , and members of f a m i l i e s w i t h c h i l d r e n ) . P.L. 97-35 p r o v i d e s t h a t i f a S t a t e o f f e r s m e d i c a l l y needy c o v e r a g e t o any group, i t must p r o v i d e ambulatory s e r v i c e s t o c h i l d r e n and pren a t a l and d e l i v e r y s e r v i c e s f o r p r e g n a n t women. C. Benefits S t a t e Medicaid programs must o f f e r t h e f o l l o w i n g s e r v i c e s t o c a t e g o r i c a l l y needy r e c i p i e n t s : i n p a t i e n t and o u t p a t i e n t h o s p i t a l s e r v i c e s ; l a b o r a t o r y and X-ray s e r v i c e s ; s k i l l e d n u r s i n g f a c i l i t y (SNF) s e r v i c e s f o r t h o s e o v e r age 21; home h e a l t h s e r v i c e s f o r t h o s e e n t i t l e d t o SNF c a r e ; e a r l y and p e r i o d i c s c r e e n i n g , d i a g n o s i s , and t r e a t m e n t (EPSDT) f o r t h o s e under age 21; f a m i l y p l a n n i n g s e r v i c e s and s u p p l i e s ; and p h y s i c i a n s ' s e r v i c e s . They a l s o may p r o v i d e medical s e r v i c e s such a s d r u g s , i n t e r m e d i a t e c a r e f a c i l i t y ( I c F ) s e r a v i c e s , e y e g l a s s e s , i n p a t i e n t p s y c h i a t r i c c a r e f o r i n d i v i d u a l s under age 21 o r o v e r 65. S t a t e s a r e p e r m i t t e d t o e s t a b l i s h l i m i t a t i o n s 8/ P a r t i c i p a t i n g S t a t e s s e t t h e i r own m e d i c a l l y needy income s t a n d z r d s w i t h i n an o u t e r F e d e r a l l i m i t . By law, t h e l i m i t i s 133 1 / 3 p e r c e n t o f t h e maximum sum paid i n t h e AFDC program t o a u n i t o f t h e same s i z e . 9/ A s o f J a n u a r y 1984, t h e f o l l o w i n g 35 S t a t e s and j u r i s d i c tions-had m e d i c a l l y needy programs : Arkansas, C a l i f o r n i a , C o n n e c t i c u t , D i s t r i c t o f Columbia, Guam, Hawaii, I l l i n o i s , Kansas, Kentucky, L o u i s i a n a , Maine, Maryland, M a s s a c h u s e t t s , Michigan, Minnesota, Mont a n a , Nebraska, New Hampshire, New York, North C a r o l i n a , North Dakota, Northern Mariana I s l a n d s , Oklahoma, Oregon, Pennsylvania, P u e r t o Rico, Rhode I s l a n d , Tennessee, Utah, Vermont, V i r g i n I s l a n d s , V i r g i n i a , Washington, West V i r g i n i a , and Wisconsin. on t h e amount of c a r e p r o v i d e d u n d e r a s e r v i c e c a t e g o r y ( s u c h a s l i m i t i n g t h e number o f d a y s o f c o v e r e d h o s p i t a l c a r e o r number o f physicians' services). P r i o r t o e n a c t m e n t o f P.L. 97-35, S t a t e s h a v i n g m e d i c a l l y needy programs w e r e r e q u i r e d , a s a minimum, t o o f f e r t h i s p o p u l a t i o n g r o u p e i t h e r a l l o f t h e mandatory s e r v i c e s , o r a l t e r n a t i v e l y t h e c a r e and s e r v i c e s l i s t e d i n 7 o f t h e 17 p a r a g r a p h s i n t h e law d e f i n i n g c o v e r e d s e r v i c e s , p r o v i d e d t h e y met c e r t a i n c o n d i t i o n s ( i n c l u d i n g o f f e r i n g a mix o f i n s t i t u t i o n a l and n o n i n s t i t u t i o n a l s e r v i c e s ) . P.L. 97-35 s p e c i f i e s t h a t : ( 1 ) i f a S t a t e p r o v i d e s m e d i c a l l y needy c o v e r a g e t o any g r o u p , i t must p r o v i d e a m b u l a t o r y s e r v i c e s t o c h i l d r e n and pren a t a l and d e l i v e r y s e r v i c e s f o r p r e g n a n t women; ( 2 ) i f a S t a t e prov i d e s i n s t i t u t i o n a l s e r v i c e s f o r any m e d i c a l l y needy g r o u p , i t must a l s o p r o v i d e a m b u l a t o r y s e r v i c e s f o r t h i s p o p u l a t i o n g r o u p ; and ( 3 ) i f t h e S t a t e p r o v i d e s m e d i c a l l y needy c o v e r a g e f o r p e r s o n s i n i n t e r m e d i a t e c a r e f a c i l i t i e s f o r t h e m e n t a l l y r e t a r d e d (ICF/MRS), i t must o f f e r t o a l l g r o u p s c o v e r e d i n i t s m e d i c a l l y needy program t h e same mix o f i n s t i t u t i o n a l and n o n i n s t i t u t i o n a l s e r v i c e s a s r e q u i r e d u n d e r p r i o r law. F e d e r a l law, a s m o d i f i e d by P.L. 97-248, t h e Tax E q u i t y and F i s c a l R e s p o n s i b i l i t y Act o f 1982, p e r m i t s S t a t e s t o impose c o s t sharing charges f o r a l l persons f o r a l l services with t h e following exceptions: -- S t a t e s a r e b a r r e d from imposing s u c h c h a r g e s on a l l c a t e g o r i c a l l y and m e d i c a l l y needy c h i l d r e n u n d e r age 18; S t a t e s may p r o v i d e t h a t no copayments would b e imposed f o r c h i l d r e n aged 1 8 t o 21. -- S t a t e s a r e b a r r e d from imposing copayments on s e r v i c e s r e l a t e d t o pregnancy ( i n c l u d i n g p r e n a t a l , d e l i v e r y , and p o s t partum s e r v i c e s ) . S t a t e s may p r o v i d e t h a t no copayments would b e imposed f o r any s e r v i c e p r o v i d e d t o p r e g n a n t women. These l i m i t a t i o n s a p p l y b o t h t o t h e c a t e g o r i c a l l y needy and m e d i c a l l y needy. -- S t a t e s a r e b a r r e d from imposing copayments on s e r v i c e s p r o v i d e d t o c a t e g o r i c a l l y and m e d i c a l l y needy i n p a t i e n t s i n SNFs and ICFs who a r e r e q u i r e d t o spend a l l t h e i r income f o r m e d i c a l e x p e n s e s e x c e p t f o r t h e amount exempted f o r p e r s o n a l n e e d s . -- S t a t e s may n o t impose copayments on f a m i l y p l a n n i n g o r emergency s e r v i c e s f o r e i t h e r t h e c a t e g o r i c a l l y needy o r m e d i c a l l y needy. -- S t a t e s a r e p r e c l u d e d from imposing copayments on c a t e g o r i c a l l y needy HMO e n r o l l e e s . They may a l s o exempt t h e m e d i c a l l y needy from such c h a r g e s . A l l copayment c h a r g e s must b e "nominal" i n amount, w i t h o n e e x c e p t i o n . The S e c r e t a r y may waive t h e "nominal" r e q u i r e m e n t s i n t h e c a s e o f non-emergency s e r v i c e s p r o v i d e d i n emergency rooms where t h e S t a t e h a s e s t a b l i s h e d , s u b j e c t t o t h e s t a t i s f a c t i o n o f t h e S e c r e t a r y , t h a t a l t e r n a t i v e s o u r c e s o f nonemergency s e r v i c e s ate a c t u a l l y a v a i l a b l e and a c c e s s i b l e . I n s u c h c a s e s t h e S t a t e may impose a c h a r g e u p t o t w i c e t h e amount d e f i n e d a s nominal. I n FY 1382, e s t i m a t e d a v e r a g e a n n u a l Medicaid payments p e r r e c i p i e n t were as f o l l o w s : aged, $3,222; b l i n d , $2,048; d i s a b l e d , $3,702; c h i l d r e n , $369; and a d u l t s i n AFDC f a m i l i e s , $772. The e s t i m a t e d a v e r a g e a n n u a l payment f o r a l l g r o u p s was $1,343. FY 1983 program c o s t s t o t a l e d $35.0 b i l l i o n , an i n c r e a s e o f 7.7 p e r c e n t o v e r t h e $32.4 b i l l i o n r e c o r d e d i n FY 1982. 2. MEDICAL CARE FOR VETERANS WITH A NON-SERVICE-CONNECTED DISABILITY A. Funding Formula - T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. 1 / B. - E l i g i b i l i t y Requirements 2 / P o t e n t i a l l y , a b o u t 5 p e r c e n t o f t h e U.S. p o p u l a t i o n i s e l i g i b l e t o r e c e i v e f r e e V e t e r a n s A d m i n i s t r a t i o n (VA) m e d i c a l c a r e . V e t e r a n s w i t h a c c e s s t o m e d i c a l c a r e i n c l u d e f o u r sometimes o v e r - l a p p i n g groups: ( 1 ) v e t e r a n s with service-connected d i s a b i l i t i e s ; (2) r e c i p i e n t s o f v e t e r a n s ' p e n s i o n s ; ( 3 ) v e t e r a n s 65 y e a r s and o l d e r ; ( 4 ) v e t e r a n s o f any war, o r o f s e r v i c e a f t e r J a n u a r y 3 1 , 1955, w i t h nons e r v i c e - c o n n e c t e d d i s a b i l i t i e s f o r which t h e y swear t h a t t h e y c a n n o t d e f r a y m e d i c a l e x p e n s e s . ( I t s h o u l d b e n o t e d t h a t v e t e r a n s o v e r 65 y e a r s of age o r i n r e c e i p t of v e t e r a n s ' pension a r e n o t r e q u i r e d t o s t a t e under o a t h t h a t t h e y a r e unable t o d e f r a y t h e c o s t of such c a r e . ) Based on VA e s t i m a t e s f o r FY83, a p p r o x i m a t e l y 58 p e r c e n t o f m e d i c a l c a r e i s p r o v i d e d t o v e t e r a n s who meet a t e s t o f need, 3/ t h a t i s , v e t e r a n s who e i t h e r r e c e i v e a c a s h p e n s i o n o r a r e medically indigent. - C. Benefit Levels Benefits include prehospitalization, hospitalization, post h o s p i t a l i z a t i o n , p r o s t h e t i c d e v i c e s and n u r s i n g home c a r e , domic i l i a r y care, medical devices, outpatient care, prescribed drugs and m e d i c i n e , and t r a n s p o r a t i o n s e r v i c e s . FY83 o u t l a y s t o t a l l e d $4.4 b i l l i o n , up 25 p e r c e n t from t h e FY81 t o t a l o f $3.5 b i l l i o n . I n t h i s p e r i o d t h e e s t i m a t e d a v e r a g e m o n t h l y number o f r e c i p i e n t s ( n o t i n c l u d i n g o u t p a t i e n t s ) i n c r e a s e d by o n l y 7 p e r c e n t , from 63.5 t h o u s a n d t o 67.7 t h o u s a n d . 1/ However, t h r o u g h g r a n t s - i n - a i d , t h e VA a l s o a s s i s t s s t a t e s t h a t p r o v i d e c a r e i n S t a t e v e t e r a n homes. The VA makes p e r diem payments f o r t h e c a r e o f e l i g i b l e v e t e r a n s and p a r t i c i p a t e s i n t h e c o s t o f c o n s t r u c t i n g S t a t e home f a c i l i t i e s . 2/ E l i g i b i l i t y r u l e s o f t h i s program a r e found i n 3 8 C.F.R.5 17.46~17.48 (1982). 3/ Based on VA e s t i m a t e t h a t 58 p e r c e n t o f v e t e r a n s r e c e i v i n g VA m e x i c a l c a r e w e r e below t h e p o v e r t y l e v e l o f income. 3. GENERAL ASSISTANCE (MEDICAL CARE COMPONENTS) 1/ - A. Funding Formula No F e d e r a l f u n d s a r e a v a i l a b l e f o r t h i s program, which h e l p s p e r s o n s who d o n o t q u a l i f y f o r Medicaid. As o f l a t e 1982, m e d i c a l a s s i s t a n c e f o r c a s h r e c i p i e n t s o f G e n e r a l A s s i s t a n c e (GA) and f o r o t h e r p e r s o n s i n e l i g i b l e f o r Medicaid was f u l l y S t a t e funded i n 1 5 S t a t e s 2 / and t h e D i s t r i c t o f Columbia. Twenty-three S t a t e s p r o v i d e d no-funds f o r l o c a l m e d i c a l a i d programs. 31 E l e v e n S t a t e s g e n e r a l l y s h a r e d t h e c o s t o f GA m e d i c a l a s s i s t a n c e w i t h l o c a l i t i e s . 4 / F i n a l l y , A r i z o n a , which h a s n e v e r o p e r a t e d a t r a d i t i o n a l ~ e d T c a i dprogram, on O c t o b e r 1 , 1982, began a 3-year d e m o n s t r a t i o n p r o j e c t t h a t was judged t o be q u a l i f i e d f o r F e d e r a l Medicaid f u n d s . Thus, i t now h a s no GA m e d i c a l a s s i s t a n c e program. 1/ S t a t e d a t a r e p o r t e d h e r e a r e drawn from a s t u d y e n t i t l e d " C h a ~ a c t e r i s t i c s o f G e n e r a l A s s i s t a n c e Programs, 1982," p r e p a r e d by Urban Systems R e s e a r c h and E n g i n e e r i n g , l n c . , Cambridge, Massac h u s e t t s , f o r t h e U.S. Department o f H e a l t h and Human S e r v i c e s . C o n t r a c t No. HHS-100-82-0038. 2/ A l a s k a , H a w a i i , Kansas, L o u i s i a n a , Maryland, M a s s a c h u s e t t s , ~ i s s o y r i ,Oklahoma (which g i v e s a s s i s t a n c e i n t h e form o f l i m i t e d c a s h f o r m e d i c a l e m e r g e n c i e s ) , Oregon, P e n n s y l v a n i a , Rhode I s l a n d , Vermont, Washington, West V i r g i n i a , and Wyoming. 3/ S t a t e s w i t h v e r y l i m i t e d c o u n t y programs: Alabama, ~ r k a n s a s , G e o r g i a , Kentucky, M i s s i s s i p p i , New Mexico, North Carol i n a , North Dakota, S o u t h C a r o l i n a , T e n n e s s e e , and Texas. O t h e r S t a t e s w i t h county-funded a i d : Delaware, F l o r i d a , I d a h o , I n d i a n a , Iowa, Montana, Nebraska, Nevada, New Hampshire, S o u t h Dakota, Vermont, and Wisconsin. 41 I n t h i s g r o u p a r e I l l i n o i s , which p r o v i d e s 100 p e r c e n t s t a t e-funds f o r m e d i c a l a s s i s t a n c e i n Cook County ( C h i c a g o ) and s e v e r a l downstate townships, but r e q u i r e s l o c a l funding elsewhere; Michigan, which p r o v i d e s 100 p e r c e n t S t a t e f u n d s f o r o u t p a t i e n t c a r e , none f o r i n p a t i e n t c a r e ; and Maine, which p r o v i d e s 100 percent S t a t e funds f o r a i d i n unorganized m u n i c i p a l i t i e s , but r e q u i r e s o t h e r l o c a l i t i e s t o s h a r e funding. E l i g i b i l i t y Requirements To r e c e i v e GA m e d i c a l a s s i s t a n c e , a p e r s o n g e n e r a l l y must be deemed needy and must l i v e where s u c h a i d i s a v a i l a b l e . Many a r e a s u s e t h e same e l i g i b i l i t y r u l e s f o r GA m e d i c a l a s s i s t a n c e a s f o r GA c a s h a i d ( s e e program No. 1 4 ) . Some h a v e more l i b e r a l r u l e s , and w i l l a i d t h e m e d i c a l l y needy, whose incomes exceed l i m i t s f o r c a s h h e l p . When West V i r g i n i a s t o p p e d p a y i n g f o r GA c a s h a s s i s t a n c e i n 1980, i t c o n t i n u e d t o fund m e d i c a l a s s i s t a n c e u n d e r i t s program, G e n e r a l A s s i s t a n c e f o r D i s a b l e d Adults. Some c o u n t i e s o f f e r h e l p o n l y f o r m e d i c a l e m e r g e n c i e s . Benefit Levels The s c o p e o f m e d i c a l a s s i s t a n c e v a r i e s among S t a t e s a n d , o f t e n , w i t h i n them. I n c o u n t i e s w i t h v e r y l i m i t e d a i d , h e l p u s u a l l y t a k e s t h e form o f m e d i c a l c a r e by c o u n t y h o s p i t a l s . As o f l a t e 1982, t h r e e S t a t e s r e p o r t e d t h a t t h e i r programs o f GA m e d i c a l a s s i s t a n c e were more comprehensive t h a n Medicaid: A l a s k a , Rhode I s l a n d , and Wyoming. C o n n e c t i c u t s a i d i t s program was comparable t o t h a t o f M e d i c a i d . However, i n most a r e a s , GA m e d i c a l a s s i s t a n c e was more l i m i t e d t h a n Medicaid. For example, t h e Oklahoma program c o n s i s t e d o f a d d i n g up t o $70 f o r emergency m e d i c a l n e e d s t o a p e r s o n ' s c a s h r e l i e f g r a n t . S e v e r a l S t a t e s r e p o r t e d c u t b a c k s i n GA m e d i c a l a s s i s t a n c e . E f f e c t i v e i n J a n u a r y 1982, South C a r o l i n a e l i m i n a t e d m e d i c a l b e n e f i t s f o r GA c a s h r e c i p i e n t s . E f f e c t i v e i n September 1982, C a l i f o r n i a e l i m i n a t e d from S t a t e - o n l y Medical m e d i c a l l y i n d i g e n t a d u l t s ( a g e d 21-64) who were n o t l i n k e d t o F e d e r a l a s s i s t a n c e programs and gave b l o c k g r a n t s t o t h e c o u n t i e s t o e s t a b l i s h I n 1983 I l l i n o i s c o u n t y m e d i c a l programs t o a s s i s t s u c h p e r s o n s . suspended i t s program o f Aid t o t h e M e d i c a l l y I n d i g e n t , which had p r o v i d e d ongoing h o s p i t a l and p h y s i c i a n b e n e f i t s comparable t o Medicaid f o r p e r s o n s i n e l i g i b l e f o r Medicaid t h r o u g h t h e S t a t e . M i s s o u r i r e p o r t e d t h a t GA m e d i c a l s e r v i c e s had been " s i g n i f i c a n t l y r e s t r i c t e d " i n 1981-82. The U.S. Department of H e a l t h and Human S e r v i c e s e s t i m a t e d t h a t S t a t e - l o c a l o u t l a y s f o r GA m e d i c a l a s s i s t a n c e (which i t c a l l s " S t a t e - o n l y Medicaid") d e c l i n e d 1 8 p e r c e n t i n FY 1982., from t h e 1983 r e c o r d h i g h o f $3.2 b i l l i o n t o $2.6 b i l l i o n . I t s p r e l i m i n a r y e s t i m a t e o f 1983 o u t l a y s i s $2.4 b i l l i o n , down 8 p e r c e n t from 1982. 4. MATERNAL AND CHILD HEALTH SERVICES, TITLE V OF THE SOCIAL SECURITY ACT 1/ - A. Funding Formula 1. P r e v i o u s A u t h o r i t y . F o r FY 1981 and p r e v i o u s f i s c a l y e a r s , a b o u t 90 p e r c e n t o f t h e t i t l e V a p p r o p r i a t i o n had t o b e made a v a i l a b l e f o r m a t e r n a l and c h i l d h e a l t h (MCH) and c r i p p l e d c h i l d r e n s ( C C ) s e r v i c e s w i t h t h e r e m a i n d e r d e s i g n a t e d f o r r e s e a r c h and t r a i n i n g activities. The MCH a p p r o p r i a t i o n was d i v i d e d i n t o h a l v e s , c a l l e d Fund A and Fund B. Fund A was a p p o r t i o n e d among t h e S t a t e s by a f o r m u l a s p e c i f i e d i n t h e law and r e q u i r e d S t a t e m a t c h i n g , d o l l a r f o r d o l l a r . Each f i s c a l y e a r , a S t a t e r e c e i v e d from Fund A a g r a n t o f $70,000, p l u s t h a t p o r t i o n o f t h e r e m a i n d e r o f Fund A which equalled i t s p r o p o r t i o n a t e s h a r e of l i v e b i r t h s i n t h e United S t a t e s . No S t a t e m a t c h i n g was r e q u i r e d f o r Fund B. I n e a c h f i s c a l y e a r , $10 m i l l i o n was a l l o c a t e d from Fund B t o S t a t e s and i n s t i t u t i o n s o f h i g h e r l e a r n i n g f o r e s t a b l i s h m e n t o f proj e c t s t o s e r v e t h e m e n t a l l y r e t a r d e d . Of t h e r e m a i n d e r , a t l e a s t 75 p e r c e n t was a l l o c a t e d t o S t a t e s on t h e b a s i s o f S t a t e p e r c a p i t a income and t h e number o f l i v e b i r t h s , w i t h r u r a l b i r t h s g i v e n t w i c e t h e w e i g h t o f u r b a n b i r t h s . These f u n d s w e r e i n t e n d e d t o a s s i s t S t a t e s i n carrying out t h e i r S t a t e plans. The r e m a i n i n g 25 p e r c e n t o r l e s s , known g e n e r a l l y a s "Reserve B" o r "RB" f u n d s , was r e t a i n e d a t the Federal level f o r discretionary grants f o r special projects of regional o r national significance. 1/ P.L. 97-35, t h e Omnibus Budget R e c o n c i l i a t i o n Act of 1981, c o n s o i i d a t e d t h e MCH and CC programs i n t o an MCH b l o c k g r a n t w i t h t h e f o l l o w i n g o t h e r F e d e r a l g r a n t programs: services for disabled c h i l d r e n e n r o l l e d i n t h e S u p p l e m e n t a l S e c u r i t y Income program, l e a d b a s e d p a i n t p o i s o n i n g p r e v e n t i o n , g e n e t i c d i s e a s e s , sudden i n f a n t d e a t h syndrome, h e m o p h i l i a t r e a t m e n t c e n t e r s , and t h e a d o l e s c e n t pregnancy program. E f f e c t i v e O c t . 1 , 1981, S t a t e s c o u l d b e g i n a d m i n i s t e r i n g MCH b l o c k g r a n t s . P.L. 97-35 p r o v i d e d t h a t t h e S e c r e t a r y o f H e a l t h and Human S e r v i c e s would c o n t i n u e m a t c h i n g g r a n t s u n d e r e x i s t i n g programs u n t i l a S t a t e assumed a u t h o r i t y f o r t h e MCH b l o c k g r a n t , b u t s t i p u l a t e d t h a t S t a t e s must d o s o b e f o r e O c t . 1, 1982. As o f August 1982, e v e r y S t a t e and t e r r i t o r y had begun implementing t h e b l o c k g r a n t . 2. Current Authoritv F i f t e e n p e r c e n t o f t h e MCH b l o c k g r a n t a p p r o p r i a t i o n i n FY 1982, and between 10 and 15 p e r c e n t i n FY 1983 and FY 1984, i s r e t a i n e d a t t h e F e d e r a l l e v e l t o fund s p e c i a l p r o j e c t s , r e s e a r c h , t r a i n i n g and g e n e t i c d i s e a s e and h e m o p h i l i a programs. The r e m a i n d e r o f t h e a p p r o p r i a t i o n i s d i s t r i b u t e d among S t a t e s t o p r o v i d e s e r v i c e s . Each S t a t e r e c e i v e s a s h a r e o f funds equal t o t h e proportion i t received i n FY 1981 f o r t h e c o n s o l i d a t e d programs, e x c l u d i n g t h o s e i n t h e set-aside. S t a t e s must spend t h r e e S t a t e d o l l a r s f o r e v e r y f o u r Federal d o l l a r s received through t h e block g r a n t . Between 10 and 15 p e r c e n t o f t h e b l o c k g r a n t a p p r o p r i a t i o n i s r e s e r v e d f o r MCH p r o j e c t s o f r e g i o n a l and n a t i o n a l s i g n i f i c a n c e , r e s e a r c h and t r a i n i n g , and g e n e t i c d i s e a s e and h e m o p h i l i a programs. These programs a r e f e d e r a l l y a d m i n i s t e r e d . B. E l i g i b i l i t y Requirements 1. P r e v i o u s A u t h o r i t y . For FY 1981 and p r e v i o u s f i s c a l y e a r s , t i t l e V o f t h e S o c i a l S e c u r i t y Act a u t h o r i z e d S t a t e s t o u s e F e d e r a l f u n d s t o e x t e n d and improve h e a l t h s e r v i c e s f o r m o t h e r s and c h i l d r e n , " e s p e c i a l l y i n r u r a l a r e a s and i n a r e a s s u f f e r i n g from s e v e r e economic d i s t r e s s . ' ' N e i t h e r i n t h e law n o r i n F e d e r a l r e g u l a t i o n was income d e f i n e d , and e a c h S t a t e d e t e r m i n e d who was e l i g i b l e f o r m a t e r n a l and c h i l d h e a l t h s e r v i c e s . F e d e r a l r e g u l a t i o n s s t a t e d t h a t income s t a n d a r d s u s e d by t h e S t a t e s i n d e t e r m i n i n g e l i g i b i l i t y f o r t r e a t m e n t and i n s e t t i n g f e e s c h e d u l e s must c o n s i d e r f a m i l y s i z e and t h e f a m i l y ' s o t h e r f i n a n c i a l r e s p o n s i b i l i t i e s . I n o r d e r t o b e e n t i t l e d t o i t s a l l o t m e n t o f MCH f u n d s , Under e a c h S t a t e was r e q u i r e d t o p r o v i d e a "program o f p r o j e c t s . " t h i s program, S t a t e s had t o implement a p r o j e c t i n e a c h o f f i v e a r e a s : m a t e r n i t y and i n f a n t c a r e , c h i l d r e n and y o u t h , f a m i l y plann i n g d e n t a l h e a l t h , and i n t e n s i v e i n f a n t c a r e . 2. C u r r e n t A u t h o r i t y . For FY 1982 and s u b s e q u e n t f i s c a l y e a r s , S t a t e s a r e t o u s e F e d e r a l f u n d s t o a s s u r e m o t h e r s and c h i l d r e n , - p a r t i c u l a r l y t h o s e w i t h low income o r l i m i t e d a v a i l a b i l i t y of h e a l t h s e r v i c e s , a c c e s s t o q u a l i t y MCH s e r v i c e s . Low-income p e r s o n s a r e d e f i n e d a s i n d i v i d u a l s o r f a m i l i e s w i t h a n income below 100 p e r c e n t of t h e p o v e r t y l e v e l . 21 2 1 The 1984 F e d e r a l p o v e r t y g u i d e l i n e s were i s s u e d i n ~ e b r u a rby~ t h e Department of H e a l t h and Human S e r v i c e s , u s i n g t h e methodology o f t h e O f f i c e o f Management and Budget (OMB). F o r a f a m i l y o f f o u r , t h e g u i d e l i n e i s $10,200 i n 1984. C. Benefit Levels 1. P r e v i o u s A u t h o r i t y . For FY 1981 and p r e v i o u s f i s c a l y e a r s , S t a t e s determined t h e l e v e l o f s e r v i c e s . R e g u l a t i o n s 3 / d e f i n e d m a t e r n a l and c h i l d h e a l t h s e r v i c e s a s ( 1 ) t h e p r o v i s i % of e d u c a t i o n a l , p r e v e n t i v e , d i a g n o s t i c and t r e a t m e n t s e r v i c e s ; ( 2 ) t h e development, s t r e n g t h e n i n g and improvement o f s t a n d a r d s and t e c h n i q u e s r e l a t i n g t o s u c h s e r v i c e s and c a r e ; ( 3 ) t h e t r a i n i n g o f p e r s o n n e l engaged i n t h e p r o v i s i o n , development, s t r e n g t h e n i n g , o r improvement o f such s e r v i c e s and c a r e ; and ( 4 ) a d m i n i s t r a t i v e s e r v i c e s i n c o n n e c t i o n w i t h such s e r v i c e s and c a r e . 2. C u r r e n t A u t h o r i t y . For FY 1982 and subsequent f i s c a l y e a r s , S t a t e s d e t e r m i n e t h e l e v e l o f s e r v i c e s . The law f o r b i d s S t a t e s t o c h a r g e f e e s f o r s e r v i c e s provided t o p e r s o n s whose income i s below t h e p o v e r t y g u i d e l i n e . -3/ 42 C.F.R. S 51a. 1 0 1 ( j ) (19811, 5. INDIAN HEALTH SERVICES A. Funding Formula T h i s program i s 100 p e r c e n t funded by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements - Persons e l i g i b l e under r e g u l a t i o n s o f t h e P u b l i c H e a l t h S e r v i c e I / a r e persons of Indian ( o r Alaskan Native) d e s c e n t belonging t o t h e I n d i a n , A l e u t , o r Eskimo community s e r v e d by t h e l o c a l h e a l t h f a c i l i t i e s and program and t h e non-Indian w i v e s o f s u c h p e r s o n s . I n a d d i t i o n , a p e r s o n may be r e g a r d e d e l i g i b l e i f he i s r e g a r d e d a s an I n d i a n by t h e community i n which h e l i v e s . The program s e r v e s F e d e r a l r e s e r v a t i o n s , I n d i a n communities i n Oklahoma and C a l i f o r n i a , and I n d i a n , Eskimo, and A l e u t communities i n A l a s k a . I n a d d i t i o n , u n d e r t h e I n d i a n H e a l t h Care Improvement Act o f 1976, P.L. 94-437, t h e I n d i a n H e a l t h S e r v i c e c o n t r a c t s w i t h 37 u r b a n I n d i a n o r g a n i z a t i o n s t o make h e a l t h s e r v i c e s more a c c e s s i b l e t o t h e u r b a n I n d i a n p o p u l a t i o n . C. Benefit Levels The I n d i a n H e a l t h S e r v i c e o f t h e P u b l i c H e a l t h S e r v i c e p r o v i d e s h o s p i t a l , m e d i c a l , and d e n t a l c a r e . I n c l u d e d a r e o u t p a t i e n t s e r v i c e s and t h e s e r v i c e s o f m o b i l e c l i n i c s and p u b l i c h e a l t h n u r s e s , a s w e l l a s p r e v e n t i v e c a r e , i n c l u d i n g i m m u n i z a t i o n s and h e a l t h e x a m i n a t i o n s o f s p e c i a l g r o u p s , s u c h a s s c h o o l c h i l d r e n . A l l s e r v i c e s a r e provided f r e e of charge t o beneficiaries. B e n e f i t s i n c l u d e i n p a t i e n t and o u t p a t i e n t h e a l t h s e r v i c e s t h r o u g h 47 h o s p i t a l s and t h e i r o u t p a t i e n t d e p a r t m e n t s , 8 4 h e a l t h c e n t e r s ( i n c l u d i n g s c h o o l h e a l t h c e n t e r s ) , and 300 s m a l l h e a l t h s t a t i o n s and s a t e l l i t e c l i n i c s ; c o n t r a c t s w i t h non-Federal h o s p i t a l s , c l i n i c s , p r i v a t e p h y s i c i a n s and d e n t i s t s ; and c o n t r a c t u a l a r r a n g e m e n t s w i t h S t a t e and l o c a l h e a l t h o r g a n i z a t i o n s . FY83 program e x p e n d i t u r e s t o t a l l e d $679.2 m i l l i o n , up 12 perc e n t from t h e FY83 t o t a l o f $606.3 m i l l i o n . The a n n u a l number o f r e c i p i e n t s r o s e 10 p e r c e n t d u r i n g t h i s same t i m e , from a p p r o x i m a t e l y 750,000 t o a n e s t i m a t e d 883,000. A -1/ 42 C.F.R. § 36.12 (1983). 6. COMMUNITY HEALTH CENTERS A. Funding Formula Under s e c t i o n 330 o f t h e P u b l i c H e a l t h S e r v i c e (PHS) A c t , c e n t e r s a r e funded and a d m i n i s t e r e d by t h e F e d e r a l Government. S t a r t i n g i n FY 1983, S t a t e s have had t h e o p t i o n , u n d e r t h e author i t y o f t h e P r i m a r y C a r e Block G r a n t c r e a t e d by P.L. 97-35, t o a d m i n i s t e r t h e community h e a l t h c e n t e r s program t h e m s e l v e s . 11 Under t h i s o p t i o n , S t a t e s r e c e i v e b l o c k g r a n t a l l o t m e n t s basTd on t h e p r o p o r t i o n o f f u n d s awarded t o community h e a l t h c e n t e r s i n t h e S t a t e i n FY 1982. I n o r d e r t o b e e l i g i b l e f o r g r a n t s u n d e r t h i s b l o c k g r a n t , S t a t e s a r e r e q u i r e d t o match F e d e r a l f u n d s . F o r FY 1983, t h e m a t c h i n g r a t e i s 20 p e r c e n t o f a S t a t e ' s a l l o t m e n t ; f o r FY 1984 i t i s 33-113 p e r c e n t . I n S t a t e s which d o n o t c h o o s e t o a d m i n i s t e r t h i s b l o c k g r a n t t h e m s e l v e s , t h e F e d e r a l Government c o n t i n u e s t o a d m i n i s t e r t h e community h e a l t h c e n t e r s u n d e r t h e a u t h o r i t y o f s e c t i o n 330 o f t h e PHs Act. E l i g i b i l i t y Requirements S e c t i o n 330 o f t h e PHs Act p r o v i d e s s u p p o r t f o r t h e community h e a l t h c e n t e r s , a term t h a t i n c l u d e s family h e a l t h c e n t e r s , comuni t y h e a l t h n e t w o r k s , neighborhood h e a l t h c e n t e r s , and o t h e r s i m i l a r p r o j e c t s p r e v i o u s l y funded u n d e r t h e Economic O p p o r t u n i t y Act and o t h e r l a w s . The law makes e l i g i b l e f o r s e r v i c e a l l r e s i d e n t s o f an a r e a s e r v e d by a community h e a l t h c e n t e r , b u t r e g u l a t i o n s l i m i t f r e e s e r v i c e t o t h o s e w i t h f a m i l y income below CSA p o v e r t y guidelines. The law s a y s t h a t c e n t e r s s h o u l d b e l o c a t e d i n " m e d i c a l l y unders e r v e d " a r e a s , t o be d e s i g n a t e d by t h e s e c r e t a r y o f H e a l t h and Human S e r v i c e s (HHS). By r e g u l a t i o n , m e d i c a l l y u n d e r s e r v e d a r e a s a r e d e s i g n a t e d by t a k i n g i n t o c o n s i d e r a t i o n s u c h f a c t o r s a s : (1) r a t i o of primary c a r e p h y s i c i a n s t o p o p u l a t i o n , ( 2 ) i n f a n t m o r t a l i t y r a t e , 11 tion of West V i r g i n i a and t h e V i r g i n I s l a n d s assumed a d r n i n i s t r a t h e b l o c k g r a n t i n FY 1983. ( 3 ) p e r c e n t a g e of p o p u l a t i o n aged 65 and o v e r , and ( 4 ) p e r c e n t a g e of p o p u l a t i o n w i t h f a m i l y income below t h e poverty l e v e l . 2/ - C, Benefit Levels PHS r e g u l a t i o n s 31 l i m i t f r e e s e r v i c e t o t h o s e w i t h f a m i l y income a t o r below t h e most r e c e n t CSA p o v e r t y income g u i d e l i n e s . The 1984 F e d e r a l p o v e r t y income g u i d e l i n e i s $10,200 f o r a f a m i l y of f o u r , p l u s o r minus $1,740 p e r person f o r b i g g e r o r s m a l l e r f a m i l y s i z e s ) . 41 Nominal f e e s may be c o l l e c t e d from such i n d i v i d u a l s and f a m i l i e s , under c e r t a i n c i r c u m s t a n c e s . I n d i v i d u a l s and f a m i l i e s w i t h annual incomes g r e a t e r than t h e p o v e r t y i n d e x b u t below 200 p e r c e n t of i t a r e r e q u i r e d t o pay f o r s e r v i c e s from a d i s c o u n t f e e s c h e d u l e adj u s t e d on t h e b a s i s of t h e p a t i e n t ' s a b i l i t y t o pay. F u l l payment, t o c o v e r r e a s o n a b l e c o s t s , i s r e q u i r e d from t h o s e w i t h income t h a t exceeds t w i c e t h e p o v e r t y l e v e l . - The c e n t e r s p r o v i d e a range o f primary h e a l t h s e r v i c e s on an ambul a t o r y b a s i s , i n c l u d i n g d i a g n o s t i c , t r e a t m e n t , p r e v e n t i v e , emergency, t r a n s p o r t a t i o n , and p r e v e n t i v e d e n t a l s e r v i c e s and can a r r a n g e and pay f o r h o s p i t a l and o t h e r supplemental s e r v i c e s i n c e r t a i n c i r c u m s t a n c e s i f approved by t h e S e c r e t a r y . FY83 c o s t s t o t a l l e d $360 m i l l i o n , up 11 p e r c e n t from t h e FY81 t o t a l o f $323.6 m i l l i o n . The annual number of r e c i p i e n t s dropped 10 p e r c e n t i n t h i s p e r i o d , from 5 m i l l i o n t o 4.5 m i l l i o n . -21 -31 42 C.F.R. § 51c. 102(e) (1983). 42 C.F.R. § 51c. 3 0 3 ( f ) (1983). 4 / The 1984 g u i d e l i n e s were i s s u e d i n February by t h e ~ e ~ a r & e n of t H e a l t h , Education, and Welfare, u s i n g t h e methodology o f t h e O f f i c e o f Management and Budget (OMB). 7. MEDICAL ASSISTANCE TO REFUGEES AND CUBAN/HAITIAN ENTRANTS A. F u n d i n e Formula The Refugee Act (P.L. 96-212) a u t h o r i z e s 100 p e r c e n t f e d e r a l l y funded m e d i c a l a s s i s t a n c e f o r needy r e f u g e e s d u r i n g t h e i r f i r s t 3 y e a r s i n t h e U n i t e d S t a t e s . T i t l e V o f t h e Refugee E d u c a t i o n A s s i s t a n c e Act (P.L. 96-4221, p o p u l a r l y r e f e r r e d t o a s t h e F a s c e l l - S t o n e amendment, a u t h o r i z e s s i m i l a r a s s i s t a n c e f o r c e r t a i n Cubans and H a i t i a n s who h a v e r e c e n t l y e n t e r e d t h e U n i t e d S t a t e s . The F e d e r a l r e f u g e e a s s i s t a n c e program r e i m b u r s e s S t a t e s 100 p e r c e n t f o r t h e nonF e d e r a l s h a r e o f Medicaid payments t o r e f u g e e s and e n t r a n t s who q u a l i f y f o r t h a t program. I t a l s o p r o v i d e s " r e f u g e e m e d i c a l a s s i s t a n c e " t o needy r e f u g e e s and e n t r a n t s who a r e n o t c a t e g o r i c a l l y e l i g i b l e f o r Medicaid. M e d i c a l a s s i s t a n c e t o r e f u g e e s and e n t r a n t s i s a u t h o r i z e d t h r o u g h FY 1984. B. E l i g i b i l i t y Requirements -11 A p e r s o n must ( a ) h a v e b e e n a d m i t t e d t o t h e U.S. a s a r e f u g e e under p r o v i s i o n s o f t h e I m m i g r a t i o n and N a t i o n a l i t y A c t , o r ( b ) be a Cuban o r H a i t i a n p a r o l e d i n t o t h e U n i t e d S t a t e s between A p r i l 10 and O c t o b e r 1 0 , 1980, and d e s i g n a t e d " C u b a n l H a i t i a n e n t r a n t , " o r ( c ) b e a Cuban o r H a i t i a n n a t i o n a l who a r r i v e d i n t h e U.S. a f t e r O c t o b e r 1 0 , 1980, who h a s an a p p l i c a t i o n f o r asylum pending o r i s s u b j e c t t o e x c l u s i o n o r d e p o r t a t i o n and a g a i n s t whom a f i n a l o r d e r o f d e p o r t a t i o n h a s n o t been i s s u e d . I f a needy r e f u g e e o r e n t r a n t i s e l i g i b l e f o r M e d i c a i d , h e may r e c e i v e a s s i s t a n c e u n d e r t h a t program. I f a r e f u g e e o r e n t r a n t m e e t s t h e income and a s s e t s t e s t s p r e s c r i b e d by h i s S t a t e o f r e s i dence f o r medicaid e l i g i b i l i t y b u t does not otherwise q u a l i f y f o r t h a t program b e c a u s e o f i t s c a t e g o r i c a l r e q u i r e m e n t s , t h e r e f u g e e o r e n t r a n t i s e l i g i b l e f o r "refugee medical assistance." E f f e c t i v e A p r i l 1, 1981, o n l y r e f u g e e s o r e n t r a n t s i n t h e U.S. 3 years o r l e s s q u a l i f y f o r fully-reimbursed medical a s s i s t a n c e . E f f e c t i v e A p r i l 1, 1982, t h e s p e c i a l " r e f u g e e m e d i c a l a s s i s t a n c e " made a v a i l a b l e t o t h o s e r e f u g e e s and e n t r a n t s c a t e g o r i c a l l y i n e l i g i b l e f o r m e d i c a i d e n d s 18 months a f t e r t h e r e f u g e e o r e n t r a n t ' s e n t r y 11 R e g u l a t i o n s g o v e r n i n g t h i s program a r e found i n 45 C.F.R: 400-401. i n t o t h e U.S. F o r t h e n e x t 18 months S t a t e s c a n b e r e i m b u r s e d f o r any m e d i c a l a s s i s t a n c e p r o v i d e d t o a r e f u g e e o r e n t r a n t u n d e r a S t a t e o r l o c a l g e n e r a l a s s i s t a n c e program. Income l i m i t s f o r GA a r e g e n e r a l l y lower t h a n f o r m e d i c a i d and s e r v i c e s may b e l e s s extensive. C. Benefit Levels Medical b e n e f i t s c o n s i s t o f payments made on b e h a l f o f needy r e f u g e e s t o d o c t o r s , h o s p i t a l s , and p h a r m a c i s t s . F e d e r a l law r e q u i r e s S t a t e Medicaid programs t o o f f e r c e r t a i n b a s i c s e r v i c e s , b u t a u t h o r i z e s S t a t e s t o d e t e r m i n e t h e s c o p e o f s e r v i c e s and reimbursement r a t e s , e x c e p t f o r h o s p i t a l c a r e . 8. MIGRANT HEALTH CENTERS A. Funding Formula The c e n t e r s a r e funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements S e c t i o n 329 of t h e PHs Act a u t h o r i z e s g r a n t s t o s u p p o r t migrant h e a l t h c e n t e r s . E l i g i b l e f o r s e r v i c e s a r e b ~ t hm i g r a t o r y farm workers and t h e i r f a m i l i e s (and former m i g r a t o r y a g r i c u l t u r a l workers who a r e aged o r d i s a b l e d ) and s e a s o n a l farm workers. The law d e f i n e s "migrat o r y farm worker1' a s a person whose p r i n c i p a l employment i s i n a g r i c u l t u r e on a s e a s o n a l b a s i s , who h a s been s o employed w i t h i n t h e l a s t 2 y e a r s , and who e s t a b l i s h e s a temporary abode f o r t h e purpose of t h i s work. "Seasonal farm worker" i s d e f i n e d a s a person whose p r i n c i p a l employment i s i n a g r i c u l t u r e on a s e a s o n a l b a s i s and who i s n o t a m i g r a t o r y a g r i c u l t u r e worker. C e n t e r s a r e t a r g e t e d t o s e r v i c e ''high migrant impact1' a r e a s , which a r e c o u n t i e s o r o t h e r p o l i t i c a l s u b d i v i s i o n s o f a S t a t e i n which a t l e a s t 4,000 m i g r a t o r y farm workers and members of t h e i r f a m i l i e s and/ o r s e a s o n a l workers and t h e i r f a m i l i e s l i v e f o r more than 2 months i n a c a l e n d a r y e a r . I n f i s c a l y e a r 1981 m i g r a n t h e a l t h c e n t e r s s e r v e d 557,000 persons, o f whom 368,000 were m i g r a n t s and 189,000 were seas o n a l farm workers. C. Benefit Levels PHs r e g u l a t i o n s 1 1 l i m i t f r e e s e r v i c e t o t h o s e w i t h f a m i l y income a t o r below t h e most r e c e n t Community S e r v i c e A d m i n i s t r a t i o n (CSA) poverty income g u i d e l i n e s . 2/ The 1984 F e d e r a l p o v e r t y income g u i l d e l i n e i s $9,900 f o r a f a m i l y o £ f o u r , p l u s o r minus $1,740 p e r person f o r b i g g e r o r s m a l l e r f a m i l y s i z e s . Nominal f e e s may be c o l l e c t e d from such i n d i v i d u a l s and f a m i l i e s . I n d i v i d u a l s and famil i e s w i t h annual incomes g r e a t e r t h a n t h e p o v e r t y i n d e x b u t below 200 p e r c e n t o f i t a r e r e q u i r e d t o pay f o r s e r v i c e s from a d i s c o u n t f e e -1/ 42 C.F.R. S 56.303(£)(1983). 2/ The 1984 F e d e r a l poverty g u i d e l i n e s were i s s u e d i n ~ e b r u ' ; ; r ~by t h e Department of H e a l t h and Human S e r v i c e s , u s i n g t h e methodology of t h e O f f i c e of Management and Budget (OMB). s c h e d u l e a d j u s t e d on t h e b a s i s o f t h e p a t i e n t ' s a b i l i t y t o pay. F u l l payment, t d c o v e r r e a s o n a b l e c o s t s , i s r e q u i r e d from t h o s e w i t h i n come t h a t e x c e e d s t w i c e t h e p o v e r t y l e v e l . The c e n t e r s p r o v i d e p r i m a r y h e a l t h c a r e s e r v i c e s , i n c l u d i n g d i a g n o s t i c , t h e r a p e u t i c , p r e v e n t i v e , and emergency s e r v i c e s . The law s t i p u l a t e s t h a t p r e v e n t i v e c a r e i n c l u d e s c h i l d r e n ' s e y e and e a r examinat i o n s and d e n t a l c a r e f o r a l l g r o u p s . The c e n t e r s h a v e a l s o d e v e l o p e d " l i n k a g e s " w i t h o t h e r programs, s u c h a s t h e Department o f A g r i c u l t u r e ' s Women, I n f a n t and C h i l d r e n (WIG) n u t r i t i o n program and A l c o h o l , Drug Abuse, and Mental H e a l t h A d m i n i s t r a t i o n p r o j e c t s . F i s c a l y e a r 1983 c o s t s t o t a l l e d $38.1 m i l l i o n , down 11.8 perc e n t from t h e f i s c a l y e a r 1981 t o t a l o f $43.2 m i l l i o n . I n f i s c a l y e a r 1983, a n n u a l r e c i p i e n t s t o t a l l e d 394,000. 9. MEDICAL ASSISTANCE TO CERTAIN CUBAN REFUGEES A. Funding Formula The Migration and Refugee A s s i s t a n c e Act of 1962 a u t h o r i z e d F e d e r a l reimbursement f o r t h e c o s t s o f p r o v i d i n g m e d i c a l a s s i s t a n c e t o needy Cuban r e f u g e e s . The Refugee Act o f 1980 r e p e a l e d t h i s a u t h o r i t y and phased o u t F e d e r a l c o s t s h a r i n g by s t a g e s , e n d i n g on September 30, 1981. However, t h e Refugee Act a u t h o r i z e d t h e i n d e f i n i t e c o n t i n u a t i o n o f 100 p e r c e n t F e d e r a l reimbursement f o r t h e non-Federal s h a r e o f t h e c o s t s of Medicaid f o r aged, b l i n d , o r d i s a b l e d Cuban r e f u g e e s whose Medicaid e n t i t l e m e n t i s a r e s u l t o f t h e i r e n r o l l m e n t i n t h e Supplemental S e c u r i t y Income (SSI) program. The phased-out reimbursements were f o r t h e non-Federal s h a r e o f Medicaid b e n e f i t s t o Cuban r e f u g e e s r e c e i v i n g c a s h a s s i s t a n c e o t h e r than SSI under t h e Cuban r e f u g e e program, and f o r S t a t e a d m i n i s t r a t i v e c o s t s . The r a t e s of F e d e r a l reimbursements f o r t h o s e c o s t s were a s f o l l o w s : FY 1979, 85 p e r c e n t ; FY 1980, 75 p e r c e n t ; FY 1981, 60 p e r c e n t . B. E l i g i b i l i t y Requirements C u r r e n t l y , o n l y t h o s e Cuban r e f u g e e s who r e c e i v e d ments a s of September 30, 1978 and c o n t i n u e t o r e c e i v e f i t s a r e e l i g i b l e . Before FY 1982, Cuban r e f u g e e s who c e i v i n g o t h e r c a s h a i d under t h e Cuban r e f u g e e program October 1 , 1978, were a l s o e l i g i b l e . C. SSI payt h e s e benewere rebefore Benefit Levels Medical b e n e f i t s c o n s i s t o f payments made on b e h a l f o f needy ref u g e e s t o d o c t o r s , h o s p i t a l s , and p h a r m a c i s t s . F e d e r a l law r e q u i r e s S t a t e Medicaid programs t o o f f e r c e r t a i n b a s i c s e r v i c e s , b u t author i z e s S t a t e s t o d e t e r m i n e t h e scope o f s e r v i c e s and reimbursement r a t e s , except f o r h o s p i t a l care. 10. CRIPPLED CHILDREN'S SECURITY ACT 11 A. SERVICES, TITLE v OF THE SOCIAT, Funding Formula 1. P r e v i o u s A u t h o r i t y . F o r FY 1981 and p r e v i o u s f i s c a l y e a r s , a b o u t 90 p e r c e n t o f t h e t i t l e V a p p r o p r i a t i o n was r e q u i r e d t o b e made a v a i l a b l e f o r MCH and CC s e r v i c e s , w i t h t h e r e m a i n d e r d e s i g n a t e d f o r r e s e a r c h and t r a i n i n g a c t i v i t i e s . G r a n t f u n d s f o r CC s e r v i c e s were d i v i d e d i n t o two h a l v e s , c a l l e d Fund A and Fund B. Fund A was a p p o r t i o n e d among t h e S t a t e s i n a c c o r d a n c e w i t h c r i t e r i a i n t h e l a w and r e q u i r e d S t a t e m a t c h i n g , d o l l a r f o r d o l l a r . Each f i s c a l y e a r a S t a t e r e c e i v e d from Fund A a g r a n t o f $70,000, p l u s t h a t p o r t i o n o f t h e r e m a i n d e r o f Fund A which e q u a l l e d i t s proport i o n a t e s h a r e o f t h e number o f c h i l d r e n u n d e r 21 i n t h e U n i t e d S t a t e s . No S t a t e m a t c h i n g was r e q u i r e d f o r Fund B. I n each f i s c a l y e a r , $10 m i l l i o n was a l l o c a t e d from Fund B t o S t a t e s and i n s t i t u t i o n s o f h i g h e r l e a r n i n g f o r e s t a b l i s h m e n t o f p r o j e c t s t o s e r v e ment a l l y r e t a r d e d c r i p p l e d c h i l d r e n . Of t h e r e m a i n d e r , a t l e a s t 75 p e r c e n t was a l l o c a t e d t o S t a t e s on t h e b a s i s o f S t a t e p e r c a p i t a income and t h e number o f c h i l d r e n u n d e r 21, w i t h r u r a l c h i l d r e n g i v e n t w i c e t h e w e i g h t o f u r b a n c h i l d r e n . These f u n d s were i n t e n d e d t o a s s i s t S t a t e s i n c a r r y i n g o u t t h e i r S t a t e p l a n s . The r e m a i n i n g 25 p e r c e n t o r l e s s , known g e n e r a l l y a s "Reserve B" o r "RB" f u n d s , were r e t a i n e d a t t h e F e d e r a l l e v e l f o r d i s c r e t i o n a r y g r a n t s f o r special projects of regional o r national significance. 2. Current Authority For FY 1982 and l a t e r y e a r s between 85 and 90 p e r c e n t o f t h e MCH b l o c k g r a n t a p p r o p r i a t i o n i s a l l o t t e d among S t a t e s b a s e d on 1/ P.L. 97-35, t h e Omnibus Budget R e c o n c i l i a t i o n Act o f 1981, c o n s o i i d a t e d t h e MCH and CC programs i n t o an HCM b l o c k g r a n t w i t h t h e f o l l o w i n g o t h e r c a t e g o r i c a l programs: s e r v i c e s f o r d i s a b l e d c h i l d r e n e n r o l l e d i n t h e Supplemental S e c u r i t y Income program, lead-based p a i n t p o i s o n i n g p r e v e n t i o n , g e n e t i c d i s e a s e s , s u d d e n t i n f a n t d e a t h syndrome, h e m o p h i l i a t r e a t m e n t c e n t e r s , and t h e a d o l e s c e n t pregnancy program. E f f e c t i v e O c t . 1, 1981, S t a t e s c o u l d b e g i n a d m i n i s t e r i n g MCH b l o c k g r a n t s . P.L. 97-35 a l s o p r o v i d e d t h a t t h e S e c r e t a r y o f H e a l t h and Human S e r v i c e s would c o n t i n u e m a t c h i n g g r a n t s u n d e r e x i s t i n g programs u n t i l a S t a t e assumed a u t h o r i t y f o r t h e MCH b l o c k g r a n t , b u t s t i p u l a t e d t h a t S t a t e s must d o s o b e f o r e Oct. 1, 1982. A s o f August 1982, e v e r y S t a t e and t e r r i t o r y had begun implementing t h e b l o c k g r a n t . t h e S t a t e ' s p r o p o r t i o n o f t o t a l funds a l l o t t e d t o a l l S t a t e s i n FY 1981 under c e r t a i n c a t e g o r i c a l programs now i n c l u d e d i n t h e b l o c k . These c a t e g o r i c a l programs i n c l u d e m a t e r n a l and c h i l d h e a l t h and c r i p p l e d c h i l d r e n ' s s e r v i c e s , s u p p l e m e n t a l s e c u r i t y income s e r v i c e s f o r d i s a b l e d c h i l d r e n , lead-based p a i n t p o i s o n i n g p r e v e n t i o n programs, g e n e t i c d i s e a s e , sudden i n f a n t d e a t h syndrone, hemophilia t r e a t m e n t c e n t e r s , and a d o l e s c e n t pregnancy. S t a t e s must spend t h r e e S t a t e d o l l a r s f o r e v e r y f o u r F e d e r a l d o l l a r s r e c e i v e d through t h e b l o c k g r a n t . Between 10 and 15 p e r c e n t o f t h e b l o c k g r a n t a p p r o p r i a t i o n i s r e s e r v e d f o r MCH p r o j e c t s o f r e g i o n a l and n a t i o n a l s i g n i f i c a n c e , r e s e a r c h and t r a i n i n g , and g e n e t i c d i s e a s e and h e m o p h i l l a programs. These programs a r e a d m i n i s t e r e d a t t h e F e d e r a a l l e v e l . B. E l i g i b i l i t y Requirements 1. P r e v i o u s A u t h o r i t y . For FY 1981 and p r e v i o u s f i s c a l y e a r s , t i t l e V of t h e S o c i a l S e c u r i t y Act a u t h o r i z e d S t a t e s t o u s e F e d e r a l funds t o e x t e n d and improve s e r v i c e s t o c r i p p l e d c h i l d r e n " e s p e c i a l l y i n r u r a l a r e a s and i n a r e a s s u f f e r i n g from s e v e r e economic d i s t r e s s . " Regulations defined a c r i p p l e d c h i l d a s one under 21 y e a r s o f age, "who h a s an o r g a n i c d i s e a s e , d e f e c t , o r c o n d i t i o n 21 which may h i n d e r t h e achievement of normal growth o r development. l1 D i a g n o s t i c s e r v i c e s had t o b e provided w i t h o u t any e l i g i b i l i t y r e q u i r e m e n t s . S t a t e s determined who r e c e i v e d a i d . 2. C u r r e n t A u t h o r i t y . For FY 1981 and subsequent f i s c a l y e a r s , S t a t e s a r e t o u s e F e d e r a l funds t o a s s y r e mothers and c h i l d r e n , p a r t i c u l a r l y t h o s e w i t h low income o r l i m i t e d a v a i l a b i l i t y of h e a l t h s e r v i c e s , a c c e s s t o q u a l i t y MCH s e r v i c e s . The Act d e f i n e s low income p e r s o n s a s i n d i v i d u a l s o r f a m i l i e s w i t h an income below 100 p e r c e n t o f t h e p o v e r t y l e v e l . 3 C. Benefit Levels 1. P r e v i o u s A u t h o r i t y . F e d e r a l law and DHHS r e g u l a t i o n s d e s c r i b e d t y p e s o f s e r v i c e s t h a t c o u l d b e provided. G r a n t s were used f o r l o c a t i n g c r i p p l e d c h i l d r e n and p r o v i d i n g m e d i c a l , s u r g i c n l , c o r r e c t i v e , and o t h e r s e r v i c e s f o r d i a g n o s i s , h o s p i t a l i z a t i o n , and -21 42 C.F.R. 8 51a. 1 0 1 ( f ) (1981). 3/ The 1984 F e d e r a l p o v e r t y g u i d e l i n e s were i s s u e d i n ~ e b r u % by ~ t h e Department of H e a l t h and Human S e r v i c e s , u s i n g t h e methodology o f t h e O f f i c e of Management and Budget (OMB). F o r a f a m i l y o f f o u r , t h e g u i d e l i n e i s $10,200 i n 1984. a f t e r c a r e f o r such c h i l d r e n . S t a t e s d e c i d e d t h e l e v e l o f s e r v i c e s . R e g u l a t i o n s d e f i n e d c r i p p l e d c h i l d r e n s e r v i c e s a s : (1) t h e e a r l y l o c a t i o n o f c r i p p l e d c h i l d r e n ; ( 2 ) t h e p r o v i s i o n f o r such c h i l d r e n of p r e v e n t i v e , d i a g n o s t i c and t r e a t m e n t s e r v i c e s ; ( 3 ) t h e development, s t r e n g t h e n i n g and improvement o f s t a n d a r d s and t e c h n i q u e s r e l a t i n g t o such c a r e and s e r v i c e s ; ( 4 ) t h e t r a i n i n g o f p e r s o n n e l engaged i n t h e p r o v i s i o n , development, s t r e n g t h e n i n g , o r improvement o f such c a r e and s e r v i c e s ; and ( 5 ) a d m i n i s t r a t i v e s e r v i c e s i n conn e c t i o n w i t h such c a r e and s e r v i c e s . 51 2. Current Authority. S t a t e s determine t h e l e v e l of s e r v i c e s . The law f o r b i d s S t a t e t o c h a r g e f e e s f o r s e r v i c e s provided t o p e r s o n s whose income i s below t h e poverty g u i d e l i n e . -41 42 C.F.R. S 51a. 101(k) (1983). 11. AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDc) A. Funding Formula -11 The F e d e r a l Government pays a t l e a s t 50 p e r c e n t o f e a c h S t a t e ' s b e n e f i t payments 21 and more t h a n 70 p e r c e n t i n 9 S t a t e s . 31 F e d e r a l matchTng f o r AFDC v a r i e s from S t a t e t o S t a t e , d y p e n d i n g , w i t h i n l i m i t s , on p e r c a p i t a income. Under m a t c h i n g f o r m u l a s i n t h e law, about 54 p e r c e n t o f e a c h AFDC b e n e f i t d o l l a r i s p a i d by t h e F e d e r a l Government and 46 p e r c e n t i s p a i d by t h e S t a t e s , some o f which r e q u i r e l o c a l governments t o s h a r e c o s t s . The F e d e r a l s h a r e v a r i e s among S t a t e s , r a n g i n g from 50 p e r c e n t t o 77.63 p e r c e n t , and i t i s i n v e r s e l y r e l a t e d t o S t a t e p e r c a p i t a income. 4 1 The F e d e r a l Government pays 50 p e r c e n t o f a d m i n i s t r a t i v e c o s t s i n a l l S t a t e s ( 9 0 p e r c e n t f o r development and i n s t a l l a t i o n o f automated s y s t e m s o f management i n f o r m a t i o n ) . The F e d e r a l s h a r e o f a s t a t e ' s AFDC payments i s d e t e r mined by t h e m a t c h i n g f o r m u l a s p e c i f i e d f o r m e d i c a i d i n ( S t a t e s may c h o o s e t i t l e X I X o f t h e S o c i a l S e c u r i t y Act. an a l t e r n a t e f o r m u l a , s p e c i f i e d f o r AFDC o n l y i n t i t l e I V o f t h e a c t , b u t i n e a r l y f i s c a l y e a r 1984 none d i d s o . ) 11 F o r a h i s t o r y o f t h e AFDC m a t c h i n g f o r m u l a s , and f o r a d i s cussi& o f a l t e r n a t i v e formulas, s e e "Analysis of Federal-State C o s t - S h a r i n g i n t h e Aid t o F a m i l i e s With Dependent C h i l d r e n Program," March 1982 (CRS Report 82-62 EPw). 21 I f a S t a t e ' s p e r c a p i t a income e x c e e d s t h e n a t i o n a l a v e r a g e by more t h a n 5.4093 p e r c e n t , t h e S t a t e must pay t h e maximum s h a r e o f 50 p e r c e n t . I n f i s c a l y e a r s 1984 and 1985, 1 3 S t a t e s and D.C. a r e i n t h i s p o s i t i o n . The 14 j u r i s d i c t i o n s a r e : A l a s k a , C a l i f o r n i a , C o l o r a d o , C o n n e c t i c u t , Delaware, D i s t r i c t o f Columbia, H a w a i i , I l l i n o i s , Maryland, Nevada, New J e r s e y , New York, Washington, and Wyoming. 31 Alabama, A r k a n s a s , Kentucky, Maine, M i s s i s s i p p i , S o u t h ~ a r o l ' T n a , T e n n e s s e e , Utah, and West V i r g i n i a . 4 1 I n FY 1984-1985 t h e S t a t e s and t h e D i s t r i c t o f Columbia f a l l T o u g h l y i n t o t h r e e g r o u p s u n d e r t h e Medicaid f o r m u l a : F e d e r a l s h a r e between 50 and 55 p e r c e n t , 19 S t a t e s ; 55-65 p e r c e n t , 17 S t a t e s ; and 65-77.63 p e r c e n t , 15 S t a t e s . U n l i k e t h e Medicaid f o r m u l a , t h i s " r e g u l a r " AFDC f o r m u l a p l a c e s a c e i l i n g on a v e r a g e b e n e f i t s e l i g i b l e f o r F e d e r a l funds. ) The m e d i c a i d c o s t - s h a r i n g f o r m u l a u s e d t o d e t e r m i n e t h e S t a t e and F e d e r a l s h a r e s o f AFDC b e n e f i t payments i s a s f o l l o w s : S t a t e s h a r e = S t a t e p e r c a p i t a income s q u a r e d / n a t i o n a l p e r c a p i t a income s q u a r e d x 45 p e r c e n t F e d e r a l s h a r e = 100 p e r c e n t - S t a t e s h a r e ( w i t h a minimum o f 50 p e r c e n t and a maximum o f 8 3 p e r c e n t ) F o r t h e o u t l y i n g a r e a s , Guam, P u e r t o R i c o , and t h e V i r g i n I s l a n d s , 75 p e r c e n t F e d e r a l m a t c h i n g i s p r o v i d e d f o r AFDC b e n e f i t s and a d m i n i s t r a t i o n , b u t t h e law imposes a c e i l i n g on F e d e r a l f u n d s . S t a t e s d e c i d e w h e t h e r t h e i r l o c a l i t i e s must h e l p pay f o r AFDC. A t t h e s t a r t o f FY 1982, 1 0 S t a t e s r e q u i r e d t h e i r l o c a l i t i e s t o pay some p o r t i o n o f b e n e f i t c o s t , 5 1 and 1 3 S t a t e s r e q u i r e d them t o h e l p pay a d m i n s t r a t i v e c o s t s . 71 - I n FY 1983 F e d e r a l f u n d s p a i d $7.3 b i l l i o n o f t h e n a t i o n ' s $13.6 b i l l i o n b i l l f o r AF'DC b e n e f i t s (53.6 p e r c e n t ) . F o r AFDC a d m i n i s t r a t i v e c o s t s , which t o t a l e d $1.792 b i l l i o n ( i n c l u d i n g t r a i n i n g c o s t s ) , t h e F e d e r a l s h a r e was s l i g h t l y above 50 p e r c e n t . B. E l i g i b i l i t y Requirements T i t l e I V o f t h e S o c i a l S e c u r i t y A c t p e r m i t s S t a t e s t o g i v e AFDC c a s h t o needy c h i l d r e n ( a n d t h e i r m o t h e r s o r o t h e r c a r e t a k e r r e l a t i v e s ) who h a v e been d e p r i v e d o f s u p p o r t o r c a r e o f o n e p a r e n t b e c a u s e : -- -- t h e i r f a t h e r s a r e a b s e n t from home c o n t i n u o u s l y (86.9 p e r c e n t o f t h e c h i l d r e n ) , a r e i n c a p a c i t a t e d ( 5 . 3 perc e n t ) , dead ( 2 . 2 p e r c e n t ) , o r unemployed ( 4 . 1 p e r c e n t ) ; or t h e i r mothers a r e i n c a p a c i t a t e d , a b s e n t , dead, o r unemployed ( 1 . 5 p e r c e n t ) . 1 1 5 1 T h e s e S t a t e s were C a l i f o r n i a and New York, t h e two l e a d S t a t e s , p l u s Colorado, I n d i a n a , M i n n e s o t a , Montana, New i n g AFDC J e r s e y , North C a r o l i n a , North Dakota, and Ohio. 6 1 The 1 3 S t a t e s were t h e 1 0 shown i n f o o t n o t e No. 5 , p l u s ~ i s s i T s i ~Nebraska, ~i, and V i r g i n i a . F u r t h e r , A r i z o n a r e q u i r e d l o c a l i t i e s t o c o n t r i b u t e o f f i c e s p a c e and A r k a n s a s r e q u i r e d 27 o f i t s 79 c o u n t i e s t o h e l p pay AFDC a d m i n i s t r a t i v e c o s t s . 7/ These p e r c e n t a g e s a r e from March 1979 AFDC S t u d y , cond u c t e z by t h e U.S. Department of H e a l t h , E d u c a t i o n and W e l f a r e . B e f o r e O c t o b e r 1, 1982, when P.L. 97-248 t o o k e f f e c t , a needy c h i l d whose f a t h e r was a b s e n t f o r m i l i t a r y s e r v i c e c o u l d r e c e i v e AFDC, and 0 . 3 p e r c e n t o f AFDC c h i l d r e n q u a l i f i e d on t h i s b a s i s i n March 1979. C h i l d r e n must b e u n d e r t h e a g e o f 1 8 o r , a t S t a t e o p t i o n , u n d e r 19 i f s t i l l i n h i g h s c h o o l o r t e c h n i c a l s c h o o l . B e f o r e P.L. 97-35, S t a t e s c o u l d e x t e n d e l i g i b i l i t y u n t i l a s t u d e n t ' s 2 1 s t b i r t h d a y and c o l l e g e s t u d e n t s c o u l d q u a l i f y . A l l S t a t e s a i d needy f a m i l i e s w i t h o u t a b l e - b o d i e d f a t h e r s i n t h e home, b u t a s o f September 1983 o n l y 23 S t a t e s ( p l u s t h e D i s t r i c t o f Columbia and Guam) o f f e r e d AFDC t o c h i l d r e n w i t h two a b l e - b o d i e d p a r e n t s a t home, one o f whom was 11unemployed." 8 1 These AFDC-UP S t a t e s p a i d r e l a t i v e l y h i g h benef i t s , and h e l d m o r e t h a n t w o - t h i r d s o f t h e N a t i o n ' s AFDC c a s e l o a d . F e d e r a l r e g u l a t i o n s d e f i n e a n unemployed p a r e n t a s o n e working fewer t h a n 100 h o u r s a month, b u t r e q u i r e t h a t t h e p a r e n t h a v e a s p e c i f i e d h i s t o r y o f p r e v i o u s work i n o r d e r t o q u a l i f y f o r AFDC. Under P.L. 97-35, AFDC on grounds o f a p a r e n t ' s unemployment i s a l l o w e d o n l y i f t h e unemployed p a r e n t i s t h e f a m i l y ' s " p r i n c i p a l earner. " To r e c e i v e AFDC, f a m i l i e s must b e "needyu by S t a t e s t a n d a r d s and must meet a t e s t o f c o u n t e d r e s o u r c e s , e s t a b l i s h e d by t h e S t a t e need s t a n d a r d s f o r an State within outer Federal l i m i t s . AFDC f a m i l y o f 3 p e r s o n s ranged i n J a n u a r y 1984 from $179 i n T e n n e s s e e t o $696 i n A l a s k a and $816 i n Vennont. In a l l States e x c e p t Vermont and A l a s k a need s t a n d a r d s were below t h e 1983 Cens u s Bureau p o v e r t y t h r e s h o l d f o r a 3-person f a m i l y , $662. I n j u d g i n g a n a p p l i c a n t f a m i l y ' s e l i g i b i l i t y , a l l o f i t s income i s counted except f o r a p o r t i o n of earnings: $75 f l a t a l l o w a n c e f o r e x p e n s e s and c h i l d c a r e c o s t s , u p t o $160 p e r c h i l d . AFDC c o u n t a b l e income l i m i t s (payment s t a n d a r d s ) a r e s e t by S t a t e s . I n 29 j u r i s d i c t i o n s payment s t a n d a r d s i n J a n u a r y 1984 were below n e e d s t a n d a r d s . A s a r e s u l t , i n most S t a t e s a f a m i l y c o u l d b e d e n i e d a i d on income g r o u n d s , even though i t was deemed needy by t h e S t a t e . For a f a m i l y o f t h r e e , c o u n t a b l e income l i m i t s ranged i n J a n u a r y 1984 from $118 monthly i n A l a b a n a t o $530 i n Vermont, $579 i n S u f f o l k County, New York, and $696 i n Alaska. P.L. 97-35 e s t a b l i s h e d a F e d e r a l g r o s s income l i m i t f o r AFDC f o r t h e f i r s t t i m e . I t i s 150 p e r c e n t o f t h e S t a t e ' s s t a n d a r d 8 1 Congress a u t h o r i z e d a i d f o r a c h i l d needy b e c a u s e o f a paren'i's unemployment i n 1961, b u t l i m i t e d i t t o f a m i l i e s o f unemployed f a t h e r s i n 1967. I n 1979 t h e U.S. S u p r e ~ eC o u r t r u l e d t h a t t h e program must b e open t o c h i l d r e n o f unemployed m o t h e r s on t e r m s e q u a l t o t h o s e f o r c h i l d r e n o f unemployed f a t h e r s , and s o i t a g a i n became a n unemployed p a r e n t program. S e e C a l i f a n o v . W e s c o t t . 443 U.S. 76 ( 1 9 7 9 ) . I n 1981, i n t h e Omnibus Budget R e c o n c i l i a t i o n A c t , Congress r e s t r i c t e d AFDC-UP t o f a m i l i e s whose p r i n c i p a l e a r n e r was was unemployed. o f need; i n more t h a n one-half o f t h e S t a t e s t h i s i s below t h e p o v e r t y t h r e s h o l d . T h i s law a l s o s e t a c o u n t e d r e s o u r c e l i m i t : $1,000 ( e q u i t y v a l u e ) p e r f a m i l y . Excluded a r e t h e home ( b y l a w ) ; an a u t o ( l i m i t e d by r e g u l a t i o n t o $1,500 i n e q u i t y v a l u e , o r a lower S t a t e l i m i t ) ; and, by r e g u l a t i o n and a t S t a t e o p t i o n , i t e m s o f p e r s o n a l p r o p e r t y deemed e s s e n t i a l t o d a i l y l i v i n g . 9 1 p r i o r Federal regulations s e t outer resource l i m i t s e l i g i b l e Tor Federal m a t c h i n g , namely: home, p e r s o n a l e f f e c t s , a u t o m o b i l e u s e d f o r t r a n s p o r t a t i o n income-producing p r o p e r t y , p l u s $2,000 per AFDC r e c i p i e n t i n r e a l and p e r s o n a l p r o p e r t y . - F e d e r a l law r e q u i r e s a l m o s t a l l a b l e - b o d i e d AFDC r e c i p i e n t s t o r e g i s t e r f o r t r a i n i n g and employment s e r v i c e s (which may i n c l u d e j o b s e a r c h f o r no more t h a n 8 weeks p e r y e a r ) u n l e s s t h e y a r e s c h o o l c h i l d r e n o r m o t h e r s o f p r e s c h o o l c h i l d r e n . I n March 1979, 4 3 p e r c e n t o f AFDC m o t h e r s had n o p r e s c h o o l c h i l d . P.L. 97-35 a l l o w s 101 S t a t e s t o e s t a b l i s h community work e x p e r i e n c e programs e cCi p i e n t s a r e r e q u i r e d t o work on p u b l i c p r o j e c t s i n W ~ ~ C ~ A Fr D i n exchange f o r t h e i r AFDC b e n e f i t s (known a s work r e l i e f o r workf a r e ) . F o r s u c h programs, S t a t e s a r e p e r m i t t e d t o r e q u i r e p a r t i c i p a t i o n o f m o t h e r s whose y o u n g e s t c h i l d i s t h r e e , p r o v i d e d c h i l d care i s available. F e d e r a l law a l s o r e q u i r e s AFDC m o t h e r s t o a s s i g n t h e i r c h i l d s u p p o r t r i g h t s t o t h e S t a t e and t o c o o p e r a t e w i t h w e l f a r e o f f i c i a l s i n e s t a b l i s h i n g t h e p a t e r n i t y of a c h i l d born o u t s i d e of marriage i n o b t a i n i n g s u p p o r t payments from t h e f a t h e r . P.L. 97-35 r e q u i r e s S t a t e s t o c o n s i d e r a s a v a i l a b l e t o an AFDC c h i l d p a r t o f t h e income o f a s t e p p a r e n t who l i v e s w i t h him. C. Benefit Levels S t a t e s s e t b e n e f i t l e v e l s . I n J a n u a r y 1984 maximum payments p e r f a m i l y o f t h r e e w i t h o u t c o u n t a b l e income ( S t a t e AFDC g u a r a n t e e s ) ranged from $96 p e r month i n M i s s i s s i p p i t o $696 i n A l a s k a (and t o $530 i n Vermont and $579 i n S u f f o l k County, New ~ o r k ) . F o r f a m i l i e s of f o u r , t h e r a n g e was from $120 i n M i s s i s s i p p i t o $775 i n A l a s k a (and t o $625 i n C a l i f o r n i a and $676 i n S u f f o l k County, New York). I n December 1983 b e n e f i t s a v e r a g e d $320 p e r f a m i l y ( 2 . 9 p e r s o n s ) , $307 f o r 1 - p a r e n t f a m i l i e s , and $470 f o r AFDC-UP f a m i l i e s . Most AFDC r e c i p i e n t s a l s o a r e e l i g i b l e , on income and a s s e t g r o u n d s , f o r food s t a m p s ; and a l l a u t o m a t i c a l l y a r e e l i g i b l e f o r Medicaid. 91 4 5 C.F:R. R e g u l a t i o n s implementing t h e 1981 AFDC law a r e found a t § 205, 206, 233, 234, 235, 237, and 238. 101 The P r e s i d e n t ' s b u d g e t f o r FY 1982, 1983, 1984 and 1985, p r o p o x d t o r e q u i r e S t a t e s t o e s t a b l i s h community work e x p e r i e n c e programs. Because maximum food s t a m p b e n e f i t s a r e u n i f o r m f o r t h e 4 8 cont i g u o u s S t a t e s and D . C . and b e c a u s e a c t u a l b e n e f i t s a r e i n v e r s e l y s c a l e d t o income, t h e y r e d u c e t h e r a n g e among S t a t e s i n p o t e n t i a l i n come b e n e f i t s a v a i l a b l e t o AFDC f a m i l i e s . F o r example, t h e g a p between M i s s i s s i p p i and C a l i f o r n i a i n maximum b e n e f i t s f o r a 3-person f a m i l y i s r e d u c e d from $430 ( c a s h o n l y ) t o $336 m o n t h l y when food stamps a r e added ( J a n u a r y 1984 d a t a ) . D u r i n g t h e f i r s t 4 months o f a j o b u n d e r t a k e n by an AFDC r e c i p i e n t , F e d e r a l law r e q u i r e s S t a t e s , i n c a l c u l a t i n g t h e f a m i l y ' s AFDC a flat grant, t o disregard a portion of the r e c i p i e n t ' s earnings: e x p e n s e a l l o w a n c e , $75 m o n t h l y , f o r f u l l - t i m e work, p r o r a t e d f o r p a r t - t i m e work; c h i l d c a r e c o s t s u p t o a c e i l i n g o f $160 monthly p e r c h i l d ; $30 e a r n e d m o n t h l y , p l u s o n e - t h i r d . 111 - The i m p o s i t i o n o f a n o v e r r i d i n g g r o s s income l i m i t a t 150 perc e n t o f t h e S t a t e ' s n e e d s t a n d a r d p r e v e n t s f u l l u s e o f t h e work i n c e n t i v e bonus ( d i s r e g a r d o f $30 p l u s 1/3 i n e a r n i n g s ) i n many S t a t e s . A f t e r an AFDC r e c i p i e n t s p e n d s 4 months on a j o b , h e r work i n c e n t i v e d i s r e g a r d e x p i r e s ; then a l l h e r e a r n i n g s e x c e p t t h e f l a t expense a l l o w a n c e and capped c h i l d c a r e c o s t s a r e s u b t r a c t e d from t h e f a m i l y ' s w e l f a r e g r a n t . At t h a t p o i n t any i n c r e a s e i n "net" e a r n i n g s ( g r o s s wages minus f l a t a l l o w a n c e and c h i l d c a r e c o s t s ) c a u s e s a n e q u a l c u t i n t h e AFDC c h e c k . P.L. 97-35 p e r m i t s S t a t e s t o t r e a t t h e v a l u e o f food stamps and h o u s i n g s u b s i d i e s a s income, u p t o t h e v a l u e f o r food o r s h e l t e r t h a t i s i n c l u d e d i n t h e S t a t e ' s need s t a n d a r d . 121 - The Tax E q u i t y and F i s c a l R e s p o n s i b i l i t y Act o f 1982 (P.L. 97248) r e d u c e d AFDC b e n e f i t s f o r most r e c i p i e n t s by r e q u i r i n g S t a t e s t o round b e n e f i t s down t o t h e n e x t l o w e r d o l l a r . T h a t law a l s o perm i t s S t a t e s t o r e d u c e b e n e f i t s f o r AFDC f a m i l i e s i n s h a r e d h o u s i n g by p r o - r a t i n g s h e l t e r and u t i l i t y c o s t s . 111 B e f o r e p a s s a g e o f P.L. 97-35, AFDC law r e q u i r e d S t a t e s t o giGAFDC r e c i p i e n t s a permanent work i n c e n t i v e bonus. Prior law r e q u i r e d S t a t e s t o d i s r e g a r d t h e f i r s t $30 e a r n e d m o n t h l y , p l u s o n e - t h i r d o f t h e r e m a i n d e r , p l u s a l l r e a s o n a b l e work e x p e n s e s , i n t h a t o r d e r . Because o f t h e s e d e d u c t i o n s , AFDC f a m i l i e s remained e l i g i b l e f o r a d e c l i n i n g c a s h w e l f a r e payment and f u l l Medicaid b e n e f i t s u n t i l g r o s s e a r n i n g s e q u a l l e d 150 p e r c e n t o f t h e i r S t a t e ' s payment s t a n d a r d , p l u s 1 5 0 p e r c e n t o f work e x p e n s e s , p l u s $30 monthly. Under t h e r u l e s , most m o t h e r s i n t h e AFDC program c o u l d n o t e x p e c t t o e a r n t h e i r way o f f w e l f a r e , a l t h o u g h t h e y c o u l d l e s s e n t h e i r dependence on i t . Average m o n t h l y e a r n i n g s o f AFDC m o t h e r s were f a r below AFDC e x i t p o i n t s i n most S t a t e s f o r 3- and 4-person families. 121 The P r e s i d e n t ' s FY 1983 b u d g e t proposed t o r e q u i r e S t a t e s t o c o G t F e d e r a l e n e r g y a s s i s t a n c e a s income f o r AFDC, u p t o t h e v a l u e f o r u t i l i t i e s i n t h e s t a n d a r d o f n e e d . Congress r e j e c t e d t h i s recommendation. 12. SUPPLEMENTAL SECURITY INCOME (SSI) A. Funding Formula S i n c e i t s J a n u a r y 1974 b e g i n n i n g , S S I h a s p r o v i d e d a minimum i n come f l o o r , f i n a n c e d by U.S. g e n e r a l r e v e n u e and a d m i n i s t e r e d by t h e S o c i a l S e c u r i t y A d m i n i s t r a t i o n (SSA), t o p e r s o n s e l i g i b l e u n d e r Federal rules. S t a t e s may p r o v i d e a d d i t i o n a l payments t o SSI r e c i p i e n t s a t t h e i r own e x p e n s e . I n a d d i t i o n , a " g r a n d f a t h e r " c l a u s e r e q u i r e s S t a t e s t o p r o v i d e s u p p l e m e n t s t o a s m a l l number o f p e r s o n s , p r e v i o u s l y e n r o l l e d i n t h e pre-SSI programs o f F e d e r a l - S t a t e c a s h a i d f o r needy a d u l t s , whose income o t h e r w i s e would f a l l s h o r t o f i t s December 1973 l e v e l . 11 - I f a S t a t e c h o o s e s t o have t h e F e d e r a l Government a d m i n i s t e r i t s s u p p l e m e n t s , i t must a g r e e t o p r o v i d e supplements f o r a l l Fede r a l S S I r e c i p i e n t s o f t h e same c l a s s . I f SSA a d m i n i s t e r s S t a t e supplements t o S S I , F e d e r a l f u n d s pay a l l a d m i n i s t r a t i v e c o s t s , p l u s , u n t i l 1985, a s h a r e o f t h e c o s t o f s u p p l e m e n t a r y b e n e f i t s o f Wisconsin and Hawaii. 21 I f S t a t e s a d m i n i s t e r t h e i r own s u p p l e ments, t h e y must pay a i l t h e i r c o s t s b u t a r e g e n e r a l l y f r e e t o d e s i g n t h e i r own s u p p l e m e n t a r y programs and may a d o p t more r e s t r i c t i v e e l i g i b i l i t y r u l e s t h a n t h o s e o f S S I . I n December 1983 t h e F e d e r a l Government a d m i n i s t e r e d s u p p l e m e n t s f o r 27 j u r i s d i c t i o n s . 11 The Department o f H e a l t h and Human S e r v i c e s e s t i m a t e d t h e number o f r e c i p i e n t s o f mandatory S t a t e s u p p l e m e n t a r y payments a t 10,188 i n May 1984. 21 These S t a t e s a r e e l i g i b l e f o r F e d e r a l f u n d i n g o f t h e c o s t s o f p a s s i n g t h r o u g h t o r e c i p i e n t s o f SSI S t a t e s u p p l e m e n t s t h e a n n u a l c o s t - o f - l i v i n g r i s e i n t h e b a s i c F e d e r a l SSI g r a n t , p r o v i d e d t h e i r own s p e n d i n g f o r s u p p l e m e n t s ( t o p r o v i d e b e n e f i t s e q u a l t o " a d j u s t e d payment l e v e l s " o f t h e pre-SSI program p l u s t h e c o s t - o f l i v i n g i n c r e a s e s i n t h e F e d e r a l b e n e f i t s i n c e 1977) e x c e e d s t h e i r CY 1972 s p e n d i n g on c a s h a i d t o t h e a g e d , b l i n d , and d i s a b l e d . T h i s i s b e c a u s e t h e y had "hold-harmless" s t a t u s , q u a l i f y i n g them f o r F e d e r a l reimbursement o f a d d i t i o n a l SSI e x p e n d i t u r e s c a u s e d by c a s e l o a d g r o w t h , a s o f J c l y 1, 1977. E f f e c t i v e on t h a t d a t e , two pro( 1 ) r e q u i r e m e n t t h a t S t a t e s mainv i s i o n s o f P . L . 94-585 took e f f e c t : t a i n t h e i r a g g r e g a t e s p e n d i n g on SSI s u p p l e m e n t s a f t e r a r i s e i n t h e b a s i c F e d e r a l b e n e f i t and ( 2 ) p r o v i s i o n o f F e d e r a l f u n d s f o r t h i s p a s s through r u l e i n S t a t e s t h a t then possessed hold-harmless p r o t e c t i o n . The 9 8 t h Congress v o t e d t o p h a s e o u t t h e s e "hold-harmless" payments, and t h e y a r e s c h e d u l e d t o end i n 1985 ( P . L . 97-248). I n FY83, F e d e r a l f u n d s p a i d 78.5 p e r c e n t o f t o t a l SSI b e n e f i t s o f $9.2 b i l l i o n . 31 The F e d e r a l s h a r e ranged from 46 p e r c e n t i n C a l i f o r n i a and 5aVpercent i n M a s s a c h u s e t t s , S t a t e s w i t h l a r g e s u p p l e m e n t s , t o 100 p e r c e n t i n G e o r g i a , T e n n e s s e e , Texas, and West V i r g i n i a , where no r e c i p i e n t r e c e i v e d a supplement. B. E l i g i b i l i t y Requirements T i t l e X V I o f t h e S o c i a l S e c u r i t y Act e n t i t l e s t o F e d e r a l payments p e r s o n s who a r e ( 1 ) aged 65 and o v e r , b l i n d , o r d i s a b l e d ; ( 2 ) whose c o u n t e d income and r e s o u r c e s f a l l w i t h i n l i m i t s s e t by law and r e g u l a t i o n s , and ( 3 ) who l i v e i n one o f t h e f i f t y S t a t e s , t h e D i s t r i c t o f Columbia, o r t h e N o r t h e r n Mariana I s l a n d s . F o r b a s i c F e d e r a l b e n e f i t s , c o u n t a b l e income l i m i t s ( c a l e n d a r y e a r 1984) a r e $942 q u a r t e r l y p e r i n d i v i d u a l and $1,416 p e r c o u p l e . These income c e i l i n g s e q u a l maximum F e d e r a l b e n e f i t s o f t h e program ( s e e below f o r b e n e f i t d e t a i l s ) . F o r S t a t e s u p p l e m e n t a r y SSI benef i t s , c o u n t a b l e income l i m i t s a r e h i g h e r , r a n g i n g u p t o $1,698 quart e r l y per i n d i v i d u a l i n Alaska. C o u n t a b l e r e s o u r c e s may n o t exceed $1,500 p e r i n d i v i d u a l and $2,250 p e r c o u p l e . Excluded a s s e t s i n c l u d e a home; t h e f i r s t $2,000 i n e q u i t y v a l u e o f h o u s e h o l d goods and p e r s o n a l e f f e c t s ; t h e f u l l v a l u e o f a n a u t o i f needed f o r employment o r m e d i c a l t r e a t m e n t , o r i f m o d i f i e d f o r u s e by a h a n d i c a p p e d p e r s o n , o t h e r w i s e , t h e f i r s t $4,500 i n m a r k e t v a l u e o f t h e a u t o ; and a l i f e i n s u r a n c e p o l i c y n o t exceedi n g $1,500 i n c a s h s u r r e n d e r v a l u e and, under t e r m s o f P.L. 97-248, b u r i a l p l o t s and f u n d s , s u b j e c t t o a l i m i t . 4 / - P . L . 98-21 r e q u i r e s t h e S o c i a l S e c u r i t y A d m i n i s t r a t i o n (sSA), when n o t i f y i n g s o c i a l s e c u r i t y b e n e f i c i a r i e s aged 64 a b o u t t h e i r a p p r o a c h i n g e l i g i b i l i t y f o r Medicare, t o i n f o r m them a l s o a b o u t SSI. The law a l s o r e q u i r e d SSA, b e f o r e J u l y 1984, t o n o t i f y a l l e l d e r l y s o c i a l s e c u r i t y b e n e f i c i a r i e s w i t h low b e n e f i t s a b o u t t h e a v a i l a b i l i t y o f SSI. C. Benefit Levels The S o c i a l S e c u r i t y Act e s t a b l i s h e s b e n e f i t l e v e l s and r e q u i r e s t h a t whenever s o c i a l s e c u r i t y b e n e f i t s a r e i n c r e a s e d b e c a u s e o f a n a u t o m a t i c c o s t - o f - l i v i n g a d j u s t m e n t (COLA), S S I b e n e f i t s b e i n c r e a s e d a t t h e same t i m e and by t h e same p e r c e n t a g e . 3/ These d a t a r e p r e s e n t 12 monthly payments. shows-13 payments f o r 1983 and 11 f o r 1984. 4/ (19837. SSI r e s o u r c e r u l e s a r e found i n 20 C.F.R. The U.S. § 416. Budget Subpart L SSI b a s i c monthly g u a r a n t e e s : 51 1984 - 1985 (estimate) 61 - Individual Coup 1e From 1975 t h r o u g h 1982, c o s t - o f - l i v i n g a d j u s t m e n t s (COLA) were p a i d e a c h J u l y . Zn p a s s i n g t h e S o c i a l S e c u r i t y Amendments o f 1983, Congress a c c e p t e d P r e s i d e n t ~ e a g a n ' sp r o p o s a l t o d e l a y t h e 1983 COLA f o r 6 months, t o J a n u a r y 1984, and t h e r e a f t e r t o a d j u s t b e n e f i t s e a c h J a n u a r y . A t t h e same t i m e i t v o t e d a n i n c r e a s e o f $20 monthly i n SSI b e n e f i t s ($30 p e r c o u p l e ) , p a y a b l e i n J u l y 1983. S t a t e s t h a t supplement SSI b e n e f i t s a r e r e q u i r e d t o " p a s s through" t o r e c i p i e n t s an i n c r e a s e i n t h e F e d e r a l b a s i c b e n e f i t . 71 However, when Congress d e f e r r e d t h e 1983 COLA and i n s t e a d enactedt h e $20 b e n e f i t i n c r e a s e ( a b o u t 7 p e r c e n t ) , i t r e q u i r e d S t a t e s t o p a s s t h r o u g h o n l y a b o u t h a l f t h i s amount ( t h e 3.5 p e r c e n t i n c r e a s e t h a t t h e r e g u l a r COLA would h a v e y i e l d e d ) . S t a t e supplements f o r aged p e r s o n s l i v i n g i n d e p e n d e n t l y were o f f e r e d i n 26 S t a t e s p l u s t h e D i s t r i c t o f Columbia and ranged from $2 i n Oregon t o $252 i n A l a s k a and $163 i n C a l i f o r n i a , a s o f J a n u a r y 1984. To a s s u r e some g a i n from work, SSI d i s r e g a r d s a p o r t i o n o f r e c i p i e n t s ' e a r n i n g s , namely, $65 p e r month, p l u s 50 p e r c e n t o f 5/ The law r e q u i r e s a o n e - t h i r d SSI b e n e f i t r e d u c t i o n f o r t h o s e who 1 7 v e i n a n o t h e r p e r s o n ' s h o u s e h o l d and r e c e i v e s u p p o r t and maint e n a n c e i n k i n d from him. 6 / F e b r u a r y 1, 1884 e s t i m a t e o f t h e S o c i a l S e c u r i t y Administ r a t i T n , which assumed a 4 . 3 p e r c e n t r i s e i n t h e Consumer P r i c e I n d e x f o r u r b a n wage e a r n e r s (CPI-W) from t h e t h i r d q u a r t e r o f 1983 t o t h e same q u a r t e r o f 1983 t o t h e same q u a r t e r of 1984. However, the law r e q u i r e s t h e CPI-W t o r i s e a t l e a s t 3 p e r c e n t i n t h i s p e r i o d f o r a n a u t o m a t i c COLA t o b e p a i d . As o f e a r l y J u n e , 1984, i t appeared t h a t t h i s t r i g g e r l e v e l of i n f l a t i o n might n o t be reached. 7/ The r e q u i r e m e n t f o r p a s s - t h r o u g h i s s a t i s f i e d i f a S t a t e ' s t o t a l - s p e n d i n g f o r SSI s u p p l e m e n t s d u r i n g t h e r e l e v a n t 12-month p e r i o d i s n o t below t h a t f o r t h e p r e c e d i n g 12 months ( P . L . 94-585). t h e b a l a n c e . 8 1 Because o f t h i s r u l e , aged SSI r e c i p i e n t s w i t h o u t s o c i a l s e c u r i F y b e n e f i t s o r o t h e r u n e a r n e d income who work remain e l i g i b l e f o r a d e c l i n i n g SSI payment u n t i l g r o s s e a r n i n g s e q u a l d o u b l e t h e i r b a s i c b e n e f i t p l u s $85 monthly. 91 I n a S t a t e t h a t d o e s n o t supplement t h e b a s i c F e d e r a l b e n e f i t , t h e g r o s s income l i m i t i n 1984 f o r an aged S S I r e c i p i e n t i s $713 monthly i n e a r n i n g s . I n A l a s k a t h e l i m i t i s $1,217 m o n t h l y i n e a r n i n g s . I n a l l b u t 14 S t a t e s 101 SSI r e c i p i e n t s a u t o m a t i c a l l y a r e 14 S t a t e s w i t h more r e s t r i c t i v e e l i g i b l e f o r M e d i c a i d . he1n: e l i g i b i l i t y r u l e s , S t a t e s must d e d u c t m e d i c a l e x p e n s e s o f SSI r e c i p i e n t s i n d e t e r m i n i n g t h e i r c o u n t a b l e income. D i s a b l e d SSI r e c i p i e n t s whose c o u n t e d e a r n i n g s exceed t h e "substantial gainful a c t i v i t y " t e s t t h a t determines d i s a b i l i t y s t a t u s ($300 m o n t h l y ) a r e e l i g i b l e f o r s p e c i a l c a s h b e n e f i t s ( c a l c u l a t e d a s though t h e y s t i l l had d i s a b i l i t y s t a t u s ) , a s l o n g a s t h e i r g r o s s e a r n i n g s a r e below t h e r e g u l a r S S I c e i l i n g ($713 i n a S t a t e w i t h o u t s u p p l e m e n t a t i o n ) . The s p e c i a l c a s h b e n e f i t p r e s e r v e s m e d i c a i d e l i g i b i l i t y f o r t h e d i s a b l e d worker. I n J a n u a r y 1984 f e d e r a l l y a d m i n i s t e r e d SSI b e n e f i t s a v e r a g e d $162 t o aged r e c i p i e n t s , $264 t o t h e b l i n d , and $253 t o t h e d i s a b l e d . H a l f o f t h e N a t i o n ' s 3.9 m i l l i o n SSI r e c i p i e n t s a l s o r e c e i v e s o c i a l s e c u r i t y , and a b o u t 3 p e r c e n t a l s o h a v e e a r n i n g s . A s o f December 1982, S S I c h e c k s w e r e s u p p l e m e n t a r y t o s o c i a l s e c u r i t y b e n e f i t s f o r 70 p e r c e n t o f aged S S I r e c i p i e n t s , 3 8 p e r c e n t o f b l i n d r e c i p i e n t s , and 36 p e r c e n t o f d i s a b l e d r e c i p i e n t s . I n t h a t month income was e a r n e d by 1 . 4 p e r c e n t o f aged r e c i p i e n t s and by 6.5 and 4 . 4 perc e n t , r e s p e c t i v e l y , of t h e b l i n d and d i s a b l e d . S o c i a l s e c u r i t y b e n e f i t s o f d u a l r e c i p i e n t s a v e r a g e d $231. E a r n i n g s o f SSI r e c i p i e n t s w i t h j o b s a v e r a g e d $108. 111 - 8 1 F o r b l i n d o r d i s a b l e d r e c i p i e n t s , t h e law p r o v i d e s a d d i t i o n a l deducFions from e a r n i n g s . B l i n d : d i s r e g a r d t h e f i r s t $65 e a r n e d , p l u s o n e - h a l f o f t h e r e s t , p l u s r e a s o n a b l e work e x p e n s e s . D i s a b l e d : d i s r e g a r d t h e f i r s t $65 e a r n e d , work and l i v i n g e x p e n s e s c a u s e d by t h e d i s a b i l i t y , p l u s o n e - h a l f o f t h e r e s t . F o r b o t h b l i n d and d i s a b l e d SSI r e c i p i e n t s , income needed f o r t h e f u l f i l l m e n t o f a s e l f - s u p p o r t p l a n approved by t h e HHS S e c r e t a r y a l s o i s d i s r e g a r d e d . (The s p e c i a l e x p e n s e d e d u c t i o n f o r t h e d i s a b l e d was e n a c t e d i n J u n e 1980 a s a p r o v i s i o n o f P.L. 96-265.) 9 1 The $85 d i s r e g a r d c o n s i s t s o f t h e f i r s t $20 o f any i n come p l u s $65 i n e a r n i n g s . 101 C o n n e c t i c u t , H a w a i i , I l l i n o i s , I n d i a n a , M i n n e s o t a , ~ i s s G r i ,Nebraska, New Hampshire, North C a r o l i n a , N o r t h Dakota, Ohio, Oklahoma, Utah, and V i r g i n i a . - 111 DHHS. S o c i a l S e c u r i t y A d m i n i s t r a t i o n . O f f i c e o f P o l i c y . O f f i c e o f R e s e a r c h , S t a t i s t i c s , and I n t e r n a t i o n a l P o l i c y . Program and Demographic C h a r a c t e r i s t i c s o f Supplemental S e c u r i t y B e n e f i c i a r i e s . December 1982. 13. PENSIONS FOR NEEDY VETERANS, THEIR DEPENDENTS, AND SURVIVORS A. Funding Formula The F e d e r a l Government p r o v i d e s 100 p e r c e n t f u n d i n g f o r v e t e r a n s ' pensions. B. E l i g i b i l i t y Requirements Under T i t l e 38 o f t h e U n i t e d S t a t e s Code, c h a p t e r 5 , v e t e r a n s a r e e l i g i b l e f o r p e n s i o n s p r o v i d e d : t h e y s e r v e d h o n o r a b l y f o r a t l e a s t 90 d a y s , i n c l u d i n g a t l e a s t 1 day o f w a r t i m e s e r v i c e , t h e y a r e t o t a l l y and p e r m a n e n t l y d i s a b l e d f o r r e a s o n s n o t r e l a t e d t o t h e i r m i l i t a r y serv i c e 11 and n o t c a u s e d by " w i l l f u l m i s c o n d u c t o r v i c i o u s h a b i t s , " and h a v e yncome below p r e s c r i b e d l i m i t s ( l i s t e d i n s e c t i o n below on benef i t l e v e l s ) . At a g e 65 v e t e r a n s a r e deemed t o b e d i s a b l e d , r e g a r d l e s s o f p h y s i c a l c o n d i t i o n . S u r v i v o r s o f v e t e r a n s who w e r e d i s a b l e d by a n o n - s e r v i c e c a u s e a l s o a r e e l i g i b l e f o r p e n s i o n s i f t h e y meet t h e income t e s t . V i r t u a l l y a l l p r i v a t e income o f a v e t e r a n and h i s f a m i l y , i n c l u d i n g S o c i a l S e c u r i t y b e n e f i t s and a d u l t e a r n i n g s , i s c o u n t e d a s a v a i l a b l e . Excluded from c o u n t a b l e income a r e c u r r e n t e a r n i n g s o f a c h i l d t h a t a r e below t h e c h i l d ' s F e d e r a l income t a x t h r e s h o l d ($3,300 y e a r l y i n 19841, amounts p a i d by a c h i l d f o r p o s t s e c o n d a r y e d u c a t i o n o r vocat i o n a l r e h a b i l i t a t i o n t r a i n i n g e x p e n s e s , and c a s h w e l f a r e a i d . A l s o e x c l u d e d a r e p r o c e e d s from t h e s a l e o f non-business p r o p e r t y and amounts o f f a m i l y income e q u a l t o unreimbursed m e d i c a l e x p e n s e s t h a t exceed 5 percent of t h e b a s i c annual b e n e f i t r a t e ( t h o s e exceeding $276 i n January-December 1984 f o r a s i n g l e v e t e r a n , f o r example). 2 1 - C. Benefit Levels The V e t e r a n s ' and S u r v i v o r s ' P e n s i o n Improvement Act o f 1978 (P.L. 95-588) i n c r e a s e d maximum p e n s i o n r a t e s , e f f e c t i v e J a n u a r y 1, 1979. The law p r o v i d e d t h a t t h e r e a f t e r , whenever s o c i a l s e c u r i t y b e n e f i t s were i n c r e a s e d b e c a u s e o f a n a u t o m a t i c c o s t o f l i v i n g a d j u s t ment (COLA), v e t e r a n s ' p e n s i o n s would b e i n c r e a s e d a t t h e same t i m e Thus, b e n e f i t s were i n c r e a s e d 14.3 p e r c e n t and by t h e same p e r c e n t a g e . 11 V e t e r a n s d i s a b l e d b e c a u s e o f m i l i t a r y s e r v i c e a r e e l i g i b l e f o r c G p e n s a t i o n payments, f o r which t h e r e i s n o income t e s t . -2/ E l i g i b i l i t y r u l e s o f t h i s program a r e found i n 3 8 C.F.R P a r t 3. e f f e c t i v e June 1980, 11.2 p e r c e n t e f f e c t i v e June 1981, and 7.4 p e r c e n t e f f e c t i v e June 1982 ( p a i d i n J u l y e a c h y e a r ) . However, i n p a s s i n g t h e S o c i a l S e c u r i t y Amendments of 1983, Congress a c c e p t e d P r e s i d e n t Reagan's r e c o r n e n d a t i o n t o d e l a y t h e 1983 COLA i n s o c i a l s e c u r i t y b e n e f i t s , u n t i l J a n u a r y 1984, and t h e r e a f t e r t o a d j u s t b e n e f i t s each J a n u a r y . S i n c e COLAs f o r v e t e r a n s ' p e n s i o n s a r e t i e d t o t h o s e f o r s o c i a l s e c u r i t y , COLAs f o r v e t e r a n s ' pens i o n s a l s o have been s h i f t e d t o J a n u a r y f o r t h e f u t u r e . The J a n u a r y 1984 COLA was 3.5 p e r c e n t . The maximum b e n e f i t s c h e d u l e : June 1982 Veteran Family S i z e a / - - Dec. 1983 Widow(er) Jan. 1984 Veteran - Dec. 1984 ~idow(er) a / T h i s column r e f e r s t o t h e v e t e r a n p l u s dependents, and t o t h e wTdow(er) p l u s c h i l d r e n . b/ For each a d d i t i o n a l c h i l d , add $903 f o r June 1982~ e c e m z e r1983 and $935 f o r c a l e n d a r y e a r 1984. V e t e r a n s who s e r v e d b e f o r e World War I r e c e i v e an e x t r a $1,245 payment a n n u a l l y . The v e t e r a n s ' pension s c h e d u l e g u a r a n t e e s a 1984 income above t h e Census ~ u r e a u ' s 1983 poverty t h r e s h o l d s f o r v e t e r a n s w i t h no more than two dependents. For widows and widowers, and f o r v e t e r a n s with t h r e e o r more dependents, t h e program's maximum b e n e f i t s a r e below t h e p o v e r t y t h r e s h o l d . 31 - I n f i s c a l y e a r 1983 pensions averaged $3,157 p e r c a s e t o v e t e r a n s , $1,494 p e r c a s e t o v e t e r a n s ' s u r v i v o r s ($263 and $125 monthly, r e s p e c t t i v e l y ) . FY 1983 pension b e n e f i t s t o t a l l e d $3.9 b i l l i o n , up 3 p e r c e n t from t h e FY 1981 t o t a l o f $3.8 b i l l i o n . I n t h e same p e r i o d t h e number o f r e c i p i e n t s d e c l i n e d by 17.5 p e r c e n t . 31 Estimated a v e r a g e p o v e r t y t h r e s h o l d s of t h e Census Bureau i n 1983 T i s s u e d J a n . 1984): s i n g l e non-aged person $5,180; s i n g l e aged person, $4,770; f a m i l y o f two, $6,480, f a m i l y o f t h r e e , $7,940; f a m i l y of f o u r , $10,180; f a m i l y of f i v e , $12,080. 14. - GENERAL ASSISTANCE (NoN-MEDICAL CARE COMPONENT) 1/ A. Funding Formula No F e d e r a l funds a r e p r o v i d e d f o r G e n e r a l A s s i s t a n c e (GA). GA i s a g e n e r a l name f o r S t a t e and l o c a l programs t h a t h e l p p e r s o n s who d o n o t q u a l i f y f o r Aid t o F a m i l i e s w i t h Dependent C h i l d r e n , Supplemental S e c u r i t y Income, o r Emergency Assista n c e t o Needy F a m i l i e s w i t h C h i l d r e n . I n many S t a t e s GA i s known a s "General R e l i e f . " 2 / - As o f l a t e 1982, 2 5 j u r s i s d i c t i o n s , i n c l u d i n g D.C. and t h e t h r e e o u t l a y i n g a r e a s , o p e r a t e d S t a t e w i d e GA programs, f u l l y funded by t h e S t a t e . 3 / N i n e t e e n S t a t e s p r o v i d e d no f u n d s f o r local relief although four of these S t a t e s required t h e i r l o c a l i t i e s t o o f f e r GA. 4 / One S t a t e (West V i r g i n i a ) had no c a s h GA program, h a v i n g endTd S t a t e f u n d i n g f o r i t i n 1980. The r e m a i n i n g n i n e S t a t e s g e n e r a l l y s h a r e d GA c o s t s w i t h localities. 1 / S t a t e d a t a r e p o r t e d h e r e a r e drawn frm a s t u d y e n t i t i e d " C h a r a c t e r i s t i c s of G e n e r a l A s s i s t a n c e Programs, 1982," p r e p a r e d by Urban Systems R e s e a r c h and E n g i n e e r i n g , I n c . , Cambridge, M a s s a c h u s e t t s , f o r U.S. Department of H e a l t h and Human S e r v i c e s . C o n t r a c t No. HHS-100-82-0038. 2 1 Seven S t a t e s u s e t h e term, G e n e r a l R e l i e f : A l a s k a , ~ r k a n s a s , C a l i f o r n i a , Iowa, M i s s m r i , Ohio, and V i r g i n i a . O t h e r names i n c l u d e : home r e l i e f (New ~ o r k ) ,poor r e l i e f ( I n d i a n a and some T e n n e s s e e c o u n t i e s ) ; p a u p e r ' s fund (some T e n n e s s e e c o u n t i e s ) ; d i r e c t a s s i s t a n c e (Nevada), and d i r e c t r e l i e f (New ~ a r n ~ s h i r e ) . 3/ The 25 j u r i s d i c t i o n s : A l a s k a , A r i z o n a , A r k a n s a s , D.C., Guam, Hawaii, Kansas, L o u i s i a n a , Maryland, M a s s a c h u s e t t s , Michigan, M i s s o u r i , New Mexico, Oklahoma, Oregon, P e n n s y l v a n i a , P u e r t o R i c o , South C a r o l i n a , Rhode I s l a n d , Utah, Vermont, V i r g i n I s l a n d s , Washington, and Wyoming. el aware, 41 Alabama, C a l i f o r n i a , C o l o r a d o , F l o r i d a , G e o r g i a , 1daho7 I n d i a n a , Iowa, Kentucky, M i s s i s s i p p i , Montana, Nebraska, Nevada, New Hampshire, North C a r o l i n a , South Dakota, T e n n e s s e e , Texas, and Wisconsin. Although C a l i f o r n i a p r o v i d e d no S t a t e f u n d s f o r G e n e r a l R e l i e f , i t h e l p e d c o u n t i e s f i n a n c e AFDC-NonF e d e r a l (AFDc-NF), a program f o r f a m i l i e s i n e l i g i b l e f o r federally aided grants. B. E l i g i b i l i t y Requirements To r e c e i v e GA, a p e r s o n must b e judged i n f i n a n c i a l need and must l i v e where s u c h a i d i s o f f e r e d . F u r t h e r , i n many a r e a s one must b e d i s a b l e d o r o t h e r w i s e deemed unemployable. I n j u r i s d i c t i o n s t h a t a l l o w GA f o r e m p l o y a b l e s , e l i g i b i l i t y o f t e n i s r e s t r i c t e d t o p e r s o n s w i t h d e p e n d e n t c h i l d r e n , and r e c i p i e n t s u s u a l l y must p a r t i c i p a t e i n work programs, i f a v a i l a b l e . D e f i n i t i o n s o f need v a r y among S t a t e s and even w i t h i n them. I n t h e 19 S t a t e s where l o c a l i t i e s must pay a l l GA c o s t s , c o u n t i e s , t o w n s h i p s , and m u n i c i p a l i t i e s d e c i d e who i s a i d e d and how much. A v a i l a b i l i t y o f GA v a r i e s w i t h i n t h e s e S t a t e s , a s f o l l o w s : A l l counties--California, 51 I n d i a n a , Montana, 51 Nebraska, New Hampshire 51 and s o u t h - ~ a k o t a ; more t h a n o n e - h a l f o f t h e c o u n t i e s - F l o r i d a , 1';laho, 5 1 Iowa, Texas, and Wisconsin; between o n e - f o u r t h and o n e - h a l f o f t h e c o u n t i e s - - M i s s i s s i p p i , North C a r o l i n a , Colorado; fewer t h a n o n e - f o u r t h o f t h e c o u n t i e s - - G e o r g i a , Kentucky, and Nevada; unknown p r o p o r t i o n , Alabama and Tennessee. I n t h e n i n e S t a t e s w i t h s h a r e d f u n d i n g , GA i s a v a i l a b l e t h r o u g h o u t t h e S t a t e , e x c e p t i n V i r g i n i a , where a few c o u n t i e s have no programs. E l i g i b i l i t y terms a r e g e n e r a l l y uniform i n M i n n e s o t a , New J e r s e y and New York, b u t t h e y v a r y among l o c a l i t i e s i n C o n n e c t i c u t , I l l i n o i s , Maine, North Dakota, and V i r g i n i a . As o f l a t e 1982, 30 j u r i s d i c t i o n s r e p o r t e d t h a t most o f t h e i r GA c a s h r e c i p i e n t s were s i n g l e a d u l t s . Of t h e s e j u r i s d i c t i o n s , 15 e i t h e r r e s t r i c t e d a i d t o unemployables o r concent r a t e d a i d on them, 6 1 4 S t a t e s s a i d most o f t h e i r r e c i p i e n t s w e r e e m p l o y a b l e s , 71-and t h e o t h e r 11 S t a t e s d i d n o t c h a r a c t e r i z e t h e i r c a s e l z a d by e m p l o y a b i l i t y . F o u r S t a t e s r e p o r t e d t h a t most o f t h e i r GA r e c i p i e n t s were i n t a c t families with children 81 Seven S t a t e s r e p o r t e d t h a t t h e y had programs o f work r e l i e f ( " w o r k f a r e , " i n which r e c i p i e n t s work i n exchange f o r t h a t a i d ) o r work t r a i n i n g i n a l l c o u n t i e s : Hawaii (program c a l l e d 51 S t a t e l a w r e q u i r e s l o c a l i t i e s t o have l o c a l r e l i e f programs. However, n o t a l l c o u n t i e s i n I d a h o d i d s o i n l a t e 1982. 6 1 A r i z o n a , C o l o r a d o , C o n n e c t i c u t , D i s t r i c t of Columbia, ~ a n s a s ,L o u i s i a n a , Maryland, M i n n e s o t a , M i s s o u r i , New Hampshire, New Mexico, Oregon, Rhode I s l a n d , S o u t h C a r o l i n a , and Washington. -7 1 I l l i n o i s , New J e r s e y , Ohio, and P e n n s y l v a n i a . 81 - A l a s k a , Nebraska, North Dakota, and Oklahoma. Temporary Labor F o r c e ) ; Kansas; Michigan (work e x p e r i e n c e o r work t r a i n i n g ) New J e r s e y ; New York ( p u b l i c works p r o j e c t s ) ; Ohio; and Rhode I s l a n d (Work T r a i n i n g program). C a l i f o r n i a and Wisconsin s a i d most o f t h e i r c o u n t i e s had work r e l i e f programs f o r employable GA r e c i p i e n t s . I l l i n o i s , I n d i a n a and New Hampshire, s a i d many o f t h e i r c o u n t i e s had s u c h programs; I d a h o , Iowa, Maryland, Maine, Montana, Nebraska, North Dakota, P e n n s y l v a n i a , and V i r g i n i a s a i d some o f t h e i r c o u n t i e s had s u c h programs. U t a h , which b a r s GA f o r f u l l y employable p e r s o n s , s a i d i t had a s m a l l work r e l i e f program l i m i t e d t o p a r t i a l l y d i s a b l e d persons. Many S t a t e s u s e non-Federal funds t o c o n t i n u e c a s h a i d t o f a m i l i e s who l o s e AFDC e l i g i b i l i t y upon t h e i r youngest c h i l d ' s 1 8 t h b i r t h d a y ( 1 9 t h b i r t h d a y i n some S t a t e s ) . 91 Some S t a t e s o f f e r GA t o two-parent f a m i l i e s w i t h an unemplTyed p a r e n t who f a i l s t h e work h i s t o r y r e q u i r e m e n t o r t h e p r i m a r y e a r n e r t e s t o f AFDC 1 0 / Somes S t a t e s u s e GA f u n d s t o a i d d i s a b l e d p e r s o n s p e n d i z t h e i r S S I a p p l i c a t i o n s (and a r e r e i m b u r s e d by t h e S o c i a l S e c u r i t y A d m i n i s t r a t i o n f o r p e r s o n s found e l i g i b l e ) . I n a d d i t i o n , Maryland, M i n n e s o t a , and some c o u n t i e s i n Wisconsin and Iowa have s p e c i a l a i d programs f o r needy v e t e r a n s ' and Wisconsin p r o v i d e s r e l i e f t o needy I n d i a n s who l i v e on tax-free land. GA b e n e f i t l e v e l s v a r y among S t a t e s a n d , o f t e n w i t h i n them. They r a n g e from s m a l l one-time emergency payments t o r e g u l a r payments s i m i l a r t o t h o s e o f AFDC o r SSI. For example, C a l i f o r n i a ' s maximum monthly payment f o r an i n d i v i d u a l ranged i n l a t e 1982 from a low o f $40 t o a h i g h of $250. The r a n g e i n New York was from $177 t o $299, w i t h t h e d i f f e r e n c e r e f l e c t i n g d i f f e r e n c e s i n a r e a s h e l t e r maximums. Arkansas S t a t e law s e t s a c e i l i n g o f $40 on monthly payments f o r a n i n d i v i d u a l , b u t c o u n t y w e l f a r e d i r e c t o r s sometimes i n c r e a s e d payments a t t h e i r d i s c r e t i o n . Most j u r s i d i c t i o n s g e n e r a l l y p r o v i d e d b a s i c a i d i n t h e form o f c a s h ; some u s e d c o m b i n a t i o n s o f c a s h and v e n d o r payments; some used vouchers. D u r i n g FY 1981, t h e U.S. Department o f H e a l t h and Human S e r v i c e s s t o p p e d c o l l e c t i n g d o l l a r d a t a about GA programs. 91 Some 20 S t a t e s p e r m i t c a s h payments t o c o n t i n u e f o r t h e mozher, 1 6 f o r t h e c h i l d . 10/ C a l i f o r n i a , one o f t h e s e S t a t e s , h a s a s p e c i a l nonNew f e d e r x l y funded program f o r s u c h c a s e s , c a l l e d "AFDC-NF." York and Michigan make s u c h f m i l i e s p o t e n t i a l l y e l i g i b l e f o r t h e i r r e g u l a r GA programs. The U.S. Census Bureau r e p o r t s t h a t d i r e c t S t a t e s and l o c a l i t i e s t o t a l e d $ 1 . 7 b i l l i o n b i l l i o n i n 1982. The p r e l i m i n a r y e s t i m a t e a Congressional Research S e r v i c e survey of programs, i s $2.1 b i l l i o n . c a s h a s s i s t a n c e by i n 1981 and $ 1 . 9 f o r 1983, b a s e d on States with large Most GA programs o f f e r m e d i c a l a s s i s t a n c e a s w e l l a s c a s h . F o r m e d i c a l a i d p r o v i d e d u n d e r S t a t e - l o c a l GA programs, see program No. 3. 15. EARNED INCOME TAX CREDIT (EITC) 1/ A. Funding Formula T h i s b e n e f i t i s 100 p e r c e n t f e d e r a l l y f u n d e d . B. E l i gibility - Requirements The Earned Income Tax C r e d i t (EITC) i s a v a i l a b l e t o a p a r e n t 2 1 ( o r p a r e n t s ) w i t h e a r n i n g s whose a d j u s t e d g r o s s income i s n o t a b o v e $10,000 a n n u a l l y and who m a i n t a i n s a h o u s e h o l d 3 1 f o r a c h i l d who c a n b e c l a i m e d a s h i s t a x d e p e n d e n t . To r e c e i v e t h e c r e d i t , a person need n o t owe o r pay any income t a x . However, h e must a p p l y f o r t h e c r e d i t , e i t h e r by f i l i n g a n income t a x r e t u r n a t t h e end o f t h e t a x y e a r o r by f i l i n g a n e a r n e d income e l i g i b i l i t y c e r t i f i c a t e w i t h h i s employer f o r advance payments o f t h e c r e d i t . 41 To b e e l i g i b l e f o r EITC, m a r r i e d c o u p l e s must f i l e a j o i n t izcome t a x return. - C. Benefit Levels The Earned Income Tax C r e d i t , a s amended by t h e Revenue Act o f 1978 (P.L. 95-6001, e q u a l s 1 0 p e r c e n t o f t h e f i r s t $5,000 o f e a r n i n g s , i n c l u d i n g n e t e a r n i n g s from self-employment, b u t may n o t e x c e e d $500 p e r 1 / C a l l e d Earned Income C r e d i t ( E I C ) i n t a x forms and literzture. 2/ The S e n a t e approved a f l o o r amendment t o t h e t a x b i l l i n J u l y i 9 8 1 t o b a r i l l e g a l a l i e n s from EITC e l i g i b i l i t y b u t t h e House d i d n o t , and t h e p r o v i s i o n d i e d i n c o n f e r e n c e . 3 / The I n t e r n a l Revenue S e r v i c e h a s r u l e d t h a t t h o s e who u s e AFDC ?unds t o pay p a r t of t h e c o s t o f m a i n t a i n i n g a home f o r a c h i l d may not c o u n t t h e s e w e l f a r e b e n e f i t s a s t h e i r own c o n t r i b u t i o n . Thus, an AFDC p a r e n t i s i n e l i g i b l e f o r t h e c r e d i t i f t h e f a m i l y ' s AFDC g r a n t e q u a l s o r e x c e e d s h a l f t h e c o s t o f k e e p i n g up t h e h o u s e i n t h e t a x y e a r . G e n e r a l l y , t h e p a r e n t ' s e a r n i n g s must exceed t h e AFDC b e n e f i t . 4/ becam; The o p t i o n f o r advance payments by a d d i t i o n t o paychecks a v a i l a b l e i n J u l y 1979. f a m i l y . 5 1 The s i z e o f c r e d i t i s u n r e l a t e d t o t h e number o f depend e n t s of-a w o r k e r . Between e a r n i n g s o f $ 5 , 0 0 0 and $ 6 , 0 0 0 , t h e maximum c r e d i t o f $500 i s r e c e i v e d . F o r e a c h d o l l a r o f a d j u s t e d g r o s s i n come ( o r , i f h i g h e r , e a r n e d income) above $6,000 t h e c r e d i t i s r e d u c e d by 12.5 c e n t s . A s a r e s u l t , i t e n d s when a d j u s t e d g r o s s income r e a c h e s $10,000. B e f o r e J a n u a r y 1, 1980, EITC b e n e f i t s c o u l d n o t b e t a k e n i n t o account f o r purposes of determining e l i g i b i l i t y of t h e r e c i p i e n t f o r b e n e f i t s o r a s s i s t a n c e u n d e r any F e d e r a l program o r under any S t a t e o r l o c a l program f i n a n c e d i n whole o r i n p a r t w i t h F e d e r a l f u n d s . E f f e c t i v e J a n u a r y 1980, t h e EITC was t r e a t e d a s e a r n e d income when r e c e i v e d . The maximum EITC was r a i s e d from $400 t o $500, e f f e c t i v e f o r 1979 e a r n i n g s , and a d v a n c e payments o f t h e c r e d i t were p e r m i t t e d b e g i n n i n g on J u l y 1, 1979. S i n c e O c t o b e r 1981, P.L. 97-35 h a s r e q u i r e d w e l f a r e o f f i c e s t o assume t h a t an AFDC f a m i l y c o n s i d e r e d e l i g i b l e f o r EITC i s r e c e i v i n g i t on an a d v a n c e - b a s i s ( a s a n a d d i t i o n t o t h e paycheck), r e g a r d l e s s o f whether i t i s so paid. I n FY 1983 e a r n e d income c r e d i t s ( g e n e r a l l y e a r n e d i n 1982) t o t a l l e d $1.8 b i l l i o n , o f which a b o u t $ 1 . 2 b i l l i o n r e p r e s e n t e d T r e a s u r y payments i n e x c e s s o f c u r r e n t y e a r t a x l i a b i l i t y and $ 0 . 6 b i l l i o n o f f s e t t a x l i a b i l i t y . Some 6 . 4 m i l l i o n f a m i l i e s c l a i m e d t h e c r e d i t , which a v e r a g e d a b o u t $254 p e r f a m i l y . Of t o t a l r e c i p i e n t s , 4 . 6 m i l l i o n r e c e i v e d d i r e c t EITC payments i n t h e form of Treasury checks. 5 1 O r i g i n a l l y , t h e maximum c r e d i t was $400 p e r f a m i l y , p h a s e z o u t by 10 p e r c e n t o f e a r n i n g s between $4,000 and $8,000. The maximum c r e d i t was r a i s e d t o $500 by t h e Revenue Act o f 1978 (P.L. 95-600). E I T C was e n a c t e d i n 1975 a s a temporary measure and made permanent i n 1978. 16. FOSTER CARE - Note: The program d e s c r i b e d h e r e s t a r t e d on O c t o b e r 1, 1980, e s t a b l i s h e d i n a new p a r t ( p a r t IV-E) o f t h e BFDC t i t l e o f t h e S o c i a l S e c u r i t y A c t . P r e v i o u s l y , f o s t e r c a r e was a s e p a r a t e component o f t h e r e g u l a r AFDC program. A. Funding Formula The d e d i c a i d m a t c h i n g f o r m u l a ( s e e program No. 1 ) d e c i d e s t h e F e d e r a l f u n d i n g s h a r e i n e a c h S t a t e . Under t h e Medicaid f o r m u l a , F e d e r a l f u n d s pay 55 p e r c e n t of f o s t e r c a r e program c o s t s i n a S t a t e w i t h a v e r a g e p e r c a p i t a income. F o r o t h e r s , t h e F e d e r a l s h a r e r a n g e s from 50 t o more t h a n 77 p e r c e n t , w i t h t h e s h a r e i n v e r s e l y r e l a t e d t o p e r c a p i t a income. I n y e a r s t h r o u g h 1984, a S t a t e - b y - S t a t e c e i l i n g on f u n d s a p p l i e s i f t h e a p p r o p r i a t i o n f o r c h i l d w e l f a r e s e r v i c e s reaches a s p e c i f i e d t r i g g e r amount. The c e i l i n g a p p l i e d i n FY81, b u t n o t i n FY82, FY83 o r FY84. B. - E l i g i b i l i t y Requirements 1/ A c h i l d must meet AFDC e l i g i b i l i t y r u l e s . See AFDC (program No. 1 1 ) . I n some S t a t e s , t h o s e t h a t have implemented p r e s c r i b e d c h i l d w e l f a r e and f o s t e r c a r e p r o c e d u r e s , e l i g i b i l i t y e x t e n d s t o c h i l d r e n p l a c e d i n f o s t e r c a r e u n d e r a v o l u n t a r y placement agreement between t h e w e l f a r e agency and p a r e n t s ( t h r o u g h FY84 o n l y ) . Elsewhere c h i l d r e n a r e e l i g i b l e o n l y i f removed from home a s a r e s u l t o f a j u d i c i a l d e t e r m i n a t i o n t h a t t h i s was r e quired f o r t h e i r welfare. C. Benefit Levels S t a t e s d e t e r m i n e payments t o f o s t e r p a r e n t s and i n s t i t u t i o n s , and c h i l d r e n a u t o m a t i c a l l y a r e e l i g i b l e f o r X e d i c a i d . The law s e t t i n g up t h i s program (Adoption A s s i s t a n c e and C h i l d W e l f a r e Act o f 1980, P.L. 96-272) r e q u i r e s t h a t S t a t e s p r o v i d e prev e n t i v e and r e u n i f i c a t i o n s e r v i c e s f o r e a c h f o s t e r c h i l d by O c t o b e r 1, 1983. I t r e q u i r e d S t a t e s ( b y O c t o b e r 1 , 1982) t o s e t g o a l s f o r t h e maximum p r o p o r t i o n o f f o s t e r c h i l d r e n t o b e i n f o s t e r c a r e f o r more t h a n 2 y e a r s . 1/ R e g u l a t i o n s o f t h i s program a r e found i n 45 C.F.R. 1355, i 3 5 6 , and 1357. See F e d e r a l R e g i s t e r , Vol. 48, No. 100, May 23, 1983, 23104-23119. 17. ASSISTANCE TO REFUGEES AND CUBANIHAITIAN ENTRANTS (CASH COMPONENT) A. Fundinn Formula The Refugee Act o f 1980 a u t h o r i z e s 100 p e r c e n t f e d e r a l l y f u n d e d c a s h a s s i s t a n c e f o r needy r e f u g e e s d u r i n g t h e i r f i r s t y e a r s i n t h e U n i t e d S t a t e s . T i t l e V o f t h e Refugee E d u c a t i o n A s s i s t a n c e Act P.L. 96-422) a u t h o r i z e s s i m i l a r a s s i s t a n c e f o r c e r t a i n Cubans and H a i t i a n s who h a v e r e c e n t l y e n t e r e d t h e U.S. The F e d e r a l r e f u g e e a s s i s t a n c e program r e i m b u r s e s S t a t e s 100 p e r c e n t f o r t h e nonF e d e r a l s h a r e o f Aid t o F a m i l i e s w i t h Dependent C h i l d r e n (AFDC) payments t o r e f u g e e s and e n t r a n t s , and f o r any S t a t e s u p p l e m e n t a r y payments t o r e f u g e e s and e n t r a n t s u n d e r t h e Supplementary S e c u r i t y Income (sSI) program. I t a l s o p r o v i d e s " r e f u g e e c a s h a s s i s t a n c e " t o needy r e f u g e e s and e n t r a n t s who a r e c a t e g o r i c a l l y i n e l i g i b l e f o r AFDC o r S S I . The r e f u g e e and e n t r a n t program c a s h a s s i s t a n c e i s a u t h o r i z e d t h r o u g h FY84. - E l i g i b i l i t y Requirements 11 A person must ( a ) have been a d m i t t e d t o t h e U.S. a s a r e f u g e e u n d e r p r o v i s i o n s o f t h e I m m i g r a t i o n and N a t i o n a l i t y A c t , o r ( b ) b e a Cuban o r H a i t i a n p a r o l e d i n t o t h e U n i t e d S t a t e s between A p r i l 20 and O c t o b e r 1 0 , 1980 and d e s i g n a t e d " C u b a n I H a i t i a n e n t r a n t , " o r ( c ) b e a Cuban o r H a i t i a n n a t i o n a l who a r r i v e d i n t h e U n i t e d S t a t e s a f t e r O c t o b e r 1 0 , 1980, who h a s a p e n d i n g a p p l i c a t i o n f o r asylum o r i s subj e c t t o e x c l u s i o n o r d e p o r t a t i o n , and a g a i n s t whom a f i n a l o r d e r o f d e p o r t a t i o n h a s n o t been i s s u e d . I f a needy r e f u g e e i s a g e d , b l i n d o r d i s a b l e d h e i s e l i g i b l e f o r SSI c a s h b e n e f i t s on t h e same b a s i s a s c i t i z e n s o r permanent r e s i d e n t a l i e n s ( s e e SSI program d e s c r i p t i o n ) . Refugees o r e n t r a n t s who meet t h e income and a s s e t t e s t s p r e s c r i b e d by t h e i r S t a t e f o r AFDC, a s w e l l a s t h e c a t e g o r i c a l r e q u i r e m e n t s o f t h e S t a t e ' s AFDC program, a r e e l i g i b l e f o r AFDC c a s h b e n e f i t s . Those who meet t h e S t a t e ' s income and a s s e t t e s t s b u t who a r e n o t c a t e g o r i c a l l y e l i g i b l e f o r AFDC o r SSI q u a l i f y f o r " r e f u g e e example, a s i n g l e r e f u g e e o r a c h i l d cash assistance." l e s s o r employed c o u p l e c o u l d r e c e i v e r e f u g e e c a s h a s s i s t a n c e i f deemed needy by S t a t e AFDC s t a n d a r d s ) . The law r e q u i r e s employa b l e r e f u g e e s and e n t r a n t s t o a c c e p t " a p p r o p r i a t e " j o b o f f e r s and t o r e g i s t e r f o r employment t o r e c e i v e c a s h a s s i s t a n c e . - or -1/ K e g u l a t i o n s o f t h i s program a r e found i n 45 C.F.R. 400-401. E f f e c t i v e A p r i l 1, 1981, o n l y r e f u g e e s o r e n t r a n t s i n t h e United s t a t e s t h r e e y e a r s o r l e s s q u a l i f y f o r cash a s s i s t a n c e r e i m b u r s e m e n t s . E f f e c t i v e A p r i l 1 , 1982, t h e s p e c i a l " r e f u g e e c a s h a s s i s t a n c e " made a v a i l a b l e t o t h o s e r e f u g e e s o r e n t r a n t s who a r e c a t e g o r i c a l l y i n e l i g i b l e f o r AFDC o r SSI ends 18 months a f t e r t h e i n d i v i d u a l ' s e n t r y i n t o t h e U.S. For t h e next 1 8 months, S t a t e s may b e r e i m b u r s e d 100 p e r c e n t by t h e r e f u g e e program f o r any c a s h a i d made a v a i l a b l e t o t h e s e r e f u g e e s and e n t r a n t s t h r o u g h a S t a t e o r l o c a l g e n e r a l a s s i s t a n c e (GA) program. The e l i g i b i l i t y l i m i t s and b e n e f i t l e v e l s f o r GA programs a r e g e n e r a l l y lower t h a n t h o s e o f AFDC and SSI. C. Benefit Levels B e n e f i t l e v e l s f o r r e f u g e e s and e n t r a n t s who q u a l i f y f o r AFDC and S S I a r e t h e l e v e l s e s t a b l i s h e d f o r t h o s e programs. "Refugee c a s h a s s i s t a n c e " payments a r e b a s e d on t h e S t a t e ' s AFDC payment t o a f a m i l y u n i t o f t h e same s i z e . For example, a n a b l e - b o d i e d non-aged c o u p l e would r e c e i v e a r e f u g e e c a s h a s s i s t a n c e b e n e f i t e q u a l t o t h a t o f a two-person AFDC f a m i l y . 18. EMERGENCY ASSISTANCE TO NEEDY FAMILIES WITH CHILDREN (EA) A. Funding Formula The S o c i a l S e c u r i t y A c t p r o v i d e s 50 p e r c e n t F e d e r a l f u n d i n g f o r Emergency A s s i s t a n c e t o needy f a m i l i e s w i t h c h i l d r e n . B. E l i g i b i l i t y Requirements The S o c i a l S e c u r i t y A c t p e r m i t s S t a t e s t o g i v e Emergency A s s i s t a n c e ( c a s h , i n - k i n d a i d , m e d i c a l a i d ) t o needy f a m i l i e s w i t h c h i l d r e n , i n c l u d i n g m i g r a n t f a m i l i e s , f o r no more t h a n 30 d a y s p e r c a l e n d a r y e a r , t o "avoid d e s t i t u t i o n " o f t h e c h i l d r e n o r t o p r o v i d e l i v i n g a r r a n g e m e n t s f o r them. 11 I n f i s c a l y e a r 1983, 27 j u r i s d i c t i o n s made s u c h payments. / z e v e r a l S t a t e s t e r m i n a t e d Emergency A s s i s t a n c e (EA) programs i n 1975-77, 31 a p e r i o d d u r i n g which c o u r t s u i t s challenged S t a t e s ' r i g h t s t o r e s t r i c t t h e k i n d s o f emergencies f o r which EA was a v a i l a b l e . On J u n e 6 , 1978, t h e U.S. Supreme C o u r t h e l d t h a t S t a t e s c o u l d l i m i t e l i g i b i l i t y f o r EA more n a r r o w l y t h a n t h e o u t e r bounds e s t a b l i s h e d i n t h e S o c i a l S e c u r i t y Act. 4 1 - As o f O c t o b e r 1, 1981, a c c o r d i n g t o S t a t e p l a n s on f i l e w i t h DHHS, t h e t h r e e c l a s s e s o f e m e r g e n c i e s c o v e r e d by most o f t h e 25 j u r i s d i c t i o n s t h e n h a v i n g EA programs w e r e n a t u r a l d i s a s t e r s ( 1 6 s t a t e s ) , u n s p e c i f i e d c r i s i s t h r e a t e n i n g family o r l i v i n g arrangements ( 9 S t a t e s ) , and h o m e l e s s n e s s ( 1 1 S t a t e s ) . O t h e r q u a l i f y i n g c a u s e s o f n e e d s p e c i f i e d by v a r i o u s S t a t e s i n c l u d e d d e a t h , c i v i l d i s o r d e r s , e v i c t i o n o r p o t e n t i a l e v i c t i o n , i l l n e s s , u t i l i t y shut-off o r f u e l s h o r t a g e , "manmade d i s a s t e r s " ( p e a c e t i m e r a d i o l o g i c a l i n c i d e n t , chemi c a l d i s a s t e r ) , a p p l i a n c e f a i l u r e , t h e f t , wage g a r n i s h m e n t , a c c i d e n t , d i v o r c e o r d e s e r t i o n , and mass c a r e and a s s i s t a n c e s i t u a t i o n s . 11 C.F.R: F e d e r a l r u l e s f o r Emergency A s s i s t a n c e a r e found i n 4 5 1 233.120 ( 1 9 8 3 ) . 21 A r k a n s a s , C a l i f o r n i a , Delaware, D.C., G e o r g i a , I l l i n o i s , ~ a n s a s ,Maine, Maryland, M a s s a c h u s e t t s , M i c h i g a n , M i n n e s o t a , Montana, Nebraska, New J e r s e y , New York, Ohio, Oklahoma, Oregon, P e n n s y l v a n i a , P u e r t o R i c o , Vermont, V i r g i n i a , Washington, West V i r g i n i a , Wisconsin, and Wyoming. -31 A l a s k a , I l l i n o i s , 41 Quern v . Mandley. - S o u t h Dakota, Utah, Vermont, and Wisconsin. 436 U.S. 725 ( 1 9 7 8 ) . C. Benefit Levels E i g h t e e n S t a t e s r e p o r t e d t o DHHS t h a t t h e y pay EA i n b o t h c a s h and v e n d o r payments. T h r e e s a i d t h e y u s e o n l y c a s h , and a n o t h e r t h r e e s a i d t h a t t h e y u s e o n l y v e n d o r payments. I n FY 1983 a t o t a l o f $110 m i l l i o n i n EA f u n d s was p a i d t o a monthly a v e r a g e o f 29,400 f a m i l i e s , y i e l d i n g a v e r a g e m o n t h l y benef i t s o f $312, compared t o $281 i n 1982 and $184 i n 1981. The number o f f a m i l i e s a i d e d was down 3 p e r c e n t from 1982, down 4 3 p e r c e n t from 1981. O u t l a y s were up 8 p e r c e n t from 1982, b u t down 4 p e r c e n t from 1981. Some S t a t e s s a i d t h a t i n 1982 t h e y i n c r e a s e d t h e i r u s e o f Low-Income Energy A s s i s t a n c e f u n d s , which a r e 100 p e r c e n t f e d e r a l l y f u n d e d , f o r emergency a i d and t h u s d e c r e a s e d t h e i r u s e o f EA f u n d s , which a r e 50 p e r c e n t f e d e r a l l y f u n d e d . 19. DEPENDENCY AND INDEMNITY CONPENSATION FOR PARENTS OF VETERANS A. Funding Formula The F e d e r a l government p r o v i d e s 100 p e r c e n t f u n d i n g f o r dependency and i n d e m n i t y c o m p e n s a t i o n . E l i g i b i l i t y Requirements Under T i t l e 38 o f t h e U n i t e d S t a t e s Code, s e c t i o n 415, p a r e n t s o f v e t e r a n s who d i e d from a s e r v i c e - c o n n e c t e d c a u s e a r e e l i g i b l e f o r Dependency and I n d e m n i t y Compensation (DIG) i f t h e i r c o u n t e d Countable income i s below l i m i t s i n F e d e r a l law and r e g u l a t i o n s . a n n u a l income l i m i t s ( ~ e c e m b e r 1983-December 1984) a r e $ 6 , 2 7 3 f o r o n e p a r e n t a l o n e and f o r e a c h o f two p a r e n t s n o t l i v i n g t o g e t h e r ; $8,435 f o r two p a r e n t s l i v i n g t o g e t h e r , o r f o r a r e m a r r i e d p a r e n t l i v i n g w i t h h i s s p o u s e . T h e s e amounts a r e up 3.5 p e r c e n t from t h o s e e f f e c t i v e on J u n e 1, 1982, r e f l e c t i n g t h e r i s e i n t h e Consumer P r i c e I n d e x ( c P I ) from t h e f i r s t q u a r t e r o f CY 1982 t o t h e same q u a r t e r o f 1982. C h i e f e x c l u s i o n s from c o u n t a b l e income a r e 1 0 p e r c e n t o f S o c i a l S e c u r i t y payments and c a s h w e l f a r e payments. 11 - C. Benefit Levels The V e t e r a n s ' and S u r v i v o r s ' P e n s i o n Improvement Act o f 1978 (P.L. 95-588) e s t a b l i s h e d D I C r a t e s f o r p a r e n t s e f f e c t i v e J a n u a r y 1, 1979, and r e q u i r e d t h a t t h e r e a f t e r , whenever s o c i a l s e c u r i t y benef i t s w e r e i n c r e a s e d by a n a u t o m a t i c c o s t - o f - l i v i n g a d j u s t m e n t (COLA), p e n s i o n r a t e s would b e a d j u s t e d by t h e same p e r c e n t a g e and a t t h e same t i m e . The S o c i a l S e c u r i t y Amendments o f 1983 (P.L. 98-21) d e l a y e d t h e 1983 COLA i n s o c i a l s e c u r i t y b e n e f i t s u n t i l J a n u a r y 1984 and s c h e d u l e d f u t u r e b e n e f i t a d j u s t m e n t s f o r J a n u a r y , and changed t h e m e a s u r i n g p e r i o d u s e d t o d e c i d e b e n e f i t c h a n g e s . S i n c e D I C benef i t a d j u s t m e n t s a r e t i e d t o t h e COLA f o r s o c i a l s e c u r i t y , t h e D I C COLA a l s o h a s been s h i f t e d t o J a n u a r y . -11 E l i g i b i l i t y r u l e s a r e found i n 3 8 C.F.R. P a r t 3. Maximum monthly D I C b e n e f i t f o r p a r e n t s : J u n e 1982 One p a r e n t Two p a r e n t s t o g e t h e r ( e a c h ) Two p a r e n t s n o t t o g e t h e r ( e a c h ) - Dec. 1983 J a n . 1984 - Dec. 1984 $248 166 176 As c o u n t a b l e income c l i m b s , b e n e f i t s a r e r e d u c e d by a p r o g r e s s i v e l y r i s i n g p e r c e n t a g e o f t h e e x t r a income, r a n g i n g from 3 p e r c e n t t o 8 p e r c e n t 2 1 . The minimum payment i s $5.00. I n FY 1983 monthly b e n e f i t s a v e r a g e d $96 p e r p a r e n t . 21 T h i s p e r c e n t a g e i s known a s The b z n e f i t - l o s s r a t e f o r o n e p a r e n t parents not l i v i n g together the r a t e e x t r a income; f o r two p a r e n t s l i v i n g the marginal benefit-loss r a t e . a l o n e i s 8 p e r c e n t ; f o r two r a n g e s from 5 t o 8 p e r c e n t o f t o g e t h e r , from 3 t o 8 p e r c e n t . 20. GENERAL ASSISTANCE TO INDIANS A. Funding Formula The Snyder A c t p r o v i d e s 100 p e r c e n t F e d e r a l f u n d i n g f o r G e n e r a l A s s i s t a n c e t o I n d i a n s , which i s o p e r a t e d by t h e Bureau of Indian A f f a i r s (BIA). B. E l i g i b i l i t y Requirements -11 E l i g i b l e a r e needy I n d i a n s ( d e s c e n d e d from a member o f a t r i b e t h a t i s r e c o g n i z e d by t h e U n i t e d S t a t e s ~ o v e r n m e n t ) and Alaskan N a t i v e s . E f f e c t i v e March 4 , 1977, I n t e r i o r Department r e g u l a t i o n s a l s o r e q u i r e t h a t t h e head o f t h e h o u s e h o l d i n A l a s k a and Oklahoma have a t l e a s t a o n e - f o u r t h d e g r e e o r more I n d i a n o r N a t i v e blood quantum f o r e l i g i b i l i t y . 21 R e c i p i e n t s must l i v e i n A l a s k a o r Oklahoma o r on ( o r n e a r ) an I n d i a n r e s e r v a t i o n i n one o f 14 o t h e r S t a t e s . 31 - P e r s o n s n u s t b e deemed "needy" by S t a t e s t a n d a r d s , and they cannot be e n r o l l e d i n t h e o t h e r f e d e r a l l y aided cash w e l f a r e program f o r f a m i l i e s w i t h c h i l d r e n , Aid t o F a m i l i e s w i t h Dependent C h i l d r e n (AFDc), o r i n t h e F e d e r a l program of S u p p l e m e n t a l S e c u r i t y Income. However, t h e y may r e c e i v e G e n e r a l A s s i s t a n c e (GA) t o I n d i a n s w h i l e t h e i r a p p l i c a t i o n s a r e pending f o r AFDC o r SSI. They must a c c e p t a v a i l a b l e employment t h a t t h e y a r e " a b l e and q u a l i f i e d " t o perform. -11 R e g u l a t i o n s a r e found i n 25 C.F.R. $20.21 ( 1 9 8 2 ) . 2 1 When an I n d i a n ( o r ~ a t i v e )i s m a r r i e d t o a non-Indian, t h e 1Zdian members o f t h e f a m i l y a r e e l i g i b l e f o r G e n e r a l Assistance t o Indians. 3 1 The 14 o t h e r S t a t e s a r e A r i z o n a , C o l o r a d o ( s o u t h e r n U t e ~ G s e r v a t i o n,) I d a h o , Kansas, M i n n e s o t a (Red Lake Reservat i o n ) , M i s s i s s i p p i , Montana, Nebraska, Nevada, New Mexico, North C a r o l i n a , N o r t h Dakota, S o u t h Dakota, and Wyoming. C. Bgnefit Levels S i n c e 1944 B I A h a s s e t maximum payments o f t h i s program e q u a l t o 100 p e r c e n t o f t h e s t a n d a r d o f need e s t a b l i s h e d by t h e r e l e v a n t S t a t e f o r t h e same s i z e f a m i l y e n r o l l e d i n AFDC. T h i s h a s b e e n t h e p o l i c y even i n S t a t e s t h a t f a i l e d t o pay t h e f u l l need s t a n d a r d t o t h e i r AFDC f a m i l i e s . However, C o n g r e s s i n December 1982 d i r e c t e d B I A t o b r i n g payments o f t h e program o f G e n e r a l A s s i s t a n c e t o I n d i a n s " i n t o conformance" w i t h AFDC payments i n t h o s e S t a t e s where t h e need s t a n d a r d exceeded a c t u a l b e n e f i t s . 4 1 Congress a c t e d a f t e r some S t a t e s i n c r e a s e d t h e i r s t a n d a r z s o f need, b u t n o t a c t u a l payment l e v e l s , i n a p p a r e n t r e s p o n s e t o a new law (P.L. 97-35) t h a t b a r r e d AFDC f o r f a m i l i e s whose g r o s s income exceeded 150 p e r c e n t o f t h e i r S t a t e need s t a n d a r d . an^ S t a t e s p a i d AFDC f a m i l i e s l e s s t h a n f u l l "need" b e f o r e t h e 1981 law, a l s o . ) I n J a n u a r y 1984 B I A proposed r e g u l a t i o n s t o implement t h e C o n g r e s s i o n a l d i r e c t i v e t h a t GA f o r I n d i a n s n o t e x c e e d maximum AFDC b e n e f i t l e v e l s . I n 6 o f t h e 16 S t a t e s w i t h t h e I n d i a n program, t h e proposed r u l e s would r e d u c e b e n e f i t s : C o l o r a d o , I d a h o , M i s s i s s i p p i , Montana, Nevada, and North C a r o l i n a . The s h a r p e s t c u t would come i n M i s s i s s i p p i , where t h e AFDC need s t a n d a r d ($286) i s a l m o s t t r i p l e t h e AFDC maximum b e n e f i t ( $ 9 6 ) f o r a family of t h r e e persons. 5 1 - The proposed r e g u l a t i o n s would p e r m i t r e c i p i e n t s i n t h e s i x S t a t e s where AFDC b e n e f i t s a r e below need s t a n d a r d s t o add t o t h e i r GA c a s h payment e a r n i n g s o r o t h e r income, a s l o n g a s i t d i d n o t exceed t h e g a p between need s t a n d a r d and a c t u a l payment l e v e l . 4 1 S t a t e m e n t o f managers. C o n f e r e n c e r e p o r t on H.R. ~ o u s e - ~ e ~ o97-978. rt December 1 7 , 1982. 7356. 51 The i n i t i a l proposed r e g u l a t i o n , i s s u e d J a n u a r y 1 1 , 1984 ( ~ e d e r a lR e g i s t e r , p. 1331-2) p r o v i d e d a f l o o r l e v e l o f p r o t e c t i o n , namely, a maximum b e n e f i t e q u a l t o o n e - t h i r d o f t h e nat i o n a l p o v e r t y t h r e s h o l d ; b u t t h i s was withdrawn i n a J a n u a r y 19 r e v i s i o n ( F e d e r a l R e g i s t e r , p. 2 2 6 7 ) . The o r i g i n a l p r o p o s a l would have p r o v i d e d an I n d i a n f a m i l y o f t h r e e p e r s o n s a g u a r a n t e e o f $221, o n e - t h i r d o f t h e 1983 p o v e r t y t h r e s h o l d . T h i s compares w i t h a c t u a l AFDC maximum b e n e f i t s , a s o f J a n u a r y 1, 1984, o f $96 i n M i s s i s s i p p i and $202 i n North C a r o l i n a . A BIA o f f i c i a l s a i d t h e o r i g i n a l p r o p o s a l was d i s a p p r o v e d by t h e O f f i c e o f Management and Budget (OMB) and had been p u b l i s h e d i n e r r o r . On J a n u a r y 1, 1984, maximum payments o f GA f o r I n d i a n s s t i l l e q u a l l e d S t a t e s t a n d a r d s of need. For f a m i l i e s of t h r e e p e r s o n s , t h e y ranged from $233 i n A r i z o n a t o $554 i n I d a h o 61 and $696 i n A l a s k a . - F i s c a l y e a r 1983 payments a v e r a g e d $74 monthly p e r r e c i p i e n t . 61 The I d a h o payment was 8 1 p e r c e n t above t h e maximum benef i t ($305) p a i d t o an AFDC f a m i l y o f t h r e e p e r s o n s . 21. ADOPTION ASSISTANCE Note: T h i s program was e s t a b l i s h e d i n 1980. S t a t e s were r e q u i r e d t o h a v e a n a d o p t i o n a s s i s t a n c e program by O c t o b e r 1, 1982 i n o r d e r t o c o n t i n u e r e c e i v i n g AFDC m a t c h i n g f u n d s . Funding Formula The Medicaid m a t c h i n g f o r m u l a ( s e e program No. 1 ) d e c i d e s t h e F e d e r a l funding s h a r e i n each S t a t e . T h i s formula provides 55 p e r c e n t F e d e r a l f u n d i n g t o a S t a t e w i t h a v e r a g e p e r c a p i t a income. F o r o t h e r s , t h e F e d e r a l s h a r e r a n g e s from 50 t o more t h a n 77 p e r c e n t , w i t h t h e s h a r e i n v e r s e l y r e l a t e d t o p e r c a p i t a income. 1/ E l i g i b i l i t y Requirements A c h i l d must b e e l i g i b l e f o r AFDC ( s e e program No. 111, o r SSI ( s e e program No. 1 2 ) , must b e l e g a l l y f r e e f o r a d o p t i o n , and must h a v e " s p e c i a l needs" t h a t p r e v e n t a d o p t i o n w i t h o u t a s s i s t a n c e payments. Such s p e c i a l n e e d s i n c l u d e m e n t a l o r p h y s i c a l h a n d i c a p , a g e , e t h n i c background, o r membership i n a s i b 1i n g group. C. Benefit Levels The S t a t e a d o p t i o n a s s i s t a n c e agency, by agreement w i t h t h e a d o p t i v e p a r e n t s , d e c i d e s t h e amount o f a d o p t i o n payment, b u t t h e sum c a n n o t exceed what would h a v e been p a i d t o maint a i n t h e c h i l d i n a f o s t e r f a m i l y home. C h i l d r e n r e c e i v i n g adoption a s s i s t a n c e automatically a r e e l i g i b l e a l s o f o r M e d i c a i d . B e n e f i t s c a n c o n t i n u e u n t i l t h e c h i l d r e a c h e s age 1 8 o r , i n some c a s e s , 21. 11 R e g u l a t i o n s f o r t h i s program a r e found i n 45 C.F.R. 1355; 1356, 1357 ( S e e F e d e r a l R e g i s t e r Vol. 48, No. 100, May 23, 1983, p. 23104-23119). 22. ASSISTANCE TO CERTAIN CUBAN REFUGEES (CASH COMPONENT) A. Funding Formula The Migration and Refugee A s s i s t a n c e Act o f 1962 a u t h o r i z e d reimbursement f o r t h e c o s t s o f p r o v i d i n g c a s h a s s i s t a n c e t o needy Cuban r e f u g e e s . The Refugee Act o f 1980 r e p e a l e d t h i s a u t h o r i t y , and phased o u t F e d e r a l c o s t s h a r i n g by s t a g e s , endi n g on September 30, 1981. However, t h e Refugee Act a u t h o r i z e d t h e i n d e f i n i t e c o n t i n u a t i o n of 100 p e r c e n t F e d e r a l reimbursement t o S t a t e s f o r any supplementary payments t h e y p r o v i d e t o c e r t a i n aged, b l i n d o r d i s a b l e d Cuban r e f u g e e s under t h e Supplemental S e c u r i t y Income (SSI) program. The phased-out reimbursements were f o r t h e following: ( a ) a i d g i v e n t o r e f u g e e s i n e l i g i b l e f o r Supplemental S e c u r i t y Income (SSI) o r Aid t o F a m i l i e s w i t h Dependent C h i l d r e n (AFDC); ( b ) t h e non-Federal s h a r e o f AFDC payments; and ( c ) S t a t e a d m i n i s t r a t i o n c o s t s . The r a t e s o f F e d e r a l reimbursement f o r t h o s e c o s t s were a s f o l l o w s : FY79, 85 p e r c e n t ; FY80, 75 p e r c e n t ; FY81, 60 p e r c e n t . B. E l i g i b i l i t y Requirements C u r r e n t l y , o n l y t h o s e Cuban r e f u g e e s who r e c e i v e d SSI payments a s of September 30, 1978 and c o n t i n u e t o r e c e i v e t h o s e b e n e f i t s a r e e l i g i b l e . Before FY82, Cuban r e f u g e e s who were r e c e i v i n g o t h e r c a s h a i d under t h e Cuban r e f u g e e program b e f o r e October 1, 1978 were a l s o e l i g i b l e . C. Benefit Levels B e n e f i t l e v e l s f o r Cuban r e f u g e e s a r e t h e same a s t h o s e used i n each S t a t e f o r r e c i p i e n t s of AFDC. Before FY82, t h e y were t h e same a s t h o s e used f o r AFDC i f t h e r e f u g e e q u a l i f i e d f o r t h a t program. F o r t h o s e needy r e f u g e e s who were i n e l i g i b l e f o r SSI o r AFDC p r i o r t o FY82, b e n e f i t s were based on t h e i r S t a t e ' s maximum AFDC payment t o a f a m i l y u n i t o f t h e i r s i z e . Thus, an able-bodied non-aged c o u p l e r e c e i v e d t h e b e n e f i t o f a two-person AFDC f a m i l y . 23. FOOD STAMPS A. - Funding Formula 1/ The Food Stamp Act p r o v i d e s 100 p e r c e n t F e d e r a l f u n d i n g f o r food stamp b e n e f i t s . F e d e r a l f u n d s a l s o pay F e d e r a l a d m i n i s t r a t i v e c o s t s and from 50 t o 60 p e r c e n t o f most S t a t e and l o c a l a d m i n i s t r a t i v e e x p e n s e s , d e p e n d i n g on t h e r a t e o f e r r o r i n a S t a t e ' s a d m i n i s t r a t i o n o f t h e program. 21 S t a t e and l o c a l c o s t s a s s o c i a t e d w i t h c o m p u t e r i i z a t i o n and f r a u z c o n t r o l a c t i v i t i e s a r e e l i g i b l e f o r 75 p e r c e n t F e d e r a l f u n d i n g . I n P u e r t o R i c o , where t h e Food Stamp program was r e p l a c e d by a n u t r i t i o n a l a s s i s t a n c e b l o c k g r a n t e f f e c t i v e J u l y 1982, F e d e r a l f u n d s p r o v i d e an a n n u a l g r a n t o f $825 m i l l i o n t o fund benef i t l e v e l s s e t by t h e Commonwealth and 50 p e r c e n t o f t h e Commonwealth's administrative costs. B. E l i g i b i l i t y Requirements * The Food Stamp program imposes t h r e e m a j o r t e s t s f o r e l i g i b i l i t y : income l i m i t s , an a s s e t s l i m i t a t i o n , and work r e g i s t r a t i o n and j o b s e a r c h r e q u i r e m e n t s . 31 1/ F e d e r a l a p p r o p r i a t i o n s f o r t h e programs a u t h o r i z e d u n d e r t h e ~ T o dStamp Act--the Food Stamp program and P u e r t o R i c o ' s n u t r i t i o n a l a s s i s t a n c e program--are l i m i t e d by a u t h o r i z a t i o n c e i l i n g s o f $12.9 b i l l i o n i n f i s c a l y e a r 1983, $13.1 b i l l i o n i n f i s c a l y e a r 1984, and $13.9 b i l l i o n i n f i s c a l y e a r 1985. F e d e r a l c o s t s i n f i s c a l y e a r s 1983 and 1984 a r e e s t i m a t e d a t $12.7 b i l l i o n and $12.3 b i l l i o n , r e s p e c t i v e l y . 21 A S t a t e q u a l i f i e s f o r a F e d e r a l m a t c h i n g r a t e o f 60 p e r c e x t i f i t h a s r e d u c e d i t s r a t e o f e r r o n e o u s payments below 5 p e r c e n t and h a s met c e r t a i n o t h e r r e q u i r e m e n t s . A S t a t e i s p e n a l i z e d w i t h a p a r t i a l l o s s of F e d e r a l f u n d i n g f o r administ r a t i v e c o s t s i f i t d o e s n o t a c h i e v e s p e c i f i e d a n n u a l reduct i o n s i n i t s r a t e o f e r r o n e o u s payments. 31 The Commonwealth o f P u e r t o R i c o ' s n u t r i t i o n a l a s s i s t a n c e p r o g r a m , which r e p l a c e d food stamps i n t h e Commonwealth e f f e c t i v e J u l y 1982, p r o v i d e s b e n e f i t s t o low-income r e s i d e n t s u s i n g e l i g i b i l i t y t e s t s t h a t a r e s i m i l a r t o , b u t more r e s t r i c t i v e t h a n t h o s e u s e d f o r food s t a m p s . * Food stamp r e g u l a t i o n s a r e found i n 7 C.F.R. 271 e t s e q . Income. A l l h o u s e h o l d s must h a v e c o u n t a b l e m o n t h l y income below t h e F e d e r a l p o v e r t y l e v e l s , a s a d j u s t e d e a c h J u l y t o r e f l e c t i n f l a t i o n measured by t h e Consumer P r i c e I n d e x (cPI). Households w i t h o u t an e l d e r l y o r d i s a b l e d member 4 1 must a l s o h a v e g r o s s monthly income below 130 p e r c e n t o f th; F e d e r a l p o v e r t y l e v e l s ( a s a d j u s t e d e a c h ~ u l y )i n o r d e r t o q u a l i f y . - G r o s s income i n c l u d e s a l l c a s h income o f t h e h o u s e h o l d , e x c e p t e n e r g y a s s i s t a n c e , a p o r t i o n o f some t y p e s o f s t u d e n t a i d , r e i m b u r s e m e n t s f o r e x p e n s e s , and c e r t a i n o t h e r income req u i r e d t o b e d i s r e g a r d e d by o t h e r F e d e r a l laws. C o u n t a b l e i n come e x c l u d e s from g r o s s income: (1) an inflation-indexed s t a n d a r d d e d u c t i o n s t a n d i n g a t $89 p e r h o u s e h o l d p e r month u n t i l O c t o b e r 1984 5 1 ; ( 2 ) 1 8 p e r c e n t o f any e a r n e d income; ( 3 ) work-related expenses f o r t h e c a r e of a dependent; ( 4 ) out-of-pocket m e d i c a l e x p e n s e s o f e l d e r l y o r d i s a b l e d househ o l d members, t o t h e e x t e n t t h e y e x c e e d $35 p e r month; and ( 5 ) s h e l t e r e x p e n s e s , t o t h e e x t e n t t h e y e x c e e d 50 p e r c e n t o f t h e income r e m a i n i n g a f t e r a l l o t h e r p o t e n t i a l d e d u c t i o n s and e x c l u d e d e x p e n s e s h a v e been s u b t r a c t e d o u t . However, f o r h o u s e h o l d s w i t h o u t e l d e r l y o r d i s a b l e d members, s h e l t e r and d e p e n d e n t - c a r e d e d u c t i o n s , when combined, may n o t exceed an i n f l a t i o n - i n d e x e d c e i l i n g s t a n d i n g a t $125 p e r month u n t i l O c t o b e r 1984 51; f o r h o u s e h o l d s c o n t a i n i n g a n e l d e r l y o r d i s a b l e d membyr t h e amount o f t h e a l l o w a b l e s h e l t e r d e d u c t i o n i s u n l i m i t e d , a l t h o u g h t h e d e p e n d e n t - c a r e d e d u c t i o n may n o t e x c e e d t h e $125 c e i l i n g a p p l i e d t o o t h e r h o u s e h o l d s . The f o l l o w i n g t a b l e s s e t o u t t h e monthly c o u n t a b l e and g r o s s income l i m i t s e f f e c t i v e t h r o u g h J u n e 1984 i n t h e 48 c o n t i g u o u s S t a t e s , t h e D i s t r i c t o f Columbia, t h e V i r g i n I s l a n d s , and Guam. 6 1 I n J u l y 1984, t h e s e l i m i t s a r e s c h e d u l e d t o b e i n c r e a s e d ?;j. a p p r o x i m a t e l y 3 p e r c e n t . 4 1 " E l d e r l y 1 ' i s d e f i n e d a s a g e 60 o r o l d e r . " D i s a b l e d i s d e T i n e d a s b e i n g a r e c i p i e n t o f d i s a b i l i t y payments from t h e D i s a b i l i t y I n s u r a n c e program o f t h e S o c i a l S e c u r i t y A c t o r from t h e S u p p l e m e n t a l S e c u r i t y Income (SSI) program, o r b e i n g a v e t e r a n ( o r a v e t e r a n ' s s u r v i v o r ) who m e e t s c e r t a i n d i s a b i l i t y t e s t s p r e s c r i b e d by t h e V e t e r a n s ' A d m i n i s t r a t i o n o r t h e Social Security Administration. 5 1 The amount o f t h e s t a n d a r d d e d u c t i o n , and t h e c e i l i n g on s h e l t e r / d e p e n d e n t - c a r e d e d u c t i o n s v a r i e s i n A l a s k a , Hawaii, t h e V i r g i n I s l a n d s , and Guam. - 6 1 L i m i t s a r e h i g h e r i n A l a s k a and H a w a i i , by 25 and 15 percent, respectively. P u e r t o R i c o ' s n u t r i t i o n a l a s s i s t a n c e program u s e s a g r o s s income t e s t o n l y , s e t s u b s t a n t i a l l y below t h a t u s e d i n t h e 4 8 S t a t e s and D.C. Household S i z g : ................... .................. .................. 4 p e r s o n s .................. 5 p e r s o n s .................. 6 p e r s o n s .................. 7 p e r s o n s .................. 8 persons .................. Each a d d i t i o n a l member ..... 1 person 2 persons 3 persons Household S i z e : ................... .................. .................. 4 p e r s o n s .................. 5 persons .................. 6 persons .................. 7 p e r s o n s .................. 8 p e r s o n s .................. Each a d d i t i o n a l member ..... - Monthly Countable Income L i m i t s 7/ June 1983-June 1984 $ 405 54 5 685 825 965 1,105 1,245 1,385 + 140 - Monthly Gross Income L i m i t s 8 1 June 1983-June 1984 1 person 2 persons 3 persons A s s e t s . An e l i g i b l e h o u s e h o l d ' s l i q u i d a s s e t s may n o t exceed $1,500, o r $3,000 f o r households o f two o r more w i t h an e l d e r l y member. T h i s l i q u i d a s s e t s t e s t e x c l u d e s t h e v a l u e of a r e s i d e n c e , a p o r t i o n o f t h e v a l u e of motor v e h i c l e s , b u s i n e s s a s s e t s , household b e l o n g i n g s , and c e r t a i n o t h e r r e s o u r c e s . Aid t o F a m i l i e s w i t h Dependent C h i l d r e n (AFDC) r e c i p i e n t s need n o t meet t h e food stamp a s s e t s t e s t s o long a s t h e y meet t h e income t e s t . Work R e g i s t r a t i o n and J o b Search. I n o r d e r t o r e t a i n household e l i g i b i l i t y , abled-bodied a d u l t s must r e g i s t e r f o r , s e e k , and a c c e p t s u i t a b l e employment, i f o f f e r e d , u n l e s s t h e y a r e c a r i n g f o r a dependent ( d i s a b l e d , o r under age 6 ) , working a t l e a s t 30 h o u r s p e r week ( o r e a r n i n g t h e minimum-wage e q u i v a l e n t ) , among t h e l i m i t e d number o f post-secondary s t u d e n t s who a r e o t h e r w i s e e l i g i b l e , r e s i d e n t s of a drug addiction o r a l c o h o l i c treatment program, o r under age 18 o r age 60 o r o l d e r . I n a d d i t i o n , i f a l o c a l i t y o p t s t o o p e r a t e a "workfare" program, non-working, able-bodied a d u l t s may a l s o be r e q u i r e d t o work o f f t h e i r househ o l d ' s food stamp b e n e f i t . 7/ Applied t o a l l households. L i m i t s a r e h i g h e r i n Alaska and ~ G w a i i , by 25 and 15 p e r c e n t , r e s p e c t i v e l y . - 8 / Applied o n l y t o households w i t h o u t an e l d e r l y o r d i s a b l e d member. L i m i t s a r e h i g h e r i n Alaska and Hawaii, by 25 and 15 p e r c e n t , r e s p e c t i v e l y . P u e r t o B i c o ' s n u t r i t i o n a l a s s i s t a n c e program u s e s a g r o s s income t e s t o n l y ; i t s l i m i t s a r e approximately o n e - t h i r d lower than t h o s e a p p l i e d i n t h e food stamp program. Other Limitations. Categorical e l i g i b i l i t y r e s t r i c t i o n s i n c l u d e : ( 1 ) a ban on e l i g i b i l i t y f o r h o u s e h o l d s i n which t h e p r i m a r y wage-earner h a s v o l u n t a r i l y q u i t a job w i t h o u t good c a u s e , f o r 90 d a y s from t h e v o l u n t a r y q u i t ; ( 2 ) a ban on e l i g i b i l i t y f o r h o u s e h o l d s c o n t a i n i n g s t r i k i n g members, u n l e s s e l i g i b l e p r i o r t o t h e s t r i k e ; ( 3 ) a ban on e l i g i b i l i t y f o r most non-working p o s t - s e c o n d a r y s t u d e n t s w i t h o u t f a m i l i e s ; ( 4 ) a ban on e l i g i b i l i t y f o r i l l e g a l l y o r t e m p o r a r i l y r e s i d e n t a l i e n s and r u l e s l i m i t i n g t h e e l i g i b i l i t y o f l e g a l l y p r e s e n t a l i e n s who h a v e s p o n s o r s ; ( 5 ) a ban on e l i g i b i l i t y f o r p e r s o n s l i v i n g i n i n s t i t u t i o n a l s e t t i n g s , except f o r those i n s p e c i a l s m a l l g r o u p homes f o r t h e d i s a b l e d , p e r s o n s l i v i n g i n d r u g a d d i c t i o n o r a l c o h o l i c t r e a t m e n t programs, and pers o n s i n temporary s h e l t e r s f o r b a t t e r e d women and c h i l d r e n ; and ( 6 ) a ban on e l i g i b i l i t y f o r SSI r e c i p i e n t s i n C a l i f o r n i a and Wisconsin. 91 - Under t h e s e e l i g i b i l i t y r u l e s , i t i s e s t i m a t e d t h a t a b o u t 30 m i l l i o n p e r s o n s a r e e l i g i b l e f o r food s t a m p s , n a t i o n w i d e , a t any p o i n t d u r i n g t h e y e a r . As o f December 1983, 21.2 m i l l i o n p e r s o n s w e r e p a r t i c i p a t i n g i n t h e Food Stamp program, w i t h an a d d i t i o n a l 1 . 6 m i l l i o n p e r s o n s r e c e i v i n g b e n e f i t s under P u e r t o Rico' s n u t r i t i o n a l a s s i s t a n c e program. C. Benefit Levels The Food Stamp Act s p e c i f i e s t h a t a h o u s e h o l d ' s maximum food stamp a l l o t m e n t s h a l l , t h r o u g h f i s c a l y e a r 1985, b e 99 perc e n t o f t h e c o s t o f a n u t r i t i o n a l l y a d e q u a t e low-cost d i e t , a s d e t e r m i n e d by t h e U.S. Department o f A g r i c u l t u r e ' s T h r i f t y Food P l a n and a d j u s t e d p e r i o d i c a l l y f o r c h a n g e s i n food p r i c e s . 101 A p a r t i c i p a t i n g household' s a c t u a l monthly a l l o t m e n t i s d e t G mined by s u b t r a c t i n g , from t h e maximum a l l o t m e n t f o r t h a t h o u s e h o l d s i z e , a n amount e q u a l t o 30 p e r c e n t o f i t s c o u n t a b l e monthly income, on t h e a s s u m p t i o n t h a t i t c a n a f f o r d t o spend t h a t amount o f i t s own income on f o o d . Minimum b e n e f i t s f o r h o u s e h o l d s o f o n e and two p e r s o n s a r e l e g i s l a t i v e l y s e t a t $10 p e r month; minimum b e n e f i t s f o r o t h e r h o u s e h o l d s i z e s a r e g e n e r a l l y somewhat h i g h e r . 91 Cash SSI payments have been i n c r e a s e d i n t h e s e S t a t e s t o i n c i u d e a n e s t i m a t e d v a l u e f o r food stamp b e n e f i t s . 101 A f t e r f i s c a l y e a r 1985, maximum a l l o t m e n t s a r e t o b e t h e f x l c o s t o f a low-cost a d e q u a t e d i e t a s shown by t h e T h r i f t y Food P l a n . Although food p r i c e a d j u s t m e n t s t o b e n e f i t s a r e t o occur annually, each October, r e g u l a r l y scheduled adjustments have been p o s t p o n e d a t t i m e s . B e n e f i t s u n d e r P u e r t o R i c o ' s n u t r i t i o n a l a s s i s t a n c e program a r e c a l c u l a t e d i n a manner s i m i l a r t o food stamps b u t a r e s e t a p p r o x i m a t e l y 10 p e r c e n t l o w e r t h a n t h o s e i n u s e f o r t h e 48 c o n t i g u o u s S t a t e s and t h e D i s t r i c t o f ~ o l u m b i a . Maximum monthly a l l o t m e n t s u n t i l t h e n e x t s c h e d u l e d a d j u s t ment f o r food p r i c e changes i n O c t o b e r 1984 a r e a s f o l l o w s : - Maximum Monthly Food Stamp A l l o t m e n t s a / Household S i z e : 48 S t a t e s 6 D.C. Alaska (urban) b/ Hawaii Virgin Islands Guam ........... .......... .......... .......... .......... .......... .......... .......... ........... 1 person 2 persons 3 persons 4 persons 5 persons 6 persons 7 persons 8 persons Each a d d i t i o n a l person I n f i s c a l y e a r 1984, b e n e f i t s f o r t h e e x p e c t e d 21 m i l l i o n monthly food stamp r e c i p i e n t s a r e e s t i m a t e d t o a v e r a g e $43 p e r p e r s o n p e r month, e x c l u d i n g s m a l l e r b e n e f i t s f o r t h e 1.6 m i l l i o n r e c i p i e n t s o f a i d i n P u e r t o R i c o ' s n u t r i t i o n a l a s s i s t a n c e program. a/ Under p r o v i s i o n s f o r a s p e c i a l l y d e s i g n e d Food Stamp t h e Commonwealth o f t h e N o r t h e r n M a r i a n a s o p e r a t e s a program s i m i l a r t o t h e r e g u l a r Food Stamp program. b / Maximum a l l o t m e n t l e v e l s i n r u r a l A l a s k a a r e g e n e r a l l y almost 3 percent h i g h e r than t h e urban Alaska a l l o t m e n t s noted above. 24. SCHOOL LUNCH PROGRAM (FREE AND REDUCED-PRICE SEGMENTS) A. Funding Formula F e d e r a l law p r o v i d e s a g u a r a n t e e d F e d e r a l s u b s i d y f o r e a c h f r e e o r r e d u c e d - p r i c e l u n c h s e r v e d t o needy c h i l d r e n i n p a r t i c i p a t i n g s c h o o l s and r e s i d e n t i a l c h i l d c a r e i n s t i t u t i o n s . The s u b s i d y f o r f r e e and r e d u c e d p r i c e l u n c h e s c o n s i s t s o f two p a r t s : A b a s i c payment a u t h o r i z e d u n d e r s e c t i o n 4 o f t h e N a t i o n a l School Lunch Act f o r e v e r y l u n c h s e r v e d , w i t h o u t r e g a r d t o f a m i l y income; and an a d d i t i o n a l s p e c i a l a s s i s t a n c e payment a u t h o r i z e d u n d e r s e c t i o n 11 o f t h i s Act o n l y f o r l u n c h e s s e r v e d f r e e o r a t r e d u c e d p r i c e t o low-income c h i l d r e n . S t a t e and l o c a l government f u n d s and, i n some c a s e s , c h i l d r e n ' s payments, h e l p f i n a n c e t h e s e l u n c h e s . No c h a r g e may b e made f o r a f r e e l u n c h , b u t a c h a r g e of up t o 40 c e n t s may be imposed f o r a r e d u c e d - p r i c e l u n c h . A l l s c h o o l l u n c h e s , i n c l u d i n g "paid" l u n c h e s s e r v e d t o c h i l d r e n i n e l i g i b l e f o r f r e e o r reduced-price lunches, r e c e i v e a uniform b a s i c F e d e r a l s u b s i d y . The law r e q u i r e s t h a t S t a t e r e v e n u e s make up an amount e q u a l t o 30 p e r c e n t o f t h e t o t a l s e c t i o n 4 F e d e r a l f u n d i n g p r o v i d e d i n t h e s c h o o l y e a r b e g i n n i n g J u l y 1, 1980. 11 Howe v e r , n o m a t c h i n g f u n d s a r e r e q u i r e d f o r t h e e x t r a F e d e r a l s<bsidy p r o v i d e d f o r f r e e and r e d u c e d - p r i c e l u n c h e s , u n d e r s e c t i o n 11 o f t h e Act. E l i g i b i l i t y Requirements All children a r e e l i g i b l e t o receive a t l e a s t a p a r t i a l l y s u b s i d i z e d l u n c h i n p a r t i c i p a t i n g s c h o o l s and i n s t i t u t i o n s . A l l p u b l i c and most p r i v a t e n o n - p r o f i t s c h o o l s and r e s i d e n t i a l c h i l d c a r e i n s t i t u t i o n s a r e e l i g i b l e t o p a r t i c i p a t e and r e c e i v e F e d e r a l s u b s i d i e s i f t h e y s e r v e m e a l s t h a t m e e t USDA n u t r i t i o n requirements. * 11 T h e r e i s no m a t c h i n g r e q u i r e m e n t f o r F e d e r a l f u n d s p r o v i d e d under-section 11 o f t h e Act. * School l u n c h r e g u l a t i o n s a r e found i n 7 C.F.R. 210. By law, c h i l d r e n whose g r o s s f a m i l y income i s a t o r below 130 p e r c e n t o f t h e p o v e r t y g u i l d e l i n e s o f t h e O f f i c e o f Management and Budget a r e e l i g i b l e f o r a f r e e l u n c h 2 / ; t h o s e c h i l d r e n whose f a m i l y income i s n o t more t h a n 185 p e r c e n t o f t h e g u i d e l i n e s a r e e l i g i b l e f o r a r e d u c e d - p r i c e l u n c h . 3 / C o u n t a b l e income l i m i t s p e r f a m i l y o f f o u r 41 f o r t h e 1983-8T s c h o o l y e a r : f o r f r e e lunch, $12,870; f o r reduce; p r i c e l u n c h , $18,315. C o r r e s p o n d i n g l i m i t s i n t h e 1984-85 s c h o o l y e a r : $13,260 and $18,870. No income d e d u c t i o n s a r e p e r m i t t e d . The law r e q u i r e s s c h o o l l u n c h a u t h o r i t i e s t o d e t e r m i n e a f a m i l y ' s e l i g i b i l i t y on t h e b a s i s o f i t s c u r r e n t r a t e o f income. C. Benefit Levels The N a t i o n a l School Lunch Act p r o v i d e s a g u a r a n t e e d F e d e r a l s u b s i d y ("reimbursement") t o p a r t i c i p a t i n g s c h o o l s and i n s t i t u t i o n s f o r e a c h l u n c h s e r v e d . I n 1972, Congress e s t a b l i s h e d minimum reimbursement r a t e s and s p e c i f i e d t h a t t h e y b e a d j u s t e d s e m i - a n n u a l l y t o r e f l e c t c h a n g e s i n t h e c o s t o f p r o d u c i n g l u n c h e s . I n 1981, t h e f r e q u e n c y o f s u c h i n f l a t i o n a d j u s t m e n t s was l i m i t e d t o one e a c h y e a r , on J u l y 1. F o r t h e 1983-84 s c h o o l y e a r , t h e t o t a l F e d e r a l c a s h reimbursement f o r e a c h f r e e l u n c h s e r v e d was $120.25 and t h e t o t a l reimbursement f o r e a c h reduced p r i c e l u n c h was 80.25 c e n t s . 5 1 Other lunches, those served t o c h i l d r e n r e g a r d l e s s o f family income, and commonly c a l l e d "paid" l u n c h e s , were r e i m b u r s e d a t t h e b a s i c minimum r a t e o f 11.5 c e n t s p e r l u n c h . 5 / - - I n a d d i t i o n , t h e F e d e r a l Government p r o v i d e s c o m o d i t y a s s i s t a n c e f o r a l l m e a l s s e r v e d i n p a r t i c i p a t i n g s c h o o l s and c h i l d - c a r e i n s t i t u t i o n s . F o r t h e 1983-84 s c h o o l y e a r t h i s a s s i s t a n c e was v a l u e d a t 11.5 c e n t s p e r lunch. This a s s i s t a n c e r a t e i s a d j u s t e d f o r i n f l a t i o n each J u l y 1 t o r e f l e c t changes i n t h e P r i c e Index f o r foods used i n s c h o o l s and i n s t i t u t i o n s . 21 E f f e c t i v e J u l y 1, 1983, t h e law r e q u i r e d t h e income l i m i t f o r f y e e s c h o o l l u n c h e s t o b e i d e n t i c a l t o t h e g r o s s income s t a n d a r d u s e d by t h e food stamp program ( c u r r e n t l y , 130 p e r c e n t o f the Federal poverty g u i d e l i n e s ) . -31 P.L. 97-35 e s t a b l i s h e d t h e s e l i m i t s . 4 1 These l i m i t s a r e f o r t h e 48 c o n t i g u o u s S t a t e s , D i s t r i c t o f ~ o l u m K i a , P u e r t o R i c o , and t h e V i r g i n I s l a n d s . H i g h e r l i m i t s a p p l y i n A l a s k a , H a w a i i , and Guam. 51 An a d d i t i o n a l 2 c e n t s i s p r o v i d e d f o r e a c h l u n c h s e r v e d i n s c c o o l d i s t r i c t s where 6 0 p e r c e n t o r more o f t h e s c h o o l l u n c h p a r t i c i p a n t s a r e r e c e i v i n g f r e e and r e d u c e d p r i c e l u n c h e s . An a v e r a g e o f 23 m i l l i o n c h i l d r e n p a r t i c i p a t e d i n t h e s c h o o l l u n c h program d a i l y d u r i n g t h e f i r s t 9 months o f t h e 1982-83 s c h o o l y e a r , 45 p e r c e n t o f whom r e c e i v e d f r e e l u n c h e s and 7 p e r c e n t , r e d u c e d - p r i c e l u n c h e s . The r e m a i n i n g 48 p e r c e n t o f t h e c h i l d r e n were c l a s s i f i e d a s non-needy and r e c e i v e d s c h o o l l u n c h e s s u b s i d i z e d a t t h e b a s i c r a t e o f reimbursement. 25. SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR WOMEN, INFANTS AND CHILDREN (WIC) A. Funding Formula F e d e r a l law p r o v i d e s 100 p e r c e n t F e d e r a l f u n d i n g . B. E l i g i b i l i t y Requirements 1/ The C h i l d N u t r i t i o n Act ( s e c t i o n 1 7 ) makes e l i g i b l e "low-income" m o t h e r s , i n f a n t s , and c h i l d r e n judged t o b e a t " n u t r i t i o n a l r i s k , " from among t h e s e g r o u p s : i n f a n t s , c h i l d r e n u p t o 5 y e a r s o l d , pregn a n t women, non-nursing m o t h e r s up t o 6 months a f t e r c h i l d b i r t h , and n u r s i n g m o t h e r s u p t o 1 y e a r a f t e r c h i l d b i r t h . A competent p r o f e s s i o n a l a u t h o r i t y on t h e s t a f f o f a p a r t i c i p a t i n g l o c a l p u b l i c o r p r i v a t e n o n p r o f i t h e a l t h o r w e l f a r e agency t h a t o f f e r s s u p p l e m e n t a l f o o d s must c e r t i f y t h a t t h e r e c i p i e n t i s a t n u t r i t i o n a l r i s k t h r o u g h a medic a l o r n u t r i t i o n a l assessment. Under t h e law, t h e S e c r e t a r y i s t o s p e c i f y t h e income c r i t e r i a t o be used i n c o n j u n c t i o n w i t h n a t i o n a l r i s k c r i t e r i a f o r determinat i o n s o f e l i g i b i l i t y . However, t h e law s p e c i f i e s t h a t W I C l i m i t s may n o t exceed t h o s e f o r reduced p r i c e l u n c h e s u n d e r t h e s c h o o l l u n c h program ( 1 8 5 p e r c e n t o f OMB p o v e r t y g u i d e l i n e ) . Regulations provide t h a t WIC income l i m i t s s h a l l b e n o l e s s t h a n t h o s e s e t by S t a t e s o r l o c a l a g e n c i e s f o r f r e e o r reduced p r i c e h e a l t h c a r e a s l o n g a s t h e y a r e n o t g r e a t e r t h a n 185 p e r c e n t n o r l e s s t h a n 100 p e r c e n t o f t h e OMB p o v e r t y g u i d e l i n e s . F o r t h e y e a r e n d i n g J u n e 30, 1984, income l i m i t s f o r a f a m i l y o f f o u r must b e n o t more t h a n $18,315 n o r l e s s The c o r r e s p o n d i n g l i m i t s f o r t h e y e a r e n d i n g J u n e 30, t h a n $9,900. 2 / 1985: $ 1 8 , 8 7 5 and $10,200. S t a t e h e a l t h d e p a r t m e n t s o r comparable a g e n c i e s a p p r o v e l o c a l h e a l t h o r w e l f a r e agencies f o r p a r t i c i p a t i o n o r expansion i n o r d e r -11 WIC r e g u l a t i o n s a r e found i n 7 C.F.R. 246. 2/ I n g e n e r a l , b e c a u s e o f l i m i t e d f u n d s , f a m i l y income o f p a r t i T i p a n t s i s w e l l below t h e maximum. A 1978 p r o f i l e o f WIC p a r t i c i p a n t s by USDA i n d i c a t e d t h a t a n n u a l f a m i l y income a v e r a g e d $5,500, a b o u t 54 p e r c e n t below t h e o u t e r l i m i t o f $11,880 t h a t a 4-person f a m i l y c o u l d h a v e w i t h o u t l o s i n g e l i g i b i l i t y f o r reducedp r i c e l u n c h e s i n J u l y 1977-June 1978. CRS -9 1 of g r e a t e s t need b a s e d on economic and h e a l t h s t a t i s t i c s , and a v a i l a b l e f u n d i n g . Ln f i s c a l 1983, an a v e r a g e o f a l m o s t 2.5 m i l l i o n women, i n f a n t s , and c h i l d r e n r e c e i v e d WIC b e n e f i t s e a c h month. C. Benefit Levels B e n e f i c i a r i e s r e c e i v e s e l e c t e d supplemental foods, a s specif i e d i n r e g u l a t i o n s o f t h e Department of A g r i c u l t u r e , e i t h e r i n t h e form o f food o r a s v o u c h e r s v a l i d f o r s p e c i f i c food i t e m s i n s t o r e s . 3 1 A c c o r d i n g t o t h e A g r i c u l t u r e Department, 88 perc e n t o f WIC-benefits a r e g i v e n a s v o u c h e r s , 9 p e r c e n t a s homed e l i v e r e d food, and 3 p e r c e n t a s food p i c k e d up by t h e r e c i p i e n t . R e g u l a t i o n s r e q u i r e t h a t c e r t a i n t y p e s and q u a n t i t i e s o f food b e made a v a i l a b l e and t h a t t h e c a t e g o r i e s o f t h e s e s o - c a l l e d food packages b e b a s e d on t h e v a r y i n g n u t r i t i o n a l needs o f i n f a n t s , c h i l d r e n , and p r e g n a n t and p o s t partum women, p a r t i c i p a t i n g i n t h e program. Ln FY 1983, t h e n a t i o n a l a v e r age monthly v a l u e o f food i n a WIC food package was 31.50. The law r e q u i r e s t h a t p a r t i c i p a n t s a l s o r e c e i v e n u t r i t i o n education. - 31 I t e m s i n c l u d e d i n t h e W I C package a r e m i l k , c h e e s e , e g g s , i n f a n t f o r m u l a , c e r e a l s , and f r u i t and v e g e t a b l e j u i c e s . 26. SPECIAL FOOD DONATIONS A. Funding Formula F e d e r a l f u n d s pay t h e c o s t o f a c q u i r i n g foods ( t h r o u g h farm p r i c e s u p p o r t and s u r p l u s removal o p e r a t i o n s ) and d i s t r i b u t i n g them t o S t a t e s . S t a t e f u n d s f i n a n c e d i s t r i b u t i o n w i t h i n t h e S t a t e and l o c a l a d m i n i s t r a t i o n . I n FY 1983 F e d e r a l f u n d s h e l p e d pay some i n t r a s t a t e s t o r a g e and t r a n s p o r t a t i o n c o s t s . B. E l i g i b i l i t y Requirements S t a t e s s e t e l i g i b i l i t y r u l e s and d e t e r m i n e e l i g i b l e o u t l e t s . F e d e r a l r u l e s permit d i s t r i b u t i o n of donated foods t o c h a r i t a b l e i n s t i t u t i o n s , summer camps f o r t h e needy, and, b e g i n n i n g i n FY 1982, t o o t h e r o u t l e t s s e r v i n g needy p e r s o n s , s u c h a s soup k i t c h e n s and food banks. Benefit Levels The k i n d s and amounts o f food o f f e r e d by t h i s program depend on F e d e r a l farm p r i c e s u p p o r t o p e r a t i o n s and i n v e n t o r i e s , on A g r i c u l t u r e Department d e c i s i o n s a b o u t o t h e r u s e s f o r t h e commodit i e s , s u c h a s f o r e i g n food a i d , d o n a t i o n s t o s c h o o l s and d o n a t i o n s f o r t h e e l d e r l y , and on S t a t e d e c i s i o n s . Upon S t a t e r e q u e s t , t h e F e d e r a l Government d i s t r i b u t e s a v a i l a b l e s p e c i a l food d o n a t i o n s t o selected distribution points within the State. I n FY 1982, i t i s e s t i m a t e d t h a t a t l e a s t 10 m i l l i o n needy p e r s o n s r e c e i v e d s p e c i a l food d o n a t i o n s t h r o u g h S t a t e - a p p r o v e d o u t l e t s . Most FY 1982-1983 d o n a t i o n s w e r e d a i r y p r o d u c t s , such a s cheese. 27. NUTRITION PROGRAM FOR THE ELDERLY A. Funding Formula The Older Americans Act ( T i t l e 111) s p e c i f i e s t h a t t h e F e d e r a l s h a r e o f a S t a t e ' s a l l o t m e n t f o r c o n g r e g a t e and home-delivered meal s e r v i c e s 11 f o r t h e e l d e r l y may cover up t o 85 p e r c e n t of t h e c o s t o f develoFing a n d / o r o p e r a t i n g l o c a l p r o j e c t s . 21 The non-Federal matching s h a r e can be p a i d i n c a s h o r in-kind c z t r i b u t i o n s . F e d e r a l funds a r e a l l o t t e d t o t h e S t a t e s on t h e b a s i s of t h e i r s h a r e o f t h e U.S. t o t a l p o p u l a t i o n aged 60 and o v e r , except t h a t t h e minimum S t a t e a l l o t m e n t i s 0.5 p e r c e n t o f t h e U.S. a p p r o p r i a t i o n f o r t h e year. ( ~ i n i m u m sa r e s m a l l e r f o r Guam, t h e V i r g i n I s l a n d s , T r u s t T e r r i t o r y o f t h e P a c i f i c I s l a n d s , American Samoa, and t h e Northern Mariana I s l a n d s . ) B. E l i g i b i l i t y Requirements The Older Americans Act makes e l i g i b l e p e r s o n s aged a t l e a s t 60 and t h e i r s p o u s e s . I n a d d i t i o n , c o n g r e g a t e meals may b e prov i d e d t o handicapped o r d i s a b l e d persons under 60, who r e s i d e i n housing f a c i l i t i e s occupied p r i m a r i l y by t h e e l d e r l y where congreg a t e n u t r i t i o n s e r v i c e s a r e provided. E l i g i b l e f o r home-delivered meals a r e p e r s o n s who a r e homebound by reason o f i l l n e s s o r d i s a b i l i t y , o r who a r e o t h e r w i s e i s o l a t e d . The law r e q u i r e s t h a t pref e r e n c e be g i v e n t o t h o s e w i t h t h e " g r e a t e s t " ( 1 ) economic need o r ( 2 ) s o c i a l need. R e g u l a t i o n s 31 d e f i n e Group 1 t o b e p e r s o n s whose income i s a t o r below t h e census Bureau's p o v e r t y t h r e s h o l d ( t h e p r e l i m i n a r y 1983 t h r e s h o l d i s s u e d i n J a n u a r y 1984, was $4,770 f o r a person aged a t l e a s t 65) and Group 2 t o b e p e r s o n s whose need f o r s e r v i c e s i s caused by non-economic f a c t o r s 41 t h a t r e s t r i c t t h e i r a b i l i t y t o perform normal d a i l y t a s k s o r t h a t t h r e a t e n t h e i r c a p a c i t y f o r independent l i v i n g . 11 Funds f o r home-delivered meals under t h e Older Americans Act w<re f i r s t a v a i l a b l e under a s e p a r a t e a l l o t m e n t i n FY 1980. -21 P r i o r t o FY 1981, t h i s was 90 p e r c e n t . -31 45 C.F.R. 8 1321.3. -4 1 L i s t e d a s such f a c t o r s a r e " p h y s i c a l and mental d i s a b i l i t i e s , language b a r r i e r s , c u l t u r a l o r s o c i a l i s o l a t i o n i n c l u d i n g t h a t caused by r a c i a l o r e t h n i c s t a t u s . " The r u l e s r e q u i r e t h a t c o n g r e g a t e meal s e r v i c e b e l o c a t e d a s c l o s e a s p o s s i b l e t o where t h e m a j o r i t y o f e l i g i b l e o l d e r p e r s o n s r e s i d e , p r e f e r a b l y w i t h i n w a l k i n g d i s t a n c e . Means t e s t s a r e p r o h i b i t e d . I n FY 1983, a p p r o x i m a t e l y 56 o f t h e c o n g r e g a t e program p a r t i c i p a n t s w e r e c l a s s i f i e d a s e c o n o m i c a l l y needy, and a p p r o x i m a t e l y 6 1 p e r c e n t o f t h e home-delivered program p a r t i c i p a n t s were c l a s s i f i e d a s e c o n o m i c a l l y needy. Benefit Levels F e d e r a l r e g u l a t i o n s r e q u i r e p r o v i d e r s t o o f f e r a t l e a s t one meal d a i l y , f i v e o r more d a y s p e r week. Each meal i s t o a s s u r e a minimum o f o n e - t h i r d o f t h e d a i l y recommended d i e t a r y a l l o w a n c e s e s t a b l i s h e d by t h e Food and N u t r i t i o n Board o f t h e N a t i o n a l Academy o f S c i e n c e s - N a t i o n a l R e s e a r c h C o u n c i l . N u t r i t i o n s e r v i c e s f u n d s a l s o may b e u s e d t o p r o v i d e s u p p o r t s e r v i c e s s u c h a s o u t r e a c h and n u t r i t i o n e d u c a t i o n . Regulations r e q u i r e t h a t p r o v i d e r s g i v e p a r t i c i p a n t s an o p p o r t u n i t y t o c o n t r i b u t e toward t h e c o s t o f t h e meal. S e r v i c e p r o v i d e r s may e s t a b l i s h s u g g e s t e d c o n t r i b u t i o n s c h e d u l e s ; b u t e a c h participant is t o decide f o r himself/herwhat, i f anything, he/she i s a b l e t o pay. A s e r v i c e p r o v i d e r may n o t deny any o l d e r p e r s o n n u t r i t i o n services f o r f a i l u r e t o contribute t o the c o s t of the service. 28. SCIJOOL BREAKFAST PROGRAM (FREE AND REDUCED-PRICE SEGMENTS) A. Funding Formula F e d e r a l law p r o v i d e s a g u a r a n t e e d F e d e r a l s u b s i d y f o r each f r e e o r reduced p r i c e b r e a k f a s t s e r v e d t o a needy c h i l d i n a s c h o o l o r i n s t i t u t i o n p a r t i c i p a t i n g i n t h e s c h o o l b r e a k f a s t program. 11 C e r t a i n s c h o o l s , t h o s e d e s i g n a t e d a s " s e v e r e need" s c h o o l s by t h e fate educat i o n a l agency, r e c e i v e a s u b s i d y r a t e t h a t exceeds t h e r e g u l a r one. 2 1 I n most s c h o o l s , s t a t e and l o c a l government funds a s w e l l a s c h y l d r e n ' s payments 31 h e l p f i n a n c e t h e c o s t o f t h e b r e a k f a s t program, a l t h o u g h there-is no formal matching requirement. No c h a r g e may be made f o r a f r e e b r e a k f a s t , but up t o 30 c e n t s may be charged f o r a reduced-price b r e a k f a s t . B. E l i g i b i l i t y Requirements 41 A l l children a r e e l i g i b l e t o receive a subsidized breakfast 1 - By law, c h i l d r e n whose g r o s s f a m i l y i n a p a r t i c i p a t i n g school. 5 11 F o r - p r o f i t and p r i v a t e non-profit s c h o o l s o r i n s t i t u t i o n s chargTng average a n n u a l t u i t i o n i n e x c e s s of $1,500 a r e n o t e l i g i b l e t o p a r t i c i p a t e i n t h i s program. 21 Severe need s c h o o l s a r e d e f i n e d a s s c h o o l s i n which 40 perperceTt o r more of a l l lunches a r e s e r v e d f r e e o r a t reduced-price. I n FY 1983, approximately 48 p e r c e n t o f reduced p r i c e b r e a k f a s t s and 59 p e r c e n t of f r e e b r e a k f a s t s s e r v e d under t h e program were s u b s i d i z e d a t t h e s e v e r e need r a t e . 31 C h i l d r e n ' s payments a r e d e r i v e d from meal c h a r g e s f o r "paidT b r e a k f a s t s a s w e l l a s from c h a r g e s f o r reduced-price breakf a s t s . -41 School b r e a k f a s t r e g u l a t i o n s a r e found i n 7 C.F.R. 220. 5 1 A s m a l l e r b a s i c F e d e r a l s u b s i d y i s provided f o r a l l breakfasts-served through t h i s program r e g a r d l e s s o f t h e f a m i l y income o f t h e p a r t i c i p a n t . C h i l d r e n n o t e l i g i b l e f o r f r e e o r reduced p r i c e b r e a k f a s t s have t h e c o s t of t h e i r b r e a k f a s t s u b s i d i z e d a t t h i s lower "paid" r a t e . F r e e and reduced-price b r e a k f a s t s r e c e i v e a s e p a r a t e higher subsidy. income i s a t o r below 130 p e r c e n t o f t h e O f f i c e o f Management and ~ u d g e t ' sp o v e r t y g u i d e l i n e s a r e e l i g i b l e f o r a f r e e b r e a k f a s t ; 6 / t h o s e c h i l d r e n whose f a m i l y income i s n o t more t h a n 185 p e r c e n t o f t h e g u i d e l i n e s a r e e l i g i b l e f o r a r e d u c e d - p r i c e b r e a k f a s t . 7/ C o u n t a b l e income l i m i t s 81 p e r f a m i l y o f f o u r f o r t h e 1983-84 s c h o o l y e a r : f o r f r e e b f e a k f a s t , $12,870; f o r r e d u c e d - p r i c e b r e a k f a s t $18,315. The c o r r e s p o n d i n g l i m i t s f o r t h e 1984-85 s c h o o l y e a r : $13,260 and $18,870. The law r e q u i r e s s c h o o l b r e a k f a s t a u t h o r i t i e s t o j u d g e a f a m i l y ' s e l i g i b i l i t y on t h e b a s i s o f i t s c u r r e n t r a t e o f income. C. Benefit Levels F e d e r a l law p r o v i d e s a g u a r a n t e e d F e d e r a l s u b s i d y f o r e a c h b r e a k f a s t s e r v e d . I n 1973 Congress e s t a b l i s h e d a minimum r a t e and s p e c i f i e d t h a t i t must b e a d j u s t e d s e m i - a n n u a l l y t o r e f l e c t t h e c h a n g e i n t h e Consumer P r i c e I n d e x (CPI) s e r i e s f o r food away from home. I n 1981, Congress lowered t h e s u b s i d y r a t e , e f f e c t i v e September 1, 1981, and p r o v i d e d f o r a n n u a l i n f l a t i o n a d j u s t m e n t s e a c h J u l y 1, b e g i n n i n g J u l y 1, 1982. 9 1 F o r t h e p e r i o d J u l y 1, 1983-June 3 0 , 1984 t h e r a t e s were: - School b r e a k f a s t r a t e s ( i n c e n t s ) Regular S e v e r e need Free Reduced P a i d ( n o income test) 61 S i n c e J u l y 1, 1983, t h e law h a s r e q u i r e d t h e income l i m i t f o r £Tee s c h o o l b r e a k f a s t s t o b e i d e n t i c a l t o t h e g r o s s income s t a n d a r d i n u s e f o r t h e food stamp program ( c u r r e n t l y , 130 p e r c e n t o f t h e Federal poverty g u i d e l i n e s ) . -7 / P.L. 97-35 e s t a b l i s h e d t h e s e l i m i t s . 8 / These l i m i t s a r e f o r t h e 48 c o n t i g u o u s S t a t e s , D i s t r i c t o f Coiumbia, P u e r t o R i c o , and t h e V i r g i n I s l a n d s . H i g h e r l i m i t s a p p l y t o A l a s k a , H a w a i i , and Guam. 9 1 P.L. 97-35 lowered t h e e x i s t i n g s u b s i d y r a t e s and reduced t h e fTequency o f i n f l a t i o n a d j u s t m e n t s o f t h e s e r a t e s from semiannual t o annual. 29. CHILD C A a FOOD PROGRAM A. Funding Formula r t h i s p rogram i n t h e form The law p r o v i d e s F e d e r a l f u n d i of s e t reimbursement r a t e s f o r m e a l s and s n a c k s s e r v e d i n p a r t i c i p a t i n g c h i l d c a r e c e n t e r s and f a m i l y d a y c a r e homes. T h e r e i s n o r e q u i r e m e n t f o r m a t c h i n g f u n d s from non-Federal s o u r c e s . B. - E l i g i b i l i t y Requirements 1/ C h i l d r e n aged 12 and under 2 / r e c e i v i n g c a r e i n e l i g i b l e nonr e s i d e n t i a l p u b l i c o r p r i v a t e n ~ y - ~ r o f ii tn s t i t u t i o n s o r i n c e r t a i n 31 f o r - p r o f i t i n s t i t u t i o n s t h a t r e c e i v e t i t l e XX s o c i a l s e r v i c e f u n d s a r e e l i g i b l e f o r s u b s i d i z e d meals. I n programs o p e r a t e d i n c h i l d c a r e c e n t e r s , t h e law makes e l i g i b l e f o r f r e e m e a l s c h i l d r e n whose c o u n t e d f a m i l y income i s n o t above 130 p e r c e n t o f t h e O f f i c e o f Yanagement and Budget p o v e r t y g u i d e l i n e ; t h o s e c h i l d r e n whose f a m i l y income i s n o t more t h a n 185 p e r c e n t o f t h e p o v e r t y g u i d e l i n e a r e e l i g i b l e f o r a r e d u c e d - p r i c e m e a l . 4 / C o u n t a b l e income l i m i t s f o r a f a m i l y o f f o u r f o r t h e 1983-84 scKool y e a r : $12,870 f o r f r e e meals and $18,315 f o r r e d u c e d - p r i c e m e a l s . The c o r r e s p o n d i n g l i m i t s f o r t h e 1984-85 s c h o o l y e a r : $13,260 and $18,570. 51 A family's --1/ R e g u l a t i o n s f o r t h i s program a r e found i n 7 C.F.R. 226. 2 / Meals f o r h a n d i c a p p e d c h i l d r e n o f a l l a g e s , and f o r m i g r a n t c h i l d T e n u p t o a g e 15 may a l s o b e s u b s i d i z e d w i t h F e d e r a l f u n d s . The a g e l i m i t a t i o n s w e r e e n a c t e d u n d e r P.L. 97-35. The a v e r a g e a g e o f c h i l d c a r e food r e c i p i e n t s i s between 4 and 5 y e a r s . 3 1 P.L. 96-499, t h e Budget R e c o n c i l i a t i o n Act o f 1980, f o r t h e first-time allowed f o r - p r o f i t i n s t i t u t i o n s t o p a r t i c i p a t e i n t h i s program. P.L. 97-35 ( t h e Omnibus Budget R e c o n c i l i a t i o n Act o f 1981) l i m i t e d e l i g i b i l i t y f o r s p o n s o r s h i p by s u c h f o r - p r o f i t a g e n c i e s t o t h o s e i n which a t l e a s t 25 p e r c e n t o f t h e c h i l d r e n r e c e i v e compens a t i o n u n d e r t i t l e XX. 4 1 These e l i g i b i l i t y c r i t e r i a were e n a c t e d u n d e r t h e Omnibus ~ u d ~ Ree rc o n c i l i a t i o n Act o f 1981 ( P . L . 97-35). 5 / These l i m i t s a r e f o r t h e 4 8 c o n t i g u o u s S t a t e s , D i s t r i c t o f Coiumbia, P u e r t o R i c o , and t h e V i r g i n I s l a n d s . H i g h e r l i m i t s a p p l y i n A l a s k a , H a w a i i , and Guam. e l i g i b i l i t y i s t o b e based on c u r r e n t r a t e o f income. For t h e most p a r t , t h e r e i s n o income t e s t f o r c h i l d c a r e food program meals p r o v i d e d i n f a m i l y day c a r e homes o r g r o u p homes, f o r which a s e p a r a t e reimbursement r a t e s y s t e m and a d m i n i s t r a t i v e f u n d i n g a r e p r o v i d e d . However, t h e c h i l d r e n o f f a m i l y day c a r e home p r o v i d e r s may n o t r e c e i v e m e a l s t h a t a r e f e d e r a l l y s u b s i d i z e d i f t h e i r f a m i l y income e x c e e d s 185 p e r c e n t o f t h e OMB i n come p o v e r t y g u i d e l i n e s . C. Benefit Levels F e d e r a l law p r o v i d e s a g u a r a n t e e d F e d e r a l s u b s i d y f o r e a c h U.S. Department of A g r i c u l t u r e approved meal and "supplement" ( s n a c k ) s e r v e d i n p a r t i c i p a t i n g c h i l d c a r e i n s t i t u t i o n s . P.L. 94-105 e s t a b l i s h e d t h e c h i l d c a r e c e n t e r r a t e s t o b e t h e same a s t h o s e i n t h e l u n c h and b r e a k f a s t programs. For home, a s e p a r a t e r a t e i s provided. For t h e p e r i o d J u l y 1,1983, t h r o u g h J u n e 30, 1984, 6/ the F e d e r a l c a s h s u b s i d y r a t e s were: Per Lunch a / ----o Child c a r e centers F r e e meal Reduced-price meal "Paid" meal--served t o non-needy c h i l d Family o r g r o u p home r a t e s ( n o income t e s t ) - Per Breakfast .--- ( i n c e n t s ) Per - Supplement (snack) 120.25 80.25 62.75 32.75 33 .O 16.5 11.5 9.0 3.0 103.0 52.5 30.75 I n a d d i t i o n , t h e F e d e r a l Government p r o v i d e s d o n a t e d commodities o r c a s h i n l i e u o f commodities f o r l u n c h e s and s u p p e r s s e r v e d i n such i n s t i t u t i o n s . For t h e 1983-84 s c h o o l y e a r t h i s r a t e was 11.5 c e n t s p e r meal. The A g r i c u l t u r e Department e s t i m a t e s t h a t i n FY 1983 j u s t o v e r 66 p e r c e n t o f t h e m e a l s s e r v e d i n c h i l d c a r e c e n t e r s t h r o u g h t h e c h i l d c a r e food program were f r e e and j u s t o v e r 11 p e r c e n t reducedp r i c e . The r e m a i n i n g 23 p e r c e n t were s e r v e d t o non-needy c h i l d r e n i n c h i l d c a r e c e n t e r s . Approximately 33 p e r c e n t o f a l l m e a l s reimbursed t h r o u g h t h e c h i l d c a r e food program were p r o v i d e d t h r o u g h f a m i l y o r g r o u p d a y c a r e homes i n FY 1983. 6/ These r a t e s a r e t o b e a d j u s t e d f o r i n f l a t i o n e a c h J u l y 1. 30. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN Funding Formula The law p r o v i d e s F e d e r a l f u n d i n g i n t h e form o f s e t reimbursement r a t e s f o r a l l m e a l s s e r v e d u n d e r t h i s program. No m a t c h i n g f u n d s a r e r e q u i r e d from non-Federal s o u r c e s . B. E l i g i b i l i t y Requirements 11 T h e r e a r e no i n d i v i d u a l income r e q u i r e m e n t s f o r p a r t i c i p a t i o n . E l i g i b i l i t y f o r b e n e f i t s i s t i e d t o t h e l o c a t i o n and t y p e o f s p o n s o r Beginning i n FY 1982, programs may be o n l y i n o p e r a t i n g a program. a r e a s where a t l e a s t 50 p e r c e n t o f t h e c h i l d r e n a r e from f a m i l i e s w i t h incomes t h a t m e e t t h e e l i g i b i l i t y c r i t e r i a f o r f r e e and r e d u c e d p r i c e school lunches. I n addition, sponsorship i s limited t o public o r p r i v a t e n o n - p r o f i t s c h o o l food a u t h o r i t i e s ; l o c a l , m u n i c i p a l o r c o u n t y governments and r e s i d e n t i a l n o n - p r o f i t summer camps. C. Benefit Levels The law p r o v i d e s F e d e r a l reimbursement f o r t h e f u l l c o s t o f obt a i n i n g , p r e p a r i n g , and s e r v i n g f o o d , u p t o s p e c i f i e d maximums which a r e a d j u s t e d a n n u a l l y f o r c h a n g e s i n t h e Consumer P r i c e I n d e x ( c P I ) f o r food away from home. The summer 1984 reimbursement r a t e s a r e 146.5 c e n t s p e r l u n c h o r s u p p e r , 81.75 c e n t s p e r b r e a k f a s t , and 38.5 c e n t s f o r s u p p l e m e n t a l food ( s n a c k s ) . S p o n s o r i n g a g e n c i e s a l s o r e c e i v e f u n d s f o r approved administ r a t i v e c o s t s up t o a maximum s e t by t h e S e c r e t a r y o f A g r i c u l t u r e . R a t e s o f a d m i n i s t r a t i v e reimbursement i n summer 1984 f o r r e g u l a r s p o n s o r s were 1 1 . 5 c e n t s p e r l u n c h o r s u p p e r , 6 . 0 c e n t s p e r b r e a k fast, and 3.0 c e n t s f o r s n a c k s . H i g h e r r a t e s a p p l i e d t o s e l f p r e p a r a t o r y s p o n s o r s and t o t h o s e a t r u r a l s i t e s : 14.0 c e n t s p e r l u n c h o r s u p p e r , 7.5 c e n t s p e r b r e a k f a s t , and 3.75 c e n t s f o r s u p p l e m e n t a l food. The number o f r e i m b u r s a b l e m e a l s s e r v e d i s l i m i t e d t o two p e r d a y , e i t h e r l u n c h and b r e a k f a s t , o r l u n c h and a s u p p l e m e n t , e x c e p t i n summer camps and programs p r i m a r i l y s e r v i n g m i g r a n t c h i l d r e n . 1/ R e g u l a t i o n s f o r t h i s program a r e found i n 7 C.F.R. 225. CRS- 100 31. FOOD DISTRIBUTION PROGRAM FOR NEEDY FAMILIES Funding Formula F e d e r a l law p r o v i d e s 100 p e r c e n t F e d e r a l f u n d i n g f o r t h e c o s t o f d o n a t e d p r i c e - s u p p o r t and s u r p l u s f o o d s ( c o m m o d i t i e s ) d i s t r i b u t e d t o low-income i n d i v i d u a l s and f a m i l i e s i n e l i g i b l e l o c a l i t i e s . States, l o c a l i t i e s , a n d , i n a number o f c a s e s , I n d i a n t r i b e s a r e e x p e c t e d t o pay most s t o r a g e , and t r a n s p o r t a t i o n c o s t s , o t h e r t h a n t h o s e a s s o c i a t e d w i t h i n i t i a l p r o c e s s i n g , p a c k a g i n g , and d e l i v e r y . E l i g i b i l i t y Requirements R e c i p i e n t s must b e needy, a s d e t e r m i n e d by l o c a l l y s e t s t a n d a r d s t h a t u s u a l l y c o r r e s p o n d t o c a s h w e l f a r e o r food stamp e l i g i b i l i t y rules. They a l s o must l i v e i n a n a r e a t h a t o f f e r s t h e program. Since most l o c a l i t i e s may n o t o f f e r b o t h food stamp and commodity a s s i s t a n c e and a l m o s t a l l q u a l i f i e d j u r i s d i c t i o n s now o p e r a t e a food stamp program, r e g u l a r commodity a s s i s t a n c e i s l i m i t e d t o I n d i a n r e s e r v a t i o n s 1/ and c e r t a i n o u t l y i n g t e r r i t o r i e s . As o f September 1983, t h e program was o p e r a t i n g on some 153 I n d i a n r e s e r v a t i o n s and i n t h e T r u s t Territory of the P a c i f i c Islands. 21 - C. Benefit Levels Between 20 and 30 commodities, o u t o f a p o t e n t i a l o f some 30 t o 35, a r e i n c l u d e d i n a t y p i c a l monthly package of F e d e r a l l y d o n a t e d f o o d s . Approximately'60-70 pounds o f f o o d s ( p e r p e r s o n p e r month) are d i s t r i b u t e d , w i t h a n a v e r a g e v a l u e o f between $16 and $38 p e r p e r s o n p e r month i n f i s c a l y e a r 1983. - Note: The U.S. Department o f A g r i c u l t u r e a l s o o p e r a t e s o t h e r food d o n a t i o n programs whereby food commodities a c q u i r e d by t h e F e d e r a l Government t h r o u g h i t s f a r m - p r i c e - s u p p o r t and s u r p l u s r e moval a c t i v i t i e s a r e d o n a t e d t o c h a r i t a b l e i n s t i t u t i o n s , summer camps, c e r t a i n h o s p i t a l s and p e n a l i n s t i t u t i o n s , food b a n k s , and o t h e r a g e n c i e s and o r g a n i z a t i o n s s e r v i n g needy p e r s o n s . S e e d i s c u s s i o n u n d e r "Other Food Donation Programs." 11 On t h o s e I n d i a n r e s e r v a t i o n s t h a t r e q u e s t i t , b o t h food stamps and tKe food d i s t r i b u t i o n program may b e a v a i l a b l e . - 2 1 I n t h e T r u s t T e r r i t o r y o f t h e P a c i f i c I s l a n d s , food stamps a r e not available. 32. SPECIAL MILK PROGRAM (FREE SEGMENT) A. Funding Formula Federal law provides 100 percent Federal funding for this program. B. - Eligibility Requirements 1/ All children in participating schools and residential child care institutions are eligible to receive partially or fully subsidized milk under the special milk program, but the program itself operates only in those schools and institutions that do not participate in Federally subsidized meal programs. 2 1 Schools may receive full cost reimbursement for the cost of a half-pint of milk if they choose to provide such milk free to qualifying children. Unlike the other institutionally operated child nutrition programs, schools have the option of serving free milk to income-eligible children, but are not required to do so. To qualify for free milk, a child must be income-eligible for a free school lunch or breakfast. That is, his family's income must not exceed 130 percent of the Office of Management and Budget (OMB) poverty guidelines, $12,870 for a family of four in the 1983-84 school year, ($13,260 in the 1984-85 school Regulations require school lunch authorities to judge a family's eligibility on the basis of its current rate of income. ---------1/ Regulations for this program are found in 7 C.F.R . 215. 2/ This limitation was effected under the provisions of the 0nnib;s Budget Reconciliation Act of 1981. Previously, a11 schoo1s could participate in this program. The change eliminated approximately 90 percent of the schools participating in the 1980-81 school year. 31 These limits were set under the provisions of the Omnibus Budget Reconciliation Act of 1981. They apply to the 48 contiguous States, District of Columbia, Puerto Rico, and the Virgin Islands. Higher limits operate in Alaska, Hawaii, and Guam. Prior to this change, income eligibility for free milk was set at 125 percent of the Secretary of Agriculture's poverty guidelines. The USDA poverty guidelines included an additional inflation update of the OMB poverty guildelines. Non-n,eedy c h i l d r e n , and needy c h i l d r e n i n s c h o o l s t h a t d o n o t o f f e r f r e e m i l k , must pay p a r t o f t h e c o s t o f t h e i r s p e c i a l m i l k . I n t h e 1983-1984 s c h o o l y e a r , t h e a v e r a g e reimbursement f o r a f r e e h a l f p i n t was e x p e c t e d t o b e 14.82 c e n t s . The reimbursement f o r n o n - f r e e m i l k f o r t h i s p e r i o d was e s t i m a t e d a t 9.2 c e n t s . T h i s non-free r a t e , which i s p r o v i d e d w i t h o u t r e g a r d t o f a m i l y income, i s a d j u s t e d each J u l y 1 t o r e f l e c t changes i n t h e Producer P r i c e Index f o r F r e s h P r o c e s s e d Milk. F r e e m i l k i s r e i m b u r s e d a t f u l l c o s t . 33. SECTION 8 LOWER-INCOME HOUSING ASSISTANCE A. Funding Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements - The law makes e l i g i b l e f o r S e c t i o n 8 r e n t s u b s i d i e s f a m i l i e s 11 and s i n g l e p e r s o n s 2 1 w i t h incomes below 8 0 p e r c e n t o f t h e a r e a median, c l a s s i f i e d "lower-income" h o u s e h o l d s . However, a housi n g agency may make a v a i l a b l e o n l y a s m a l l s h a r e o f i t s u n i t s t o t h o s e w i t h income a t o r above 50 p e r c e n t o f t h e a r e a median and t o s i n g l e p e r s o n s who a r e n o t aged, d i s a b l e d , h a n d i c a p p e d , o r t h e r e m a i n i n g member o f a t e n a n t f a m i l y . as The Housing and Community Development Amendments o f 1981 ( T i t l e 111 o f t h e Omnibus Budget R e c o n c i l i a t i o n Act o f 1981, P u b l i c Law 97-35) s p e c i f i e d t h a t n o t more t h a n 1 0 p e r c e n t o f u n i t s b e i n g r e - r e n t e d and n o t more t h a n 5 p e r c e n t o f u n i t s c o n t r a c t e d f o r a f t e r J u l y 1981 c o u l d b e r e n t e d t o h o u s e h o l d s w i t h incomes above 50 p e r c e n t o f t h e a r e a median (and below 8 0 p e r c e n t ) . Remaining u n i t s were r e s e r v e d f o r "very lowincome'' h o u s e h o l d s , t h o s e w i t h income a t o r below 50 p e r c e n t o f t h e a r e a median. However, P.L. 98-131, t h e Housing and Urban-Rural Recovery A c t o f 1983, i n c r e a s e d from 1 0 p e r c e n t t o 25 p e r c e n t t h e maximum s h a r e o f r e - r e n t a l s t h a t c o u l d g o t o h o u s e h o l d s above t h e v e r y low-income t h r e s h o l d . The Housing A u t h o r i z a t i o n Act o f 1978, P.L. 95-557, i n c r e a s e d t h e maximum s h a r e o f u n i t s t h a t c o u l d b e made a v a i l a b l e t o nonaged s i n g l e s from 10 t o 15 p e r c e n t . Implementing r e g u l a t i o n s t o o k e f f e c t on O c t o b e r 7, 1982. 11 The law d e f i n e s f a m i l i e s t o i n c l u d e two o r more r e lated-persons, s i n g l e p e r s o n s who a r e a t l e a s t 62 y e a r s o l d , and younger s i n g l e p e r s o n s who a r e d i s a b l e d , h a n d i c a p p e d , d i s p l a c e d by g o v e r n m e n t a l a c t i o n o r n a t u r a l d i s a s t e r , o r t h e rem a i n i n g member o f a n e l i g i b l e t e n a n t f a m i l y . 2 1 Admission o f nonaged s i n g l e s was a u t h o r i z e d by P.L. 94-377, e n a c t e d on August 3 , 1976. The program's median income c e i l i n g s a r e a d j u s t e d by r e g u l a t i o n f o r f a m i l y s i z e , w i t h a 4-person f a m i l y t h e s t a n d a r d . Thus, a lower-income 1-person household may have income e q u a l t o 50 p e r c e n t of t h e a r e a median; 4 p e r s o n s , 80 p e r c e n t ; and 8 o r more p e r s o n s , 100 p e r c e n t . The 1983 Act d e f i n e s " a d j u s t e d income" a s a n n u a l g r o s s i n come minus: $480 f o r e a c h h o m e h o l d member ( e x c e p t t h e head o r t h e h e a d ' s s p o u s e ) who i s under 18 y e a r s o l d , o r o l d e r and d i s a b l e d o r a f u l l - t i m e s t u d e n t ; $400 f o r an e l d e r l y f a m i l y ; medical e x p e n s e s o v e r 3 p e r c e n t of g r o s s income f o r an e l d e r l y f a m i l y ; and c h i l d c a r e expenses n e c e s s a r y t o e n a b l e a member 31 of t h e f a m i l y t o work o r t o f u r t h e r h i s l h e r e d u c a t i o n . For s e c t i o n 8 f a m i l i e s w i t h n e t f a m i l y a s s e t s above $5,000, F e d e r a l r e g u l a t i o n s i n c l u d e i n "income" used t o d e c i d e e l i g i b i l i t y ( a ) a c t u a l income from a l l n e t f a m i l y a s s e t s , o r ( b ) 1.0 p e r c e n t of t h e i r v a l u e , whichever i s g r e a t e r . N e t f a m i l y a s s e t s a r e d e f i n e d a s t h e e q u i t y v a l u e of r e a l p r o p e r t y , s a v i n g s , s t o c k s , bonds, and o t h e r forms of i n v e s t m e n t . Not i n c l u d e d a r e 41 s u c h " n e c e s s a r y i t e m s " a s f u r n i t u r e and automobiles. E l i g i b l e t e n a n t s may r e n t from p r i v a t e owners, cooperat i v e s , o r p u b l i c h o u s i n g a g e n c i e s who own a S e c t i o n 8 p r o j e c t . R e c e r t i f i c a t i o n i s r e q u i r e d a n n u a l l y . 51 E l i g i b i l i t y and r e n t a l c h a r g e s a r e based on c o u n t a b l e Tamily income e x p e c t e d i n t h e 12 months f o l l o w i n g t h e d a t e of d e t e r m i n a t i o n . C. Benefit Levels By law, most e l i g i b l e t e n a n t s i n l a t e 1981 p a i d a r e n t e q u a l t o 25 p e r c e n t of t h e i r a d j u s t e d income 61 ( t h a t r e m a i n i n g a f t e r 31 R e g u l a t i o ~ simplementing t h e 1983 law were i s s u e d on May 1 8 , 1984 (49 F e d e r a l R e g i s t e r . No. 92. p. 19926). P r e v i o u s r e g u l a t i o n s had p r o v i d e d t h e s e d e d u c t i o n s : $300 f o r e a c h minor c h i l d , m e d i c a l e x p e n s e s t h a t exceeded 3 p e r c e n t of a n n u a l income, and u n u s u a l e x p e n s e s . 24 C.F.R. 5 889.102 (1983). The 1983 r u l e s e x c l u d e d some i t e m s from "income" by d e f i n i t i o n , among them: i r r e g u l a r g i f t s ; amounts t h a t reimburse medical e x p e n s e s ; lumpsum a d d i t i o n s t o f a m i l y a s s e t s ; e d u c a t i o n a l s c h o l a r s h i p s and v e t e r a n s ' e d u c a t i o n a l b e n e f i t s . 24 C.F.R. 5 889.104 (1983). 41 - 24 C.F.R. 5 889.103 (1983). 51 P.L. 97-35 e l i m i n a t e d a s p e c i a l e x c e p t i o n f o r t h e e l d e r i y t h a t had p e r m i t t e d t h e i r b i e n n i a l r e c e r t i f i c a t i o n . 6/ P.L. 96-153 a u t h o r i z e d HUD t o i n c r e a s e t h i s t o 30 p e r c e n t f o r f a m i l i e s w i t h income between 50 and 8 0 p e r c e n t of t h e median, b u t HUD d i d n o t use t h i s a u t h o r i t y i n 1981. CRS- 105 d e d u c t i o n s ) , b u t n o t l e s s than 15 p e r c e n t o f t h e f a m i l y ' s g r o s s income; f o r lower-income f a m i l i e s who j o i n e d t h e program a f t e r J a n u a r y 1, 1980, t h e minimum was r a i s e d t o 20 p e r c e n t o f g r o s s income. However, P.L. 97-35 e s t a b l i s h e d f a m i l y g r o s s r e n t a s t h e h i g h e r o f ( a ) 30 p e r c e n t o f c o u n t e d income o r ( b ) 1 0 p e r c e n t o f g r o s s income. 71 The law p r o v i d e d t h a t new t e n a n t s w e r e t o pay t h e h i g h e r amount i m m e d i a t e l y . F o r t e n a n t s who j o i n e d t h e program b e f o r e August 1 3 , 1981, when t h e new law t o o k e f f e c t , t h e i n c r e a s e i s b e i n g phased i n o v e r a 5-year p e r i o d , and n o t e n a n t ' s r e n t a l i n c r e a s e i s t o exceed 1 0 p e r c e n t i n any 12-month p e r i o d , e x c e p t f o r i n c r e a s e s d u e t o h i g h e r income. The phase-in s c h e d u l e : T e n a n t s w i t h l e a s e r e n e w a l o r income r e d e t e r m i n a t i o n between August 1, 1982 and September 30, 1983, 27 p e r c e n t o f income; between O c t o b e r 1, 1983 and September 30, 1984, 28 p e r c e n t ; between O c t o b e r 1, 1984 and September 1985, 29 p e r c e n t ; and a f t e r O c t o b e r 1, 1985, 30 p e r c e n t . 8 1 - The F e d e r a l Government pays t h e d i f f e r e n c e between c o n t r a c t r e n t and t h e r e n t p a i d by t h e t e n a n t . The c o n t r a c t r e n t c h a r g e d by t h e owner o f s e c t i o n 8 h o u s i n g must b e w i t h i n l i m i t s e s t a b l i s h e d by a HUD s u r v e y of f a i r m a r k e t r e n t s f o r s t a n d a r d modest e x i s t i n g , s u b s t a n t i a l l y r e h a b i l i t a t e d , and new c o n s t r u c t i o n u n i t s i n e a c h m e t r o p o l i t a n a r e a o r non-metropolitan county of t h e Nation, except t h a t HUD c a n p e r m i t u p t o 20 p e r c e n t h i g h e r r e n t s i f n e c e s s a r y . F e d e r a l e x p e n d i t u r e s p e r u n i t i n FY 1983 a v e r a g e d a b o u t $2,900 ( a b o u t $240 p e r month). NOTE: The A d m i n i s t r a t i o n proposed i n 1981 t h a t t h e s e c t i o n 8 e x i s t i n g h o u s i n g program b e r e p l a c e d by a v o u c h e r program, w i t h n o r e s t r i c t i o n s on r e n t s t h a t t e n a n t s c o u l d pay. I n 1983 Congress e s t a b l i s h e d a d e m o n s t r a t i o n v o u c h e r program 9 1 and a u t h o r i z e d f u n d s f o r 15,000 v o u c h e r s i n 1984. The voucKer amount i s b a s e d on a payment s t a n d a r d r e f l e c t i n g r e l a t i v e a r e a r e n t a l c o s t s and t h e t e n a n t ' s income l e v e l . 71 A t h i r d a l t e r n a t i v e a p p l i e s t o f a m i l i e s who r e c e i v e a c a s h w e l f a r e g r a n t t h a t i n c l u d e s a sum d e s i g n a t e d f o r a c t u a l rent. Such f a m i l i e s must pay t h a t " w e l f a r e r e n t " i f i t e x c e e d s e i t h e r o f t h e o t h e r two m e a s u r e s . -8 1 -9 1 24 C.F.R. § 889.105 ( 1 9 8 3 ) . S e c t i o n 8 (01. 34. - LOW-RENT PUBLIC HOUSING 1/ A. F u n d i n e Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. However, a n i n d i r e c t l o c a l c o n t r i b u t i o n r e s u l t s from t h e d i f f e r e n c e between f u l l l o c a l p r o p e r t y t a x e s and payments i n l i e u o f t a x e s t h a t a r e made by l o c a l h o u s i n g a u t h o r i t i e s . B. E l i g i b i l i t y Requirements F e d e r a l law makes e l i g i b l e f o r r e n t a l u n i t s i n c o n v e n t i o n a l publ i c h o u s i n g low-income f a m i l i e s and s i n g l e p e r s o n s , 2 / b u t p e r m i t s no more t h a n 30 p e r c e n t 31 of u n i t s u n d e r t h e j u r i s d i c t T o n o f t h e housi n g agency t o g o t o s T n g l e s who a r e n o t aged, d i s a b l e d , h a n d i c a p p e d , o r t h e r e m a i n i n g member o f a t e n a n t f a m i l y . The law d e f i n e s e l i g i b l e " f a m i l i e s " t o i n c l u d e s i n g l e p e r s o n s who a r e a t l e a s t 6 2 y e a r s o l d and younger s i n g l e s who a r e d i s a b l e d , h a n d i c a p p e d , d i s p l a c e d by g o v e r n m e n t a l a c t i o n , o r t h e r e m a i n i n g member o f a t e n a n t f a m i l y . 11 The low-rent p u b l i c h o u s i n g program was i n c l u d e d i n t h e o v e r a l l s u s p e n s i o n o f s u b s i d i z e d h o u s i n g programs i n J a n . In 1973, p e n d i n g a r e v i e w and e v a l u a t i o n o f t h e programs. S e p t . 1973 t h e program resumed u n d e r r e v i s e d r e g u l a t i o n s . Except a s n e c e s s a r y t o meet bona f i d e commitments u n d e r p r i o r p u b l i c h o u s i n g programs, new a p p r o v a l s were made u n d e r t h e r e v i s e d S e c t i o n 23 l e a s i n g p r o c e d u r e u n t i l t h a t program was r e p l a c e d by S e c t i o n 8 i n t h e Housing and Community Development Act o f 1974. I n t h e 1974 Act c o n v e n t i o n a l p u b l i c h o u s i n g was r e i n s t a t e d . 21 Admission o f nonaged s i n g l e s was a u t h o r i z e d by P.L. 3-4-375. 31 P.L. 95-557, t h e Housing A u t h o r i z a t i o n Act o f 1978, i n c r e a s e d t h e maximum s h a r e o f s u c h s i n g l e s from 10 t o 15 perpercent. Implementing r e g u l a t i o n s t o o k e f f e c t O c t . 7 , 1982. P.L. 98-181, t h e Housing and Urban-Rural Recovery Act o f 1983, a u t h o r i z e s t h e HUD S e c r e t a r y t o i n c r e a s e t h e maximum p r o p o r t i o n o f n o n - e l d e r l y s i n g l e s t o 30 p e r c e n t on a f i n d i n g t h a t t h e u n i t s a r e n o t and a r e n o t l i k e l y t o be o c c u p i e d by e l i g i b l e f a m i l i e s o r o t h e r e l i g i b l e persons. U n t i l p a s s a g e of t h e Housing and Community Development Amendments of 1981, ( T i t l e I11 of t h e Omnibus Budget R e c o n c i l i a t i o n Act of 1981, P.L. 97-35) t h e law r e q u i r e d t h a t a t l e a s t 20 p e r c e n t of e a c h p r o j e c t ' s u n i t s be r e n t e d t o f a m i l i e s whose incomes d i d n o t exceed 50 p e r c e n t of t h e a r e a median f a m i l y income, a d j u s t e d f o r f a m i l y s i z e . HUD r e g u l a t i o n s , i n c o n f o r m i t y w i t h s t a t u t o r y l a n g u a g e d i r e c t t i n g s e l e c t i o n c r i t e r i a which would " a s s u r e a b r o a d range of incomes," r e q u i r e d t h a t t e n a n t s be s e l e c t e d s o a s t o have a t e n a n t body " r e p r e s e n t a t i v e of t h e r a n g e of incomes" e l i g i b l e f o r a d m i s s i o n . .. . The 1981 Act changed t h e d e s i g n a t i o n of p u b l i c h o u s i n g from "low income" t o "lower income" and s p e c i f i e d t h a t no more t h a n 1 0 p e r c e n t of u n i t s b e i n g r e - r e n t e d and no more t h a n 5 p e r c e n t of u n i t s t h a t became a v a i l a b l e a f t e r J u l y 1981 c o u l d be r e n t e d t o h o u s e h o l d s w i t h incomes above 50 p e r c e n t of t h e a r e a median (and below 8 0 p e r c e n t ) . Remaining u n i t s were r e s e r v e d f o r " v e r y lowincome" f a m i l i e s , t h o s e w i t h income a t o r below 50 p e r c e n t of t h e a r e a median. However, P.L. 98-131, t h e 1983 A c t , i n c r e a s e d from 1 0 p e r c e n t t o 25 p e r c e n t t h e maximum s h a r e of r e - r e n t a l s t h a t c o u l d go t o households above t h e v e r y low-income t h r e s h o l d . The 1983 Act d e f i n e s " a d j u s t e d income" a s a n n u a l g r o s s income minus: $480 f o r each household member ( e x c e p t t h e head o r t h e h e a d ' s s p o u s e ) who i s u n d e r 18 y e a r s o l d , o r o l d e r and d i s a b l e d o r a f u l l time s t u d e n t ; $400 f o r an e l d e r l y f a m i l y ; medical e x p e n s e s o v e r 3 p e r c e n t of g r o s s income f o r an e l d e r l y f a m i l y ; and c h i l d c a r e expenses n e c e s s a r y t o e n a b l e a member of t h e f a m i l y t o work o r t o f u r t h e r h i s / h e r education. 4/ E l i g i b i l i t y and r e n t a l c h a r g e s a r e based on c o u n t a b l e f a m i l y income e x p e c t e d i n t h e 12 months f o l l o w i n g admission o r r e c e r t i R e c e r t i f i c a t i o n i s r e q u i r e d a n n u a l l y . 51 fication. 41 R e g u l a t i o n s implementing t h e 1983 law were i s s u e d on May 21, 1984 (49 F e d e r a l R e g i s t e r No. 99. p. 21476). Previous r e g u l a t i o n s had p r o v i d e d t h e s e d e d u c t i o n s : 5 p e r c e n t of g r o s s income of a d u l t f a m i l y members (10 p e r c e n t f o r t h e e l d e r l y ) ; t h e f i r s t $300 e a r n e d by t h e spouse of t h e b r e a d w i n e r , $300 f o r e a c h f a m i l y member o t h e r t h a n t h e head o r s p o u s e who was a c h i l d , a d i s a b l e d o r handicapped a d u l t , o r a f u l l - t i m e s t u d e n t ; m e d i c a l expenses t h a t exceeded 3 p e r c e n t of f a m i l y income b e f o r e deduct i o n s ; dependent c a r e e x p e n s e s , i f needed t o e n a b l e t h e f a m i l y head o r s p o u s e t o work, and f o s t e r c a r e payments. F u r t h e r , i n come of f u l l - t i m e s t u d e n t s o t h e r t h a n t h e head o r s p o u s e and temp o r a r y , n o n - r e c u r r i n g o r s p o r a d i c income was e x c l u d e d from counta b l e income by d e f i n i t i o n . 2 4 C.F.R. 860.403 (1983). 5 1 P.1,. 97-35 e l i m i n a t e d a s p e c i a l e x c e p t i o n f o r t h e e l d e r l y t h a t had p e r m i t t e d t h e i r b i e n n i a l r e c e r t i f i c a t i o n . C. Benefit Levels By law, e l i g i b l e t e n a n t s i n l a t e 1981 p a i d a r e n t e q u a l t o 25 p e r c e n t o f a d j u s t e d income 6 1 ( t h a t r e m a i n i n g a f t e r d e d u c t i o n s ) , b u t a t l e a s t 5 p e r c e n t o f t h e F a m i l y ' s g r o s s income; o r i f h i g h e r , t h a t p o r t i o n o f i t s c a s h w e l f a r e payment, i f a n y , s p e c i f i c a l l y d e s i g n a t e d f o r h o u s i n g . 71 However, P.L. 97-35 e s t a b l i s h e d f a m i l y g r o s s r e n t a s t h e h i g h e s t o f ( a ) 30 p e r c e n t o f c o u n t e d i n come, ( b ) 1 0 p e r c e n t o f g r o s s income, o r ( c ) t h a t p o r t i o n o f a f a m i l y ' s w e l f a r e payment, i f any, d e s i g n a t e d f o r h o u s i n g . The law p r o v i d e d t h a t new t e n a n t s w e r e t o pay t h e h i g h e r amount i m m e d i a t e l y . F o r t e n a n t s who e n t e r e d p u b l i c h o u s i n g b e f o r e August 1 3 , 1981, when t h e new law t o o k e f f e c t , t h e i n c r e a s e i s b e i n g phased i n o v e r a 5-year p e r i o d , and no t e n a n t ' s r e n t a l i n c r e a s e i s t o exceed 1 0 p e r c e n t i n any 12-month p e r i o d , e x c e p t f o r i n c r e a s e s d u e t o h i g h e r income. The phase-in s c h e d u l e : T e n a n t s w i t h l e a s e r e newal o r income r e e x a m i n a t i o n between August 1, 1982 and Septemb e r 3 0 , 1983, 27 p e r c e n t o f income; between O c t o b e r 1 , 1983 and September 1984, 2 8 p e r c e n t ; between O c t o b e r 1, 1984 and September 81 1985, 29 p e r c e n t ; and a f t e r O c t o b e r 1 , 1985, 30 p e r c e n t . Regulations r e q u i r e t h a t aggregate r e n t s charged equal a t l e a s t 20 p e r c e n t o f t h e a g g r e g a t e income o f t e n a n t s i n a l o c a l h o u s i n g The F e d e r a l Government makes a n n u a l payauthority's jurisdiction. ments t o l o c a l a u t h o r i t i e s t o a s s u r e t h e low-rent c h a r a c t e r o f proj e c t s , t o a c h i e v e and m a i n t a i n a d e q u a t e o p e r a t i n g and m a i n t e n a n c e s e r v i c e and r e s e r v e f u n d s , and t o p r o v i d e d e b t s e r v i c e payments. P u b l i c housing o u t l a y s , i n c l u d i n g o p e r a t i n g s u b s i d i e s , averaged a b o u t $2,600 p e r u n i t i n FY 1983, r o u g h l y $217 monthly. --61 24 C.F.R. § 860.405 ( 1 9 8 1 ) . -71 -81 24 C.F.R. § 860.404 ( 1 9 8 1 ) . 4 24 C.F.R. 860.404 ( 1 9 8 3 ) . 35. SECTION 502 RURAL HOUSING LOANS Funding Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements The law p e r m i t s l o a n s f o r owners o r p o t e n t i a l owners o f a farm, o r owners o f a home o r nonfarm t r a c t i n a r u r a l a r e a , who a r e w i t h o u t d e c e n t , s a f e , and s a n i t a r y h o u s i n g and u n a b l e t o o b t a i n c r e d i t e l s e w h e r e on r e a s o n a b l e t e r m s . Both "very low" and "low" income f a m i l i e s a r e e l i g i b l e f o r S e c t i o n 502 l o a n s and i n t e r e s t credits. The 1983 Housing and Urban-Rural Recovery Act r e q u i r e s t h a t a t l e a s t 40 p e r c e n t o f u n i t s n a t i o n w i d e and 30 p e r c e n t o f t h e u n i t s i n e a c h S t a t e f i n a n c e d u n d e r t h i s program b e o c c u p i e d by v e r y low income f a m i l i e s o r p e r s o n s . The law d e f i n e s v e r y low income a s below 50 p e r c e n t o f t h e median income and r e q u i r e s a r e a and f a m i l y s i z e a d j u s t m e n t s . 2 1 A g r i c u l t u r e Department r e g u l a t i o n s have e s t a b l i s h e d do1 l a r lizits by c o u n t y o r d i s t r i c t g r o u p i n g s f o r e a c h S t a t e and o u t l y i n g area. 3 1 The r a n g e i n e l i g i b i l i t y l i m i t s i s from $5,000 t o $11,500 ( a d j u s t e d a n n u a l income) f o r v e r y low income and from $11,500 t o $18,000 f o r low income f a m i l i e s i n t h e 4 8 c o n t i g u o u s States. 11 P.L. 96-399, t h e Housing and Community Development Act o f 1980,-required t h a t c r e d i t s b e made a v a i l a b l e t o moderate-income b o r r o w e r s , b u t P.L. 97-35 made t h i s a d i s c r e t i o n a r y p r o v i s i o n , and t h e S e c r e t a r y o f A g r i c u l t u r e i n December 1981 d e t e r m i n e d t h a t such c r e d i t s were n o t n e e d e d . -2 1 P.L. 98-181. 31 USDA s a y s t h a t i t s s c h e d u l e o f low-income l i m i t s r e f l e c t s 8 0 p e r c e n t o f a r e a medians, b u t t h a t t h e a c t u a l l i m i t s a r e " n o t l e s s t h a n 60 p e r c e n t n o r g r e a t e r t h a n 8 0 p e r c e n t o f t h e non-metro c e n s u s r e g i o n a l income w i t h some a d j u s t m e n t f o r h o u s i n g c o s t . " The peak l i m i t i s $17,100 f o r v e r y low income and $27,500 f o r low income f a m i l i e s i n J u n e a u , A l a s k a . 4 1 - O t h e r e l i g i b i l i t y r e q u i r e m e n t s a r e s e t by t h e Farmers Home A d m i n i s t r a t i o n ( F ~ H A ) . F a m i l i e s must have s u f f i c i e n t income t o make m o r t g a g e payments, and t o pay premiums, t a x e s , m a i n t e n a n c e , and o t h e r n e c e s s a r y l i v i n g e x p e n s e s . By r e g u l a t i o n , a d j u s t e d a n n u a l income ( c o u n t a b l e h o u s i n g income) i s 95 p e r c e n t o f a l l income o f f a m i l y members i n c l u d i n g c a s h w e l f a r e , b u t e x c l u d i n g food stamps and t h e e a r n i n g s o r benef i t income o f a f u l l t i m e s t u d e n t (who i s n o t t h e a p p l i c a n t o r h i s s p o u s e ) , reduced by $300 f o r e a c h m i n o r c h i l d and by workr e l a t e d e x p e n s e s f o r d e p e n d e n t c a r e , up t o $400 monthly. 5 1 - C. Benefit Levels The law r e s t r i c t s l o a n s t o t h e s i z e " n e c e s s a r y t o p r o v i d e adeFmHA req u a t e h o u s i n g , modest i n s i z e , d e s i g n , and c o s t . " g a r d s t h i s a s p r e c l u d i n g a h o u s e o f more t h a n 1,300 s q u a r e f e e t . The a c t u a l s i z e o f t h e m o r t g a g e v a r i e s from p l a c e t o p l a c e d e p e n d i n g on construction costs. I n FY 1983 l o a n s a v e r a g e d a l m o s t $43,000. 41 The s c h e d u l e o f "maximum a d j u s t e d incomes" f o r r u r a l housi n g programs i s found a t 7 C.F.R. 5 1944, E x h i b i t C ( 1 9 8 2 ) . See 46 F e d e r a l R e g i s t e r , No. 244, Dec. 21, 1981. p. 62015-62028. 5 1 O t h e r e x c l u s i o n s : f o s t e r c a r e payments, s t i p e n d s from f o s t e r ~ r a n d F a r e n t s , o r O l d e r American Community S e r v i c e Programs, ACTION payments, and CETA t r a i n i n g a l l o w a n c e s . 7 C.F.R. 1944.8 (1982). See 46 F e d e r a l R e g i s t e r , No. 244, Dec. 21, 1981. p. 61993. 36. SECTION 515 RURAL RENTAL HOUSING LOANS A. Funding Formula T h i s program is funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements The law p e r m i t s l o a n s f o r r u r a l r e n t a l and c o o p e r a t i v e housi n g u n i t s t o be occupied by persons a t l e a s t 63 y e a r s o l d and by f a m i l i e s w i t h "low" o r "moderate" income. The law r e q u i r e s t h a t a t l e a s t 40 p e r c e n t of u n i t s n a t i o n w i d e and 30 p e r c e n t of u n i t s i n each S t a t e f i n a n c e d under t h i s program be occupied by v e r y lowi n c o w f a m i l i e s o r persons. The law d e f i n e s very low income a s below 50 p e r c e n t of t h e median income and r e q u i r e s a r e a and f a m i l y s i z e a d j u s t m e n t s . 1 / A g r i c u l t u r e Department r e g u l a t i o n s have e s t a b l i s h e d [ d o l l a r l i m i t s ] by county o r d i s t r i c t groupings f o r e a c h S t a t e and o u t l y i n g a r e a . 21 The range i n e l i g i b i l i t y l i m i t s i s from $5,000 t o $11,500 ( a d j u s t e d a n n u a l income) f o r v e r y low income and $11,500 t o $18,000 f o r low income f a m i l i e s i n t h e 48 contiguous S t a t e s . The peak limit i s $17,100 f o r very low and $27,500 f o r low income f a m i l i e s i n Juneau, Alaska. 3/ ( R e g u l a t i o n s d e f i n e moderate-income a s $5,500 over t h e low-income l e v e l . ) By r e g u l a t i o n , a d j u s t e d a n n u a l f a m i l y income ( c o u n t a b l e housing income) i s 95 p e r c e n t of a l l income of f a m i l y members ( e x c l u d i n g temporary and. n o n r e c u r r i n g income and e a r n i n g s of members under 21 y e a r s o l d ) , reduced by $300 f o r e a c h minor c h i l d . -11 P.L. 98-181, 2 1 USDA s a y s t h a t i t s s c h e d u l e of low-income l i m i t s r e f l e c t s 80 p r c e n t of a r e a medians, but t h a t t h e a c t u a l l i m i t s a r e "not l e s s t h a n 60 p e r c e n t n o r g r e a t e r t h a n 80 p e r c e n t of t h e non-metro census r e g i o n a l income w i t h some adjustment f o r housing c o s t . " 31 The s c h e d u l e of "maximum a d j u s t e d incomes" f o r r u r a l housing progr%s i s found a t 7 C.F.R. 5 1944, E x h i b i t C (1982). See 46 F e d e r a l R e g i s t e r , No. 244, Dec. 21, 1981. p. 62015-62028. S p o n s o r s c a n b e n o n p r o f i t , p r o f i t o r i e n t e d , o r " l i m i t e d prof i t , " must b e u n a b l e t o o b t a i n c r e d i t e l s e w h e r e on r e a s o n a b l e t e r m s t h a t would e n a b l e them t o r e n t t h e u n i t s f o r amounts w i t h i n t h e payment a b i l i t y o f e l i g i b l e t e n a n t s , and must h a v e s u f f i c i e n t i n i t i a l c a p i t a l t o make l o a n payments and meet c o s t s . Applic a n t s must c o n d u c t market s u r v e y s t o d e t e r m i n e t h e number o f e l i g i b l e o c c u p a n t s i n t h e a r e a who a r e w i l l i n g and f i n a n c i a l l y a b l e t o occupy t h e h o u s i n g a t t h e proposed r e n t l e v e l s ; t h i s d o e s "not p r e c l u d e occupancy by e l i g i b l e o c c u p a n t s who a r e r e c e i v i n g w e l f a r e a s s i s t a n c e . " The Farmers Home A d m i n i s t r a t i o n (FmHA) d e t e r m i n e s w h e t h e r a p p l i c a n t s meet r e q u i r e m e n t s s e t i n t h e law. C. Benefit Levels N o n p r o f i t s p o n s o r s and S t a t e and l o c a l p u b l i c a g e n c i e s a r e e l i g i b l e f o r l o a n s up t o 100 p e r c e n t o f t h e a p p r a i s e d v a l u e o r development c o s t , w h i c h e v e r i s l e s s . P u r c h a s e l o a n s f o r b u i l d i n g s l e s s t h a n 1 y e a r o l d a r e l i m i t e d t o 8 0 p e r c e n t o f t h e a p p r a i s e d v a l u e . Loan amounts and t e r m s c a n b e d e t e r m i n e d by FmHA. I n FY 1983 l o a n s a v e r aged a b o u t $33,200 each. 37. - SECTION 236 INTEREST REDUCTION PAYMENTS 1/ A. Funding Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements The Housing and Community Development Act o f 1974 makes e l i g i b l e f o r S e c t i o n 236 h o u s i n g a s s i s t a n c e t e n a n t s whose incomes a r e n o t i n e x c e s s of 80 p e r c e n t o f t h e a r e a median income. O r i g i n a l l y , i n 1968, t h e l i m i t was 135 p e r c e n t o f p u b l i c h o u s i n g l i m i t s , e x c e p t t h a t u p t o 20 p e r c e n t o f payments t h e n c o u l d b e f o r t e n a n t s whose incomes were n o t above 90 p e r c e n t o f l i m i t s e s t a b l i s h e d f o r S e c t i o n 221 ( d ) ( 3 ) h o u s i n g . The program i s open t o f a m i l i e s and t o s i n g l e p e r s o n s w i t h o u t r e g a r d t o age, b u t t h e law l i m i t s t o 15 p e r c e n t 2/ t h e p r o p o r t i o n of u n i t s a v a i l a b l e t o n o n - e l d e r l y s i n g l e s . - U n t i l December 2 , 1979, t h e law e x c l u d e d from "income" f o r t h e p u r p o s e s of d e t e r m i n i n g e l i g i b i l i t y and s u b s i d y l e v e l s 5 p e r c e n t o f g r o s s incomes, a l l e a r n i n g s o f minor c h i l d r e n l i v i n g a t home, p l u s $300 f o r e a c h c h i l d . For t e n a n t s a d m i t t e d a f t e r December 21, 1979, P.L. 96-153 p r o v i d e d t h a t income s h o u l d b e d e f i n e d i n a c c o r d a n c e w i t h p r o c e d u r e s of S e c t i o n 8 (program No. 3 3 ) . The Housing and Urban-Rural Recovery Act of 1983 (P.L. 98-131) d e f i n e s " a d j u s t e d income" f o r s e c t i o n 8 h o u s i n g a s a n n u a l g r o s s i n come minus: $480 f o r e a c h household member ( e x c e p t t h e head o r t h e h e a d ' s s p o u s e ) who i s u n d e r 1 8 y e a r s o l d , o r o l d e r and d i s a b l e d o r a f u l l - t i m e s t u d e n t ; $400 f o r an e l d e r l y f a m i l y ; m e d i c a l e x p e n s e s o v e r 3 p e r c e n t o f g r o s s income f o r a n e l d e r l y f a m i l y ; and c h i l d 1/ S e c t i o n 236 was suspended w i t h o t h e r m a j o r s u b s i d i z e d housi n g programs on J a n . 4 , 1973. Except a s n e c e s s a r y t o meet bona f i d e commitments, new c o n t r a c t s f o r a d d i t i o n a l p r o j e c t s w i l l n o t b e made u n d e r t h e program. 21 from P.L. 95-557 i n c r e a s e d t h e maximum s h a r e f o r non-aged 15 p e r c e n t . TO t o singles c a r e e x p e n s e s n e c e s s a r y t o e n a b l e a member o f t h e f a m i l y t o work o r t o f u r t h e t h i s / h e r e d u c a t i o n . 31 - F o r f a m i l i e s w i t h n e t f a m i l y a s s e t s above $ 5 , 0 0 0 , F e d e r a l r e g u l a t i o n s i n c l u d e i n "income" used t o d e c i d e e l i g i b i l i t y ( a ) a c t u a l income from a l l n e t f a m i l y a s s e t s , o r ( b ) 1 0 p e r c e n t o f t h e i r v a l u e , w h i c h e v e r i s g r e a t e r . Net f a m i l y a s s e t s a r e d e f i n e d a s t h e e q u i t y v a l u e o f r e a l p r o p e r t y , s a v i n g s , s t o c k s , bonds, and o t h e r forms o f i n v e s t m e n t . Not i n c l u d e d a r e s u c h " n e c e s s a r y i t e m s " a s f u r n i t u r e and a u t o m o b i l e s . 41 - Income r e c e r t i f i c a t i o n i s r e q u i r e d a n n u a l l y . E l i g i b i l i t y and s u b s i d y amounts a r e b a s e d on a n t i c i p a t e d income i n t h e y e a r a h e a d , b u t a s h o r t e r a c c o u n t i n g p e r i o d i s p e r m i t t e d by r e g u l a t i o n s . C. Benefit Levels A b a s i c m o n t h l y r e n t a l c h a r g e i s e s t a b l i s h e d f o r e a c h u n i t on t h e b a s i s of t h e c o s t s o f o p e r a t i n g t h e p r o j e c t w i t h t h e d e b t s e r v i c e req u i r e m e n t s o f a m o r t g a g e b e a r i n g a 1 - p e r c e n t i n t e r e s t r a t e . HUD makes payments t o r e d u c e t h e e f f e c t i v e i n t e r e s t r a t e t o 1 p e r c e n t . A f a i r market r e n t a l c h a r g e i s e s t a b l i s h e d f o r e a c h u n i t b a s e d on c o s t s o f o p e r a t i o n w i t h t h e d e b t s e r v i c e requirements of a mortgage a t t h e f u l l market r a t e . The law p r o v i d e s t h a t t h e t e n a n t f a m i l y s h a l l pay t h e b a s i c r e n t o r a n amount e q u a l t o 30 p e r c e n t of " a d j u s t e d g r o s s income," 5 1 ( c o u n t a b l e h o u s i n g income, a s d e f i n e d a b o v e ) , w h i c h e v e r i s g r e a t e r , b u t n o t more t h a n t h e m a r k e t r e n t . However, 20 p e r c e n t 3 / R e g u l a t i o n s implementing t h e 1983 law were i s s u e d on May 1'3, 1984 ( 4 9 F e d e r a l R e g i s t e r No. 92. p. 19926). P r e v i o u s r e g u l a t i o n s had p r o v i d e d t h e s e d e d u c t i o n s f o r s e c t i o n 235 i n t e r e s t r e d u c t i on payments: $300 f o r e a c h m i n o r c h i l d , m e d i c a l e x p e n s e s t h a t exceeded 3 p e r c e n t o f a n n u a l income, and c e r t a i n u n u s u a l expenses (dependent c a r e c o s t s ) . 24 C.F.R. 236.2 ( 1 9 8 3 ) . The 1983 r u l e s e x c l u d e d some i t e m s from "income" by d e f i n i t i o n , among them: i r r e g u l a r g i f t s , amounts t h a t r e i m b u r s e m e d i c a l e x p e n s e s ; lump-sum a d d i t i o n s t o f a m i l y a s s e t s ; e d u c a t i o n a l s c h o l a r s h i p s and v e t e r a n s ' e d u c a t i o n a l b e n e f i t s . 24 C.F.R. § 236.2 ( 1 9 8 3 ) . 4/ - 24 C.F.R. § 236.2 (1983). 5 / P e r c e n t a g e o f a d j u s t e d g r o s s income was r a i s e d from 25 t o 30 p e r c e n t by P.L. 97-35, which was e n a c t e d on August 1 3 , 1981. F o r t e n a n t s t h e n i n t h e program, t h i s i n c r e a s e i s b e i n g phased i n , w i t h c o m p l e t i o n s c h e d u l e d by September 3 0 , 1985. o f t e n a n t s who c a n n o t a f f o r d t h e b a s i c r e n t a r e t o b e p r o v i d e d a d d i t i o n a l h e l p t o lower t h e i r r e n t a l payment t o 25 p e r c e n t o f income. 6 / F u r t h e r , e l d e r l y and handicapped f a m i l i e s p a y i n g more t h a n 50 perc e n t of t h e i r income f o r r e n t can r e c e i v e S e c t i o n 8 a s s i s t a n c e . 7 / - - B e n e f i t s a v e r a g e d $1,240 p e r d w e l l i n g u n i t i n FY 1983, $103 monthly. - 6 / P r o v i s i o n was added by P.L. 93-383. Before t h i s l e g i s l a t i o n , up t o 40 p e r c e n t were e l i g i b l e f o r r e n t supplements, b u t o n l y 10-20 p e r c e n t r e c e i v e d them. -7 / P r o v i s i o n was added by P.L. 96-399. 38. SECTION 235 HOMEOWNERSHIP ASSISTANCE FOR LOWTINCOME FAMILIES 1/ - A. Funding Formula T h i s program i s f u l l y funded by t h e F e d e r a l Government. B. - E l i g i b i l i t y Requirements 21 HUD r e g u l a t i o n s make e l i g i b l e f o r t h e r e v i s e d s e c t i o n 235 program f a m i l i e s ( t w o o r more r e l a t e d p e r s o n s ) and s i n g l e s who a r e e l d e r l y ( a t l e a s t 62 y e a r s o l d ) , d i s p l a c e d by governmental a c t i o n o r n a t u r a l d i s a s t e r , o r h a n d i c a p p e d ; and whose a d j u s t e d a n n u a l incomes do n o t exceed 95 p e r c e n t o f t h e median f a m i l y income f o r t h e a r e a , a d j u s t e d f o r f a m i l y s i z e . 3 / The S e c r e t a r y o f t h e Department o f - 1/ The S e c t i o n 235 program was suspended w i t h o t h e r m a j o r s u b s i d i z e d h o u s i n g programs on J a n . 5 , 1973. I n O c t . 1975, $264.1 m i l l i o n t h a t had n o t p r e v i o u s l y been u s e d f o r t h e S e c t i o n 235 program was r e l e a s e d , t o b e u s e d a c c o r d i n g t o r e v i s e d r e g u l a t i o n s d i s c u s s e d above. 21 D e s c r i b e d i n t h i s r e p o r t a r e t e r m s o f t h e r e g u l a r Sect i o n 7 3 5 program. I n a d d i t i o n , t h e 9 6 t h Congress a u t h o r i z e d a s p e c i a l program, S e c t i o n 235 ( q ) , a p p l i c a b l e o n l y t o m o r t g a g e s e x e c u t e d o r committed a f t e r A p r i l 21, 1980 and b e f o r e March 1, 1981, t o h e l p r e d u c e t h e i n v e n t o r y o f u n s o l d h o u s e s and stimul a t e new c o n s t r u c t i o n . T h i s program, f o r which f u n d s were n o t a p p r o p r i a t e d , would h a v e made payments t o t h e m o r t g a g e e t o r e d u c e t h e homeowner's payment f o r p r i n c i p a l , i n t e r e s t , t a x e s , and i n s u r a n c e t o 20 p e r c e n t o f h i s income, o r t o an e f f e c t i v e i n t e r e s t r a t e o f 11 p e r c e n t , w h i c h e v e r was l e s s . Under t h e s e t e r m s , t h e e s t i m a t e d income l i m i t f o r e l i g i b i l i t y c o u l d h a v e b e e n a s h i g h a s $39,000. 3/ P.L. 94-375, t h e Housing A u t h o r i z a t i o n Act o f 1976, e s t a b l i s h e z t h e income l i m i t a t 95 p e r c e n t o f t h e a r e a median. T h i s r e p l a c e d a l i m i t o f 80 p e r c e n t o f t h e a r e a median, which had been s e t by P.L. 93-383, t h e Housing and Community Development Act o f 1974. The o r i g i n a l income l i m i t , e s t a b l i s h e d by P.L. 90-448, t h e Housing and Urban Development Act o f 1968, had been 135 p e r c e n t o f p u b l i c h o u s i n g l i m i t s , e x c e p t t h a t 20 p e r c e n t o f payments t h e n c o u l d b e f o r f a m i l i e s whose income was n o t above 90 p e r c e n t o f t h e l i m i t s o f s e c t i o n 221 ( d ) ( 3 ) h o u s i n g , which were s e t by r e g u l a t i o n s of t h e S e c r e t a r y . Housing and Urban Development may e s t a b l i s h d i f f e r e n t income l i m i t s f o r c e r t a i n a r e a s c h a r a c t e r i z e d by h i g h c o n s t r u c t i o n c o s t s , u n u s u a l l y low median incomes, o r o t h e r f a c t o r s . HUD r e g u l a t i o n s e x c l u d e from "income" f o r t h e p u r p o s e s o f d e t e r m i n i n g e l i g i b i l i t y and s u b s i d y l e v e l s 5 p e r c e n t o f g r o s s income, a l l e a r n i n g s o f m i n o r c h i l d r e n l i v i n g a t home, p l u s $300 f o r e a c h s u c h c h i l d . 4 1 Only t h a t p a r t o f t h e m o r t g a g o r ' s income t h a t can b e exp e c t e d t o c o n t i n u e f o r a p p r o x i m a t e l y t h e f i r s t 5 y e a r s o f t h e mortgage i s c o u n t e d a s e f f e c t i v e income. E l i g i b l e h o u s i n g u n i t s a r e l i m i t e d t o new o r s u b s t a n t i a l l y r e h a b i l i t a t e d s i n g l e family u n i t s , under c o n s t r u c t i o n o r r e h a b i l i t a t i o n on o r a f t e r O c t o b e r 17, 1975. Condominium u n i t s t h a t have n e v e r b e e n o c c u p i e d , o r a f a m i l y u n i t i n a n e x i s t i n g condominium p r o j e c t where t h e m o r t g a g o r q u a l i f i e s a s a d i s p l a c e d f a m i l y , a l s o a r e e l i g i b l e . C. Benefit Levels HUD h a s d e t e r m i n e d t h a t a i d w i l l b e i n t h e form o f monthly paym e n t s t o t h e m o r t g a g e e on b e h a l f o f t h e a s s i s t e d home b u y e r , t o red u c e i n t e r e s t c o s t s on an i n s u r e d m a r k e t r a t e home m o r t g a g e t o a s low a s 5 p e r c e n t . The b o r r o w e r must b e a b l e t o pay toward h i s m o r t g a g e payments a t l e a s t 20 p e r c e n t o f h i s " a d j u s t e d g r o s s income" ( c o u n t a b l e h o u s i n g income, a s d e f i n e d a b o v e ) . Mortgage amounts a r e l i m i t e d t o $40,000 f o r s i n g l e f a m i l y and condominium u n i t s w i t h t h r e e bedrooms o r l e s s , and $47,500 f o r u n i t s w i t h f o u r o r more bedrooms. These l i m i t s may b e r a i s e d by a s much a s $7,500 i n h i g h c o s t a r e a s , and a d d i t i o n a l l y , by 1 0 p e r c e n t f o r a d w e l l i n g t o b e o c c u p i e d by a p h y s i c a l l y handicapped p e r s o n , i f t h e l a r g e r m o r t g a g e i s needed t o make t h e d w e l l i n g a c c e s s i b l e and u s a b l e t o him. Any a s s i s t a n c e payment made p u r s u a n t t o a commitment i s s u e d a f t e r May 8 , 1981, i s s u b j e c t t o r e c a p t u r e upon ( 1 ) d i s p o s i t i o n o f t h e s u b s i d i z e d p r o p e r t y , ( 2 ) a 90-day c e s s a t i o n o f payments on i t s m o r t g a g e , o r ( 3 ) i t s r e n t a l f o r l o n g e r t h a n one y e a r . The law p r o v i d e s t h a t t h e amount r e c a p t u r e d s h a l l b e e q u a l t o t h e a s s i s t a n c e a c t u a l l y r e c e i v e d o r a t l e a s t 50 p e r c e n t o f t h e n e t a p p r e c i a t i o n i n t h e v a l u e of t h e p r o p e r t y , whichever i s l e s s . 51 - 4 1 24 C.F.R. S 235.5 ( 1 9 8 3 ) . The 5 p e r c e n t income e x c l u s i o n was e s t a b l i s h e d by r e g u l a t i o n . I t i s n o t r e q u i r e d by law. 5 / The r e c a p t u r e p r o v i s i o n was added by P.L. 96-399, i n g af;d Community Development Act o f 1980. t h e Hous- B e n e f i t s a v e r a g e d $1,224 p e r d w e l l i n g u n i t i n FY 1983, $102 monthly. For homebuyers a i d e d by t h e o r i g i n a l program, a n n u a l beneb e n e f i t s a v e r a g e d a b o u t $720; f o r t h o s e i n t h e r e v i s e d program, which commenced i n l a t e 1975, b e n e f i t s a v e r a g e d $1,890. N i n e t y perc e n t ~f homebuyers a i d e d were e n r o l l e d i n t h e pre-1975 program. 39. SECTION 101 RENT SUPPLEMENTS A. -11 Funding Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B . E l i g i b i l i t y Requirements U n t i l December 2 1 , 1979, t h e law made e l i g i b l e f o r r e n t s u p p l e ments t e n a n t s whose incomes were w i t h i n t h e l i m i t s p r e s c r i b e d f o r a d m i s s i o n t o l o c a l p u b l i c h o u s i n g and who were: aged 62 o r o v e r o r h a n d i c a p p e d ; d i s p l a c e d by g o v e r n m e n t a l a c t i o n o r n a t u r a l d i s a s t e r ; o c c u p a n t s o f s u b s t a n d a r d h o u s i n g ; o r m i l i t a r y p e r s o n n e l s e r v i n g on a c t i v e d u t y , o r t h e i r spouses. The Housing and Community Development Amendments o f 1979 (P.L. 96-153) changed income l i m i t s f o r new t e n a n t s o n l y 2/ t o t h o s e of S e c t i o n 8 ( a n n u a l "income" c e i l i n g : 80 percent: o f t h e median income f o r t h e a r e a ) and e l i m i n a t e d t h e s p e c i a l r e s t r i c t i o n s , except t o give p r i o r i t y t o those i n substandard housing.or involuntarily displaced. - U n t i l December 21, 1979, t h e law e x c l u d e d from "income" f o r p u r p o s e s o f d e t e r m i n i n g e l i g i b i l i t y and supplement l e v e l s $300 p e r m i n o r c h i l d and a l l e a r n i n g s o f minor c h i l d r e n . F o r t e n a n t s a d m i t t e d a f t e r t h a t d a t e , P.L. 96-153 p r o v i d e d t h a t income s h o u l d b e d e f i n e d i n a c c o r d a n c e w i t h p r o c e d u r e s o f s e c t i o n 8 (program No. 3 3 ) . The Housing and Urban-Rural Recovery Act of 1983 (P.L. 98-131) d e f i n e s " a d j u s t e d income" f o r s e c t i o n 8 h o u s i n g a s a n n u a l g r o s s i n come minus: $480 f o r e a c h h o u s e h o l d member ( e x c e p t t h e h e a d o r t h e h e a d ' s s p o u s e ) who i s under 1 8 y e a r s o l d , o r o l d e r and d i s a b l e d o r a f u l l - t i m e s t u d e n t ; $400 f o r a n e l d e r l y f a m i l y ; m e d i c a l exp e n s e s o v e r 3 p e r c e n t o f g r o s s income f o r a n e l d e r l y f a m i l y ; and 11 The r e n t supplement program was suspended w i t h o t h e r m a j o r s u b s i x i z e d h o u s i n g programs on J a n . 5 , 1973. Except a s n e c e s s a r y t o meet bona f i d e commitments, commitments f o r a d d i t i o n a l p r o j e c t s w i l l n o t b e made u n d e r t h e program. 2 1 Most o f t h e c o n t r a c t a u t h o r i t y f o r t h e r e n t supplement program c a s been a l l o c a t e d t o t h e S e c t i o n 2 2 1 ( d ) ( 3 ) m a r k e t r a t e program; t h e r e m a i n d e r h a s been u s e d i n c o n j u n c t i o n w i t h s e c t i o n 236 p r o j e c t s , i n which u p t o 40 p e r c e n t o f t h e u n i t s may r e c e i v e r e n t s u p p l e m e n t s . c h i l d c a r e e x p e n s e s n e c e s s a r y t o e n a b l e a member o f t h e f a m i l y t o work o r t d f u r t h e r h i s l h e r e d u c a t i o n . 31 - F o r f a m i l i e s w i t h n e t f a m i l y a s s e t s above $ 5 , 0 0 0 , F e d e r a l r e g u l a t i o n s i n c l u d e i n "income" u s e d t o d e c i d e e l i g i b i l t y ( a ) a c t u a l income from a l l n e t f a m i l y a s s e t s , o r ( b ) 1 0 p e r c e n t of t h e i r v a l u e , w h i c h e v e r i s g r e a t e r . Net f a m i l y a s s e t s a r e d e f i n e d a s t h e e q u i t y v a l u e o f r e a l p r o p e r t y , s a v i n g s , s t o c k s , bonds, and o t h e r forms o f i n v e s t m e n t . Not i n c l u d e d a r e s u c h " n e c e s s a r y i t e m s " a s f u r n i t u r e and a u t o m o b i l e s . 4 1 - Income r e c e r t i f i c a t i o n i s r e q u i r e d a n n u a l l y , e x c e p t f o r t h e elderly. C. Benefit Levels The Department o f Housing and Urban Development i s a u t h o r i z e d t o make p e r i o d i c s u b s i d y payments t o owners o f p r i v a t e h o u s i n g r e n t e d t o poor f a m i l i e s . A b a s i c r e n t s u f f i c i e n t t o c o v e r t o t a l h o u s i n g c o s t s i s e s t a b l i s h e d f o r e a c h r e n t a l u n i t , and e l i g i b l e t e n a n t s must pay a t l e a s t 30 p e r c e n t o f t h e i r " a d j u s t e d g r o s s income" ( c o u n t a b l e income, a s d e f i n e d a b o v e ) , 21 o r 30 p e r c e n t o f t h e m a r k e t r e n t , whiche v e r i s h i g h e r , toward t h e e s t a b l i s h e d r e n t a l r a t e . The d e f i c i t i s c o v e r e d by a r e n t supplement payment made d i r e c t l y t o t h e owner by t h e Department o f Housing and Urban Development. By r e g u l a t i o n s u c h r e n t s u p p l e m e n t s c a n n o t exceed 70 p e r c e n t o f t h e b a s i c r e n t . For a l l b u t t h e e l d e r l y , r e g u l a t i o n s r e q u i r e a n n u a l r e v i e w o f income. Famil i e s may remain i n t h e p r o j e c t a s t h e i r incomes r i s e by p a y i n g a h i g h e r r e n t and r e c e i v i n g a lower s u b s i d y . However, an aged p e r s o n i s n o t s u b j e c t t o r e n t a l i n c r e a s e s b e c a u s e o f h i g h e r income u n t i l 31 R e g u l a t i o n s implementing t h e 1983 law on May 1 0 , 1984 ( 4 9 ~ e d e r a lR e g i s t e r No. 92. p. 19926). P r e v i o u s r e g u l a t i o n s had prov i d e d t h e s e d e d u c t i o n s f o r r e n t supplement payments: $300 f o r e a c h minor c h i l d , m e d i c a l e x p e n s e s t h a t exceeded 3 p e r c e n t o f a n n u a l i n come, and c e r t a i n ( d e p e n d e n t c a r e c o s t s ) u n u s u a l e x p e n s e s . 24 C.F.R. § 215.21 ( 1 9 8 3 ) . The 1983 r u l e s e x c l u d e d some i t e m s from "income" by d e f i n i t i o n , among them: i r r e g u l a r g i f t s , amounts t h a t r e i m b u r s e d m e d i c a l e x p e n s e s ; lump-sum a d d i t i o n s t o f a m i l y a s s e t s ; e d u c a t i o n a l s c h o l a r s h i p s and v e t e r a n s ' e d u c a t i o n a l b e n e f i t s . 24 C.F.R. § 215.20 (1983). -41 24 C.F.R. § 215.15 (1983). 51 P e r c e n t a g e o f income p a i d toward r e n t was r a i s e d from 25 percef;t t o 30 p e r c e n t by P.L. 97-35, which was e n a c t e d on August 1 3 , 1981. F o r t e n a n t s t h e n i n t h e program, t h i s i n c r e a s e i s b e i n g phased i n , w i t h c o m p l e t i o n s c h e d u l e d on September 3 0 , 1985. h i s income e q u a l s 3.33 t i m e s t h e m a r k e t r e n t . 6 1 A t t h a t p o i n t a n aged p e r s o n , l i k e a l l o t h e r t e n a n t s , l o s e s t h e r e n t s u p p l e m e n t and must pay f u l l m a r k e t r e n t . B e n e f i t s a v e r a g e d a b o u t $2,500 i n FY 1983, $208 monthly. 6 1 T h i s e l i g i b i l i t y l i m i t r e f l e c t s t h e 1981 r u l e t h a t b a s i c r e n t ;hall e q u a l 30 p e r c e n t o f a d j u s t e d g r o s s income. 40. SECTION 504 RURAL HOUSING REPAIR LOANS AND GRANTS A. Funding Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements The law ~ e r m i t sr e p a i r l o a n s a t a v e r y low i n t e r e s t r a t e f o r "very low-income" owners o f a farm o r r u r a l home who c a n n o t o b t a i n c r e d i t on r e a s o n a b l e t e r m s e l s e w h e r e . T h e i r income must b e i n s u f f i c i e n t t o q u a l i f y f o r a S e c t i o n 502 l o a n , b u t a d e q u a t e , i n c l u d i n g any "welfare-type" payments, t o r e p a y a S e c t i o n 504 l o a n , a s d e t e r m i n e d by t h e Farmers Home Administration. The income e l i g i b i l i t y c e i l i n g i s $11,500 i n a r e a s where median income e x c e e d s $23,000. E l s e w h e r e i t i s 50 p e r c e n t o f t h e a r e a median o r $5,000, w h i c h e v e r i s h i g h e r . 1/ R e g u l a t i o n s b a s e e l i g i b i l i t y on a n n u a l income e x p e c t e d i n t h e y e a r a h e a d , minus 5 p e r c e n t and minus $300 p e r d e p e n d e n t minor c h i l d who i s a member o f t h e h o u s e h o l d , b u t n o t a f o s t e r c h i l d . 2 / G r a n t s a r e made, w i t h o r w i t h o u t l o a n s , t o low-income 3 / To b e e l i g i b l e f o r a elderly-homeowners, aged 62 o r o l d e r . g r a n t o n l y , an e l d e r l y homeowner must h a v e a n a n n u a l income s o low t h a t h e c a n n o t r e p a y any p a r t o f a l o a n . - C. Benefit Levels By law t h e maximum amount of a r e p a i r l o a n o r g r a n t c a n n o t exceed $5,000. The l o a n i n t e r e s t r a t e i s one p e r c e n t . Home improvement l o a n s may b e u s e d f o r a d d i t i o n a l improvements s u c h a s a d d i n g a room o r r e m o d e l i n g a k i t c h e n . These l o a n s a r e f o r a t e r m o f up t o 25 y e a r s w i t h a maximum o f $7,000. I n FY 1983 a i d a v e r a g e d $4,055 p e r d w e l l i n g u n i t . 1/ Mar. 7 C.F.R. § 1944.458 ( a ) ( 4 ) . p. 8988. 48 F e d e r a l R e g i s t e r . No. 4 3 7, 1983. 2/ 7 C.F.R. 1944.453, 47 F e d e r a l R e g i s t e r . 1 4 , lT82. p. 40400. 31 - No. 178. Sept. The r e s t r i c t i o n o f S e c t i o n 504 g r a n t s t o t h o s e aged a t l e a s t 62 i s r e q u i r e d by a p p r o p r i a t i o n l a n g u a g e . 41. SECTION 514 FARM LABOR HOUSING LOANS AND SECTION 516 FARM LABOR HOUSING GRANTS A. F u n d i n e Formula T h i s program i s f u l l y funded by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements The law p e r m i t s l o a n s f o r low-rent h o u s i n g f o r farm w o r k e r s . E l i g i b l e f o r farm l a b o r h o u s i n g l o a n s and g r a n t s a r e i n d i v i d u a l farm owners, a s s o c i a t i o n s o f f a r m e r s , S t a t e o r p o l i t i c a l s u b d i v i s i o n s , broadbased p u b l i c o r p r i v a t e n o n p r o f i t o r g a n i z a t i o n s , o r n o n p r o f i t o r g a n i z a t i o n s o f f a r m w o r k e r s . Housing a i d e d by t h e program must b e o p e r a t e d on a n o n - p r o f i t b a s i s . A p p l i c a n t s must have s u f f i c i e n t income t o pay o p e r a t i n g c o s t s and s u f f i c i e n t o p e r a t i n g c a p i t a l t o pay c o s t s s u c h a s p r o p e r t y and l i a b i l i t y i n s u r a n c e payments and o t h e r b a s i c i n i t i a l e x p e n s e s n o t i n c l u d e d i n t h e l o a n o r g r a n t . The Farmers Home A d m i n i s t r a t i o n ( F ~ H A c) o u n t y s u p e r v i s o r d e t e r m i n e s a p p l i c a n t e l i g i b i l i t y on t h e b a s i s o f t h e c r i t e r i a i n t h e law. C. Benefit Levels S e c t i o n 514 l o a n s a r e a v a i l a b l e a t 1 p e r c e n t i n t e r e s t , f o r a term u p t o 3 3 y e a r s , o r t h e u s e f u l l i f e o f t h e s e c u r i t y , whiche v e r i s l e s s . The l o a n s a r e d e s i g n e d t o a s s u r e t h a t r e n t s w i l l b e low enough t o b e w i t h i n r e a c h o f t h e farm w o r k e r s . Where t h e r e i s a s t r o n g p o s s i b i l i t y t h a t s u c h h o u s i n g w i l l n o t b e b u i l t w i t h o u t ext r a a i d , S e c t i o n 516 g r a n t s a r e a v a i l a b l e . The amount o f t h e g r a n t i s l i m i t e d t o 90 p e r c e n t o f t h e development c o s t s o f a farm l a b o r h o u s i n g p r o j e c t , l e s s t h e amount t h a t FmHA d e t e r m i n e s c a n b e o b t a i n e d from o t h e r s o u r c e s , i n c l u d i n g S e c t i o n 514 l o a n s . I n FY 1983 l o a n s a v e r a g e d $20,500 e a c h , and g r a n t s $7,600. 42. I N D I A N HOUSING IMPROVEMENT GRANTS Funding Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements P u r s u a n t t o t h e Snyder A c t , r e g u l a t i o n s o f t h e Bureau o f I n d i a n A f f a i r s (BIA) make e l i g i b l e f o r h o u s i n g improvement g r a n t s I n d i a n s ( o r Alaskan n a t i v e s ) descended from a member o f a t r i b e t h a t i s f e d e r a l l y recognized. P r i o r i t y i s given t o f a m i l i e s l i v i n g i n inadequate o r s u b s t a n d a r d h o u s i n g and u n a b l e t o o b t a i n h e l p from o t h e r s o u r c e s . Benefit Levels t o temporarily reMaximum g r a n t s p e r m i t t e d by B I A r e g u l a t i o n s : p a i r s u b s t a n d a r d h o u s i n g , $2,500 f o r any o n e d w e l l i n g ; t o r e p a i r o r r e n o v a t e h o u s i n g t h a t w i l l become s t a n d a r d , $20,000 f o r any one d w e l l i n g ; t o p r o v i d e a down payment f o r a h o u s i n g l o a n , $5,000 ( $ 6 , 0 0 0 i n Alaska). The r e g u l a t i o n s d e f i n e maximum f a m i l y s i z e i n " s t a n d a r d " h o u s i n g a s f o u r p e r s o n s f o r a 2-bedroom h o u s e and s e v e n p e r s o n s f o r a 3-bedroom house and s t a t e t h a t f o u r bedrooms a r e a d e q u a t e " f o r a l l but t h e very l a r g e s t families." G r a n t s a v e r a g e d $5,400 e a c h i n FY 1983. 43. SECTION 523 RURAL HOUSING SELF-HELP TECHNICAL ASSISTANCE GRANTS A. Funding Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i e i b i l i t v Reauirements T e c h n i c a l A s s i s t a n c e (TA) g r a n t s may b e made t o S t a t e o r p o l i t i c a l s u b d i v i s i o n s , and p u b l i c o r p r i v a t e n o n p r o f i t c o r p o r a t i o n s w i t h t h e l e g a l , a d m i n i s t r a t i v e , and t e c h n i c a l c a p a c i t y t o p r o v i d e s u p e r v i s o r y a s s i s t a n c e t o h e l p low-income f a m i l i e s b u i l d homes i n r u r a l a r e a s by t h e m u t u a l s e l f - h e l p method. TA g r a n t s may b e u s e d f o r h i r i n g p e r s o n n e l ( d i r e c t o r , c o o r d i n a t o r - t r a i n e r , c o n s t r u c t i o n s u p e r v i s o r , and s e c r e t a r y - b o o k k e e p e r ) , p a y i n g o f f i c e and a d m i n i s t r a t i v e e x p e n s e s , o b t a i n i n g power and s p e c i a l t y t o o l s , and p a y i n g f e e s f o r t r a i n i n g s e l f h e l p g r o u p members i n c o n s t r u c t i o n t e c h n i q u e s o r f o r o t h e r needed prof e s s i o n a l s e r v i c e s . TA f u n d s may n o t b e used t o h i r e c o b s t r u c t i o n w o r k e r s , o r t o buy r e a l e s t a t e o r b u i l d i n g m a t e r i a l s . 11 - B e n e f i c i a r i e s must b e low-income r u r a l f a m i l i e s who a g r e e t o b u i l d t h e i r h o u s e s by t h e m u t u a l s e l f - h e l p method. 21 - Benefit Levels An i n i t i a l TA g r a n t w i l l u s u a l l y p r o v i d e no more t h a n $200,000 t o a n o r g a n i z a t i o n . A p p l i c a n t s must d e m o n s t r a t e t h a t t h e TA w i l l r e s u l t i n a n e t s a v i n g s p e r h o u s e o f a t l e a s t $500. 31 - 11 TA g r a n t a p p l i c a n t s may s i m u l t a n e o u s l y a p p l y f o r s i t e loans-under Sec. 523 o r 524 t o o p t i o n , p u r c h a s e , a n d / o r d e v e l o p s i t e s . P a r t i c i p a t i n g f a m i l i e s a l s o may a p p l y f o r l o a n s u n d e r S e c t i o n 502 t o p u r c h a s e s i t e s and pay f o r h o u s i n g c o n s t r u c t i o n . 21 I f a Sec. 523 g r a n t i s u s e d i n c o n n e c t i o n w i t h a S e c t i o n 502 i y t e r e s t c r e d i t l o a n , t h e "low-income" l i m i t s o f S e c t i o n 502 a p p l y . See program No. 35. -3 1 7 C.F.R. 5 1933.407 ( 1 9 8 2 ) . CRS- 126 44. GUARANTEED STUDENT LOANS A. Funding Formula B e f o r e FY 1979, i n t e r e s t s u b s i d i e s on g u a r a n t e e d s t u d e n t l o a n s w e r e a v a i l a b l e o n l y t o s t u d e n t s whose a d j u s t e d a n n u a l f a m i l y income was below $25,000 u n l e s s t h e s c h o o l d e t e r m i n e d a s t u d e n t w i t h h i g h e r income t o b e " i n need" o f a l o a n . The Middle Income S t u d e n t A s s i s t a n c e Act (P.L. 95-566) r e p e a l e d t h e income t e s t f o r s u b s i d i z e d l o a n s , e f f e c t i v e w i t h FY 1979. The G u a r a n t e e d S t u d e n t Loan (GSL) program remained w i t h o u t any need r e q u i r e m e n t s f o r t h e p e r i o d FY 1979 t h r o u g h FY 1981 (1980-81 academic y e a r ) . E f f e c t i v e O c t o b e r 1, 1981, however, t h e Omnibus Budget R e c o n c i l i a t i o n Act o f 1981 (P.L. 97-35) e s t a b l i s h e d a need t e s t f o r a s u b s i d i z e d l o a n i n t h e c a s e o f a s t u d e n t whose f a m i l y a d j u s t e d g r o s s income e x c e e d s $30,000. F o r s t u d e n t s whose f a m i l y income i s u n d e r $30,000, GSL's remain a v a i l a b l e w i t h o u t proof o f f i n a n c i a l need. B. E l i g i b i l i t y Requirements On J u n e 1, 1983, t h e S e c r e t a r y o f E d u c a t i o n p u b l i s h e d t h e FY 1984-135 " f a m i l y c o n t r i b u t i o n s c h e d u l e " f o r t h e GSL vrozram f o r i n (~ederal struction b e g i n n i n g n o t l a t e r t h a n J u l y 1, i 9 8 4 . R e g i s t e r , v o l . 4 8 , no. 108 pages 24584-24619). As o u t l i n e d i n t h i s " f a m i l y c o n t r i b u t i o n s c h e d u l e , " t h e e x p e c t e d f a m i l y c o n t r i b u t i o n t o t h e c o s t o f e d u c a t i o n f o r a GSL a p p l i c a n t whose f a m i l y income e x c e e d s $30,000 i s t o b e d e t e r m i n e d i n t h e f o l lowing way: (1) I f t h e s t u d e n t h a s been awarded f i n a n c i a l a s s i s t a n c e f o r award y e a r 1984-85 ( J u l y 1, 1984-June 3 0 , 1985) u n d e r t h e S u p p l e m e n t a l E d u c a t i o n O p p o r t u n i t y G r a n t (SEOG), C o l l e g e Work-Study (CWS), o r N a t i o n a l D i r e c t S t u d e n t Loan (NDsL) Program, a t t h e t i m e h e o r s h e a p p l i e s f o r a G u a r a n t e e d S t u d e n t Loan, t h e s t u d e n t ' s e x p e c t e d f a m i l y c o n t r i b u t i o n i s h i s o r h e r expected family c o n t r i b u t i o n c a l c u l a t e d f o r t h e SEOG, CWS, o r NDSL program. (2) I f t h e s t u d e n t h a s n o t b e e n awarded f i n a n c i a l a s s i s t a n c e under t h e SEOG, CWS, o r NDSL program f o r t h e 1982-83 award y e a r a t t h e t i m e h e a p p l i e s f o r a G u a r a n t e e d S t u d e n t Loan, t h e i n s t i t u t i o n s h a l l c a l c u l a t e t h e s t u d e n t ' s expected family c o n t r i b u t i o n under either-( a ) any need a n a l y s i s s y s t e m which h a s been approved by t h e S e c r e t a r y f o r t h e SEOG, CWS, o r NDSL programs; o r ( b ) t h e r e f e r e n c e t a b l e s p u b l i s h e d i n t h e FR, i f t h e e f f e c t i v e a n n u a l income o f t h e s t u d e n t and h i s o r h e r f a m i l y d o e s n o t exceed $65,000. Use o f r e f e r e n c e t a b l e s i n t h e F e d e r a l R e g i s t e r arch 20, 1984 p. 10467) f o r t h e 84-85 academic y e a r p r o v i d e s t h e q u i c k e s t way t o d e t e r m i n e a s t u d e n t ' s p o t e n t i a l e l i g i b i l i t y f o r a GSL--as w e l l - a s t h e maximum amount o f s u c h a l o a n . Such a d e t e r m i n a t i o n might b e made by s u b t r a c t i n g from t h e e s t i m a t e d " c o s t o f a t t e n d a n c e ' ' a t t h e i n s t i t u t i o n t h e t o t a l o f t h e e x p e c t e d f a m i l y c o n t r i b u t i o n and o t h e r e s t i m a t e d F e d e r a l s t u d e n t f i n a n c i a l a i d . 11 Any p o s i t i v e b a l a n c e l e f t would r e p r e s e n t t h e amount o f a GSL T o r which a s t u d e n t might a p p l y , s u b j e c t t o t h e a p p r o p r i a t e a n n u a l c e i l i n g s ($2,500 f o r underg r a d u a t e s and $5,000 f o r g r a d u a t e and p r o f e s s i o n a l s t u d e n t s ) . 2/ A s o f J u n e 1 , 1983, GSL r e g u l a t i o n s i n d i c a t e , however, n o t a l l students a r e e l i g i b l e t o use the reference t a b l e s t o determine t h e i r expected family c o n t r i b u t i o n . I n p a r t i c u l a r , s t u d e n t s who have r e c e i v e d an SEOG, CWS, o r NDSL award f o r t h e 1982-83 award y e a r must u s e t h e same e x p e c t e d f a m i l y c o n t r i b u t i o n a s c a l c u l a t e d f o r t h e s e programs. For t h e i r c a l c u l a t i o n s t h e s e programs u s e a need a n a l y s i s s y s t e m t h a t t a k e s i n t o a c c o u n t v a r i o u s f a m i l y income, a s s e t , and e x p e n s e c r i t e r i a . Although t h i s s y s t e m d o e s n o t l e n d i t s e l f t o t h e t y p e o f summary p r o v i d e d by t h e GSL r e f e r e n c e t a b l e s , t h e S e c r e t a r y o f E d u c a t i o n d o e s p u b l i s h a n n u a l l y "sample c a s e s and bench mark f i g u r e s " f o r t h e SEOG, CWS, and NDSL programs, which h e l p t o provide a quick guide t o t h e estimated average expected f a m i l y c o n t r i b u t i o n f o r t h e s e programs a t v a r i o u s income and a s s e t levels. 11 O t h e r F e d e r a l s t u d e n t f i n a n c i a l a i d i n c l u d e s t h e P e l 1 ~ r a n z ,S u p p l e m e n t a l E d u c a t i o n O p p o r t u n i t y G r a n t s , C o l l e g e Work S t u d y , N a t i o n a l D i r e c t S t u d e n t Loans, c e r t a i n V e t e r a n s ' E d u c a t i o n ( i . e . , t h e G I b i l l ) , and S o c i a l S e c u r i t y S t u d e n t B e n e f i t programs. 21 S e c t i o n 4 2 8 ( a ) ( 2 ) ( F ) of t h e H i g h e r E d u c a t i o n Act p r o v i d e s t h a t r f t h i s s u b t r a c t i o n r e s u l t s i n a maximum p o t e n t i a l GSL between $500 and $ 1 , 0 0 0 , t h e amount o f s u c h l o a n f o r which t h e s t u d e n t q u a l i f i e s s h a l l b e $1,000. C. Benefit Levels Loans may be o b t a i n e d i n amounts u p t o $2,500 a y e a r f o r u n d e r g r a d u a t e s ( t h e a g g r e g a t e n o t t o exceed $12,500) and $5,000 a y e a r f o r g r a d u a t e and p r o f e s s i o n a l s t u d e n t s ( n o t t o exceed a n a g g r e g a t e o f $ 2 5 , 0 0 0 ) . The b o r r o w e r ' s i n t e r e s t r a t e f o r a s t u d e n t l o a n i s 7 p e r c e n t o r 9 p e r c e n t f o r a s t u d n e t who had e a r l i e r s t u d e n t l o a n s a t e i t h e r o f t h e s e two r a t e s , and 8 perc e n t f o r a l l o t h e r s t u d e n t b o r r o w e r s ( a s o f September 13, 1983). A l l s t u d e n t borrowers a r e s u b j e c t t o a 5 p e r c e n t loan o r i g i n a t i o n f e e . The F e d e r a l Government pays t h e i n t e r e s t on s u b s i d i z e d l o a n s w h i l e b o r r o w e r s a r e i n s c h o o l . The repayment p e r i o d i s from 5 t o a maximum o f 10 y e a r s . The a v e r a g e l o a n p e r r e c i p i e n t was e s t i m a t e d a t $2,525 i n FY 1983. 45. PELL GRANTS ( F o r m e r l y B a s i c E d u c a t i o n a l O p p o r t u n i t y Grants) A. Funding Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements The H i g h e r E d u c a t i o n Act o f 1965, (HEA), as amended, e n t i t l e s t o P e l l G r a n t s c o l l e g e u n d e r g r a d u a t e s ( 1 ) who a r e e n r o l l e d on a t l e a s t a h a l f - t i m e b a s i s and i n good s t a n d i n g , o r a c c e p t e d f o r e n r o l l m e n t , and ( 2 ) whose " e x p e c t e d f a m i l y c o n t r i b u t i o n " f o r p o s t s e c o n d a r y educat i o n i s below t h e maximum award l e v e l f o r a g i v e n y e a r . The P e l l G r a n t program u s e s a need a n a l y s i s s y s t e m a u t h o r i z e d under s e c t i o n 482 o f t h e HEA t o d e t e r m i n e a s t u d e n t ' s e l i g i b i l i t y f o r a P e l l G r a n t . The c e n t r a l component o f t h i s s y s t e m i s a s c h e d u l e o f e x p e c t e d f a m i l y c o n t r i b u t i o n s , which i s u p d a t e d a n n u a l l y by t h e S e c r e t a r y of E d u c a t i o n u s i n g c r i t e r i a p r o v i d e d u n d e r s e c t i o n 482. Under f i n a l r e g u l a t i o n s i s s u e d by t h e S e c r e t a r y o f E d u c a t i o n f o r t h e 1984-85 award y e a r , t h e " e x p e c t e d f a m i l y c o n t r i b u t i o n " f o r a d e p e n d e n t s t u d e n t r e f e r s t o t h e amount t h a t t h e s t u d e n t and h i s o r h e r f a m i l y may r e a s o n a b l y b e e x p e c t e d t o c o n t r i b u t e toward t h e c o s t o f h i s o r h e r e d u c a t i o n f o r an award p e r i o d . F o r an i n d e p e n d e n t s t u d e n t , t h e t e r m r e f e r s t o t h e amount t h a t t h e s t u d e n t and h i s o r h e r s p o u s e may r e a s o n a b l y b e e x p e c t e d t o c o n t r i b u t e . I n determining t h e "expected family c o n t r i b u t i o n " f o r a dependent s t u d e n t , t h e following elements o f f i n a n c i a l s t r e n g t h a r e considered: (1) t h e " e f f e c t i v e income" o f t h e s t u d e n t , t h e s t u d e n t ' s s p o u s e , and t h e s t u d e n t ' s p a r e n t s ; ( 2 ) t h e number o f d e p e n d e n t s i n t h e s t u d e n t ' s f a m i l y ; ( 3 ) t h e number o f f a m i l y members e n r o l l e d on a t l e a s t a h a l f t i m e b a s i s i n a program o f p o s t s e c o n d a r y e d u c a t i o n ; ( 4 ) t h e a s s e t s o f t h e s t u d e n t , h i s o r h e r s p o u s e , and t h e student's parents; (5) the m a r i t a l s t a t u s of the student; ( 6 ) unusual medical expenses; ( 7 ) a d d i t i o n a l e x p e n s e s i n c u r r e d when b o t h p a r e n t s a r e employed o r when a f a m i l y i s headed by a s i n g l e p a r e n t who i s employed; and ( 8 ) t h e t u i t i o n p a i d by t h e s t u d e n t ' s p a r e n t s f o r d e p e n d e n t c h i l d r e n , o t h e r t h a n t h e s t u d e n t , who a r e e n r o l l e d i n an e l e m e n t a r y o r secondary school. F o r an i n d e p e n d e n t s t u d e n t , t h e same b a s i c f i n a n c i a l e l e m e n t s a r e c o n s i d e r e d , b u t t h e y a r e a p p l i e d o n l y t o t h e s t u d e n t and h i s o r h e r spouse ( n o t t o t h e s t u d e n t ' s p a r e n t s ) . F o r t h e 1984-85 award y e a r , " e f f e c t i v e income" f o r a dependent student includes: ( 1 ) t h e p a r e n t s ' a d j u s t e d g r o s s income f o r t h e p r e v i o u s t a x y e a r , p l u s i n v e s t m e n t and o t h e r income on which no F e d e r a l income t a x i s p a i d ( e . g . , c h i l d s u p p o r t , w e l f a r e b e n e f i t s , e t c . ) , minus F e d e r a l income t a x e s p a i d o r p a y a b l e f o r s u c h y e a r ; and ( 2 ) t h e a d j u s t e d g r o s s income o f t h e s t u d e n t (and h i s o r h e r s p o u s e ) , p l u s i n v e s t m e n t and o t h e r income on which no F e d e r a l i n come t a x i s p a i d , minus F e d e r a l , S t a t e , and l o c a l income t a x e s p a i d o r payable f o r such year. I n t h e c a s e o f an i n d e p e n d e n t s t u d e n t , " e f f e c t i v e income" exc l u d e s p a r a g r a p h ( 1 ) above ( p a r e n t s ' a d j u s t e d g r o s s income). P e l 1 G r a n t r e g u l a t i o n s s p e c i f y t h e e x t e n t t o which e a c h o f t h e e i g h t e l e m e n t s o f f a m i l y and s t u d e n t f i n a n c i a l s t r e n g t h ( o u t l i n e d e a r l i e r ) i s t o b e used t o r e d u c e " e f f e c t i v e income" t o a r e m a i n i n g amount o f " d i s c r e t i o n a r y income," a p o r t i o n o f which i s c o n s i d e r e d t o b e a v a i l a b l e f o r meeting t h e c o s t s of a s t u d e n t ' s postsecondary e d u c a t i o n a s t h e "expected family c o n t r i b u t i o n . " I n recent years, 10.5 p e r c e n t o f d i s c r e t i o n a r y income h a s been t h e e x p e c t e d f a m i l y c o n t r i b u t i o n r a t e . F o r t h e 1984-85 award y e a r , however, t h e p e r c e n t a g e o f d i s c r e t i o n a r y income a s s e s s e d t o y i e l d t h e e x p e c t e d f a m i l y contribution i s a s follows: (1) (2) (3) (4) 11 13 18 25 percent percent percent percent on on on on t h e f i r s t $5,000 of d i s c r e t i o n a r y income: $5001-$10,000; $10,001-$15,000; and $15,001 and above. To q u a l i f y a s an " i n d e p e n d e n t s t u d e n t " f o r t h e 1984-85 award lived for y e a r , a s i n g l e s t u d e n t i n 1983 and 1984 must n o t have: more t h a n 6 weeks i n h i s o r h e r p a r e n t ' s home, been c l a i m e d a s a d e p e n d e n t f o r F e d e r a l income t a x p u r p o s e s by t h e p a r e n t s i n e i t h e r t h e c u r r e n t o r p r e v i o u s y e a r , o r r e c e i v e d f i n a n c i a l a i d o f more t h a n $760 i n e i t h e r y e a r from h i s o r h e r p a r e n t s . S i m i l a r p r o v i s i o n s apply i n t h e c a s e of a married s t u d e n t . C. Benefit Levels The E d u c a t i o n Amendments o f 1980 ( P u b l i c Law 96-374) a u t h o r i z e d a maximum P e l l G r a n t o f $1,900 f o r 1951-82 and $2,100 f o r 1982-83, w i t h c o n t i n u i n g a n n u a l i n c r e a s e s t o a l e v e l o f $2,600. With r e s p e c t t o any e l i g i b l e s t u d e n t ' s P e l l G r a n t f o r a p a r t i c u l a r award y e a r , t h e a c t u a l award r e c e i v e d i s t h e l o w e s t r e s u l t i n g amount from t h e f o l l o w i n g t h r e e c a l c u l a t i o n s : ( 1 ) t h e maximum P e l 1 G r a n t e n t i t l e m e n t f o r s u c h y e a r ( i . e . , $1,900 f o r 1984-85) minus t h e " e x p e c t e d f a m i l y c o n t r i b u t i o n , " o r ( 2 ) 50 p e r c e n t o f t h e s t u d e n t ' s " c o s t o f a t t e n d a n c e " f o r such year, o r ( 3 ) t h e s t u d e n t ' s " c o s t o f a t t e n d a n c e " minus t h e " e x p e c t e d f a m i l y c o n t r i b u t i o n " and 100 p e r c e n t o f any s o c i a l s e c u r i t y s t u d e n t b e n e f i t s and/or v e t e r a n s education ( i . e . , G I b i l l ) b e n e f i t s t h a t the student receives. The P e l l G r a n t a u t h o r i z i n g l e g i s l a t i o n d e f i n e s t h e " c o s t o f a t t e n d a n c e " a s t h e normal c h a r g e s f o r t u i t i o n , f e e s , room and b o a r d , books, and o t h e r s p e c i f i e d e x p e n s e s . The f a m i l y c o n t r i b u t i o n s c h e d u l e a s s e s s e s a f a m i l y ' s f i n a n c i a l s t r e n g t h , p r o v i d i n g a n "elig i b i l i t y i n d e x " f o r e a c h a p p l i c a n t . The Department o f E d u c a t i o n p u b l i s h e s a payment s c h e d u l e f o r e a c h award y e a r t h a t i s u s e d by e a c h p a r t i c i p a t i n g p o s t s e c o n d a r y i n s t i t u t i o n t o match i t s c o s t o f a t t e n d a n c e w i t h t h e s t u d e n t ' s e l i g i b i l i t y i n d e x . The r e s u l t o f t h i s match d e t e r m i n e s t h e amount o f a s t u d e n t ' s P e l l award a t t h a t i n s t i t u t i o n , i n a c c o r d a n c e w i t h t h e c r i t e r i a o u t l i n e d i n t h e preceding paragraph. F o r t h e 1979-80 and 1930-81 academic y e a r s , an e s t i m a t e d 2,538,000 and 2,800,000 s t u d e n t s , r e s p e c t i v e l y , r e c e i v e d a v e r a g e P e l l G r a n t s o f $987 and $882. For t h e academic y e a r 1981-82 an e s t i m a t e d 2,700,000 s t u d e n t s r e c e i v e d P e l l G r a n t s a v e r a g i n g $882. F o r t h e 1982-83 academic y e a r , an e s t i m a t e d 2,600,000 s t u d e n t s w i l l r e c e i v e g r a n t s a v e r a g i n g $980. I n e a c h o f t h e f o u r f i s c a l y e a r s , t h e maximum P e l l G r a n t award was a s f o l l o w s : $1,800, $1,750, $1,670, and $1,800. A p p r o p r i a t i o n s l e g i s l a t i o n s i n c e FY 1981 h a v e g e n e r a l l y e s t a b l i s h e d a l o w e r maximum g r a n t l e v e l t h a n p r o v i d e d i n a u t h o r i z i n g law w i t h t h e maximum g r a n t l e v e l f o r academic y e a r 1984-85 s e t a t $1,900. 46. - HEADSTART 1/ A. Funding Formula The law s e t s t h e F e d e r a l s h a r e a t 80 p e r c e n t o f program c o s t s , b u t p e r m i t s a l a r g e r s h a r e i f t h e S e c r e t a r y o f H e a l t h and Human Services determines t h i s t o be necessary f o r H e a d s t a r t ' s purposes. Federal r e g u l a t i o n s permit a h i g h e r Federal s h a r e f o r a H e a d s t a r t agency which i s l o c a t e d i n a r e l a t i v e l y p o o r c o u n t y 2 / o r o n e t h a t "has b e e n i n v o l v e d " i n a m a j o r d i s a s t e r i f t h e S e c r e t a r y f i n d s t h a t t h e agency i s "unable" t o pay a 20 p e r c e n t s h a r e d e s p i t e a " r e a s o n a b l e e f f o r t " t o d o s o . A l s o , i f a H e a d s t a r t agency r e c e i v e d more t h a n an 80 p e r c e n t F e d e r a l s h a r e f o r any budget p e r i o d w i t h i n f i s c a l y e a r s 1973 o r 1 9 7 4 , i t i s e n t i t l e d by r e g u l a t i o n t o c o n t i n u e t o r e c e i v e t h e l a r g e r s h a r e . The non-Federal s h a r e may b e p a i d i n I t may b e p a i d by t h e H e a d s t a r t agency o r by cash o r i n kind. a n o t h e r p a r t y . A H e a d s t a r t agency i s a l o c a l p u b l i c o r p r i v a t e nonp r o f i t agency d e s i g n a t e d t o o p e r a t e a H e a d s t a r t program. H e a d s t a r t f u n d s a r e a l l o c a t e d t o S t a t e s by f o r m u l a . 31 1/ Although H e a d s t a r t i s c l a s s i f i e d h e r e a s an e d u c a t i o n a l i t s h o u l d b e n o t e d t h a t i t p r o v i d e s many o t h e r s e r v i c e s . I t i s a d m i n i s t e r e d by DHHS r a t h e r t h a n t h e Department o f E d u c a t i o n . 2 / A c o u n t y w i t h p e r s o n a l p e r c a p i t a income below $3,000 a n n u a i l y ( 45 C.F.R 1301.21, 1 9 8 1 ) . 3/ The H e a d s t a r t a l l o t m e n t f o r m u l a , a s amended by t h e Omnibus ~ u d ~ eR?e c o n c i l i a t i o n Act o f 1981, P.L. 97-35, p r o v i d e s t h a t 1 3 perc e n t o f t h e H e a d s t a r t a p p r o p r i a t i o n s h a l l b e r e s e r v e d by t h e S e c r e tary for: ( 1 ) I n d i a n and m i g r a n t programs, ( 2 ) payments t o t h e t e r r i t o r i e s ; ( 3 ) t r a i n i n g and t e c h n i c a l a s s i s t a n c e ; and ( 4 ) d i s c r e t i o n a r y payments by t h e S e c r e t a r y . The r e m a i n i n g 87 p e r c e n t i s dist r i b u t e d t o t h e S t a t e s a s f o l l o w s : e a c h S t a t e r e c e i v e s t h e amount i t r e c e i v e d i n FY81; o n e - t h i r d o f t h e r e m a i n d e r i s d i s t r i b u t e d on t h e b a s i s o f e a c h S t a t e ' s s h a r e o f c h i l d r e n r e c e i v i n g payments u n d e r t h e Aid t o F a m i l i e s w i t h Dependent C h i l d r e n program; and t h e r e s t on t h e b a s i s o f e a c h S t a t e ' s s h a r e o f c h i l d r e n aged 0-5 l i v i n g i n poverty. B. - E l i g i b i l i t y Requirements 4 / The law makes e l i g i b l e f o r H e a d s t a r t c h i l d r e n from famil i e s w i t h incomes below t h e " p o v e r t y l i n e " o r from f a m i l i e s who, w i t h o u t c h i l d c a r e , p o t e n t i a l l y would q u a l i f y f o r AFDC; p l u s , u n d e r c e r t a i n c o n d i t i o n s , some non-poor c h i l d r e n . Regul a t i o n s a d o p t e d on A p r i l 7, 1978, by t h e Department o f H e a l t h and Human S e r v i c e s (DHHS), t h e n t h e Department o f H e a l t h , E d u c a t i o n , and W e l f a r e , p r o v i d e t h a t no more t h a n 1 0 p e r c e n t o f t h e c h i l d r e n , i n c l u d i n g handicapped c h i l d r e n , i n each H e a d s t a r t program s h a l l b e from non-poor f a m i l i e s . These r e g u l a t i o n s make e l i g i b l e c h i l d r e n from f a m i l i e s whose t o t a l b e f o r e - t a x a n n u a l income i s n o t above t h e p o v e r t y l i n e e s t a b l i s h e d by t h e O f f i c e o f Management and Budget ($10,200 f o r a nonfarm f a m i l y o f f o u r i n 1 9 8 4 ) . 5 1 I n 1975 a t l e a s t 10 p e r c e n t o f t o t a l H e a d s t a r t e n r o l l m e z t o p p o r t u n i t i e s had t o b e a v a i l a b l e f o r handicapped c h i l d r e n . B e g i n n i n g i n 1976, t h i s s t a n d a r d was changed t o 1 0 p e r c e n t o f H e a d s t a r t e n r o l l m e n t i n e a c h S t a t e . -- I n 1978 c e r t a i n s m a l l , remote c o r n u n i t i e s w e r e p e r m i t t e d t o e s t a b l i s h t h e i r own e l i g i b i l i t y c r i t e r i a a s l o n g a s a t l e a s t h a l f o f t h e f a m i l i e s w e r e e l i g i b l e u n d e r t h e income g u i d e l i n e s . To q u a l i f y f o r t h i s a u t h o r i t y , communities must h a v e a populat i o n n o g r e a t e r t h a n 1 , 0 0 0 , b e m e d i c a l l y u n d e r s e n r e d , and l a c k o t h e r p r e s c h o o l programs o r m e d i c a l s e r v i c e s w i t h i n a r e a s o n a b l e distance. C. Benefit Levels H e a d s t a r t i s a c o m p r e h e n s i v e p r e s c h o o l program t h a t o p e r a t e s b o t h year-round and summer s e s s i o n s . S e r v i c e s i n c l u d e educat i o n a l , d e n t a l , m e d i c a l , n u t r i t i o n a l , and s o c i a l s e r v i c e s t o c h i l d r e n and t h e i r f a m i l i e s . H e a d s t a r t c h i l d r e n from non-poor f a m i l i e s may v o l u n t e e r t o pay p a r t o r a l l o f t h e c o s t o f p a r t i c i p a t i o n . However, H e a d s t a r t a g e n c i e s a r e f o r b i d d e n by r e g u l a t i o n s from s o l i c i t i n g , e n c o u r a g i n g , " o r i n any o t h e r way" c o n d i t i o n i n g a c h i l d ' s e n r o l l m e n t upon payment o f a f e e . 41 (1981-7. H e a d s t a r t e l i g i b i l i t y r u l e s a r e found i n 45 C.F.R. S 1305. 5 / T h i s i s t h e 1984 F e d e r a l p o v e r t y income g u i d e l i n e , i s s u e d i n ~ e K r u a r1984 ~ by t h e Department o f H e a l t h and Human S e r v i c e s , on t h e b a s i s o f t h e methodology o f t h e O f f i c e o f Management and Budget. 47. COLLEGE WORK-STUDY PROGRAM A. Funding Formula The H i g h e r E d u c a t i o n Act o f 1965, a s amended, a u t h o r i z e s F e d e r a l f u n d i n g f o r u p t o 8 0 p e r c e n t o f t h e compensation p a i d t o p a r t i c i p a t i n g s t u d e n t s . The r e m a i n i n g p o r t i o n ( a minimum of 20 p e r c e n t ) i s p r o v i d e d by p a r t i c i p a t i n g e d u c a t i o n a l institutions. B. E l i g i b i l i t y Requirements * The law a u t h o r i z e s f e d e r a l l y s u b s i d i z e d wages f o r ( 1 ) undergraduate, graduate, o r professional students, (2) p a r t i c u l a r l y t h o s e who a r e i n "need" o f e a r n i n g s t o p u r s u e a c o u r s e o f s t u d y a t t h e i n s t i t u t i o n . Under t e r m s o f t h e E d u c a t i o n Amendments o f 1980 (P.L. 96-3741, up t o 1 0 p e r c e n t of c o l l e g e work-study f u n d s may b e u s e d f o r t h o s e who a r e l e s s t h a n h a l f - t i m e s t u d e n t s , 1/ and a s t u d e n t ' s need f o r f u n d s i s t o b e d e c i d e d by u s e o f a F e d e r a l l y approved need a n a l y s i s system. - Benefit Levels A s t u d e n t ' s e a r n i n g s a r e l i m i t e d t o h i s need, a s determined by a F e d e r a l l y approved need a n a l y s i s s y s t e m . By r e g u l a t i o n , j o b s must pay a t l e a s t t h e a p p l i c a b l e F e d e r a l minimum wage. R e g u l a t i o n s l i m i t t h e number o f h o u r s o f work p e r week t o a n a v e r a g e of 20 duri n g t h e academic y e a r and t o 40 d u r i n g r e g u l a r v a c a t i o n p e r i o d s . An e s t i m a t e d 720,978 s t u d e n t s e a r n e d a n a v e r a g e o f $700 u n d e r t h e program d u r i n g t h e 1982-83 s c h o o l y e a r . all - * 11 P r e v i o u s l y , t h e c o l l e g e work-study program r e q u i r e d t o b e e n r o l l e d on a t l e a s t a h a l f - t i m e b a s i s . R e g u l a t i o n s f o r t h e C o l l e g e Work-Study program a r e found i n 34 C.F.R. p a r t 675. 4 8 . SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS A. Fundinn Formula T h i s program i s funded 100 p e r c e n t by t h e F e d e r a l Government. B. E l i e i b i l i t v Reauirements The H i g h e r E d u c a t i o n Act o f 1965, a s amended by t h e E d u c a t i o n Amendments o f 1980 (P.L. 96-374), a u t h o r i z e s s u p p l e m e n t a l g r a n t s f o r p o s t s e c o n d a r y u n d e r g r a d u a t e s t u d e n t s who a r e i n good s t a n d i n g , o r a c c e p t e d f o r e n r o l l m e n t , and who d e m o n s t r a t e n e e d u n d e r a F e d e r a l l y approved n e e d a n a l y s i s s y s t e m . The E d u c a t i o n Amendments o f 1980 make up t o 1 0 p e r c e n t o f t h e f u n d i n g a v a i l a b l e f o r l e s s t h a n h a l f t i m e students. 1/21 -- C. Benefit Levels The law l i m i t s i n d i v i d u a l g r a n t s t o $2,000. An e s t i m a t e d 650,000 s t u d e n t s r e c e i v e d g r a n t s a v e r a g i n g $525 u n d e r t h e program d u r i n g t h e 1983-84 s c h o o l y e a r . 11 P r e v i o u s l y , t h e S u p p l e m e n t a l E d u c a t i o n a l O p p o r t u n i t y G r a n t progrzm r e q u i r e d a l l r e c i p i e n t s t o b e e n r o l l e d o n a t l e a s t a h a l f time b a s i s . 2/ F e d e r a l r e g u l a t i o n s f o r t h i s program a r e found i n 34 c.F.R. 676. - 49. CHAPTER 1 MIGRANT EDUCATION PROGRAM Funding Formula T h i s program i s f u n d e d by t h e F e d e r a l Government u n d e r C h a p t e r 1 o f t h e E d u c a t i o n C o n s o l i d a t i o n and Improvement A c t . The D e p a r t m e n t o f E d u c a t i o n ( D E ) makes a n n u a l f o r m u l a g r a n t s t o S t a t e e d u c a t i o n a l a g e n c i e s f o r programs d e s i g n e d t o meet t h e s p e c i a l needs o f m i g r a t o r y c h i l d r e n o f m i g r a t o r y a g r i c u l t u r a l w o r k e r s o r m i g r a t o r y f i s h e r m e n b a s e d upon a n n u a l c o u n t s o f c e r t a i n o f t h e s e c h i l d r e n who p a r t i c i p a t e i n a S t a t e program. I n a d d i t i o n , DE makes d i s c r e t i o n a r y g r a n t s t o i m p r o v e c o o r d i n a t i o n o f t h e p r o g r a m s w i t h i n a n d among S t a t e s and n e g o t i a t e s a n a n n u a l c o n t r a c t t o s u p p o r t t h e M i g r a n t S t u d e n t Record T r a n s f e r System. B. E l i g i b i l i t y Requirements 1/ E l i g i b l e a r e c u r r e n t l y and f o r m e r l y 2 1 m i g r a t o r y c h i l d r e n o f migratory a g r i c u l t u r a l workers o r migratory fishermen. P r i o r i t y must b e g i v e n t o c h i l d r e n e n r o l l e d i n k i n d e r g a r d e n o r g r a d e s 1 through 12, b u t preschool c h i l d r e n a l s o p a r t i c i p a t e . There i s n o income t e s t , b u t m i g r a t o r y c h i l d r e n may b e presumed t o need s p e c i a l e d u c a t i o n a l and o t h e r s e r v i c e s . Regulations define a currently migratory child a s a c h i l d whose p a r e n t o r g u a r d i a n i s a m i g r a t o r y a g r i c u l t u r a l w o r k e r o r a m i g r a t o r y f i s h e r and who, i n g e n e r a l , h a s moved w i t h i n t h e p a s t 12 months from one s c h o o l d i s t r i c t t o a n o t h e r t o e n a b l e a member o f t h e i m m e d i a t e f a m i l y t o o b t a i n t e m p o r a r y o r s e a s o n a l employment i n a n a g r i c u l t u r a l o r f i s h i n g a c t i v i t y . -11 R e g u l a t i o n s a r e f o u n d i n 34 C.F.R. 5 204 and 205. 21 The law p e r m i t s s e r v i c e s f o r f o r m e r l y m i g r a t o r y c h i l d r e n The D e p a r t m e n t o f E d u c a t i o n h a s p r o p o s e d t o f o r u p t o 5 years. reduce t h i s t o 2 years. C. Benefit Levels S t a t e e d u c a t i o n a l a g e n c i e s a r e r e s p o n s i b l e f o r m i g r a n t educ a t i o n programs, b u t g e n e r a l l y l o c a l s c h o o l d i s t r i c t b o t h d e s i g n and a d m i n i s t e r them. Programs commonly p r o v i d e r e g u l a r academic i n s t r u c t i o n , r e m e d i a l o r compensatory i n s t r u c t i o n , b i l i n g u a l and m u l t i c u l t u r a l i n s t r u c t i o n , v o c a t i o n a l and c a r e e r e d u c a t i o n , testi n g , g u i d a n c e and c o n s e l i n g , and m e d i c a l and d e n t a l s c r e e n i n g . I n c a l e n d a r y e a r 1982 programs s e r v e d a p p r o x i m a t e l y 590,000 c h i l d r e n ( a p p r o x i m a t e l y 490,000 f u l l - t i m e e q u i v a l e n t c h i l d r e n ) i n 49 S t a t e s ( a l l b u t ~ a w a i i ) ,t h e D i s t r i c t o f Columbia, and and P u e r t o Rico. School y e a r 1982-1983 a l l o c a t i o n s (made from f i s c a l y e a r 1982 a p p r o p r i a t i o n s ) t o t a l e d $248,673,400 f o r t h e programs t h e m s e l v e s , p l u s $7,065,600 f o r c o o r d i n a t i o n p r o j e c t s and t h e M i g r a n t S t u d e n t Record T r a n s f e r System. The amount o f support per c h i l d varied substantially. 50. NATIONAL DIRECT STUDENT LOANS A. Funding Formula The H i g h e r E d u c a t i o n Act o f 1965, a s amended by t h e E d u c a t i o n Amendments o f 1980 (P.L. 96-3741, a u t h o r i z e s 90 p e r c e n t F e d e r a l m a t c h i n g f o r r e v o l v i n g l o a n f u n d s a t p u b l i c , o t h e r n o n p r o f i t , and proprietary i n s t i t u t i o n s of higher education. I n s t i t u t i o n s receivi n g t h e s e F e d e r a l c o n t r i b u t i o n s must c o n t r i b u t e t o t h e l o a n f u n d a n amount e q u a l t o a t l e a s t o n e - n i n t h o f t h e F e d e r a l sum. The E d u c a t i o n Amendments a u t h o r i z e a s e c o n d method o f f u n d i n g t h r o u g h F e d e r a l b o r r o w i n g , s u b j e c t t o a u t h o r i t y p r o v i d e d by a p p r o p r i a t i o n s acts. B. E l i g i b i l i t y Requirements * The law a u t h o r i z e s l o w - i n t e r e s t , long-term l o a n s f o r ( 1 ) underg r a d u a t e , g r a d u a t e , o r p r o f e s s i o n a l s t u d e n t s e n r o l l e d on a t l e a s t a h a l f - t i m e b a s i s , o r a c c e p t e d f o r e n r o l l m e n t , ( 2 ) who a r e " i n need" o f t h e amount o f t h e l o a n t o p u r s u e a c o u r s e o f s t u d y , and ( 3 ) who m a i n t a i n good s t a n d i n g . A s t u d e n t ' s need f o r a l o a n i s d e t e r m i n e d by a F e d e r a l l y approved need a n a l y s i s s y s t e m . C. Benefit Levels E f f e c t i v e O c t o b e r 1, 1981, t h e law a u t h o r i z e s l o a n s a t a 5 perc e n t i n t e r e s t r a t e . 11 Loans a r e t o b e r e p a i d o v e r a 1 0 - y e a r p e r i o d b e g i n n i n g 6 months a?ter t h e end o f s t u d y on a t l e a s t a h a l f - t i m e b a s i s . No i n t e r e s t i s c h a r g e d u n t i l repayment o f t h e p r i n c i p a l b e g i n s , u n l e s s t h e payment i s d e f e r r e d , a s p e r m i t t e d u n d e r c e r t a i n c o n d i t i o n s . I n a d d i t i o n , a l l o r a p o r t i o n o f t h e l o a n s may b e canc e l l e d f o r t h o s e who e n t e r s p e c i f i c t e a c h i n g j o b s o r m i l i t a r y s e r v i c e . The law p e r m i t s t o t a l a g g r e g a t e l o a n s o f up t o $3,000 f o r s t u d e n t s i n t h e i r f i r s t 2 y e a r s o f c o l l e g e , $6,000 f o r s t u d e n t s who h a v e c o m p l e t e d t h e i r f i r s t 2 y e a r s o f u n d e r g r a d u a t e s t u d y , and $12,000 f o r g r a d u a t e o r p r o f e s s i o n a l s t u d e n t s . An e s t i m a t e d 840,000 s t u d e n t s borrowed l o a n s a v e r a g i n g $800 u n d e r t h e program i n t h e 1983-84 s c h o o l y e a r . 11 The i n t e r e s t r a t e was 3 p e r c e n t u n t i l J u l y 1, 1981, when i t was r a i s e d t o 4 p e r c e n t . E f f e c t i v e O c t . 1, 1981, P.L. 97-35 i n creased it t o 5 percent. * R e g u l a t i o n s f o r N a t i o n a l D i r e c t S t u d e n t Loans a r e found i n 34 C.F.R. 674. 51. SPECIAL PROGRAMS FOR STUDENTS FROM DISADVANTAGED BACKGROUNDS (TRIO PROGRAMS) Note: S p e c i a l Programs f o r S t u d e n t s from D i s a d v a n t a g e d Backgrounds c o n s i s t o f 5 programs a u t h o r i z e d by t i t l e I V o f t h e H i g h e r E d u c a t i o n Act o f 1965, a s amended: Upward Bound, S p e c i a l S e r v i c e s f o r Disadvantaged S t u d e n t s , T a l e n t Search, Educational O p p o r t u n i t y C e n t e r s , and S t a f f Development. The f i r s t t h r e e w e r e t h e o r i g i n a l "Trio" programs and a r e d e s c r i b e d i n summary form below. The c e n t e r s s e r v e as a c l e a r i n g h o u s e f o r informat i o n on f i n a n c i a l and p o s t s e c o n d a r y i n s t i t u t i o n s i n low-income a r e a s , and t h e s t a f f development programs p r o v i d e s s h o r t - t e r m training for Trio instructors. A. Funding Formula These programs a r e 100 p e r c e n t f e d e r a l l y funded. B. E l i g i b i l i t y Requirements 1. Upward bound Eligible are potential first-generation college students between t h e a g e s o f 1 3 and 19 ( u n l e s s t h e y a r e v e t e r a n s ) who (1) a t t h e t i m e o f i n i t i a l s e l e c t i o n a r e from low-income f a m i l i e s and ( 2 ) need academic s u p p o r t i n o r d e r t o s u c c e s s f u l l y p u r s u e a n e d u c a t i o n beyond h i g h s c h o o l . P a r t i c i p a n t s must h a v e completed g r a d e 8 b u t n o t e n t e r e d g r a d e 12 ( u n l e s s t h e y a r e v e t e r a n s ) . For v e t e r a n s t h e r e i s no a g e l i m i t o r s c h o o l c l a s s requirement. / R e g u l a t i o n s i s s u e d i n 1982 ( f o r Upward Bound, S p e c i a l S e r v i c e s f o r D i s a d v a n t a g e d S t u d e n t s , and T a l e n t s e a r c h ) d e f i n e a low-income f a m i l y a s one whose income d o e s n o t e x c e e d 150 1/ The E d u c a t i o n Amendments o f 1972 (P.L. 92-318) added t h e f y n a l two programs, b u t t h e e n l a r g e d g r o u p o f f i v e programs s t i l l i s known a s t h e "Trio" g r o u p . 2 1 Upward Bound e l i g i b i l i t y r u l e s a r e found i n 34 C.F.R. 64 5T3. p e r c e n t o f t h e Census Bureau's poverty t h r e s h o l d f o r t h e i r family s i z e i n t h e c a l e n d a r y e a r preceding t h e y e a r o f program p a r t i c i p a t i o n . F o r a f a m i l y o f f o u r , t h e Census Bureau's e s t i m a t e d 1983 p o v e r t y t h r e s h o l d ( i s s u e d i n January 1984) was $10,180. The regulations also define a "first-generation" college student a s one whose mother and f a t h e r d i d n o t r e c e i v e a b a c h e l o r ' s d e g r e e . S p e c i a l S e r v i c e s f o r Disadvantaged S t u d e n t s E l i g i b l e a r e s t u d e n t s e n r o l l e d , o r accepted f o r e n r o l l m e n t , i n a postsecondary e d u c a t i o n a l program who ( 1 ) a t t h e time of i n i t i a l s e l e c t i o n a r e from low-income f a m i l i e s ( a s d e f i n e d above) and a r e e i t h e r f i r s t - g e n e r a t i o n c o l l e g e s t u d e n t s o r p h y s i c a l l y handicapped and ( 2 ) need academic s u p p o r t i n o r d e r t o s u c c e s s f u l l y pursue t h e e d u c a t i o n a l program. 31 - 3. T a l e n t Search E l i g i b l e a r e p e r s o n s ( 1 ) who have completed t h e 6 t h g r a d e o r a r e a t l e a s t 12 y e a r s o l d and ( g e n e r a l l y ) n o t o l d e r t h a n 27 y e a r s and ( 2 ) who need one o r more o f t h e s e r v i c e s provided by t h e T a l e n t Search p r o j e c t t o u n d e r t a k e a program o f postsecondary e d u c a t i o n and t o complete t h e program ( o r , f o r d r o p o u t s , t o r e e n t e r and complete a program a t t h e secondary o r postsecondary l e v e l ) . Dropouts must have t h e " a b i l i t y " t o succeed i n s c h o o l . For v e t e r a n s t h e r e i s no age r u l e 4 / . R e g u l a t i o n s r e q u i r e a t l e a s t 213's o f p a r t i c i p a n t s t o F e from low-income f a m i l i e s ( d e f i n e d above) and t o b e p o t e n t i a l first-generation college students. C. Benefit Levels Upward Bound and S p e c i a l S e r v i c e s f o r Disadvantaged S t u d e n t s provide such s e r v i c e s a s : i n s t r u c t i o n i n r e a d i n g , w r i t i n g , s t u d y s k i l l s , mathematics, and o t h e r s u b j e c t s needed f o r s u c c e s s i n e d u c a t i o n beyond h i g h s c h o o l ; p e r s o n a l counsel i n g ; academic a d v i c e and a s s i s t a n c e i n c o u r s e s e l e c t i o n ; t u t o r i a l s e r v i c e s ; exposure t o c u l t u r a l e v e n t s and academic programs n o t u s u a l l y a v a i l a b l e t o disadvantaged s t u d e n t s ; and a c t i v i t i e s d e s i g n e d t o a c q u a i n t s t u d e n t s w i t h t h e range o f c a r e e r o p t i o n s a v a i l a b l e t o them. S p e c i a l S e r v i c e s f o r 31 E l i g i b i l i t y r u l e s f o r S p e c i a l S e r v i c e s a r e found a t 34 646.3. 41 T a l e n t S e a r c h e l i g i b i l i t y r u l e s a r e found a t 34 C.F.RT5 C.F.RT1 643.3. Disadvantaged Students also helps students secure admission and financial aid for enrollment in graduate and professional programs. Talent Search publicizes the availability of student financial aid and encourages qualified students to complete high school and to undertake postsecondary education (or, if dropouts, A Talent Search project may provide tutorto re-enter school). ing to a student who is not enrolled in Upward Bound. In FY 1983, a total of 650,000 participants were enrolled in the five TRIO programs, as follows: Upward Bound--32,608; Special Services--150,293; Talent Search--190,825; Educational Opportunity Centers--104,300; Staff Training--1,500. 52. FOLLOW THROUGH A. Funding Formula The law s e t s t h e F e d e r a l s h a r e a t 8 0 p e r c e n t o f program c o s t s ( i n some c a s e s t h e S e c r e t a r y o f t h e Department o f E d u c a t i o n may a p p r o v e a larger Federal share). 11 The non-Federal s h a r e may b e p a i d i n goods o r s e r v i c e s . - E l i g i b i l i t y Requirements 21 B. By law c h i l d r e n from "low-income" f a m i l i e s a r e e l i g i b l e f o r Follow Through. R e g u l a t i o n s d e f i n e e l i g i b l e r e c i p i e n t s a s c h i l d r e n i n f a m i l i e s whose income i s below t h e p o v e r t y g u i d e l i n e s o f t h e O f f i c e o f Management and Budget ($10,200 f o r a f a m i l y o f f o u r i n 1984. 3 1 The S e c r e t a r y o f E d u c a t i o n may a l l o w non-low-income child& t o j o i n t h e program. A t l e a s t 50 p e r c e n t o f Follow Through e n t r a n t s must have p a r t i c i p a t e d p r e v i o u s l y i n f u l l - y e a r H e a d s t a r t programs o r s i m i l a r q u a l i t y p r e s c h o o l progrms w i t h a n i n s t r u c t i o n a l component. Benefit Levels Follow Through i s an e x p e r i m e n t a l program d e s i g n e d t o t e s t v a r i ous models o f p r i m a r y e d u c a t i o n t h a t m i g h t i n c r e a s e t h e achievement l e v e l o f c h i l d r e n p r e v i o u s l y e n r o l l e d i n H e a d s t a r t o r s i m i l a r programs. F e e s f o r n o n - i n s t r u c t i o n a l s e r v i c e s o f t h e program may b e c h a r g e d f o r c h i l d r e n from non-low-income f a m i l i e s and p a i d by t h e l o c a l e d u c a t i o n a l agency. 11 I n FY 1980, 7 7 p e r c e n t o f F e d e r a l f u n d s went t o l o c a l educat i o n a i a g e n c i e s , and t h e r e s t t o p r o j e c t s p o n s o r s and r e s o u r c e c e n t e r s . 21 C.F.R: § R e g u l a t i o n s g o v e r n i n g F o l l o w Through a r e found i n 34 215 ( 1 9 8 2 ) . 31 T h i s i s t h e 1984 F e d e r a l p o v e r t y income g u i d e l i n e , i s s u e d i n ~ e b r u a r1984 ~ by t h e Department o f H e a l t h and Human S e r v i c e s , o n t h e b a s i s o f t h e methodology o f t h e O f f i c e o f Management and Budget. 53. VOCATIONAL EDUCATION WORK-STUDY PROGRAM A. Funding Formula Federal funds a v a i l a b l e t o t h e S t a t e s f o r b a s i c g r a n t s under t h e V o c a t i o n a l E d u c a t i o n Act o f 1963, a s amended, may b e u s e d f o r g r a n t s t o l o c a l e d u c a t i o n a l a g e n c i e s f o r work-study programs. ( S t a t e s must d i s t r i b u t e b a s i c g r a n t s t o l o c a l e d u c a t i o n a l a g e n c i e s and o t h e r e l i g i b l e r e c i p i e n t s a c c o r d i n g t o economic, s o c i a l , and demographic f a c t o r s r e l a t i n g t o t h e need f o r v o c a t i o n a l e d u c a t i o n among t h e v a r i o u s p o p u l a t i o n s and t h e v a r i o u s a r e a s o f t h e S t a t e , and a c c o r d i n g t o t h e r e l a t i v e f i n a n c i a l a b i l i t y o f r e c i p i e n t s t o meet t h e v o c a t i o n a l educat i o n n e e d s o f t h e s t u d e n t s t h e y s e r v e . F e d e r a l payments t o S t a t e s may n o t exceed 50 p e r c e n t o f t h e c o s t o f c a r r y i n g o u t t h e a n n u a l program plan meeting t h e requirements o f t h e Vocational Education Act.) B. E l i e i b i l i t v R e a u i r e m e n t s 11 E l i g i b i l i t y f o r a f e d e r a l l y - s u b s i d i z e d work s t u d y program o f f e r e d by a l o c a l e d u c a t i o n a l agency i s a v a i l a b l e o n l y f o r a s t u d e n t who: ( 1 ) h a s been a c c e p t e d f o r e n r o l l m e n t a s a f u l l - t i m e s t u d e n t i n a vocat i o n a l e d u c a t i o n program, o r i s e n r o l l e d i n s u c h a program and i s i n good s t a n d i n g and i n f u l l - t i m e a t t e n d a n c e ; ( 2 ) i s i n need o f t h e e a r n i n g s from employment t o commence o r c o n t i n u e t h e v o c a t i o n a l e d u c a t i o n program; and ( 3 ) i s between t h e a g e s o f 15 and 21 a t t h e b e g i n n i n g o f employment and i s c a p a b l e o f m a i n t a i n i n g good s t a n d i n g i n t h e vocat i o n a l e d u c a t i o n program w h i l e employed under t h e work-study program. No s t u d e n t s h a l l b e employed u n d e r t h e program f o r more t h a n 20 h o u r s i n any week i n which c l a s s e s a r e i n s e s s i o n . C. Benefit Levels No s t u d e n t employed under a work-study program s h a l l b e compens a t e d a t a r a t e t h a t exceeds t h e hourly r a t e p r e v a i l i n g i n t h e a r e a f o r persons performing s i m i l a r d u t i e s . 11 R e g u l a t i o n s f o r t h e v o c a t i o n a l e d u c a t i o n work-study program a r e fzund i n 34 C.F.R. 400.521-523. 54. FELLOWSHIPS FOR GRADUATE AND PROFESSIONAL STUDY A. Funding Formula T h i s program, a u t h o r i z e d by t i t l e IX-B o f t h e H i g h e r E d u c a t i o n Act o f 1964, a s amended, i s f u l l y funded by t h e F e d e r a l Government. B. E l i g i b i l i t y Requirements The program o f f e r s t h r e e k i n d s o f f e l l o w s h i p s : G r a d u a t e and P r o f e s s i o n a l O p p o r t u n i t y F e l l o w s h i p s , P u b l i c S e r v i c e E d u c a t i o n F e l l o w s h i p s , and Domestic Mining and M i n e r a l and M i n e r a l F u e l Conservati.on F e l l o w s h i p s . F o r e a c h o f t h e s e f e l l o w s h i p s , p e r s o n s must d e m o n s t r a t e a f i n a n c i a l need and h a v e been a c c e p t e d f o r o r b e e n r o l l e d i n a program o f s t u d y l e a d i n g t o a p o s t b a c c a l u r e a t e g r a d u a t e o r p r o f e s s i o n a l degree. I n a d d i t i o n , t o b e e l i g i b l e f o r a Graduate o r P r o f e s s i o n a l O p p o r t u n i t y F e l l o w s h i p , an a p p l i c a n t must b e a member o f a g r o u p t h a t i s " u n d e r r e p r e s e n t e d 1 ' i n g r a d u a t e o r Regulations d e f i n e underrepresented groups professional study as " m i n o r i t i e s and o t h e r g r o u p s , i n c l u d i n g women, who a r e underrepresented i n t h e s p e c i f i c g r a d u a t e a r e a of s t u d y o r p r o f e s s i o n i n which t h e award i s made." 1 1 . P u b l i c S e r v i c e Education Fellowships a r e r e s t r i c t e d t o p e r s o n s who p l a n a c a r e e r i n p u b l i c s e r v i c e ; and Domestic Mining and M i n e r a l F u e l C o n s e r v a t i o n F e l l o w s h i p s , t o p e r s o n s who p l a n advanced s t u d y i n d o m e s t i c m i n i n g and m i n e r a l and mineral f u e l conservation, including o i l , gas, coal, shale, and uranium. S c h o o l s d e c i d e a p p l i c a n t s 1 f i n a n c i a l need and award t h e fellowships. C. Benefit Levels Fellows r e c e i v e g r a n t s f o r p e r i o d s g e n e r a l l y o f up t o 3 y e a r s . Awards a r e b a s e d o n f i n a n c i a l n e e d and r a n g e u p t o 11 Program e l i g i b i l i t y r u l e s a r e found i n 34 C.F.R. 649 ( 1 9 8 2 ) . S CRS- 145 $4,500 per year. The program a l s o provides an allowance o f $3,900 per year t o the i n s t i t u t i o n f o r each f e l l o w . In FY 1983, 1 , 2 0 4 s t u d e n t s received f e l l o w s h i p s . 55. HEALTH PROFESSIONS STUDENT LOANS AND SCHOLARSHIPS Funding Formula The law p r o v i d e s 90 p e r c e n t F e d e r a l f u n d i n g f o r s t u d e n t l o a n s and 100 p e r c e n t f o r s c h o l a r s h i p s . The s c h o o l must c o n t r i b u t e t o t h e l o a n fund a minimum s h a r e e q u a l t o o n e - n i n t h o f t h e F e d e r a l sum. B. E l i g i b i l i t y Requirements 1. Loans. E l i g i b l e f o r l o a n s a r e f u l l - t i m e s t u d e n t s i n publ i c o r n o n - p r o f i t s c h o o l s o f m e d i c i n e , d e n t i s t r y , o s t e o p a t h y , optomet r y , p o d i a t r y , pharmacy, and v e t e r i n a r y m e d i c i n e . The s c h o o l s e l e c t s q u a l i f i e d l o a n a p p l i c a n t s , and d e t e r m i n e s t h e amount o f s t u d e n t l o a n s by c o n s i d e r i n g : ( 1 ) f i n a n c i a l r e s o u r c e s a v a i l a b l e t o t h e s t u d e n t ; and ( 2 ) t h e c o s t s reasonably necessary f o r t h e s t u d e n t ' s attendance a t t h e s c h o o l . D e n t a l , v e t e r i n a r y , o p t o m e t r y , p o d i a t r y , and pharmacy s t u d e n t s need o n l y b e " i n need" o f a i d . However, s t u d e n t s o f m e d i c i n e and o s t e o p a t h y must b e i n " e x c e p t i o n a l f i n a n c i a l n e e d , " a s d e f i n e d by F e d e r a l r e g u l a t i o n s . R e g u l a t i o n s p r o v i d e t h a t a m e d i c a l o r o s t e o p a t h i c s t u d e n t w i l l q u a l i f y f o r a l o a n on t h e b a s i s o f except i o n a l f i n a n c i a l need i f h i s c o u n t e d r e s o u r c e s d o n o t exceed t h e l e s s e r o f $5,000 o r one-half t h e c o s t o f a t t e n d a n c e a t t h e s c h o o l . Not c o u n t e d a s a v a i l a b l e r e s o u r c e s a r e summer e a r n i n g s , e d u c a t i o n a l l o a n s , v e t e r a n s ' ( G . I . ) b e n e f i t s , and e a r n i n g s d u r i n g t h e s c h o o l y e a r . However, f o r p u r p o s e s o f e s t a b l i s h i n g p r i o r i t y among e l i g i b l e m e d i c a l and o s t e o p a t h i c s t u d e n t a p p l i c a n t s , t h e r e g u l a t i o n s r e q u i r e s c h o o l s t o c o n s i d e r a l l t h e i r income, i n c l u d i n g summer e a r n i n g s , e d u c a t i o n a l l o a n s , v e t e r a n s ' b e n e f i t s , and s c h o o l - y e a r e a r n i n g s / . -.l 2. S c h o l a r s h i p s ( a v a i l a b l e o n l y f o r f i r s t - y e a r s t u d e n t s ) Elig - i b l e f o r s c h o l a r s h i p s a r e f i r s t - y e a r f u l l - t i m e s t u d e n t s o f "except i o n a l f i n a n c i a l need" i n t h e s e v e n k i n d s o f s c h o o l s l i s t e d above. c o n t a i n e s s e n t i a l l y t h e same Regulations f o r scholarship e l i g i b i l i t y t e s t o f e x c e p t i o n a l f i n a n c i a l need a s t h a t used f o r l o a n s ( s e e a b o v e ) . 2/ -11 42 C.F.R. 5 57.206 (1983). 21 - 42 C.F.R. § 57.2804 (1983). C. Benefit Levels The maximum l o a n may n o t e x c e e d t h e sum o f t u i t i o n p l u s $2,500 f o r e a c h s c h o o l y e a r . Loans w e r e a u t h o r i z e d a t a 7 p e r c e n t i n t e r e s t r a t e t h r o u g h academic y e a r 1981-82, b u t r o s e t o 9 p e r c e n t t h e r e a f t e r . 31 The maximum s c h o l a r s h i p g r a n t i s t h e sum o f t u i t i o n p l u s a l l r e a s o n a b l e e d u c a t i o n a l e x p e n s e s , i n c l u d i n g f e e s , books, and l a b o r a t o r y expenses, p l u s a s t i p e n d t h a t i s a d j u s t e d annually w i t h i n c r e a s e s i n F e d e r a l s a l a r i e s . The s t i p e n d was e s t a b l i s h e d a t $400 monthly i n academic y e a r 1977-78 and r o s e t o $599 ( $ 7 , 1 8 8 p e r y e a r ) i n 1984. T h e s e s t i p e n d s a r e i n d e x e d t o t h e G e n e r a l S c h e d u l e o f F e d e r a l s a l a r i e s f o r w h i t e c o l l a r employees and a d j u s t e d a n n u a l l y . The law r e q u i r e s t h a t t h e s t i p e n d s b e i n c r e a s e d by t h e p e r c e n t a g e o f t h e r i s e i n pay u n d e r t h e G e n e r a l S c h e d u l e , rounded t o t h e n e x t m u l t i p l e o f $1. Loans must b e r e p a i d o v e r a 1 0 - y e a r p e r i o d b e g i n n i n g 1 y e a r a f t e r t h e end o f t h e s t u d y , e x c l u d i n g from s u c h p e r i o d a l l p e r i o d s ( u p t o t h r e e y e a r s ) o f ( 1 ) a c t i v e d u t y p e r f o r m e d by t h e borrower a s a member o f a u n i f o r m e d s e r v i c e o r ( 2 ) s e r v i c e a s a P e a c e Corps v o l u n t e e r , and p e r i o d s o f advanced p r o f e s s i o n a l t r a i n i n g i n c l u d i n g i n t e r n s h i p s and r e s i d e n c i e s . No i n t e r e s t i s c h a r g e d u n t i l r e p a y ment b e g i n s . The S e c r e t a r y may, s u b j e c t t o t h e a v a i l a b i l i t y o f f u n d s , r e p a y a l l o r p a r t o f a n i n d i v i d u a l ' s l o a n made a f t e r November 1 7 , 1971, u n d e r t h i s program i f t h e S e c r e t a r y d e t e m i n e s t h a t t h e i n d i v i d u a l : ( 1 ) f a i l e d t o complete t h e h e a l t h p r o f e s s i o n s s t u d i e s l e a d i n g t o t h e individual's f i r s t professional degree; ( 2 ) i s i n exceptionally needy c i r c u m u s t a n c e s ; ( 3 ) i s from a low income o r d i s a d v a n t a g e d f a m i l y ; and ( 4 ) h a s n o t resumed o r c a n n o t r e a s o n a b l y b e e x p e c t e d t o resume t h e c o u r s e o f s t u d y w i t h i n 2 y e a r s f o l l o w i n g t h e d a t e t h e i n d i v i d u a l ended t h e s t u d i e s . For t h i s p u r p o s e , F e d e r a l r e g u l a t i o n s d e f i n e a low-income f a m i l y a s o n e w i t h income below a p p r o x i m a t e l y 130 p e r c e n t o f t h e F e d e r a l p o v e r t y g u i d e l i n e s . F o r a 4-person f a m i l y , t h e 1984 Regulations income t h r e s h o l d , i s s u e d i n March 1984, i s $13,200. a p p l y t h i s income t e s t t o t h e f a m i l y o f t h e s t u d e n t ' s p a r e n t , i n c l u d i n g i n t h e f a m i l y u n i t o n l y t h o s e d e p e n d e n t s who a r e l i s t e d on F e d e r a l income t a x forms. 4 1 - 31 P.L. 97-35, t h e Omnibus Budget R e c o n c i l i a t i o n Act o f 1981, increased t h e i n t e r e s t rate. -4 1 See 49 F e d e r a l R e g i s t e r . No. 58. March 23, 1984. p. 11016. MIGRANT H I G H SCHOOL EQUIVALENCY PROGRAM (HEP) A. Funding Formula T h i s program i s funded by t h e F e d e r a l Government. The Department o f E d u c a t i o n (DE) o f f e r s f u n d s t o i n s t i t u t i o n s o f h i g h e r e d u c a t i o n and t o o t h e r p u b l i c o r n o n p r o f i t p r i v a t e agencies cooperating w i t h such i n s t i t u t i o n s t o h e l p migrant s t u d e n t s o b t a i n t h e e q u i v a l e n t of a secondary school diploma. B. - E l i g i b i l i t y Requirements 1/ E l i g i b l e t o p a r t i c i p a t e i n HEP p r o j e c t s a r e s t u d e n t s ( 1 ) who a r e m i g r a n t farmworkers o r o t h e r s e a s o n a l farmworkers ( o r who a r e d e p e n d e n t s o f s u c h w o r k e r s ) , ( 2 ) who have n o t e a r n e d a s e c o n d a r y s c h o o l d i p l o m a , ( 3 ) who a r e n o t c u r r e n t l y e n r o l l e d i n an e l e m e n t a r y o r s e c o n d a r y s c h o o l , and ( 4 ) who a r e above t h e a g e o f compulsory s c h o o l a t t e n d a n c e . T h e r e i s no d e f i n i t e income t e s t , b u t p a r t i c i p a t i n g s t u d e n t s must b e judged by g r a n t e e s t o need f i n a n c i a l and academic and supporting services. Benefit Levels P r o j e c t s f i n a n c e d by t h i s program t y p i c a l l y p r o v i d e i n s t r u c t i o n i n r e a d i n g , w r i t i n g , m a t h e m a t i c s , and o t h e r s u b j e c t s t e s t e d by e q u i v a l e n c y e x a m i n a t i o n s ; c a r e e r - o r i e n t e d work-study c o u r s e s ; t u t o r i n g ; and p e r s o n a l and academic c o u n s e l i n g . A l s o HEP p r o j e c t s o f t e n p r o v i d e f i n a n c i a l a s s i s t a n c e , h o u s i n g , and v a r i o u s s u p p o r t s e r v i c e s . I n t h e 19831984 s c h o o l y e a r HEP s e r v e d a b o u t 2,790 s t u d e n t s . School y e a r 1983-1984 g r a n t s (made from f i s c a l y e a r 1983 approp r i a t i o n s ) t o t a l e d $6,300,000. The a v e r a g e s u p p o r t p e r s t u d e n t was a p p r o x i m a t e l y $2,260, though a c t u a l s u p p o r t v a r i e s s u b s t a n t i a l l y . The P r e s i d e n t ' s FY 1985 budget r e q u e s t e d n o f u n d s f o r t h i s progam. -----1/ R e g u l a t i o n s f o r t h i s program a r e found i n 34 C.F.R. 206. 57. ELLENDER FELLOWSHIPS A. Funding Formula The law a u t h o r i z e s a s p e c i f i e d F e d e r a l sum f o r f e l l o w s h i p s . Community g r o u p s and t h e Close-up F o u n d a t i o n t r y t o match t h e s e F e d e r a l f u n d s d o l l a r f o r d o l l a r . I n 1981 F e d e r a l f u n d s w e r e s l i g h t l y more t h a n 50 p e r c e n t o f t h e t o t a l . B. E l i g i b i l i t y Requirements * Without d e f i n i t i o n , t h e law makes e l i g i b l e b o t h s e c o n d a r y s c h o o l s t u d e n t s who a r e " e c o n o m i c a l l y d i s a d v a n t a g e d " and t h e i r t e a c h e r s . The program h a s n o r e g u l a t i o n s . C. Benefit Levels F e l l o w s h i p s c o v e r t h e c o s t s o f room, board, t u i t i o n , a d m i n i s t r a t i o n , and i n s u r a n c e f o r a week-long s e r i e s o f m e e t i n g s , t o u r s , and s e m i n a r s a b o u t p u b l i c a f f a i r s i n Washington, D.C., s p o n s o r e d by t h e Close-up F o u n d a t i o n . S t u d e n t s and t h e i r t e a c h e r s meet w i t h O f f i c i a l s from t h e t h r e e b r a n c h e s o f t h e F e d e r a l Government and d i s c u s s p e n d i n g i s s u e s . I n 1983, 2,440 s t u d e n t s and 2 , 2 1 7 t e a c h e r s r e c e i v e d f e l l o w s h i p s , a t an a v e r a g e c o s t o f $322. * T h e r e a r e no F e d e r a l r e g u l a t i o n s f o r E l l e n d e r F e l l o w s h i p s . 58. COLLEGE ASSISTANCE MIGRANT PROGRAM (CAMP) A. Funding Formula T h i s program i s funded by t h e F e d e r a l Government. The Department o f E d u c a t i o n (DE) o f f e r s f u n d s t o i n s t i t u t i o n s o f h i g h e r e d u c a t i o n and t o o t h e r p u b l i c o r n o n p r o f i t p r i v a t e a g e n c i e s cooperating w i t h such i n s t i t u t i o n s t o h e l p migrant s t u d e n t s c o m p l e t e t h e i r f i r s t academic y e a r i n c o l l e g e . B. E l i g i b i l i t y Requirements 1/ E l i g i b l e t o p a r t i c i p a t e i n CAMP p r o j e c t s a r e s t u d e n t s (1) who a r e m i g r a n t farmworkers o r o t h e r s e a s o n a l farmw o r k e r s ( o r who a r e d e p e n d e n t s o f s u c h w o r k e r s ) and ( 2 ) who a r e e n r o l l e d o r admitted f o r enrollment a s full-time stud e n t s i n an i n s t i t u t i o n o f h i g h e r e d u c a t i o n p a r t i c i p a t i n g i n t h e program. T h e r e i s n o d e f i n i t e income t e s t , b u t p a r t i c i p a t i n g s t u d e n t s must b e judged by g r a n t e e s t o need f i n a n c i a l a s s i s t a n c e f o r c o l l e g e expenses a s w e l l a s academic and s u p p o r t i v e s e r v i c e s . C. Benefit Levels CAMP p r o j e c t s t y p i c a l l y p r o v i d e t u i t i o n and s t i p e n d s f o r room and b o a r d and p e r s o n a l e x p e n s e s . A l s o , t h e y prov i d e academic and p e r s o n a l c o u n s e l i n g , t u t o r i n g i n b a s i c s k i l l s and o t h e r s u b j e c t a r e a s , and v a r i o u s s u p p o r t s e r v i c e s . I n t h e 1983-1984 s c h o o l y e a r CAMP s e r v e d a b o u t 455 s t u d e n t s a t f i v e s i t e s i n f o u r S t a t e s . School y e a r 19831984 g r a n t s (made from f i s c a l y e a r 1983 a p p r o p r i a t i o n s ) t o t a l e d $1,200,000. The a v e r a g e s u p p o r t p e r s t u d e n t was a p p r o x i m a t e l y $2,637, though a c t u a l s u p p o r t v a r i e d s u b s t a n t i a l l y . The P r e s i d e n t ' s FY 1985 b u d g e t r e q u e s t e d n o f u n d s f o r t h i s program. -11 R e g u l a t i o n s f o r CAMP a r e found i n 34 C.F.R. 206. 59. NURSING STUDENT LOANS AND SCHOLARSHIPS A. Funding Formula The law p r o v i d e s 90 p e r c e n t F e d e r a l f u n d i n g ( ~ h r o u g hs c h o o l y e a r 1980-81, i t a l s o a u t h o r i z e d p e r c e n t , f o r s c h o l a r s h i p g r a n t s . ) 11 The s c h o o l t o t h e r e v o l v i n g l o a n fund a minimum s h a r e e q u a l o f t h e F e d e r a l sum. B. f o r student loans. f u n d i n g , a t 100 must c o n t r i b u t e t o one-ninth E l i g i b i l i t y Requirements The P u b l i c H e a l t h S e r v i c e A c t , a s amended, a u t h o r i z e s lowi n t e r e s t long-term l o a n s f o r f u l l - o r h a l f - t i m e s t u d e n t s i n s c h o o l s o f n u r s i n g who a r e " i n need" o f f i n a n c i a l a i d t o p u r s u e t h e i r s t u d i e s . The law r e q u i r e s t h a t p r e f e r e n c e f o r l o a n s b e g i v e n t o l i c e n s e d p r a c t i c a l n u r s e s and t o p e r s o n s e n t e r i n g a s f i r s t y e a r s t u d e n t s a f t e r J u l y 1975 who want t o p u r s u e a R e g i s t e r e d Nurse (RN) d e g r e e . Regul a t i o n s o f t h e Department o f H e a l t h and Human S e r v i c e s p r o v i d e t h a t s c h o o l s s h a l l t a k e i n t o account, i n d e t e r m i n i n g need o f s t u d e n t s , t h e i r f i n a n c i a l r e s o u r c e s , and t h e c o s t " r e a s o n a b l y n e c e s s a r y " f o r a t t e n d i n g t h e s c h o o l , " i n c l u d i n g any s p e c i a l n e e d s and o b l i g a t i o n s which d i r e c t l y a f f e c t t h e s t u d e n t ' s a b i l i t y t o a t t e n d " t h e s c h o o l . 21 - For s t u d e n t s i n " e x c e p t i o n a l f i n a n c i a l n e e d , " t h e law p r e v i o u s l y authorized s c h o l a r s h i p g r a n t s . Schools decided t h e i r s t u d e n t s ' need. C. Benefit Levels The law s p e c i f i e s t h a t l o a n s may n o t exceed $2,500 p e r s t u d e n t p e r y e a r , and t h a t t h e a g g r e g a t e amount may n o t e x c e e d $10,000. Loans 11 P.L. 97-35, t h e Omnibus Budget R e c o n c i l i a t i o n Act o f 1981, d i d nGt r e a u t h o r i z e N u r s i n g S c h o l a r s h i p s b e g i n n i n g academic y e a r 1981-1982. 21 R e g u l a t i o n s g o v e r n i n g t h i s program a r e found i n 42 C.F.R. 57.315 (1983). 5 were a u t h o r i z e d a t 3 - p e r c e n t i n t e r e s t r a t e s t h r o u g h s c h o o l y e a r 19818 2 , b u t r o s e t o 6 p e r c e n t t h e r e f t e r . 3-l The law r e q u i r e s repayment o v e r a 10-year p e r i o d b e g i n n i n g 9 months a f t e r t h e end o f s t u d y , e x c l u d i n g from s u c h p e r i o d a l l p e r i o d s ( u p t o t h r e e y e a r s ) o f ( 1 ) a c t i v e d u t y performed by t h e b o r r o w e r a s a member o f a u n i formed s e r v i c e , o r s e r v i c e s a s a Peace Corps v o l u n t e e r , and ( 2 ) p e r i o d s ( u p t o f i v e y e a r s ) d u r i n g which t h e borrower i s p u r s u i n g a f u l l - t i m e c o u r s e o f s t u d y a t a c o l l e g i a t e school of n u r s i n g leadi n g t o a b a c c a l a u r e a t e d e g r e e i n n u r s i n g o r an e q u i v a l e n t d e g r e e , o r t o a graduate degree i n nursing, o r i s otherwise pursuing advanced p r o f e s s i o n a l t r a i n i n g i n n u r s i n g ( o r t r a i n i n g t o b e a n u r s e a n e s t h e t i s t ) . No i n t e r e s t i s c h a r g e d u n t i l repayment o f t h e principal begins. The S e c r e t a r y may, s u b j e c t t o t h e a v a i l a b i l i t y o f f u n d s , r e p a y a l l o r p a r t o f an i n d i v i d u a l ' s l o a n made a f t e r November 1 7 , 1971, u n d e r t h i s program i f t h e S e c r e t a r y d e t e r m i n e s t h a t t h e i n d i v i d u a l : ( 1 ) f a i l e d t o complete t h e s p e c i f i e d n u r s i n g s t u d i e s f o r which t h e l o a n was made, ( 2 ) i s i n e x c e p t i o n a l l y needy c i r c u m s t a n c e s ; ( 3 ) i s from a low income o r d i s a d v a n t a g e d f a m i l y ; and ( 4 ) h a s n o t resumed o r c a n n o t r e a s o n a b l y b e e x p e c t e d t o resume t h e c o u r s e o f s t u d y w i t h i n 2 y e a r s f o l l o w i n g t h e d a t e t h e i n d i v i d u a l ended t h e s t u d i e s . For t h i s p u r p o s e , F e d e r a l r e g u l a t i o n s d e f i n e a low-income f a m i l y a s o n e w i t h income below a p p r o x i m a t e l y 130 p e r c e n t o f t h e F e d e r a l p o v e r t y g u i d e l i n e s . For a 4-person f a m i l y , t h e 1984 income t h r e s h o l d , i s s u e d i n March 1984, i s $13,200. Regul a t i o n s a p p l y t h i s income t e s t t o t h e f a m i l y o f t h e s t u d e n t ' s p a r e n t , i n c l u d i n g i n t h e f a m i l y u n i t o n l y t h o s e d e p e n d e n t s who a r e l i s t e d on F e d e r a l income t a x forms. 21 31 P.L. 97-35, which e x t e n d e d t h e N u r s i n g S t u d e n t Loan program t h r o u g h FY 1984, i n c r e a s e d t h e i n t e r e s t r a t e s on s u c h l o a n s from 3 t o 6 percent. -41 See 49 F e d e r a l R e g i s t e r No. 58, March 2 3 , 1984. p. 11016. 60. COMPREHENSIVE EMPLOYMENT AND TRAINING SERVICES (CETA TITLES 1 1 - B AND 11-C) A. Funding Formula The Comprehensive Employment and T r a i n i n g Act ( P . L . 95-524) p r o v i d e d 100 p e r c e n t F e d e r a l f u n d i n g f o r t h i s program, which was r e p l a c e d on O c t o b e r 1, 1983 by t i t l e 11-A o f t h e J o b T r a i n i n g P a r t n e r s h i p Act (JTPA), P.L. 97-300. JTPA a l s o i s 100 p e r c e n t f e d e r a l l y funded. B. E l i e i b i l i t v Reauirements Although a s i m i l a r r a n g e o f s e r v i c e s was p r o v i d e d u n d e r p a r t s B and C o f t i t l e 11, t h e i r e l i g i b i l i t y c r i t e r i a d i f f e r e d . P a r t B was l i m i t e d t o t h e economically disadvantaged, defined a s persons w i t h f a m i l y income a t o r below 70 p e r c e n t o f t h e Bureau o f L a b o r S t a t i s t i c s l o w e r - l i v i n g s t a n d a r d income l e v e l ( a c e i l i n g t h a t a v e r a g e d $10,726, a s o f s p r i n g 1982, 11 and ranged i n t h e 48 c o n t i g u o u s S t a t e s from $9,619 i n n o n m e t r o p ~ l i t a n a r e a s o f t h e South t o $16,057 i n Anchorage, A l a s k a f o r a n u r b a n f a m i l y o f f o u r , d e p e n d i n g on l o c a t i o n ) who were e i t h e r unemployed, under-employed, o r i n s c h o o l . P a r t C had no income e l i g i b i l i t y c r i t e r i o n . The program r e q u i r e d o n l y t h a t an i n d i v i d u a l b e working a t l e s s t h a n h i s o r h e r f u l l s k i l l p o t e n t i a l . It served primarily those i n entry l e v e l positions o r positions w i t h l i t t l e advancement o p p o r t u n i t y . ( T i t l e 11-A o f t h e JTPA, succ e s s o r t o CETA, u s e s income e l i g i b i l i t y c r i t e r i a s i m i l a r t o t h o s e o f CETA 11-B.) 21 - 11 As o f A p r i l 1984, t h e Department o f L a b o r had n o t u p d a t e d i t s "iower l i v i n g s t a n d a r d income l e v e l s . " F o r b u d g e t r e a s o n s , BLS h a s d i s c o n t i n u e d i t s s e r i e s on u r b a n f a m i l y b u d g e t s , on which t h e l o w e r l i v i n g s t a n d a r d income l e v e l s f o r j o b programs were b a s e d . The f i n a l r e p o r t was i s s u e d i n A p r i l 1982 and p r o v i d e d c o s t s o f f a m i l y b u d g e t s i n autumn 1981. 21 JTPA i n c l u d e s 70 p e r c e n t o f t h e l o w e r l i v i n g s t a n d a r d i n come i e v e l a s a n income e l i g i b i l i t y c r i t e r i o n f o r t h i s program and d e f i n e s i t a s " t h a t income l e v e l ( a d j u s t e d f o r r e g i o n a l , metropol i t a n , u r b a n and r u r a l d i f f e r e n c e s and f a m i l y s i z e ) d e t e r m i n e d a n n u a l l y by t h e S e c r e t a r y b a s e d on t h e most r e c e n t ' l o w e r l i v i n g f a m i l y b u d g e t ' i s s u e d by t h e S e c r e t a r y . " C. Benefit Levels Job t r a i n i n g p a r t i c i p a n t s received allowances a t l e a s t equal t o t h e F e d e r a l minimum wage, s e t a t $3.35 p e r h o u r . mi he s u c c e s s o r program, JTPA t i t l e 1 1 - A , p r o v i d e s o n l y v e r y l i m i t e d t r a i n i n g a l l o w a n c e s and r e l a t e s them t o t h e income o f p a r t i c i p a n t s . JTPA f o r b i d s w e l f a r e programs o t h e r t h a n AFDC and SSI t o t a k e i t s a l l o w a n c e s , e a r n i n g s , and payments i n t o a c c o u n t i n d e t e r m i n i n g b e n e f i t s and p e r m i t s a S t a t e , f o r no more t h a n 6 months, t o d i s r e g a r d JTPA e a r n i n g s o f an AFDC c h i l d . The mandatory d i s r e g a r d o f JTPA a p p l i e s t o v e t e r a n s ' p e n s i o n s , food s t a m p s , c h i l d n u t r i t i o n programs, h o u s i n g b e n e f i t s , and any o t h e r need-based a i d e s t a b l i s h e d o u t s i d e the Social Security Act.) 61. SUMMER YOUTH EMPLOYMENT PROGRAM CETA TITLE IV-C) 1/ A. Funding Formula The Comprehensive Employment and Training Act provided 100 percent Federal funding for this program which was replaced on October 1, 1983 by title 11-B of the Job Training Partnership Act (JTPA), P.L. 97-300. JTPA is 100 percent federally funded. B. Eligibility Requirements The law made eligible "economically disadvantaged" youths who were either (1) unemployed, underemployed, or in school and aged 1621, inclusive, or (2) if authorized by regulation, in school and aged 14-15, inclusive. The law defines an economically disadvantaged person as : (a) a recipient of cash welfare from a Federal, State, or local welfare program 21 or a member of a family receiving cash welfare; (b) a member of a family whose income in the previous 6 months would have qualified the family for cash welfare payments; or (c) a member of a family whose income in the previous 6 months, exclusive of welfare payments and unemployment compensation, was not above the higher of (1) the Office of Management and Budget (OMB) poverty guidelines (established for 1984 at $10,200 for a family of four and at $4,980 for a single 31 or (2) 70 percent of the "lower living standard income level" (aceiling ranging 1 / The title IV-C program began in summer, 1979. In FY 197678 thz Summer Youth Employment Program was established in CETA title 111. 2 1 Aid to Families with Dependent Children (AFDC), Supplemental secur7ty Income (SSI), General Assistance (sometimes known as Home Relief), or Emergency Assistance. 31 These 1984 Federal poverty income guidelines were issued in ~ e b r u a r1984 ~ by the Department of Health and Human Services, using OMB methodology. i n t h e 48 c o n t i g u o u s S t a t e s from $9,619 t o $11,987 f o r a,. u r b a n f a m i l y o f f o u r , d e p e n d i n g on l o c a t i o n , and a v e r a g i n g $10,726, a s o f s p r i n g 1982. 4 1 A s o f A p r i l 1984, t h e Department o f L a b o r had n o t u p d a t e d i t s "lower l i v i n g s t a n d a r d income l e v e l . " For budget r e a s o n s , BLS h a s d i s c o n t i n u e d i t s s e r i e s o f u r b a n f a m i l y b u d g e t s on which t h e lower l i v i n g s t a n d a r d income l e v e l s f o r j o b programs w e r e b a s e d . The f i n a l r e p o r t was i s s u e d i n A p r i l 1982 and p r o v i d e d c o s t s o f f a m i l y b u d g e t s i n autumn 1981. he s u c c e s s o r JTPA program u s e s s i m i l a r income e l i g i b i l i t y c r i t e r i a . ) 5 1 - - C. Benefit Levels The program p r o v i d e d s u m e r j o b s t h a t p a i d t h e a p p l i c a b l e minimum wage. (The s u c c e s s o r JTPA program p r o v i d e s s i m i l a r b e n e f i t s . JTPA f o r b i d s w e l f a r e programs o t h e r t h a n AFDC and SSI t o t a k e i t s a l l o w a n c e s , e a r n i n g s , and payments i n t o a c c o u n t i n d e t e r m i n i n g b e n e f i t s and p e r m i t s a S t a t e , f o r no more t h a n 6 months, t o d i s r e g a r d JTPA e a r n i n g s o f an AFDC c h i l d . ) 4 / The CETA law s a i d t h a t t h e S e c r e t a r y o f Labor was t o d e t e r m i n e t h e lower l i v i n g s t a n d a r d on t h e b a s i s o f t h e most r e c e n t "lower l i v i n g f a m i l y budget" i s s u e d by him and t o a d j u s t i t f o r r e g i o n a l , m e t r o p o l i t a n u r b a n , and r u r a l d i f f e r e n c e s , and f o r f a m i l y s i z e . The l o w e r l e v e l BLS b u d g e t f o r an u r b a n f a m i l y o f f o u r , i s s u e d i n A p r i l 1982, f o r u s e d u r i n g 1982 and I t ranged from $13,741 i n nonmetropoe a r l y 1983, was $15,323. l i t a n a r e a s o f t h e S o u t h t o $22,939 i n Anchorage, A l a s k a . F o r 1-person " f a m i l i e s , " t h e OMB p o v e r t y g u i d e l i n e s were h i g h e r t h a n t h e a l t e r n a t e s t a n d a r d , 70 p e r c e n t o f t h e l o w e r l i v i n g s t a n d a r d income l e v e l . 5 / JTPA i n c l u d e s 70 p e r c e n t o f t h e lower l i v i n g s t a n d a r d incom: l e v e l a s a n income e l i g i b i l i t y c r i t e r i o n f o r t h i s program and d e f i n e s i t a s " t h a t income l e v e l ( a d j u s t e d f o r r e g i o n a l , m e t r o p o l i t a n , u r b a n and r u r a l d i f f e r e n c e s and f a m i l y s i z e ) d e t e r m i n e d a n n u a l l y by t h e S e c r e t a r y based on t h e most r e c e n t ' l o w e r l i v i n g f a m i l y b u d g e t ' i s s u e d by t h e S e c r e t a r y . " 62. JOB CORPS (CETA TITLE IV-B) A. Funding Formula The Comprehensive Employment and Training Act (CETA) provided 100 percent Federal funding for the Job Corps. Since October 1983, Job Corps has been authorized by title IV of the Job Training Partnership Act (JTPA), P.L. 97-300. JTPA also is 100 percent federally funded. B. Eligibility Requirements The law makes eligible "economically disadvantaged" youths aged 14 through 21 who live in a "disorienting" environment and are in need of additional education, vocational training, and related supportive services to accomplish regular school work, qualify for other suitable training programs, satisfy Armed Forces requirements, or secure and hold "meaningful employment." The law defines an economically disadvantaged person as (a) a recipient of cash welfare from a Federal, State, or local welfare program or a member of a family receiving cash welfare; (b) a member of a family whose income in the previous 6 months would have qualified the family for cash welfare payments; or (c) a member of a family whose income in the previous 6 months, exclusive of welfare payments and unemployment compensation, was not above the higher of (1) the Office of Management and Budget (OMB) poverty guidelines established for 1984 at $10,200 for a family of four) 21 or (2) 70 percent of the "lower living standard income leveltr(a ceiling ranging in the 48 contiguous States from $9,619 to $11,987 in 11 Aid to Families with Dependent Children (AFDc), SupplemeTtal Security Income (SSI), General Assistance (sometimes known as Home Relief), or Emergency Assistance. 21 The 1984 Federal poverty guidelines were issued in ~ e b r u a r1984 ~ by the Department of Health and Human Services, using OMB methodology. 1981 f o r a n u r b a n f a m i l y o f f o u r , d e p e n d i n g on l o c a t i o n , and a v e r a g i n g $10,726, a s o f s p r i n g 1982). 31 As o f A p r i l 1984, t h e Department o f Labor had n o t u p d a t e d e i t s "lower l i v i n g s t a n d a r d income l e v e l s . " For budget r e a s o n s , BLS h a s d i s c o n t i n u e d i t s s e r i e s on u r b a n f a m i l y b u d g e t s , on which t h e lower l i v i n g s t a n d a r d income l e v e l s f o r j o b programs were b a s e d . The f i n a l r e p o r t was i s s u e d i n A p r i l 1982 and p r o v i d e d c o s t s o f f a m i l y he s u c c e s s o r JTPA program u s e s s i m i l a r b u d g e t s i n autumn 1981. income e l i g i b i l i t y c r i t e r i a . ) 4 1 - C. Benefit Levels Through f i s c a l y e a r 1984 maximum a l l o w a n c e s , s e t by law, were a s f o l l o w s : p e r s o n a l a l l o w a n c e , $60 p e r month f o r t h e f i r s t 6 months of s e r v i c e , up t o $100 p e r month t h e r e a f t e r ; and r e a d j u s t m e n t a l l o w a n c e upon l e a v i n g t h e Corps, $100 f o r e a c h month o f s a t i s f a c t o r y s e r v i c e . E f f e c t i v e i n f i s c a l y e a r 1984, t h e law r a i s e s p e r s o n a l a l l o w a n c e s f o r t h e f i r s t 6 months t o $65; $110 t h e r e a f t e r ; and $110 f o r e a c h month of s a t i s f a c t o r y s e r v i c e f o r r e a d j u s t m e n t a l l o w a n c e s . (The s u c c e s s o r JTPA J o b Corps program f o r b i d s w e l f a r e programs o t h e r t h a n AFDC and S S I t o t a k e i t s a l l o w a n c e s , e a r n i n g s , and payments i n t o a c c o u n t i n d e t e r m i n i n g b e n e f i t s and p e r m i t s a S t a t e , f o r no more t h a n 6 months, t o d i s r e g a r d JTPA e a r n i n g s o f a n AFDC c h i l d . The mandatory d i s r e g a r d o f JTPA income a p p l i e s t o v e t e r a n s ' p e n s i o n s , food s t a m p s , c h i l d n u t r i t i o n programs, h o u s i n g b e n e f i t s and any o t h e r need-based a i d e s t a b l i s h e d o u t s i d e t h e S o c i a l S e c u r i t y A c t . ) 31 The CETA law s a i d t h a t t h e S e c r e t a r y o f Labor was t o d e t e r mine T h e l o w e r l i v i n g s t a n d a r d income l e v e l on t h e b a s i s o f t h e most r e c e n t "lower l i v i n g f a m i l y budget" i s s u e d by him and t o a d j u s t i t f o r r e g i o n a l , m e t r o p o l i t a n , u r b a n , and r u r a l d i f f e r e n c e s , and f o r f a m i l y s i z e . The August 1981 lower l e v e l BLS a v e r a g e b u d g e t f o r a n u r b a n f a m i l y o f f o u r , i s s u e d i n A p r i l 1982 f o r u s e i n 1982 and e a r l y 1983, was $15,323. I t r a n g e d from $13,741 i n n o n m e t r o p o l i t a n a r e a s o f t h e S o u t h t o $22,939 i n Anchorage, A l a s k a . F o r 1-person " f a m i l i e s , " t h e OMB p o v e r t y g u i d e l i n e s were h i g h e r t h a n t h e a l t e r n a t e s t a n d a r d , 70 p e r c e n t o f t h e l o w e r l i v i n g s t a n d a r d income l e v e l . 4 1 JTPA i n c l u d e s 70 p e r c e n t of t h e lower l i v i n g s t a n d a r d i n come i e v e l a s a n income e l i g i b i l i t y c r i t e r i o n f o r t h i s program and d e f i n e s i t a s " t h a t income l e v e l ( a d j u s t e d f o r r e g i o n a l , metropol i t a n , u r b a n and r u r a l d i f f e r e n c e s and f a m i l y s i z e ) d e t e r m i n e d a n n u a l l y by t h e S e c r e t a r y based on t h e most r e c e n t ' l o w e r l i v i n g f a m i l y b u d g e t ' i s s u e d by t h e S e c r e t a r y . " 63. SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM A. Funding Formula The law p r o v i d e s 9 0 p e r c e n t F e d e r a l f u n d i n g ( u p t o 100 perc e n t i n d i s a s t e r o r e c o n o m i c a l l y d e p r e s s e d a r e a s ) f o r t h i s program. The non-Federal s h a r e c a n b e c a s h o r i n k i n d . B. E l i g i b i l i t y Requirements T i t l e V o f t h e O l d e r Americans Act makes e l i g i b l e f o r t h e S e n i o r Community S e r v i c e Employment Program (SCSEP) p e r s o n s aged a t l e a s t 55 w i t h low incomes. Amendments t o t h e Act i n 1978 d e f i n e d low income t o i n c l u d e t h a t which d o e s n o t exceed 125 p e r c e n t o f t h e Labor D e p a r t m e n t ' s "BLS p o v e r t y g u i d e l i n e s . " 11 Department o f L a b o r p e r s o n who i s a r e s i (DOL) r e g u l a t i o n s provide e l i g i b i l i t y f o r d e n t o f t h e S t a t e and a member o f a f a m i l y t h a t e i t h e r ( a ) r e c e i v e d c o u n t a b l e income i n t h e p r e v i o u s s i x months t h a t , on an a n n u a l i z e d b a s i s , was n o t above 125 p e r c e n t o f t h e p o v e r t y l e v e l s e s t a b l i s h e d and p e r i o d i c a l l y u p d a t e d by t h e U.S. O f f i c e o f Management and Budget (OMB) o r ( b ) r e c e i v e s r e g u l a r c a s h w e l f a r e payments. The 1984 income c e i l i n g s f o r n o n - r e c i p i e n t s o f c a s h w e l f a r e a r e $6,225 f o r a s i n g l e p e r s o n and $8,400 f o r a f a m i l y o f two ( h i g h e r i n A l a s k a and H a w a i i ) , compared w i t h $6,080 and $8,180, r e s p e c t i v e l y , d u r i n g t h e preceding year. a The law g i v e s f i r s t p r i o r i t y t o p e r s o n s 60 o r o l d e r ; and regul a t i o n s g i v e second p r i o r i t y t o p e r s o n s s e e k i n g r e e n r o l l m e n t a f t e r e x t e n d e d i l l n e s s o r a p e r i o d o f p r i v a t e work. R e g u l a t i o n s f o r b i d an u p p e r a g e l i m i t , and t h e y r e q u i r e a n n u a l r e c e r t i f i c a t i o n o f income. 11 A t e c h n i c a l e r r o r . BLS d o e s n o t i s s u e p o v e r t y guidelines: DOL u s e s t h o s e i s s u e d by t h e Department o f H e a l t h and Human Services. 21 45 F e d e r a l R e g i s t e r . Vol. 49, March 25, 1980, p. 19530. ~ e ~ u l y t i o nwse r e p u b l i s h e d a s p r o p o s a l s , b u t a c c o r d i n g t o DOL t o o k immediate e f f e c t on a v o l u n t a r y b a s i s . DOL i n s t r u c t i o n s 31 r e q u i r e SCSEP p r o j e c t s p o n s o r s t o d i s r e g a r d v a r i o u s k i n d s OT income o f a p p l i c a n t s and r e c i p i e n t s , i n c l u d i n g w e l f a r e payments, d i s a b i l i t y payments, unemployment b e n e f i t s , t r a d e adjustment b e n e f i t s , c a p i t a l g a i n s , c e r t a i n v e t e r a n s ' b e n e f i t s , one-time u n e a r n e d income payments o r u n e a r n e d income payments o f f i x e d d u r a t i o n . F u r t h e r , t h e i n s t r u c t i o n s p r o v i d e a $500 h i g h e r c a s h income l i m i t f o r r e c i p i e n t s and r e e n r o l l e e s t h a n a p p l i e s t o a p p l i c a n t s . That i s , an e x t r a $500 d e d u c t i o n from c o u n t a b l e c a s h income i s g i v e n upon r e e n r o l l m e n t and upon r e c e r t i f i c a t i o n . C. Benefit Levels P a r t i c i p a n t s a r e p l a c e d i n p a r t - t i m e community s e r v i c e j o b s , f o r which t h e i r wages a r e s u b s i d i z e d by t h e F e d e r a l government; and, where p o s s i b l e , i n u n s u b s i d i z e d j o b s . Trainees a r e paid a t l e a s t t h e F e d e r a l minimum wage. Upon placement i n a j o b , e n r o l l e e s r e c e i v e e i t h e r t h e p r e v a i l i n g wage f o r work o r t h e a p p l i c a b l e F e d e r a l minimum, w h i c h e v e r i s h i g h e r . Hours o f u n s u b i d i z e d work p e r e n r o l l e e a r e l i m i t e d t o 1 , 3 0 0 i n any 12-month p e r i o d , $4,355 i n a n n u a l wages a t t h e 1983 F e d e r a l minimum r a t e . - -31 O l d e r w o r k e r s ' B u l l e t i n , No. 80-19, p u b l i s h e d by DOL. 64. WORK INCENTIVE PROGRAM A. ing. Funding Formula The S o c i a l S e c u r i t y Act p r o v i d e s 90 p e r c e n t F e d e r a l fundThe non-Federal s h a r e c a n b e p a i d i n k i n d o r c a s h . B. E l i g i b i l i t y Requirements The S o c i a l S e c u r i t y Act makes e l i g i b l e f o r W I N s e r v i c e s E l i g i b l e groups, AF'DC r e c i p i e n t s g e n e r a l l y deemed "employable." i n o r d e r o f p r i o r i t y , a r e : unemployed f a t h e r s ; m o t h e r s , whether o r n o t r e q u i r e d t o r e g i s t e r f o r W I N , who v o l u n t e e r f o r W I N ; o t h e r m o t h e r s and p r e g n a n t women, r e g i s t e r e d f o r W I N who a r e under 19 y e a r s o l d ; dependent c h i l d r e n and r e l a t i v e s who a r e 16 and n o t i n s c h o o l o r engaged i n work o r manpower t r a i n i n g ; and a l l o t h e r i n d i v i d u a l s c e r t i f i e d f o r W I N . As a c o n d i t i o n o f e l i g i b i l i t y f o r AFDC c a s h , t h e law r e q u i r e s e v e r y person t o r e g i s t e r f o r W I N e x c e p t c h i l d r e n u n d e r 16 o r i n s c h o o l f u l l t i m e ; p e r s o n s who a r e i l l , i n c a p a c i t a t e d , o r o l d ; p e r s o n s t o o f a r from a p r o j e c t t o p a r t i c i p a t e ; p e r s o n s needed a t home t o c a r e f o r i n v a l i d s ; mothers o r o t h e r r e l a t i v e s c a r i n g f o r a p r e s c h o o l c h i l d ; and mother o r o t h e r f e m a l e c a r e t a k e r s o f a c h i l d i f t h e f a t h e r o r o t h e r male r e l a t i v e i n t h e home h a s r e g i s t e r e d . S t a t e s d e t e r m i n e who r e c e i v e s AFDC and t h u s becomes e l i g i b l e f o r W I N . C. Benefit Levels W I N p r o v i d e s employment and t r a i n i n g s e r v i c e s , p l u s c h i l d c a r e and o t h e r s u p p o r t i v e s e r v i c e s . The law p r o v i d e s t h a t W I N t r a i n e e s i n i n s t i t u t i o n a l t r a i n i n g o r i n work e x p e r i e n c e t r a i n i n g s h a l l r e c e i v e $30 a month a s a n i n c e n t i v e payment. T h i s sum i s an a d d i t i o n t o t h e r e g u l a r AFDC payment. NOTE: The Omnibus Budget R e c o n c i l i a t i o n Act o f 1981 (P.L. 9735) a l s o a u t h o r i z e s S t a t e s t o o p e r a t e a l t e r n a t i v e W I N programs o f t h e i r own d e s i g n t o d e m o n s t r a t e s i n g l e agency a d m i n i s t r a t i o n o f t h e " w o r k - r e l a t e d o b j e c t i v e s " o f AFDC. Such programs must b e a d m i n i s t e r e d by S t a t e w e l f a r e a g e n c i e s , i n c o n t r a s t t o r e g u l a r W I N , which i s j o i n t l y a d m i n i s t e r e d by t h e S t a t e w e l f a r e agency and t h e S t a t e employment s e r v i c e . By t h e end o f FY83, 20 S t a t e s o r j u r i s d i c t i o n s w e r e o p e r a t i n g d e m o n s t r a t i o n programs. 65. YOUTH EMPLOYMENT DEMONSTRATION PROGRAMS (CETA TITLE IV-A) A. Funding Formula The Comprehensive Employment and T r a i n i n g Act ( P . L . 95-524) 1/ p r o v i d e d 100 p e r c e n t F e d e r a l f u n d i n g f o r t h i s g r o u p o f programs. T -/ These programs were r e p l a c e d on O c t o b e r 1, 1983 by t i t l e 11-A o f t h e J o b T r a i n i n g P a r t n e r s h i p Act (JTPA), P.L. 97-300, which comb i n e s t r a i n i n g f o r a d u l t s and y o u t h i n t o a s i n g l e b l o c k g r a n t . JTPA a l s o i s 100 p e r c e n t f e d e r a l l y funded. E l i g i b i l i t y Requirements T i t l e IV-A had t h r e e components: Youth I n c e n t i v e E n t i t l e m e n t P i l o t P r o j e c t s (YIEPP), Youth Community C o n s e r v a t i o n and Improvement P r o j e c t s (YCCIP), and Youth Employment T r a i n i n g Programs (YETP). The law imposed t h e s e e l i g i b i l i t y r u l e s : Youth I n c e n t i v e E n t i t l e m e n t P i l o t P r o j e c t s - - T h e law made e l i g i b l e y o u t h s ( a ) who w e r e aged 16 t h r o u g h 1 9 , ( b ) who resumed o r m a i n t a i n e d a t t e n d a n c e i n s c h o o l t o o b t a i n a h i g h s c h o o l diploma o r e q u i v a l e n c y c e r t i f i c a t e , and ( c ) whose f a m i l y ' s income was n o t above 70 p e r c e n t o f t h e ''lower l i v i n g s t a n d a r d income l e v e l " o r , i f h i g h e r , t h e poverty l i n e determined i n accordance w i t h c r i t e r i a of t h e O f f i c e o f Management and Budget. The income l i m i t f o r 1982, ( b a s e d on BLS l o w e r l e v e l b u d g e t s ) ranged from $9,619 t o $11,987 f o r a n urban f a m i l y o f f o u r i n t h e 4 8 c o n t i g u o u s S t a t e s , depending on l o c a t i o n , and a v e r a g e d $10,726. 3 1 - Youth Community C o n s e r v a t i o n and Improvement P r o j e c t s - - T h e law made e l i g i b l e y o u t h s who w e r e aged 16 t h r o u g h 19 and unemployed. - 1/ T h i s law r e p l a c e d t h e p r e v i o u s t i t l e 111 s p e c i a l youth programs. 2 / As o f A p r i l 1984, t h e Department o f Labor had n o t F o r budget updat<d i t s "lower l i v i n g s t a n d a r d income l e v e l s . " r e a s o n s , BLS h a s d i s c o n t i n u e d i t s s e r i e s on u r b a n f a m i l y b u d g e t s , on which t h e l o w e r l i v i n g s t a n d a r d income l e v e l s f o r j o b programs were b a s e d . The f i n a l r e p o r t was i s s u e d i n A p r i l 1982 and and p r o v i d e d c o s t s o f f a m i l y b u d g e t s i n autumn 1981. Labor Department r e g u l a t i o n s r e q u i r e d program o p e r a t o r s t o " t a r g e t a c t i v i t i e s p r i m a r i l y on e c o n o m i c a l l y d i s a d v a n t a g e d youth." Youth Employment and T r a i n i n g Programs--The law made e l i g i b l e y o u t h s ( a ) who were e i t h e r unemployed, underemployed, o r i n s c h o o l , ( b ) who w e r e e i t h e r aged 16 t h r o u g h 21; o r i f a u t h o r i z e d u n d e r regul a t i o n s o f t h e L a b o r S e c r e t a r y , age 14 t h r o u g h 1 5 ; and ( c ) whose c u r r e n t c o u n t e d f a m i l y income 41 was n o t above 8 5 p e r c e n t o f t h e l o w e r c e i l i n g t h a t ranged i n t h e 48 c o n t i l i v i n g s t a n d a r d income l e v e l guous S t a t e s from $11,680 t o $14,555 i n s p r i n g 1982 f o r a n u r b a n f a i n i l y o f f o u r , d e p e n d i n g on l o c a t i o n , and a v e r a g e d $ 1 3 , 1 9 5 1 , e x c e p t t h a t 1 0 p e r c e n t o f YETP f u n d s c o u l d b e s p e n t f o r y o u t h s o f " a l l economic backgrounds. " (a C. Benefit Levels -. YIEPP p r o v i d e d g u a r a n t e e d j o b s o r j o b s and t r a i n i n g ( p a r t - t i m e d u r i n g t h e s c h o o l y e a r , f u l l - o r p a r t - t i m e i n summer) t o e l i g i b l e y o u t h s l i v i n g i n a r e a s w i t h s u c h p r o j e c t s and w i l l i n g t o remain i n o r r e t u r n t o secondary school f o r a diploma o r equivalency c e r t i f i c a t e . Wages i n a l l t h r e e programs were r e q u i r e d t o b e t h e a p p l i c a b l e l e g a l minimum o r , i f h i g h e r , t h e p r e v a i l i n g r a t e o f pay f o r t h e o c c u p a t i o n s and job c l a s s i f i c a t i o n s o f p e r s o n s employed by t h e same employer ( w i t h some e x c e p t i o n s ) . The law s a i d t h a t t h e Labor S e c r e t a r y was t o e n c o u r a g e g r a n t i n g o f academic c r e d i t t o e l i g i b l e p a r t i c i p a n t s who a r e i n s c h o o l . E a r n i n g s and a l l o w a n c e s w e r e t o b e d i s r e g a r d e d a s income by any need-based F e d e r a l o r f e d e r a l l y a s s i s t e d b e n e f i t program. 4 1 Not c o u n t e d i n f a m i l y income by YETP were unemployment comp e n s a t i o n b e n e f i t s and F e d e r a l , S t a t e , o r l o c a l i n c o m e - t e s t e d o r n e e d s - t e s t e d p u b l i c payments. 66. FOSTER GRANDPARENTS A. The v i d e s 90 a foster tions). o r cash. B. Funding Formula Domestic V o l u n t e e r S e r v i c e Act o f 1973 (P.L. 93-113) propercent Federal funding f o r developing and/or o p e r a t i n g g r a n d p a r e n t s p r o j e c t ( u p t o 100 p e r c e n t i n s p e c i a l s i t u a The l o c a l p r o j e c t may p r o v i d e i t s matching s h a r e i n k i n d E l i g i b i l i t y Requirements The law makes e l i g i b l e a s F o s t e r G r a n d p a r e n t s low-income p e r s o n s who a r e a t l e a s t 60 y e a r s o l d and no l o n g e r i n t h e r e g u l a r w o r k f o r c e . ACTION r e g u l a t i o n s 11 r e q u i r e t h a t e l i g i b i l i t y f o r t h e program i n e a c h S t a t e b e s e t a t t h e h i g h e r o f t h e f o l l o w i n g : ( a ) 125 p e r c e n t of t h e Department o f H e a l t h and Human S e r v i c e s (DHHS) p o v e r t y guidel i n e s o r ( b ) 100 p e r c e n t o f t h e DHHS p o v e r t y g u i d e l i n e s p l u s any supplement p r o v i d e d by t h e S t a t e t o t h e F e d e r a l Supplemental Secur i t y Income (SSI) b e n e f i t . E s t i m a t e d S t a t e income e l i g i b i l i t y l i m i t s f o r i n d i v i d u a l s i n 1984 r a n g e from $6,225 i n most j u r i s d i c t i o n s ( i n c l u d i n g D.C., Guam, P u e r t o R i c o , and t h e V i r g i n I s l a n d s ) t o a b o u t $9,265 i n A l a s k a . F o r f a m i l i e s o f two, e s t i m a t e d income l i m i t s r a n g e from $8,400 i n most S t a t e s t o $12,710 i n A l a s k a . 2 1 - C. Benefit Levels The law r e q u i r e s a s t i p e n d f o r v o l u n t e e r s p l u s t r a n s p o r t a t i o n and meal c o s t s . 9 8 t h Congress l e g i s l a t i o n r a i s e d t h e s t i p e n d amount from $2.00 an h o u r t o $2.20 an h o u r , p r o v i d e d a p p r o p r i a t i o n s a r e s u f f i c i e n t t o pay t h e i n c r e a s e . S t i p e n d s a r e t a x - f r e e and c a n n o t b e t r e a t e d a s wages o r compensation f o r t h e p u r p o s e s o f any Volunteers a l s o r e c e i v e annual physical p u b l i c b e n e f i t program. e x a m i n a t i o n s and a c c i d e n t and p e r s o n a l l i a b i l i t y i n s u r a n c e . 1/ - 48 F e d e r a l R e g i s t e r . No. 113, J u n e 10, 1983. p. 26812. 2 / I n t h e p r e c e d i n g y e a r income l i m i t s i n most S t a t e s were $ 6 , 0 8 5 f o r an i n d i v i d u a l and $8,180 f o r a c o u p l e . 67. PUBLIC SERVICE EMPLOYMENT (cETA TITLES 11-D AND v I ) No f u n d s were a u t h o r i z e d t o b e a p p r o p r i a t e d f o r t h i s program a f t e r FY 1981. The e n t i r e Comprehensive Employment and T r a i n i n g Act was r e p e a l e d a t t h e end o f FY 1983. CETA1s s u c c e s s o r , t h e J o b T r a i n i n g P a r t n e r s h i p Act (P.L. 97-3001, s p e c i f i c a l l y p r o h i b i t s t h e u s e o f f u n d s f o r p u b l i c s e r v i c e employment. A. Funding Formula The Comprehensive Employment and T r a i n i n g A c t (P.L. 95-524) p r o v i d e d 100 p e r c e n t F e d e r a l f u n d i n g f o r t h i s program. B. E l i g i b i l i t y Requirements E l i g i b i l i t y f o r p a r t i c i p a t i o n i n p u b l i c s e r v i c e employment was b a s e d o n income and unemployment. F o r t i t l e 1 1 - D , e l i g i b i l i t y was l i m i t e d t o persons: ( 1 ) who were e c o n o m i c a l l y d i s a d v a n t a g e d ( d e f i n e d a s h a v i n g income t h a t d i d n o t e x c e e d t h e h i g h e r o f ( a ) t h e p o v e r t y l e v e l o f t h e O f f i c e o f Management and Budget (OMB) and ( b ) 70 p e r c e n t o f t h e l o w e r l i v i n g s t a n d a r d l e v e l 11 and unemployed a t l e a s t 1 5 weeks o f t h e l a s t 20 weeks; o r ( 2 ) who were, o r whose f a m i l i e s w e r e , r e c e i v i n g c a s h w e l f a r e payments from Aid t o F a m i l i e s w i t h Dependent C h i l d r e n (AFDc) o r S u p p l e m e n t a l S e c u r i t y Income (SSI). E l i g i b i l i t y f o r p a r t i c i p a t i o n i n t i t l e V I was l i m i t e d t o p e r s o n s : ( 1 ) whose f a m i l y income d i d n o t e x c e e d 100 p e r c e n t o f t h e l o w e r l i v i n g s t a n d a r d income l e v e l ( f o r a n u r b a n f a m i l y o f f o u r , a v e r a g i n g $15,323 a s o f s p r i n g 1982) and who were unemployed f o r a t l e a s t 10 o f t h e l a s t 1 5 weeks; o r ( 2 ) who w e r e , o r whose f a m i l i e s were, r e c e i v i n g AFDC o r SSI c a s h a i d . 11 The law s a i d t h a t t h e S e c r e t a r y o f L a b o r was t o d e t e r m i n e t h e lower-living s t a n d a r d o n t h e b a s i s o f t h e most r e c e n t "lower l i v i n g f a m i l y budget1' i s s u e d by him and t o a d j u s t i t f o r r e g i o n a l , m e t r o p o l i t a n , u r b a n , and r u r a l d i f f e r e n c e s , and f o r f a m i l y s i z e . The Aug. 1981 lower BLS a v e r a g e b u d g e t f o r an u r b a n f a m i l y o f f o u r , i s s u e d i n A p r i l 1982, f o r u s e d u r i n g 1982 and e a r l y 1983, was $15,323. I t r a n g e d from $13,741 i n n o n m e t r o p o l i t a n a r e a s o f t h e S o u t h and $14,419 i n A t l a n t a , G e o r g i a , t o $20,319 i n H o n o l u l u , H a w a i i , and $22,939 i n Anchorage, Alaska. 68. SENIOR COMPANIONS A. Funding Formula The Domestic V o l u n t e e r S e r v i c e p r o v i d e s 90 p e r c e n t F e d e r a l f u n d i n g t i n g a s e n i o r companion p r o j e c t ( u p s i t u a t i o n s ) . The l o c a l p r o j e c t n a y i n kind o r cash. 5. Act o f 1973 (P.L. 93-113) f o r developing and/or operat o 100 p e r c e n t i n s p e c i a l provide i t s matching s h a r e E l i e i b i l i t v Reauirements The law makes e l i g i b l e a s s e n i o r companions low-income p e r s o n s who a r e aged a t l e a s t 60 and n o l o n g e r i n t h e r e g u l a r w o r k f o r c e . ACTION r e g u l a t i o n s 11 r e q u i r e t h a t e l i g i b i l i t y i n e a c h S t a t e b e s e t a t t h e h i g h e r 07 t h e f o l l o w i n g : ( a ) 125 p e r c e n t o f t h e Department o f I l e a l t h and Human S e r v i c e s (DHHS) p o v e r t y g u i d e l i n e s , o r (b) 100 p e r c e n t o f t h e DHHS p o v e r t y g u i d e l i n e s p l u s any supplement p r o v i d e d by t h e S t a t e t o t h e F e d e r a l S u p p l e m e n t a l S e c u r i t y Income (ssI) b e n e f i t . E s t i m a t e d S t a t e income e l i g i b i l i t y l i m i t s f o r i n d i v i d u a l s i n 1984 r a n g e from $6,225 i n most j u r i s d i c t i o n s ( i n c l u d i n g D . C . , Guam, P u e r t o Kico, and t h e V i r g i n ~ s l a n d s )t o a b o u t $9,265 i n A l a s k a . F o r f a m i l i e s o f two, income l i m i t s r a n g e from $8,400 i n most S t a t e s t o about $12,710 i n A l a s k a . 2/ C. Benefit Levels The law r e q u i r e s a s t i p e n d f o r v o l u n t e e r s p l u s t r a n s p o r t a t i o n and meal c o s t s . 9 8 t h C o n g r e s s l e g i s l a t i o n h a s r a i s e d t h e s t i p e n d from $2.00 an h o u r t o $2.20, p r o v i d e d a p p r o p r i a t i o n s a r e s u f f i c i e n t t o pay t h e i n c r e a s e . S t i p e n d s a r e t a x - f r e e and c a n n o t b e t r e a t e d a s wages o r compensation f o r t h e p u r p o s e s of any p u b l i c b e n e f i t Volunteers a l s o r e c e i v e annual physical examinations program. and a c c i d e n t and p e r s o n a l l i a b i l i t y i n s u r a n c e . -11 48 F e d e r a l R e g i s t e r . No. 113, J u n e 1 0 , 1983. p. 26806. 2 1 I n t h e p r e c e d i n g y e a r income l i m i t s i n most S t a t e s were $ 6 , 0 8 c f o r an i n d i v i d u a l and $8,180 f o r a c o u p l e . 69. TITLE A. SOCIAL SERVICES Funding Formula The S o c i a l S e c u r i t y Act ( T i t l e XX) p r o v i d e s 100 p e r c e n t F e d e r a l f u n d i n g t o S t a t e s f o r s o c i a l s e r v i c e s u p t o a maximum c e i l i n g l e v e l . I n FY 1982, t h e n a t i o n w i d e c e i l i n g was $2.4 b i l l i o n , d i s t r i b u t e d among S t a t e s on t h e b a s i s o f p o p u l a t i o n . P r i o r t o FY 1982, S t a t e s had t o pay $1 t o r e c e i v e $ 3 ( a 75 p e r c e n t F e d e r a l m a t c h i n g r a t e ) f o r most s o c i a l s e r v i c e s . F o r f a m i l y p l a n n i n g s e r v i c e s and f o r a p o r t i o n o f c h i l d d a y c a r e s e r v i c e s , F e d e r a l f u n d s p a i d 9 0 and 100 p e r c e n t o f c o s t s , r e s p e c t i v e l y . The Omnibus Budget R e c o n c i l i a t i o n Act o f 1981 (P.L. 97-35) e l i m i n a t e d r e q u i r e m e n t s f o r S t a t e m a t c h i n g o f t i t l e XX f u n d s , e f f e c t i v e i n FY 1982. The law a l s o reduced maximum c e i l i n g l e v e l s from p r e v i o u s l y s c h e d u l e d sums t o $2.4 b i l l i o n i n FY 1982, $2.45 b i l l i o n i n FY 1983, $2.5 b i l l i o n i n FY 1984, $2.6 b i l l i o n i n FY 1985, and $2.7 b i l l i o n i n FY 1986 and beyond. 11 E f f e c t i v e FY 1984, P.L. 98-135 p e r m a n e n t l y set t h e c e i l i n g a t $ 2 . 7 b i l l i o n . B. - E l i g i b i l i t y Requirements 21 Under t h e p r o v i s i o n s o f P.L. 97-35, S t a t e s a r e f r e e t o e s t a b l i s h t h e i r own e l i g i b i l i t y c r i t e r i a f o r p a r t i c i p a t i o n i n t h e t i t l e XX S t a t e s d e c i d e what g r o u p s t o s e r v e and what s o c i a l s e r v i c e s program. f e e s , i f any, t o charge. B e f o r e t h e new law t o o k e f f e c t on O c t o b e r 1, 1981, S t a t e s c o u l d r e c e i v e F e d e r a l funding only f o r s e r v i c e s provided t o r e c i p i e n t s of Aid t o F a m i l i e s w i t h Dependent C h i l d r e n and S u p p l e m e n t a l S e c u r i t y Income, A/ o r t o i n d i v i d u a l s and f a m i l i e s w i t h incomes below 115 p e r c e n t o f t h e S t a t e ' s median income, 4 1 a d j u s t e d f o r h o u s e h o l d s i z e (from - 11 C e i l i n g s p r e v i o u s l y were s e t a t $ 3 b i l l i o n i n FY 1982, $3.1 bill& i n FY 1983, $3.2 b i l l i o n i n FY 1984, and $3.3 b i l l i o n i n FY 1985 and t h e r e a f t e r . -21 R e g u l a t i o n s f o r t h i s program a r e found i n 45 C.F.R. 96. 3 1 P r i o r t o P.L. 97-35, e a c h S t a t e was r e q u i r e d t o u s e a t l e a s t h a l f y f i t s t i t l e XX F e d e r a l f u n d s on r e c i p i e n t s o f AFDC, S S I , o r Medicaid. - 4 1 The income c e i l i n g d i d n o t a p p l y t o p r o t e c t i v e s e r v i c e s , i n f o r m a t i o n and r e f e r r a l s e r v i c e s , o r f a m i l y p l a n n i n g s e r v i c e s . $18,119 i n , A r k a n s a s t o $31,708 i n A l a s k a f o r a f o u r - p e r s o n f a m i l y i n FY 1981, a c c o r d i n g t o t h e Department o f H e a l t h and Human S e r v i c e s (DHHS). They c o u l d impose i n c o m e - r e l a t e d f e e s f o r any s e r v i c e s g i v e n t o anyone and were r e q u i r e d t o c h a r g e f e e s f o r s e r v i c e s prov i d e d t o i n d i v i d u a l s whose monthly g r o s s income exceeded 80 p e r c e n t o f S t a t e median income, o r 100 p e r c e n t o f n a t i o n a l median income, w h i c h e v e r was lower. Benefit Levels The DHHS r e p o r t s t h a t i n FY 1982 f o u r k i n d s o f s e r v i c e s w e r e p r o v i d e d i n e v e r y S t a t e w i t h t i t l e XX funds: c h i l d day c a r e , i n f o r m a t i o n and r e f e r r a l s e r v i c e s , p r o t e c t i v e s e r v i c e s f o r c h i l d r e n , and home b a s e d s e r v i c e s , s u c h a s homemaker and c h o r e s e r v i c e s . I n FY 1981, t h e l a s t y e a r f o r which s u c h s p e n d i n g d a t a a r e a v a i l a b l e , day c a r e f o r c h i l d r e n consumed more t i t l e XX f u n d s t h a n any o t h e r s e r v i c e . The breakdown by s e r v i c e : c h i l d d a y c a r e ; 20 p e r c e n t o f t o t a l f u n d s ; homemaker/chore s e r v i c e s , 1 3 p e r c e n t ; prot e c t i v e s e r v i c e s , 8 p e r c e n t ; r e s i d e n t i a l c a r e and t r e a t m e n t , 6 perc e n t ; e d u c a t i o n , t r a i n i n g , and employment, 7 p e r c e n t ; c o u n s e l l i n g , 5 percent; f o s t e r c a r e of c h i l d r e n , 3 p e r c e n t ; h e a l t h - r e l a t e d s e r v i c e s , 2 p e r c e n t ; f a m i l y p l a n n i n g , 2 p e r c e n t , a l l o t h e r s , 32 p e r c e n t . 21 I n FY 1980, 30 p e r c e n t of t i t l e XX r e c i p i e n t s a l s o r e c e i v e d c a s h w e l f a r e and 4 p e r c e n t r e c e i v e d Medicaid b u t no AFDC o r SSI c a s h a i d ; 37 p e r c e n t q u a l i f i e d f o r t i t l e XX on income grounds b u t n o t f o r c a s h a i d ; and t h e r e s t r e c e i v e d s e r v i c e s f o r which t h e r e was no income t e s t . -5 / Does n o t add t o 100 p e r c e n t b e c a u s e o f r o u n d i n g . 70. LEGAL SERVICES Funding Formula The law p r o v i d e s 100 p e r c e n t F e d e r a l f u n d i n g . B. E l i g i b i l i t y Requirements The L e g a l S e r v i c e s C o r p o r a t i o n Act o f 1974 1/ p r o v i d e s f i n a n c i a l a i d t o programs t h a t o f f e r l e g a l s e r v i c e s i n n o n c r i m i n a l p r o c e e d i n g s t o low-income p e r s o n s . The law makes e l i g i b l e "any p e r s o n f i n a n c i a l l y u n a b l e t o a f f o r d l e g a l a s s i s t a n c e 1 ' and s a y s t h e C o r p o r a t i o n s h o u l d t a k e i n t o a c c o u n t n o t o n l y income, b u t l i q u i d a s s e t s , f i x e d d e b t s , c o s t o f l i v i n g , and o t h e r f a c t o r s i n d e t e r m i n i n g a n i n d i v i d u a l ' s capac i t y t o pay f o r a l a w y e r . The law r e q u i r e s t h e C o r p o r a t i o n t o s e t n a t i o n a l maximum income l i m i t s and t o e s t a b l i s h g u i d e l i n e s t h a t w i l l i n s u r e p r e f e r e n c e f o r t h o s e l e a s t a b l e t o a f f o r d a n a t t o r n e y . Regulat i o n s o f t h e C o r p o r a t i o n 21 have e s t a b l i s h e d t h e maximum income l i m i t f o r e l i g i b i l i t y a t 125 p e y c e n t o f t h e non-farm p o v e r t y g u i d e l i n e s i s s u e d by t h e O f f i c e o f Management and Budget. Thus, t h e income l i m i t was $12,750 f o r a f a m i l y o f f o u r , and $6,225 f o r a s i n g l e i n d i v i d u a l , 31 e f f e c t i v e i n F e b r u a r y 1984 i n t h e 48 c o n t i g u o u s s t a t e s , D.C., and T h e o u t l y i n g a r e a s , h i g h e r i n A l a s k a and H a w a i i . Regulat i o n s p e r m i t e x c e p t i o n s t o t h e income l i m i t i n s p e c i f i e d circuins t a n c e s . F o r example, t h e r e g u l a t i o n s p e r m i t l e g a l s e r v i c e s on b e h a l f o f a p e r s o n whose income e x c e e d s 125 p e r c e n t o f t h e p o v e r t y l i n e i f t h e p u r p o s e i s t o o b t a i n b e n e f i t s from a "governmental program f o r t h e poor," o r i f t h e e x c e s s income c o n s i s t s o f b e n e f i t s from a "governmental income m a i n t e n a n c e program." P.L. 11 T i t l e X o f t h e Economic O p p o r t u n i t y A c t , a s added by T3-355. -2 1 45 C.F.K. 1611 ( 1 9 8 1 ) . 31 These a r e b a s e d on t h e 1984 F e d e r a l p o v e r t y income g u i d e lines: i s s u e d i n Feb. 1984 by t h e Department o f H e a l t h and Human S e r v i c e s , u s i n g t h e methodology o f t h e O f f i c e o f Management and Budget. CRS- 170 C. Benefit Levels B e n e f i c i a r i e s r e c e i v e l e g a l a i d i n n o n c r i m i n a l p r o c e e d i n g s . Most c a s e s c o n c e r n t h e s e a r e a s o f law: f a m i l y , employment, consumer, housi n g , c i v i l r i g h t s , p u b l i c b e n e f i t programs s u c h a s s o c i a l s e c u r i t y , SSI, AFDC, w o r k e r s ' compensation, unemployment compensation, Medicare, and M e d i c a i d . The L e g a l S e r v i c e s C o r p o r a t i o n ' s s t a t e d g o a l i s t o prov i d e "minimum a c c e s s t o l e g a l s e r v i c e s f o r a l l p o o r p e r s o n s , " d e f i n e d a s t h e e q u i v a l e n t o f two a t t o r n e y s f o r e v e r y 1 0 , 0 0 0 p o o r p e r s o n s . The Corporation i s n o t allowed t o g i v e l e g a l a i d i n c r i m i n a l proceedings n o r i n most c i v i l c a s e s t h a t a r e f e e - g e n e r a t i n g i n n a t u r e , s u c h a s a c c i d e n t damage s u i t s . 71. EMERGENCY FOOD DISTRIBUTION AND SHELTER PROGRAM - Note: Congress e s t a b l i s h e d t h i s temporary program i n March 1983 and i n November g a v e i t e x t r a f u n d s , t o b e o b l i g a t e d b e f o r e A p r i l 1 , 1984. A. Funding Formula F e d e r a l f u n d s p a i d 100 p e r c e n t o f t h e c o s t o f t h i s program, which supplemented o t h e r a i d p r o v i d e d by v o l u n t a r y g r o u p s . On an emergency b a s i s , Congress a p p r o p r i a t e d $140 m i l l i o n i n 1983 t o t h e F e d e r a l Emergency Agency (FEMA). 11 C o n g r e s s s p e c i f i e d t h a t o f t h i s t o t a l , $90 m i l l i o n was t o b e a w a r d e d t o a n a t i o n a l b o a r d of specified voluntary agencies f o r d i s t r i b u t i o n t o individual l o c a l i t i e s and $50 m i l l i o n was t o b e a l l o c a t e d t o S t a t e s on t h e b a s i s o f t h e Community S e r v i c e s Block G r a n t f o r m u l a . B. E l i g i b i l i t y Requirements E l i g i b l e were p e r s o n s deemed needy by t h e p r i v a t e v o l u n t a r y o r g a n i z a t i o n s and o t h e r g r o u p s t h a t a d m i n i s t e r e d t h e program locally. The law d i r e c t e d FEMA t o s e t up a n a t i o n a l b o a r d o f s e v e n members t o d e t e r m i n e how t o d i s t r i b u t e $90 m i l l i o n ($50 m i l l i o n i n i t i a l l y ) t o l o c a l i t i e s s o a s t o p r o v i d e emergency food and s h e l t e r t o needy i n d i v i d u a l s t h r o u g h p r i v a t e v o l u n t a r y o r g a n i z a tions. The members were t o r e p r e s e n t : U n i t e d Way o f America, S a l v a t i o n Army, N a t i o n a l C o u n c i l of Churches, N a t i o n a l C o n f e r e n c e of C a t h o l i c C h a r i t i e s , Council of Jewish F e d e r a t i o n s , Inc., American Red C r o s s , and FEMA. L o c a l i t i e s t h a t r e c e i v e d f u n d s were, i n t u r n , t o s e t up a s i m i l a r l o c a l b o a r d t o d e c i d e how t o d i s t r i b u t e the aid. The law d i r e c t e d S t a t e s t o u s e t h e i r $50 m i l l i o n t o s u p p l e ment and c o o r d i n a t e e f f o r t s t o s u p p l y food and s h e l t e r by o r g a n i z a t i o n s s u c h a s U n i t e d Way a g e n c i e s , S a l v a t i o n Army c h a p t e r s , 1/ $100 m i l l i o n was a p p r o p r i a t e d by P.L. 98-8, March 1983; $10 m T l l i o n by P.L. 98-151 and $30 m i l l i o n by P.L. 98-181. The f i r s t law earmarked h a l f i t s f u n d s and t h e l a t t e r two earmarked a l l o f t h e i r funds f o r d i s t r i b u t i o n through a n a t i o n a l board of specified voluntary agencies. community a c t i o n a g e n c i e s , church o r g a n i z a t i o n s , and v o l u n t e e r groups and o r g a n i z a t i o n s . C. Benefit Levels FZMA o f f i c i a l s e s t i m a t e t h a t t h e program provided from 125 m i l l i o n t o 130 m i l l i o n meals and between 15 m i l l i o n and 16 m i l l i o n n i g h t s ' lodging. ( ~ h e s et o t a l s a r e i n a d d i t i o n t o meals and lodgi n g provided by v o l u n t a r y groups i n t h e program w i t h funds from other sources). 72. SOCIAL SERVICES FOR REFUGEES AND CUBAN/HAITIAN A. ENTRANTS Fundine Formula The Refugee Act o f 1980 (P.L. 96-212) a u t h o r i z e s 100 perc e n t f e d e r a l l y funded s o c i a l s e r v i c e s t o a s s i s t r e f u g e e s i n becoming s e l f - s u f f i c i e n t . T i t l e V o f t h e Refugee E d u c a t i o n A s s i s t a n c e Act (PL. 96-4221, p o p u l a r l y r e f e r r e d t o a s t h e F a s c e l l - S t o n e amendment, a u t h o r i z e s s i m i l a r s e r v i c e s f o r c e r t a i n Cubans and H a i t i a n s who h a v e r e c e n t l y a r r i v e d i n t h e U.S. The r e f u g e e and e n t r a n t s o c i a l s e r v i c e s f u n d s a r e d i s t r i b u t e d among t h e S t a t e s u n d e r f o r m u l a s t h a t u s u a l l y t a k e i n t o a c c o u n t e a c h S t a t e ' s p r o p o r t i o n o f r e f u g e e s and e n t r a n t s . - E l i g i b i l i t y Requirements 1/ A p e r s o n must ( a ) have been a d m i t t e d t o t h e U n i t e d S t a t e s a s a r e f u g e e u n d e r t h e p r o v i s i o n s o f t h e I m m i g r a t i o n and N a t i o n a l i t y A c t , o r ( b ) must b e a Cuban o r H a i t i a n paroZed i n t o t h e U.S. between A p r i l 20 and O c t o b e r 1 0 , 1980 and d e s i g n a t e d a s a "Cuban/Haitian e n t r a n t , " o r ( c ) be a Cuban o r H a i t i a n n a t i o n a l who a r r i v e d i n t h e U.S. a f t e r O c t o b e r 1 0 , 1980 who h a s a p e n d i n g a p p l i c a t i o n f o r asylum, o r i s s u b j e c t t o e x c l u s i o n o r d e p o r t a t i o n , and a g a i n s t whom a f i n a l o r d e r o f d e p o r t a t i o n h a s n o t been i s s u e d . While any p e r s o n mentioned above g e n e r a l l y i s e l i g i b l e f o r s o c i a l s e r v i c e s f i n a n c e d by r e f u g e e program f u n d s , some s p e c i f i c a c t i v i t i e s s o funded may h a v e e l i g i b i l i t y l i m i t a t i o n s s u c h a s a g e . Refugees and e n t r a n t s a l s o may b e n e f i t from s e r v i c e s f i n a n c e d u n d e r t h e S o c i a l S e c u r i t y A c t ( t i t l e XX), b u t g e n e r a l l y would h a v e t o meet t h e S t a t e ' s t i t l e XX e l i g i b i l i t y r e q u i r e m e n t s . E x c e p t i o n s t o t i t l e XX r u l e s c a n b e made s o t h a t r e f u g e e s and e n t r a n t s c a n r e c e i v e c e r t a i n p a r t i c u l a r s e r v i c e s such a s language t r a i n i n g , v o c a t i o n a l t r a i n i n g and employment c o u n s e l i n g . 1/ 400-4:. R e g u l a t i o n s f o r t h i s program a r e found i n 45 C.F.R. C. B e n e f i t Levels S t a t e s determine what s o c i a l s e r v i c e s are o f f e r e d f o r refugees and e n t r a n t s . A l l s o c i a l s e r v i c e s funded b y the refugee program are considered refugee s o c i a l s e r v i c e s rather than t i t l e XX s o c i a l s e r v i c e s , whether o r n o t they a l s o q u a l i f y under t i t l e XX r u l e s . 73. LOW-INCOME ENERGY ASSISTANCE Funding Formula The Low-Income Home Energy A s s i s t a n c e Act ( t i t l e XXVI, P.L. 973 5 ) p r o v i d e s 100 p e r c e n t F e d e r a l f u n d i n g f o r t h e f i s c a l y e a r (FY) 1984 Low-Income Energy A s s i s t a n c e Program (LIEAP). 11 The Department o f H e a l t h and Human S e r v i c e s (DHHS), which a d m i n i s t e r s t h e program, 21 d i s t r i b u t e s t h e f u n d s a s g r a n t s t o S t a t e s b a s e d on t h e p r o p o r t i o n oft i o n o f FY 1981 LIEAP f u n d s r e c e i v e d by t h e S t a t e s . The FY 1981 f o r mula t o o k i n t o a c c o u n t S t a t e s ' FY 1980 a l l o t m e n t s , t h e s e v e r i t y o f c l i mate, r e s i d e n t i a l e n e r g y c o s t s and low-income p o p u l a t i o n . The S t a t e s h a v e r e s p o n s i b i l i t y f o r program d e s i g n and t h e y may spend up t o 1 0 p e r c e n t o f t h e i r a l l o t m e n t s f o r program a d m i n i s t r a t i o n . I n d i a n t r i b e s may r e c e i v e d i r e c t f u n d i n g f o r LIEAP i f t h e y r e q u e s t s u c h payments and i f t h e S e c r e t a r y d e t e r m i n e s t h a t s u c h payments would b e s t s e r v e t h e tribe. B. E l i g i b i l i t y Requirements 31 The Low-Income Home Energy A s s i s t a n c e Act s e t s maximum income and c a t e g o r i c a l e l i g i b i l i t y l i m i t s f o r e n e r g y a s s i s t a n c e . S t a t e s may s e t more s t r i n g e n t r e q u i r e m e n t s , and most h a v e done s o . The Act s p e c i f i e s t h a t LIEAP funds may b e u s e d t o a s s i s t h o u s e h o l d s w i t h members r e c e i v i n g Aid t o F a m i l i e s w i t h Dependent C h i l d r e n , 4 1 S u p p l e m e n t a l S e c u r i t y - 11 The b a s i c a p p r o p r i a t i o n f o r LIEAP i n FY 1984 was $1.875 b l i n . A s u p p l e m e n t a l a p p r o p r i a t i o n o f $200 m i l l i o n b r o u g h t t o t a l FY 1984 f u n d i n g t o $2.075 b i l l i o n . T h i s f u n d i n g l e v e l i s $200 m i l l i o n above t h e p r o g r a m ' s a u t h o r i z a t i o n l e v e l . 21 The LIEAP was e s t a b l i s h e d i n 1980 a s a DHHS o p e r a t i o n . I n some e a r l i e r y e a r s t h e Community S e r v i c e s A d m i n i s t r a t i o n o p e r a t e d a s m a l l e r c r i s i s i n t e r v e n t i o n program. -3 1 R e g u l a t i o n s f o r t h i s program a r e found i n 4 7 C.F.R. -41 AFDC f o s t e r c a r e c h i l d r e n a r e n o t c a t e g o r i c a l l y e l i g i b l e . 5 29472. Income 5 / , Food Stamps, V e t e r a n s ' P e n s i o n s 6 / , o r Dependency and and 1nd;mnity Compensation. 71 B e n e f i t s a l y o may b e p r o v i d e t o househ o l d s w i t h incomes below eit?;er 150 p e r c e n t o f t h e OMB p o v e r t y guidel i n e s o r 60 p e r c e n t o f a S t a t e ' s median income ( a d j u s t e d f o r f a m i l y s i z e ) , w h i c h e v e r i s h i g h e r . DHHS e s t i m a t e d t h a t a p p r o x i m a t e l y 21 m i l l i o n h o u s e h o l d s would meet t h e F e d e r a l e l i g i b i l i t y l i m i t s . The OMB p o v e r t y g u i d e l i n e s v a r y by f a m i l y s i z e . The l e v e l i s t h e same f o r t h e 48 c o n t i g u o u s S t a t e s , t h e D i s t r i c t o f Columbia, and t h e t e r r i t o r i e s , b u t 15 p e r c e n t h i g h e r f o r B a w a i i and 25 p e r c e n t h i g h e r f o r A l a s k a . One hundred f i f t y p e r c e n t o f t h e 1984 F e d e r a l p o v e r t y g u i d e l i n e f o r a f a m i l y o f f o u r , e x c e p t f o r A l a s k a and Hawaii, was $15,300, 8 1 compared w i t h $14,850 i n t h e p r e c e d i n g y e a r . The a l t e r n a t e - l i m i t , 6 0 p e r c e n t o f t h e S t a t e ' s median income, ranged i n 1984 f o r a f a m i l y o f f o u r from a low of $12,893 i n New Mexico t o a h i g h o f $21,500 i n A l a s k a . E l i g i b i l i t y f o r e n e r g y a s s i s t a n c e i s d e t e r m i n e d on a h o u s e h o l d b a s i s . A h o u s e h o l d i s d e f i n e d a s "an i n d i v i d u a l o r g r o u p o f i n d i v i d u a l s who a r e l i v i n g t o g e t h e r a s one economic u n i t f o r whom r e s i d e n t i a l e n e r g y i s c u s t o m a r i l y p u r c h a s e d i n common o r who make u n d e s i g n a t e d payments f o r e n e r g y i n t h e form o f r e n t . " T h i s d e f i n i t i o n exc l u d e s , f o r example, a f a m i l y l i v i n g i n s u b s i d i z e d h o u s i n g t h a t d o e s n o t pay r e n t . C. Benefit Levels S t a t e s d e c i d e b e n e f i t l e v e l s and t h e manner o f payments, and no F e d e r a l l i m i t a p p l i e s t o t h e amount o f h e l p g i v e n t o a household. 9 1 S t a t e s may u s e LIEAP funds t o p r o v i d e b e n e f i t s t h a t : h e l p pay r e s i d e n t i a l h e a t i n g o r c o o l i n g c o s t s ; p u r c h a s e a n d / o r i n s t a l l low-cost - 5 1 SSI r e c i p i e n t s i n i n s t i t u t i o n s r e c e i v i n g M e d i c a i d , o r who l i v e y n s h a r e d h o u s i n g r e s u l t i n g i n r e d u c e d b e n e f i t s , o r who a r e c h i l d r e n l i v i n g a t home a r e n o t c a t e g o r i c a l l y e l i g i b l e . 6 1 I n c l u d i n g needy s u r v i v o r s and d e p e n d e n t s of v e t e r a n s who were z i s a b l e d by a c a u s e o t h e r t h a n m i l i t a r y s e r v i c e . 71 E l i g i b l e f o r Dependency and I n d e m n i t y Compensat i o n (DIC) a r e p a r e n t s o f a v e t e r a n who d i e d from a s e r v i c e - c o n n e c t e d c a u s e , p r o v i d e d t h e i r income i s below s p e c i f i e d l i m i t s . 8 / The 1984 F e d e r a l p o v e r t y g u i d e l i n e s w e r e i s s u e d i n Feb. 1984 Ty t h e Department of H e a l t h and Human S e r v i c e s , b a s e d on t h e methodology o f t h e O f f i c e o f Management and Budget. 9 1 I n t h e 1980-81 program, b e n e f i t s w e r e l i m i t e d t o $750 p e r houseKold, b u t t h e l i m i t c o u l d b e r a i s e d w i t h a p p r o v a l o f DHHS. w e a t h e r i z a t i o n m a t e r i a l s ; a s s i s t households f a c i n g e n e r g y - r e l a t e d emergency s i t u a t i o n s . B e n e f i t s most commonly t a k e t h e form o f c a s h payments t o households, vendor l i n e s o f c r e d i t , vouchers, and t a x credits. A S t a t e can u s e a maximum o f 15 p e r c e n t of i t s a l l o t m e n t f o r w e a t h e r i z a t i o n a c t i v i t i e s . S t a t e s must u s e a "reasonable" p o r t i o n of t h e i r a l l o t m e n t s f o r e n e r g y - r e l a t e d emergency a s s i s t a n c e based on p a s t emergency a s s i s t a n c e e x p e r i e n c e . To t h e e x t e n t t h a t i t i s c o n s i s t e n t w i t h e f f i c i e n t a d m i n i s t r a t i o n o f t h e program, S t a t e s a r e r e q u i r e d t o p r o v i d e t h e h i g h e s t b e n e f i t l e v e l s t o households "with l o w e s t incomes S t a t e s may a l s o and h i g h e s t energy c o s t s i n r e l a t i o n t o income." choose t o t r a n s f e r u p t o 1 0 p e r c e n t o f t h e i r a l l o t m e n t s t o o t h e r b l o c k g r a n t s . I n FY 1984 a m a j o r i t y o f S t a t e s used t h i s a u t h o r i t y t o t r a n s f e r funds i n t o e i t h e r t h e s o c i a l s e r v i c e s o r m a t e r n a l and c h i l d c a r e block grants. I n FY from a low Nationally, two-thirds 1984, t h e e s t i m a t e d a v e r a g e LIEAP h e a t i n g b e n e f i t ranged o f $42 i n Hawaii t o a h i g h o f $709 i n North Dakota. t h e e s t i m a t e d a v e r a g e h e a t i n g b e n e f i t was below $300 i n of t h e S t a t e s . 8 1 - 8 / Source: J a n u a r y 1984 t e l e p h o n e s u r v e y by DHHS. b e n e f y t s c i t e d a r e f o r h e a t i n g a s s i s t a n c e only. Average 74. WEATHERIZATION ASSISTANCE A. Funding Formula The Energy Conservation and Production Act of 1976, as amended (P.L. 94-385) provides 100 percent Federal funding for weatherization assistance to low-income persons through grants administered 1/ by the Department of Energy (DOE). B. Eligibility Requirements Eligible for DOE weatherization aid are low-income persons, defined in the law as (a) individuals with incomes at or below 125 percent of the OMB poverty guidelines ($12,750 for a family of four, effective February 1984) and (b) families with a member who received cash welfare payments during the previous 12 months from Aid to Families with Dependent Children (AFDC), Supplemental Security Income (SSI), or General Assistance. C. Benefit Levels DOE regulations 2/ allow a maximum outlay of $1,000 per dwelling unit (up to $1,600 inareas with a serious labor shortage). Funds are 1/ Weatherization assistance for low-income households can also g e provided under the low-income energy assistance program (title XXVI of the Omnibus Budget Reconciliation Act of 1981P.L. 97-35) administered by the Department of Health and Human Services. From 1975-1979 Federal funds for weatherization of lowincome homes also was authorized in 1975 by the Economic Opportunity Act of 1964, as amended. This Act authorized 80 percent Federal funding for energy conservation services administered by the Community Services Administration (CSA) to low-income persons. This program included home weatherization, and CSA estimated that approximately 400,000 homes were weatherized from fiscal years 1975-1978. The CSA energy conservation program was not funded after fiscal year 1979 and no longer exists because, on Oct. 1, 1981, the Economic Opportunity Act was repealed and CSA abolished (P.L. 97-35). -21 10 C.F.R. § 440 (1981). to be used to buy and deliver weatherization materials, provide program support, and pay labor costs. Program support is defined as transportation of materials and workers; maintenance, operation and insurance of vehicles; maintenance of tools and equipment; purchase or lease of tools, equipment and vehicles; employment of on-site supervisors; and storage of weatherization materials. Rules allow up to $100 per dwelling unit to be spent for incidental repairs, and up to $50 per dwelling unit for low or no cost weatherization materials, such as water flow controllers, weatherstripping, caulking, glass patching, and insulation for plugging holes, but program funds may not be used for installation of these low cost items. TABLE 12. Need-Based Benefits: Expenditure and Enrollment Data, by Program and Form of Benefit: FY 1980-83 Federal Expenditures State-Local Expenditures Number of Recipients Data in this table are based on Presidential Budget documents and on reports of program officials. Details of sources are available upon request. 4 z 4 Z 4 Z ? n it -j" N 0 N "'. N ? 0 0 N n 0 0 0 t 0 4 m .d U -z w v J m Y :. GI ( O h 4 4.l m c al 3 Ll 0 Y n c e 0 Y O U CCI Foster Care 281 .-- $21,566.2 $22,076.8 $22,831.4 $10,996.8 N.A. 331 t" 0. -A N.A. 33/ 3 .T $11,697.9 33/ .r N.A. 6 Examples a r e t h e Low $11,271.8 *Some o t h e r programs p r o v i d e a i d i n t h e form o f c a s h i n t e n d e d f o r s p e c i f i c goods o r s e r v i c e s . Income Energy A s s i s t a n c e Program and e d u c a t i o n a l l o a n and g r a n t programs. CASH ALD TOTAL 22. A s s i s t a n c e t o C e r t a i n Cuban Refugees ( c a s h component) 0.4 0 0 0 52.9 20. G e n e r a l A s s i s t a n c e t o I n d i a n s 21. Adoption A s s i s t a n c e 0 0 0 118.7 55 0 301 33 r 0 19. Dependency and I n d e m n i t y Compensation f o r P a r e n t s of Veterans SO. 7 0 301 3 2 2 0 */ -- 16/ N. A. 16/ Recipients ( a v e r a g e monthly number u n l e s s o t h e r w i s e marked--in t h o u s a n d s ) .22/r 191 26/ 2,llT 0 1,994 57.4 0 30 I 27 r 0 1,859 0 22/ 2,123.F $7,194- 18. Emergency A s s i s t a n c e H a i t i a n E n t r a n t s ( c a s h component) 1 7 . A s s i s t a n c e t o Refugees and Cuban/ 16. 15. Earned Income Tax C r e d i t (EITC) g/ 1,731 0 13. P e n s i o n s f o r Needy V e t e r a n s , T h e i r Dependents, and S u r v i v o r s 14. G e n e r a l A s s i s t a n c e (non-medical c a r e component) 221 2,10T- 171 State-local expenditures ( m i l l i o n s of c u r r e n t d o l l a r s ) 12. S u p p l e m e n t a l S e c u r i t y Income ( S S I ) 11. Aid t o F a m i l i e s w i t h Dependent C h i l d r e n (AFDC) Federal expenditures (millions of current d o l l a r s ) CASH BENtiFITS* N.A. -- z/ -- - 48 1 N.A. N.A. 45/ 7 6- f $15,600 $15.534.7 $17,770.5 S e a a l s o program No. 71, Emergency Food D i s t r i b u t i o n and S h e l t e r . FOOD BENEFITS TOTAL z/ $580 ------- N.A. 1.6 187.8 336.2- 3 81 N.A. 41/ - N.A. ----- FY81 32. S p e c i a l Milk Program ( f r e e segment) 2.6 180.2 &/ 32 5- 391 42/ 484- 1,160.0 2,414.5- PY83 N.A. 37.1 175.0 481 344 39 / -- $647 N.A. N.A. 0 N.A. N.A. N.A. N.A. ----- FY82 $712.3 N.A. N.A. N.A. N.A. N.A. N.A. FY83 Scate-local expenditures (millions of c u r r e n t d o l l a r s ) 31. Food D i s t r i b u t i o n P r o g r ~f o r Needy F a m i l i e s 30. Summer Food S e r v i c e Program f o r C h i l d r e n 511 7/51 309.2- S c h o o l Breakf .st Program ( f r e e and r e d u c e d - p r i c e segments) 611 29. Chi Id C a r e Food Program 441 528 77 2,081.1- 904.7 346.5- s/ 39 / FY82 900 .0 2,315.5- --------- PY81 N u t r i t i o n Program f o r t h e E l d e r l y ( n o income t e s t ) S p e c i a l Food D o n a t i o n s (YIC) S p e c i a l Supplemental Food Program f o r Women, I n f a n t s b C h i l d r e n School Lunch Program ( f r e e and r e d u c e d - p r i c e segments) Food Stamps --- Federal expenditures ( m i l l i o n s of c u r r a n t d o l l a r s ) FOOD BENEFITS* 401 40/ 16/ - 1.030- ---- 541 SO/ 470- 3.325- N.A. 12,500- -- ----- 401 40/ 16/ 58.2- 501 493- >.107'- N.A. 11,600- FYd2 ~ 8 la/ 54/ 501 40/ 498- 3,132- N.A. 40 / 11,900- ~ Recipients ( a v e r a g e monthly number u r ' l e s s otherwise indicated--in thousands) 3 OD P ~ - 1 m 3 c 5s.7 d m 1 d 0 0 4 ~m , " I d N -- -- lh 32,; ;.: W Y N 4 C w .4 3: : j 4 Y . d 4 3 3 12 a 5 m 4 1.n . m 2 "la n n 0 -12 s 4 tb 0 .- I . -N . . -Im. 0 4 n a N 4 i - U c U .d?l ;;: .,a a W r v LI n ' m g o 2 ; Z."2 mi: 2 : a 0 9 h 4 n . 0 -C = U U " d 9-3 O C x 9 s a c Y u- C S L P > *.' w .-lo. E w 0 t c 2 m -4 z 0 9 m c 2 . 2 ; & : , ;nJ ; 3m 3 l a . C* 4 Y * 4 0, 0 c Y d 4 u C B M S al* -. M 4 0 o * ua ,. "S m * C l . . " 4 m 0 Y-C 3 0 zv, d 3 C Z 9 " M 3 9 74. ENELLCY AID TOTAL Weatherization Assistance* 73. Low-Income Energy Assistance $2.008.9 225.9- 991 96 I $1,783- $1.763.5 99 I 154.5- 96 1 $1,609- $2,048.9 150.9- 991 96 1 $1,898- Federal expenditures (millions of current d o l l a r s ) ENERGY AID 94 1 94 1 941 941 941 941 State-local expenditures (millions of current d o l l a r s ) 161 1001 236.9 971 7 . 1 6 161 l53.a- 1001 971 8,200- 161 165.5- 1001 971 8,700- Recipients (annual number unless otherwise indicated--in thousands) -1/ -21 -3 1 Funded program costs. -41 Unduplicarrd annoal number Includes these sums for administration: FY81, $920.2 million; FY82, $924.9 million; FY83, $936 million. Includes these sums for administration: FY81, $62fi.l million; FY82, $642 million; FY85, $692 million. 5/ Data are estimates, based on assumption that 58 percent of VA medical care recipients have met a test of need (That is, that they are either pension recipients or medically indigent). 61 VA grants to States help finance some States veterans' homes, but it is thought that most veterans so aided have a-service-connected disability. 71 Estimated average monthly recipients, based on the assumption of VA that 58 percent of patients treated during PY82 aTd FY83 had income at or below the poverty thresholds (56 percent in FY81). -81 Estimates provided by the Department of Health and Human Services (Health Care Financing Administration). 91 Maternal and Child Health Services block grant, enacted in 1981, includes funding for Crippled Children's ~ervicrs,starting in FY82. 101 111 121 13/ 141 - - Minimum match required by law. States may spend more, but data are not available. Includes these sums for administration: 1981, $52.3 million; FY82, $52.2 million; FY83, $53.9 million. Includes these sums for administration: FY81, $14.5 million; FY82, $23.2 million; FY83, $17.6 million. As of September of each fiscal year. Includes $1.4 million for administration. 151 Less than $1 million. Sept. 30, 1978. For Medicaid available only to Cuban refugees receiving SSI benefits before 161 Dur to a high degree of overlap (and in s o m cases, a mixture of monthlv and annual numbers), recipient ~ o t a l a a r enut shown. 17/ - Data exclude costs and collection of child support enforcement program. 181 Includes these sums for State-local administration, including training: milliG; 1983, $902 million. 1981, $835 million; 1982, $882 19/ Includes these sums for administration, including training: 1 9 8 3 , 5 8 9 0 mil 1 ion. 201 211 txcludes Number of families: 1981, 3,871,000; 1981, $813 million; 1982, $878 million; 1982, 3,566,000; 1983, 3,650,000. Includes these sums f ~ radministration: 1980, $719.5 million; 1982, $796.4 million; 1983, $868.8 million. inrse amaunts for b e n r f ~ c i a r y services: 1981, $20 million; 1982, 53 million; 1983, $4.4 million. Excludt~s Federal suns spent fur Sratt. 531 supp:rmvnts td refugees, which are listed under program No. 17. Please note thai 1983 data represent 12 monthly payments ( U . S . Budget shows 13 payments). 221 Includes these sums for State administration of State SSI supplements; 1981, $19 million; 1982, $22 m i l l i G ; 1983. $21 million (estimates equal 8 percent of State-administered benefits). 231 - Estimate, a s of June. 241 - Estimate, as of September. 251 Spending data relate to State fiscal years. 1981 and 1982 spending data are based o n reports from U.S. ~ e n s u y ~ u r e a(State u and local government expenditures for non-categorical c a s h assistance payments). Recipient data are from the Departsent of Health and Human Services, which since 1980 has not collectrd GA spending data. 261 Preliminary estimate, reflecting percentage increase in G A expenditures from 1982 to 1983 by eight s t a t e r a c c o u n t i n g for 8 3 percent of 1982 spending. For these States, 1983 spending estimates were obtained from State officials. 271 281 - Number of cases: 1981, 826,000; 1982, 894,400; 1983, 1,040,300. 1983 recipient number is estimate. Data refer to year in which income tax return w a s processed and credit allowed. 29/ Estimate. 6,353300. Assume three persons per family. Number of families: 301 Estimate. Based on average State matching requinnents: a d m i n x t r a t ion and training. 1981, 6,906,000; 1982, 6,481,000; 1983, 47.5 percent for payments and 5 0 percent for 31/ Includes Frdrral reimbursements to SS1 (program No. 12) for State SS1 supplements to aged, blind, or d i s a b c d refugees: 1981, $10.5 m i l l ~ o n ;1982, $12 million; 1983, Sll million. 321 Estimate. 29 , ~ o T 331 341 - Estimate. Assume three persons per family. Number of families: 198 Based on average State matching requirement of 4 7 percent. Includes $0.6 million for administration. 35/ Less than $0.5 million, for SSI reimbursement (available only t o Cuban refugees w h o received SSI benefits b e f o r e S e p t e m b e r 30, 1978). 361 food ;amps 1982 and 1983 data include Puerto Rico's nutritional ass istance program, which in July 1982 replaced the program there. 37/ - Includes these sums for administration: 38/ + Costs o f administration. 1981, $628 mill ion; 1982, $659 million; 1983, $730 million. - 39/ Cash spending plus estimated commodity assistance for free and reduced-price lunches. Includes these sums for State administrative expenses for school lunch plus three other child nutrition programs: school breakfast, child care food program, and special milk program ( a breakdown by program is not available). Estimated c o m o d i t y assistance for free and reduced-price lunches: 1981, $302 million; 1982, $210 million; 1983, $231 million (these sums are one-half the commodity assistance for all school lunches, reflecting the ratio o f incometested lunches to total lunches). Excludes cash assistance for "paid" lunches, which have no income test: 1981, $395.2 million; 1982, $221.9 million; 1983, $212.6 million. 40/ 411 42/ need. 431 - 441 columG.) 451 46/ - Estimated school year daily average. Law allows up to 20 percent of appropriate funds to be used for administration. Includes an estimated $50 million for intrastate storage and transportation. The law prohibits en income test, but requires preference for those with greatest economic or social Corrected figure. (1983 edition of this report erroneously presented Federal-State totals i n Federal Estimate. Annual number. 471 Federal spending for State administrative costs included under program No. 24 (school lunch). f o o t n x e 39. 48/ Excludes spending for paid breakfasts, for which there is no income test: $10 m x l i o n ; 1983, $4.8 million. Sea 1981, $11.8 million; 1982, 491 Includes only funds provided for free and reduced-price meals. Excludes "paid" meals i n canters and rnaalsyn family or group homes, for which there is no incoae test. Excludes commodity assistance. 501 - Daily average number. 511 - Excludes cowodities, valued at approximately $1 million each year. 521 - Peak summer number. 5 3 1 l n c l u d e s t h e s e sums f o r a d m i n s t r a t ~ v ec o s t s : 1 9 8 1 and 1 9 8 2 , $9 m l l l l o n e a c h y e a r , 1 9 8 3 , $11 m i l l l o n . I n c l u d e s v a l u e o f b o t h p u r c h a s e d c o m m o d l t l e s and t h o s e made a v a i l a b l e d u r i n g t h e y e a r f r o m g o v e r n m e n t s t o c k s . E s t i m a t e d e r i v e d f r o m t h e number o f h a l f - p i n t s o f 5 4 1 E s t i m a t e . A v e r a g e d a i l y number s e r v e d f r e e m i l k . E x c l u d e s c h i l d r e n who r e c e i v e d f r e e Z l k consumed ( 1 . 3 4 p e r d a y f o r a n a v e r a g e o f 1 6 1 s c h o o l d a y s p e r y e a r ) . p a r t i a l l y subsidized r a t h e r than f r e e milk. 55/ - U n i t s eligible f o r payment a t e n d o f f l s c a l y e a r . 561 - D a t a i n c l u d e operating s u b s i d i e s . 571 L o c a l i t i e s a c c e p t payments i n l i e u o f p r o p e r t y t a x e s t h a t a r e l o w e r t h a n n o r m a l t a x e s ( u s u a l l y e q u a l t o l 0 y e c c e n t o f s h e l t e r r e n t ) . No e s t i m a t e i s a v a i l a b l e o f t h e v a l u e o f t h i s b e n e f i t . 581 - Amount o f l o a n s o b l i g a t e d . 5 9 1 Number o f u n i t s u n d e r payment, end o f f i s c a l y e a r , a s f o l l o w s : 1 9 8 1 , 1 5 8 , 2 2 6 i n o r i g i n a l p r o g r a m and 8 2 , 3 1 F i n r e v i s e d p r o g r a m ; 1 9 8 2 , 1 4 5 , 6 2 8 and 9 6 , 2 4 5 , r e s p e c t i v e l y ; 1 9 8 3 , 1 3 2 , 0 0 0 a n d 1 0 0 , 0 0 0 , r e s p e c t i v e l y . 6 0 / Amount o f s e c t i o n 504 l o a n s and g r a n t s o b l i g a t e d , a s f o l l o w s : 1 9 8 1 , $ 1 7 . 9 m i l l i o n i n l o a n s and $ 2 2 . 8 m i l l i o n i n g r a n t s ; 1 9 8 2 , $ 1 0 . 7 m i l l i o n and $ 1 3 . 6 m i l l l o n , r e s p e c t i v e l y ; 1 9 8 3 , $2L m i l l i o n and $ 1 2 . 5 m i l l i o n respectively. 611 Number o f l o a n s and g r a n t s ( f o r s e c t i o n 5 2 3 r u r a l s e l f - h e l d t e c h n i c a l a s s i s t a n c e , number o f g r a n t s only): 6 2 1 Amount o f s e c t i o n 514 l o a n s and s e c t i o n 5 1 6 g r a n t s o b l i g a t e d , a s f o l l o w s : 1981, $18.5 m i l l i o n i n l o a n s a n d $ 1 0 . 5 m i l l l o o i n g r a n t s ; 1 9 8 2 , $ 1 1 . 9 m i l l i o n and $14.9 m i l l i o n , r e s p e c t i v e l y ; 1 9 8 3 , $19 m i l l i o n and $12.5 m i l l i o n , r e s p e c t i v e l y . 6 3 1 New and r e p a i r e d h o u s e s a s f o l l o w s : 1 9 8 1 , 7 2 5 new a n d 4 , 3 5 2 r e p a i r e d h o u s e s ; 1 9 8 2 , 5 4 8 and 3 , 3 4 3 , r e s p e z i v e l y ; 1 9 8 3 , 581 and 3 , 8 8 1 , r e s p e c t i v e l y . 641 - Obligation. 651 - Columns a r e n o t t o t a l e d b e c a u s e t h e y a r e a m i x t u r e o f n u m b e r s : d w e l l i n g u n i t s , l o a n s , and g r a n t s bn' S p ? n d ~ n gd a t a a r r a p p r u p r l a t ~ o n ca v a l l a b l r f d r t h r s c h o 3 1 y e a r b e g l n l l n $ ~ n t h r f i s c a : y e a r named (and f o r t h e next y e a r ) . R e c l p l e n t d a t a r e f e r t o t h e award y e a r b e g l n n ~ n gJ u l y 1 , o f t h e y e a r named. 671 - - T h l s program had n o Income t e s t ~ n f l s c a l y s a r s 1979-1981, 681 Data a r e a p p r o p r i a t i o n s . Note: p r o g r a m , i t p r o v i d e s many o t h e r s e r v i c e s . r a t h e r t h a n t h e Department of E d u c a t i o n . s o 198! d a t a a r e n o t provided. although H e a d s t a r t i s c l a s s i f i e d i n t h i s r e p o r t a s an e d u c a t i o n I t i s a d m i n i s t e r e d by t h e D e p a r t m e n t o f H e a l t h and Human S e r v i c e s 691 E s t i m a t e . Based on 20 p e r c e n t m a t c h i n g r e q u i r e m e n t . I n t h e c a s e o f F o l l o w T h r o u g h , t h e 2 0 p e r c e n t m a t c h x g r u l e a p p l i e s only t o Federal funds t h a t a r e a l l o c a t e d t o l o c a l educational agencies ( u s u a l l y 80 perc e n t of t h e t o t a l ) . 70/ I n c l u d e s c h i l d r e n i n r e g u l a r f u l l y e a r and summer p r o g r a m s , a s w e l l a s t h o s e s e r v e d t h r o u g h p r o g r a m s f u n d e a w i t h r e s e a r c h and development f u n d s . 711 These programs also receive non-governmental funds. College Work-Study funding from institutions rxceezd $100 million in each of the 3 years shown. The National Direct Student Loan (NDSL) program collected $438 million from borrowers in 1981, $483 million in 1982, and $531 million in 1983. Further, institutions provided NDSL $20.5 million in 1981, $18.8 million in 1982, and $19.8 million in 1983. 721 Appropriation available for the school year beginning in the flscal year named (and for the next schuai-year). 731 Federal funds for those programs may be supplemented (for program 49, by State and local school districts, for p z g r a m No. 56, by States and local units of government; for program No. 58 by institutions. However, data are unavailable on such support, which is voluntary. 741 - Estimate of recipients during the calendar year beginning in the fiscal year named. 751 1983 allocation by program: Talent Search, $17 million; Upward Bound, $68.4 million; Special Services for ~ z a d v a n t a ~ eStudents, d $60.5 million; Educational Opportunity Centers, $7.8 million; Staff Development, $1 million. 761 1983 recipients by program: Talent Search 1980, 825; Special Services, 150,293; Educational Opportunity centers, 104,300; Upward Bound, 32,608, and staff development, 1,500. 771 1982 flgure is preliminary estimate of Department of Education. changFfrom 1982. 1983 figure assumes no appreciable 78/ Repaid loans provide additional funding from these programs. Such non-governmental funding in the healt~professionsassistance program totaled: $26 million in 1981, $29 million in both 1982 and 1983. In the nursing student program such funds totaled: $11.5 million in 1981, $12.5 million in 1982, and $16 million in 1983. These sums, pald from a revolving fund, gave loans to additional students. - 791 Totals: 1981, $16.5 million in loans and $10 million in grants; 1982, $5.6 million and $4.4 million, respectively; 1983, $1 million and $5.6 million, respectively; 1983, $1 million and $5.6 million, respectively. See footnote 78. 80/ Recipient totals: 1981, 11,000 recipients of loans and 703 recipients of scholarships; 1982, 2,820 and 300, ~ s p e c t i v e l y ;1983, $500 and 368, respectively. See footnote 78. 811 - Recipients during thr school year beginning in 821 - All for loans. 831 - Appropriations. the fiscal year nam?d. 841 Not available separately. Average enrollment levels of 374,000 and 303,000 were maintained in 1983 and 1983,~espectively,uncer CETA titles 11-B, 11-C, IV-A and VII. (Title VII used private sector funds.) 851 Administrative cost estimates are not available. Regulations permit no more than 15 percent of Federal funds70 be used for administrative costs. In 1981 and 1982, the share of funds used for administration was approximately I 1 percent. 861 871 - Estimate, based on required 10 percent non-federal match. Annual number of jobs authorized. - 881 New registrants. projects. 1983 data are for only 36 States or jurisd~ctions, those without demonstration 891 Estimate. Includes a combination of State matching funds and funds for State-initiated programs that r e c e i G no Federal funds. In addition, for 1983 an estimated $2.5 million was given to Foster Grandparent programs by the private sector. 501 - This program w3s ended on September 30, 1981. K e s l d ~ a 1close-out o p t . r a ~ ~ o ncun~inue3 s l n t u 1983. 911 Estimate. Includes a combinat~onof State matching funds and funds for State-initiated programs that r e c e i z no Federal money. In addition, for 1983, an estimated $722,265 was given by the private sector. 921 Total includes beneficiaries not classified by program: f o o t n z e 84. 931 - Source: 374,000 in 1983 and 303,000 in 1983. See DHHS Budget Justifications for FY 1983 94,' This program requires no minimum match of non-federal funds, and data are unavailalbe on the extent of (Title XX required a 25 percent match for most services until FY 1982.) State?unding. 951 - Number of cases closed during the year. 961 Totals include these sums for administration: 1981, $150 million (estimate); 1982, $144 million (estimate); 1983 total sum excludes spending by Indian tribal organizations and the 1983,-$154 million (reported by States). outlying areas. 971 Households served during the year. both G a t i n g and cooling aid. 981 - 1981 numbers reflect some double counting of households that received Data for t h ~ sprogram relate to calendar year. 99/ Includes these estimated sums for State-local adminsitration: 1981, $22.6 million; 1982, $15.4 million; and 1 m 3 , $15.1 million. They equal 10 percent of grants to Stars, the maximum share permitted for adminstrative costs. 100/ - Houses weatherized during thr year.