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
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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
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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
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N
--
--
lh
32,;
;.:
W
Y
N
4
C
w .4
3: : j
4 Y . d
4 3 3
12
a
5
m
4
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. " 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.