Assistance Payments in Relation to Federal Maximums
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effective maximums that were lower than the Federal maximums. Some payments were larger than AssistancNotese Payment ands in Briefall thre e programReportss were abov e the the Federal maximums for old-age Federal maximums. Nineteen States, assistance in 32 of the 51 States; for Relation to Federal however, made no payments for old- aid to the blind, in 29 of the 47 States Maximums age assistance in excess of these max• with approved plans under the Social imums; 18 States made no such pay• Security Act; and for aid to dependent For the second time in 2 years the ments for aid to the blind; and 15 children, in 35 of the 50 States. The maximum assistance payments in States made none for aid to dependent proportion of payments over the max• which the Federal Government will children. The following tabulation imums varied among these States participate have been increased and shows the proportions of payments at from a fraction of 1 percent to 96 per• the formula for determining the ex• the Federal maximums in those States cent, but in most of them the propor• tent of Federal participation in the in October 1947. tion of such payments was substantial, payments has been revised. The first as is shown in the following tabula• increase was effective in October 1946, tion. when Federal maximums were raised Number of States from $40 to $45 a month for old-age Proportion of payments Aid to at Federal maximums Old-age Aid to depend• Number of States assistance and aid to the blind and assist• the ent from $18 for the first child and $12 ance blind chil• Proportion of payments Aid to dren above Federal maximums Old-age Aid to depend• for each additional child to $24 and assist• the ent $15, respectively, for aid to depend• ance blind chil• ent children. The second increase Total 19 18 15 dren No payments at Federal begins on October 1, 1948. Federal maximums 6 4 6 Total maximums will then be $50 a month Some payments at Fed• 32 29 35 for an aged or blind person and $27 eral maximums: Less than 25 percent 13 7 2 Less than 25 percent 9 10 0 25-49.9 percent 11 14 2 for the first child and $18 for each 25-49.9 percent 3 2 4 50-74.9 percent 4 5 5 additional child in a family of de• 50-74.9 percent 1 2 2 75-100 percent 4 3 26 pendent children. These increases 75-100 percent 0 0 3 In old-age assistance, six of the were made to enable States to make With few exceptions, the States that eight States and, in aid to the blind, larger payments to recipients and made no payments above the Federal five of the eight States that made thus compensate for higher living maximums were those whose 1946 per more than half their payments above costs. capita income was below the national the current Federal maximums had In September 1946, before the 1946 average, and most of them ranked per capita income above the national amendments became effective, about among the lowest third. average in 1946. In all States with one-third of the payments for old-age In old-age assistance, six States— per capita income above the national assistance and aid to the blind and Delaware, Kentucky, Maine, Missis• average in 1946 and in 12 States with almost three-fourths of the payments sippi, Missouri, and South Carolina— lower per capita income, more than for aid to dependent children were at made no payments at the Federal half the aid to dependent children or above the Federal maximums ap• maximum. All but Missouri had payments were in excess of the cur• plicable in that month. In October State maximums lower than the Fed• rent Federal maximums. 1947, a year after the maximums were eral maximum of $45. Missouri had In October 1947, about 23 percent raised, approximately the same pro• a statutory maximum of $45, but its of the payments for old-age assist• portion of recipients of old-age as• effective maximum was only 90 per• ance, almost 26 percent of those for sistance and aid to the blind received cent of this amount because a short• aid to the blind, and 50 percent of payments at or above the new maxi• age of funds had forced a percentage those for aid to dependent children mums, whereas two-thirds of the pay• cut in payments. The four States were above the present Federal maxi• ments for aid to dependent children that made no payments for aid to the mums (chart 1). In view of the were at or above the maximums. blind at the Federal maximum were increase on October 1, 1948, in the The clustering of payments in all Kentucky, Maine, Mississippi, and Federal maximums to $50 for the three programs at the Federal maxi• South Carolina—all with maximums aged and the blind and to $27 for the mums in some States and the substan• lower than the Federal limitation. Of first child and $18 for each additional tial proportion of payments above the six States that made no payments dependent child, the proportions of these maximums in others seem to in• for aid to dependent children at the payments already above these dicate that, in spite of the increases Federal maximums, three—Kentucky, amounts is significant. In October provided by the 1946 amendments, the Mississippi, and South Carolina—had 1947, 16 percent of the payments for maximum payments could not meet lower State maximums. Alaska, Mis• old-age assistance, almost 19 percent the needs of a large number of recip• souri, and Texas had maximums as for aid to the blind, and about 46 ients, according to agency standards high as or higher than the Federal percent for aid to dependent children in effect in October 1947. In most maximums, but a cut in payments due were above the new 1948 maximums. States, therefore, some payments in to shortage of funds had resulted in Even when the 1948 amendments CHART 1.—Percentage distribution of payments in relation to Federal matching maximums, by program, October 1947 [Federal matching maximums: Old-age assistance and aid to the blind, $45 per month: aid to dependent children, $24 per month for the first child and $15 for each additional child] 1 Percentages computed on base of less than 100. 2 Data for September 1947. are in effect, the maximum amounts Federal maximums, however, the 1948 ments made possible by the new in which the Federal Government can amendments can increase payments amendments. participate will still not meet the for most recipients. With the addi• needs of many persons and families tional Federal funds, States will be in under current budgeting standards a position to revise their standards and prices. This is particularly true to take account of higher prices. The for families receiving aid to depend• resulting increase in payments can ent children, since nearly half the amount to as much as $5 per aged and payments in October 1947 already ex• blind recipient and $3 per child re• ceeded the Federal maximums. De• ceiving aid to dependent children, spite a 50-percent increase between provided the States continue to spend September 1946 and October 1948 in State and local funds at the current the Federal maximum for a 2-child rate per recipient. Some States, how• family, the maximums in this pro• ever, will need to raise their adminis• gram are still far less adequate than trative or legislative maximums to those for old-age assistance and aid permit an increase for recipients to the blind. The Federal Govern• whose payments are already at the ment can participate in a payment maximum. Rising case loads, more• for one aged or blind individual up over, will make it necessary for some to $50, in contrast to $45 for a mother, States to spend larger sums from incapacitated father, and 2 children. State and local funds if recipients are In spite of the inadequacy of the to receive the full increase in pay•.