Table L-Old-age assistance and aid to dependent children: Aged per- Notes and Brzef Reports sons and families with children re- ceiving both assistance payments Effect of Increased OASI To help State agenciesin adjusting and OASI benefits, by State, Sep- Benefits on Public the amount of the assistance pay- tember 1954 1 ments made to persons who were re- Assistance, September- OAA recip- ADC fami- ceiving old-age and survivors insur- ients receiv- lies receiv- * ance benefits before the amendments, in$,X&I 1 ing OASI a set, of conversion tables was pre- benefits The 1954 amendments to the Social IL--- Security Act that became effective pared by the Bureau of Old-Age and in September included provisions in- Survivors Insurance in cooperation state creasing benefit payments for all cur- with the Bureau of Public Assistance. rent beneficiaries of old-age and sur- These tables, which showed the bene- vivors insurance and permitting im- fit paid for August and the amount mediate entitlement to benefits of a of the increase for September, were group of persons who had heretofore used for all single beneficiaries and __]-I__ - been excluded. This new group con- for all family groups consisting of Total, 53 States :.mm.-4 L69.0351 18.2 26,325~ 4.5 two beneficiaries except families con- ---- sists of surviving parents, widows, Alabama-. _.______..___. 1.92& 644 3.9 and children of individuals who died sisting of two children only. All Alaska...---.-- _____ ---. 4041 2::: 5i 5.3 Arizona- ______2,638 20.3 207 4.8 after 1939 and before September 1, other beneficiary cases, estimated to Arkansas.~ ..___ _...__. 2,949 5.6 262 3.5 be less than 10 percent of the total, California ._..__ _- _.____. 96.697 36.3 2,375 4.5 1950, and who, though not fully in- COlOEXlO ____ --- _____ --- 12,773 24.3 315 5.5 sured under the act at the time of had to be checked individually with Connecticut~. _-_. ..__ _. 5.445, 32.3 273 0.0 DelaWare-.--.--.-----. 2451 14.41 41 4.4 death, had at least 6 quarters of the old-age and survivors insurance Districr. of Columbia..- 641’ ‘21.3 4.1 coverage. Both these provisions af- district office for the area in which Florida.. .___ -.- ___. -.- 14.9041 2i.5 l.OE 5.4 the recipient lived. Georgia.. __.____._ .____ fect the public assistance caseloads Iiawaii-.- ____ -_- ._____ and expenditures, but their full ef- The majority of the States started Idaho-. ____._ -. ______making the initial adjustment in as- Illinois.--....- .____._ -- fects are not yet known. Indi~na-....~~~....~~~~ sistance payments in October: a few IOl% ....._r._ -_- ..___._ Identification of persons newly KansIIs-ee..-.- .______. eligible for old-age and survivors in- States had started in September. Kentucky.-- .____._.. Louisiana... .____ -_-.-_ surance is in some instances difficult, With few exceptions, the reviews of Maine.. ..______..____ the remaining cases were completed and the assistancepayments cannot Maryland ____ _.._____ be adjusted until claims for benefits in November and December. Some hlassachusett.s-.~.~~--- Michigan-. ._._____._._ a.re filed and adjudicated. Assistance agencies reinvestigated cases with llfinnesota ______. --..__ old-age and survivors insurance in- Mississippi. _ ___-_. ..__ agenciesare still reporting new bene- Missouri ____ ---- ______ficiaries among the persons who had come and rebudgeted them for Montanae.-~.- ___._ -_- Nebraska-.--- ___..._._ been receiving old-age assistance or changes in need: other agencies Nevada-.-.-.---- ._____ aid to dependent children payments made desk reviews of the cases. Nw Hampshire--- __ -_ in September 1954. All the States submitted reports for New Jersey ..______... 4,751 22.9 444 8.3 New Mexico _____._.___ 1,151 9.5 267 4.0 The increase in benefits provided the months of October through De- New York.. ____ . .._ __ 2;,;;; 21.2 ‘a; 2.2 cember showing the number of cases North Carolina _.....__ by the amendments had an almost North Dakota ___._____ ‘875 1% 92 iti reviewed and the type of initial ac- Ohio.. .______- ______. 20,605 19.8 759 5.4 immediate effect, however, on public Oklehoma. _.._._._____ assistance caseloads and expendi- tion taken by the assistanceagencies Oregonian.--.. __-----. 13,9575,912 14.728.9 772182 It: and comparing the change from the Pennsylvania _.______9,790 16.3 % 3.2 tures. This report relates only to Rhode Island ..______2,485 26.9 3.2 preceding month in the assistance the recipients of old-age assistance South Carolina ___..___. and to families receiving aid to de- payments with the change in monthly South Dakota .______-. pendent children in September 1954 old-age and survivors insurance bene- who also received an old-age and fits since . Most States survivors insurance benefit for Au- reported on all recipients affected. gust 1954.1 A later report will sum- A few States requested permission to marize the elect on these programs report the effects of the 1954 amend- of the group of persons who became ments on a sample basis: in most instances, plans were made for them newly eligible for benefits. INot entirely comparable with annual data re- to report on t.he basis of a statistical ported on concurrent receipt of public assistance and insurance benefits because of difference in report- *Prepared by Sue Ossman, Division of sample those items relating to re- ing methods. Excludes some cases that were sub- sequently closed or suspended for reasons other than Program Statistics and Analysts, Bureau of cipients who received an increase in the effect of the increase in benefit. Public Assistance. benefits and continued to receive “Includes Puerto Rieq; not shown in table be- 1 Because only a few reciplenta of aid cause no cases were receiving both assistance pay- assistance and to report on a 100. ments and insurance benefits. Total for aid to dc- to the blind and aid to the permanentIy percent basis for recipients whose pendent children is for 52 States; excludes Nevada, and totally disabled are affected by the where program is administered without Federal amendments, the States were not asked to assistance was terminated. narticiDation. J Excludes a few cases in which there was no re- report on these programs. The accompanying tables show the duction in payment. Bulfetin, 11 cumulative effect of the monthly Table 2.-Old-age assistance and aid to dependent children: Type of action changes that occurred during the 3- taken to adjust assistancepayments for increase in OASI benefits, by State, September-December1954 month period on cases receiving pub- lic assistance and old-age and sur- 1 OAA recipients receiving OASI benefits I ADC families receiving OASI benefits vivors insurance benefits in Septem- - -- - ber. Only one payment adjustment Percentage distribution by Percentage distribution by or other action for each case is in- Total type of action Total type of action state Il”Ill- I nunl- 1- - - cluded. The totals are the closest ber, her, approximation that can be made of Sep- pay- Pay- Sep- Pay. Pay- tember Closed sus- ment men t ember CXosed SUS. ment ment 1954 ’ pendec not 1954 ’ I )ended not the effect the increased old-age and duced :ducec I re ,duced ,duced survivors insurance benefits have had -- -- - on assistance payments. The data Total _.....__...._ 469,035 2.0 0.4 85.9 11. 7 26,325 3.1 0.5 72.9 23.5 ____ _- - are not entirely comparable with an- Alabamn~...... __..._ 1,925 24.4 ____.._ 88.3 7.3 644 5.6 7F. 7 17.7 nual data reported by State agencies Alnskn . .._..._..__... 404 .7 .__.... 83.4 15.8 57 (2) (2) Srizoon ...... _. -.__-_ i,z; 88.5 10.5 207 (Y.4 %3 21.3 on concurrent receipt of public as- Arkansus . .._ _. _. _ _ 7: i (3)’ 3 8G. 7 5.9 202 2.7 58.X 38.5 California.... __... -__ 981697 83. ti 15.9 2,375 2.5 .5 82. 9 14.0 sistance and old-age and survivors in- Oolorado _....______-- 1;s ‘$ :: .-:! 97. 7 2.1 315 3.2 61.9 34.9 Connecticut...... 1.3 (3) 94.9 3.7 273 1.1 .4 90.1 8.4 surance benefits, because the methods Delaware.-..-.-..-.. ‘245 3 3 _ _ _-_. 81.6 15.1 41 of reporting used are different. The District of Columbia. 641 .G ____--. 97.3 2.0 97 ii{ I:; I:; g method used for reporting the effect Florida . . ..__.. --.__.., 14,904 2.0 .___--. 84.5 13. B 1,091 2.1 36.3 61. G Georgia. ____. -._ .._._ 9,187 10.4 -.--__- 5. 1 971 4. 8 7,3.9 21.2 of the old-age and survivors insur- Havaii __._...___ _. _-- 292 8.2 5.1 “sit; 68 Pj ance benefit increase almost certainly Idaho.... __.. ___._ -. 1,933 1.0 -...__ !a 7 5.3 151 2.0 ___.... ii.1 (?5.9 Illinois.. ..-__ __-- ___. 17,241 2.9 1.J 92.2 4.0 834 1.1 1.2 79.9 17.9 resulted in some understatement. Indiaua...... __. 6,100 2.6 2.0 82.5 12.9 679 2.4 GG. 0 31.1 Iowa..--.-..-.....-.~ 7,117 2. h .Q 94.4 2.1 555 8.5 3:: 73.5 14.8 which-although not too serious for 1iansvs . .._... .___._. _ 5,149 93.1 6. 3 220 __._... 81.8 17. 7 the present purpose-nevertheless Kentucky ..__. -._._.. 4,718 2129 (3j4 94.0 3.1 1,195 :i _ _. _ _. 84.4 14.7 Louisiaw. ._._ -.-__ 22,415 .4 1.1 82. G 15.9 591 4.1 1.9 67.3 26.7 makes the report unsuitable for use Maine.. _... -__-.-_-_ 3,391 1.3 --me--- 83.4 15.3 500 2.2 _.._._. 70. G 27.2 in projecting trends. 1,594 1.9 .3 94. 5 3.3 138 2.2 7 92.0 6.1 According to reports submitted by Mas~lchust,tts...... 32,028 1. B 1.1 81. 7 15.6 1.029 3.2 :5 79.9 16.4 Michigan. _ ._.. ..__. 18,237 2.2 --_._ -. 83.9 13.9 1,4l!O 4.0 _ _ _ _. _. 72.8 23.2 the States, cases were reviewed for hIinnesotn __.___.._._ 8,890 1.0 2.9 74. 7 21.4 610 .7 2. 5 66.9 30.0 Mississippi.... -. -. _ _ 3,044 3.4 . ..-. -. 53.8 42.9 402 4.5 59.0 36.6 469,000 persons receiving old-age as- Missouri ._.. ____. -._ _ 21.142 .5 (9 77.7 21.7 1,092 1.6 65.7 Montana __..-...._ -__ 1,884 1.1 93.3 5.6 111 1.8 :i :::s’ 22. 5 sistance and 26,300 families receiving Nebraska.-.. __.._... 2,847 1.1 :i 73. 7 24.7 148 2.0 .7 59.5 37. 8 Nevada... .._.___.... 1,070 .5 68.4 30.8 (‘1 (‘1 (9 aid to dependent children in Septem- $1 ber who had also received an old-age New Hampshire. _.-_ 1.636 3:; 1.2 88.8 6.8 97 (9 (‘1 ;:j’ New Jersey ___.___.._ 4,751 85.2 13.3 444 .2 82.7 15.5 and survivors insurance benefit for New Mexico __.._-._. 1,151 92.0 3.6 267 k:“o 16.9 August (table 1). The totals repre- New York. _._- .._.._ 22,302 83.9 14.5 1,089 , 1:: E:i 27.4 North Carolina ._.___. 3,204 85.5 8.9 739 , 4:: _. _. _ so. 2 15.7 sent 18.2 percent and 4.5 percent of North Dakota .._.____ 875 82.6 14. i (9 Ohio-..-...... 20,605 90.3 9.5 7:: I %3 1.1 jipd.6 ‘& 5 the September caseloads in the two Oklahoma . ..__ -__..- 13.957 95. 5 4.0 772 2.7 __._.-. 73.3 24: 0 programs-somewhat lower percent- OF3g0lL .._- __._.___. 5,912 97.5 2.4 182 .5 2.2 87.9 9.3 Pennsylvania.. _. _.. _ 9.790 93.1 2.0 ___-___ 96. 9 ages than would be estimated from Rhode Island .._..... 2,485 94.6 1:: % 2.8 -. - _. _ 87.9 E annual reports on the concurrent re- 82.2 6.3 238 181 71.8 10.1 ceipt of assistance payments and in- 82.2 152 3.3 1.3 67. 8 27.6 86. 6 *E 1,238 5.2 _ _ - - -. 78.0 16.8 surance benefits. 85.4 a. 1 895 4.6 _. _ FQ. 4 2F. II 93.3 6.3 178 3.4 .6 86.0 10.1 Of the 469,000 old-age assistance 79.2 17.8 141 5.7 38.3 56.0 ____.. -. .._-.. (2) (9 (2) cases reviewed, 86 percent remained 83.2 7.4 31: 4.4 .Q 81.7 ‘?2 9 on the rolls but had their payments 98.6 . 573 1.7 77. 1 21: 1 80.0 2.2 342 7.0 . ______87.1 5.8 reduced. Increases in their old-age 83.1 14.6 720 4.0 .6 76.5 18.9 and survivors insurance benefits did 91.6 7.4 42 PI PI (2) (2) - - - - not eliminate their need for assist- 1 Excludes some cases subsequently closed or sus- 1 Program administered without Federal partici- ance. Only 2 percent were closed: pended for ~‘ea.sons other than the eflect of the in. pntion. crease in benefit. 5 Excludes a few cases in which there was no re- for these cases the increase in bene- 2 Not computed; base too small. duction in payment. fit wiped out the deficit between the 8 Less than 0.05 percent. requirements as recognized by the State agency and their income, or mum paid by the State, but their total), payments were suspended. it reduced the deficit to less than the recognized need in excess of this This was a temporary action; ulti. minimum payment made by the amount was equal to or greater than mately the payment would be re- agency. For slightly less than 12 the increase in benefit. Other recip- instated in reduced amounts or the percent of the old-age assistance ients had, simultaneously with the case would be closed. cases reviewed, the increase in bene. beneflt increase, changes in circum- In aid to dependent children, also, fit did not-reduce the amount of the stancesthat offset its financial effect. most of the casesreviewed-slightly assistance payment. Many of these For the few remaining cases (less more than 7 out of every lo-had aged Persons had received the maxi- than one-half of 1 percent of the their payments reduced. The propor- 12 Social Security tion of cases closed (3.1 percent) was most a fourth of the cases, and, as deficit, the reduction in assistance larger than for old-age assistance. in old-age assistance, a small number payments represents only a per. Payments were not reduced for al- had their payments suspended. centage of the increase in benefits The reduction in monthly pay- even though the entire increase was Table 3.-Old-age assistance and aid ments of old-age assistance for the considered. In New Mexico, for ex- to dependent children: E#ect of cases reviewed by the end of Decem- ample, the payments for aid to de- increase in OASI benefits on ber totaled almost $2.1 million (table pendent children meet 80 percent of monthly expenditures for assistance payments for cases reported 3). This amount was equal to a the budget deficit. When the budget through December 1954, by State 1 little more than 89 percent of the was recalculated on the basis of the total increase in monthly old-age and increased benefits and the percentage Effect of increased OASI survivors insurance benefits paid to adjustment applied, the decrease in I benefits on- these cases. The average reduction payments for many cases was 20 in the old-age assistance payment percent less than the increase in was $4.44; the average increase in old-age and survivors insurance bene. m.te the old-age and survivors insurance fits. Reduc- In- RedlW tion in aease tion in benefit was $4.98. In contrast, reductions in pay. , Increase assist- in assist- ments that were larger than the in- in OASI OASI ante For aid to dependent children, the benefits a*Ce P&1-- bene- P&Y- total reduction of $197,000 in monthly crease in benefits were reported by merits fits mcnts ~___- assistance payments equaled 91 per- 15 States for old-age assistance and cent of the total increase in monthly 18 States for aid to dependent chil- To%.. $2.334.656~2.080.448i3316.9Q1 $196.814 I I I / benefits. The average reduction in dren. Tennessee, for example, put 8.890 12,860 1.992 1,937 631 .~~ their assistance payment was $7.48 into effect restrictive policy measures 16,419 29.878 2,014 1,262 14.812 14,736 1,825 1.158 per family, compared with an in- that accounted, in a number of cases, 476,145 418,077 crease of $8.24 in the family insur- for a decrease in payments in addi- 63,622 62,207 ‘;a; 15.3042,228 30,817 20,901 21523 2.053 ance benefit. tion to that produced by the higher 1.230 9% 381 312 3,217 2,729 818 035 The total reduction in the assist- oid-age and survivors insurance bene- 76,838 56.886 9.287 3.748 ance payments was less than the in- fits. G3 .______46,111 49,693 7,237 7,605 crease in old-age and survivors in- In five States-Alaska, Florida, Hawaii-..... 1,485 1,891 525 1,226 9,494 8,803 1,159 1,223 surance benefits for various reasons. Mississippi, Missouri, and South Da- 85,378 85.910 IL-796 6,941 30.888 27,359 6,881 4,953 Need previously unmet, particularly kota-reductions in monthly assist. 34.904 * 34,061: 2 5,115 2 4.007 need for medical care, absorbed part ante payments to beneficiary families 25,265 24,496 1,678 1,294 22,887 19,305 10,136 5.649 or all of the increase in benefits for receiving aid to dependent children 110,343 93,343 4.400 3,584 16,561 14,o551 4,306 3,053 some cases. These were usually amounted to less than half the total cases in which State maximums had increase in their insurance benefits. 8,099 7,911’ 996 1,137 160,134 127,332 9,350 10,397 prevented larger payments. Some In Mississippi the reduction both for 92,692 73,293 12,316 11,702 Minn.-..-w.- 43,509 18,738 5,474 3,016 agencies recognized new items of in. that program and for old-age assist- Miss..e-...-- 15,746 4,640 y3; 876 dividual need or raised the amount ance represented less than one-third MO- .__._____ 120,577 93,316 3,857 Mont _..____ 9,528 9.504 ‘872 879 allowed in their standards for basic the increase in the monthly insur- Kebl ______14, GO0 11,690 &437 742 Nev-.-.----. 5,880 3,880 (31 items, thus increasing the amount of ance benefits. N. H. ______8.144 7,671 . ‘752 ’ ‘878 need required. Michigan, for ex. N. J- . ..___. 23,653 23,350 3,965 3.413 ample, added a monthly medical al- N. Mex-w.. 5,QOQ 6,148 1,950 1,671 N.Y ._... -._- 111,795 85,874 8,894 6,450 lowance of $2 to requirements at the Federal Grants to State N. C ._._ ---._ 16,820 14,542 6,024 5,017 same time the old-age and survivors N. Dek--... 4,283 5,678 756 Ohio-. ____. 100,840 90,710 7.;~ insurance benefit was increased. In and Local Governments, OkI3 .______68,066 %! 4.538 on%.-- _____ 28,912 EE 1:574 1,416 New York, the seasonal increase in 1953-54 Pa ______-.- 49,352 50: 228 7,446 7,622 R. I..--- ._._ 12,349 12,809 743 1,127 the fuel and clothing allowance di- Federal grants to State and local verted some of the increase in bene. s. c-.---.-.. 10,632 11,305 1,908 2,029 governments continued their general &Dali.-- __._ 5,358 5,559 1,515 741 fits. Montana raised the allowance Te**. _ ____ -_ 28.554 29.534 9.244 29,201 upward trend during the fiscal year TCX- ______136,859 136,464 7,448 5,668 for shelter in October, but the effect 1953-54. Although grants for the Utah...... 7,941 7,519 1,499 1,504 on payments was not noticeable be- “T 7,021 1,512 766 several health services and for educa- cause the increase was made effec- 4,834 4,6; 2,51! 2,69! tion declined, grants for public assist- ’ 92.061 ’ 86,952 3,937 2,876 tive at the time of the periodic rein- ance payments and administration, 6.786 7,313 2,925 3,504 48.522 42,901 6,202 5.751 vestigation process. Other States for employment security administra- 5.260 4,705 237 273 have a policy permitting use of in- I I I I tion, for welfare services other than come for needs of dependents, which public assistance, and for all other * The exact effect of increase in insurance benefits on assistance payments cannot be determined be- modified the effect of the increase in purposes increased somewhat. On muse of other factors influencing assistance pay- benefits. Louisiana, Michigan, and ments during this period. balance, total grants, including those * Partly estimated. Minnesota have such policies. of a temporary and emergency 3 Program administered without Federal partici- pation. In States where payments are nature, were more than 7 percent 4 Excludes amounts for a few case8 in which there was no reduction in payments. based on a percentage of the budget greater than those of the preceding Bulletin, July~l955 13