earlier years.l The estimate of total Federal expenditures calls for $1,167.‘7 Notes and Brief Reports million for old-age assistance, $654.8 million for aid to dependent children, Proposed Social Security authority are defined in the Budget $50.9 million for aid to the blind, Budget, 1959-60* document-appropriations, contract and $177.9 million for aid to the authorizations, and authorizations to permanently and totally disabled. President Eisenhower transmitted expend from debt receipts. Appro- The Federal total is $58.7 million to Congress on January 19, 1959, the priations are defined as “authoriza- higher than the $1,974.8 million (in- Budget of the United States for the tions to make expenditures from the cluding a supplemental appropria- fiscai year ending June 30, 1960. As general fund of the Treasury or from tion of $168.4 million) estimated for in previous years, the largest part the various special funds.” The au- 1958-59. This rise is accounted for of the budget is devoted to the major thorizations and expenditures from by increases in average monthly pay- national security programs, which the general fund alone form the so- ments to recipients, in the number include the military functions of the called administrative budget, and of recipients, and in State and local Department of Defense, development these are the totals most often quoted administrative costs and especially and control of atomic energy, stock. in newspaper and other discussions by the combined net effect of amend- piling and expansion of defense pro of the Budget. Authorizations and ments to the old-age, survivors, and duction, and military assistance (part expenditures from the general fund disability insurance and the public of the mutual security program). and from the trust funds, the public assistance provisions, which will be Of the $76.8 billion in new obliga- enterprise funds, and other special in force for the full year 1959-60 tional authority requested for 1959- funds make up the cash consolidated but for only part of 1958-59. The 60 under existing and proposed leg- budget, which gives a more compre- number of recipients is expected to islation, $45.2 billion or about 59 hensive view of the scope of Govern- increase in all assistance programs percent of the total administrative ment operations. This year’s report except that for the aged; the decrease budget is for these programs. Ap- includes the pertinent data from there reflects the continuing growth propriation requests of $2.1 billion trust and public enterprise funds in the number of aged persons who for Social Security Administration as well as from general funds, which receive old-age and survivors insur- programs represent 2.7 percent of the together yield the cash consolidated ance benefits. total administrative budget. budget for the Social Security Ad- President Eisenhower’s Budget In earlier years, the BULLETIN re- ministration. Message stated the administration’s port on the Social Security Admini- Proposed appropriations for the position on Federal participation in Social Security Administration for stration budget has been in terms of public assistance payments: actual and estimated expenditures. 1959-60 total $2.3 billion on the With this report the base is shifted cash consolidated basis and $2.1 bil- Under the authority of recent legis- to enacted and proposed appropria- lion on the basis of the administra- lation, an advisory council is being tions in the belief that, for readers tive budget. Details of the proposals, appointed by the Secretary of Health, interested in studying program devel- with similar data for 1957-58 and Education, and Welfare to study the opments, these data will be more the current fiscal year, are set forth whole structure and financing of our useful. Expenditures data alone give in table 1. public assistance programs. I have no indication of when Congress ap- Total appropriations for the grant asked the Secretary to present to propriated the money, when the ob- programs of the Social Security Ad- this council, at the earliest possible ligation to pay was incurred, or when ministrat.ion are budgeted at $2,078.8 time, the issue of what constitutes goods were delivered or services million for 1959-60. This sum rep- an appropriate Federal share of these programs. I have also requested him rendered. Estimated expenditures resents 99.8 percent of the general to develop recommendations, after data reflect the expected demands funds requested under the adminis- consulting the council, which can be on the Treasury for ready cash for trative budget and 91.2 percent of presented to the Congress to increase disbursements in the period under the cash consolidated budget. The State and local participation in the consideration. Information of this remainder consists of the salaries cost of the public assistance pro- nature is of und,isputed value for and operating expenses of the Oface grams beginning in 1961. In this monetary management purposes and of the Commissioner of Social Se- curity and of the Bureaus. for the formulation of the broadest 1 These public assistance balances national economic policy; it may not, Total Federal, State, and local ex- available to the Federal Government however, be as useful for analyses of penditures for public assistance pay- fluctuate widely from year to year. They the growth of social insurance or ments and administration in 1959-60 have ranged from more than $50 million to less than the $17.5 million estimated for public social welfare programs as the are estimated at $3,523.6 million and 1959-60. Although their size in any given appropriations data. the Federal share at $2,051.0 million. year is fortuitous, for that year their size Three types of new obligational An appropriation of $2,033.5 million affects the size of the appropriation pro- is requested, with the remaining posal. For public assistance, therefore, and $17.5 million to be supplied out especially for the individual programs, * Prepared by Sophie R. Dales, Division expenditures data mirror program devel- of Program Research, Office of the Com- of Federal balances in the States opment more closely than do appropria- missioner. from collections and adjustments of tions data.

Bulletin, March 1959 15 connection, I believe we must keep crippled children’s services and would tion on salaries and expenses for the in mind the fact that the Federal be available until the close of 1959- Bureau of Old-Age and Survivors share of such expenditures has in- 60. Insurance is $191.6 million, compared creased to more than 57 Percent on Benefit payments from the old- with $173.5 million for 1958-59 and an overall basis and runs as high as age and survivors insurance and $144.7 million for 1957-58. In ad- 80 percent in many cases. I believe disability insurance trust funds are dition, $276,000 is proposed for reim- that this trend is inconsistent with not subject to congressional appro- bursement from the trust funds of our American system of government. salaries and expenses of the Office If it continues, the control of these priation. The Social Security Act, programs will shift from our State as amended, sets forth the conditions of the Commissioner of Social Se- and local governments to the Federal of eligibility, and all qualified ap- curity; this amount is in addition to Government. We must keep the fi- plicants are paid benefits according the appropriation requested for the nancing and control of these pro- to the specifications in the act. Ad- Commissioner’s Office from general grams as close as we possibly can to ministrative expenses, including the funds. Budgets of previous years the people who pay the necessary present construction of a headquar- had placed an overall limitation of taxes and see them in daily operation. ters building in Baltimore for the $31.0 million on construction expend- Bureau of Old-Age and Survivors itures. An added $1.3 million is now For the third time an appropria- Insurance, are subject to congression- proposed for later transmission in tion is budgeted for grants for train- al approval in the form of annual 1958-59 to meet additional space ing and studies in the field of social overall limitations on expenditures, requirements. Completion of the security. Legislative authority for which are, in effect, appropriations building is expected in 1960. these grants was provided in the So- from the trust funds? For 1959-60, $3.6 million is budg- cial Security Amendments of 1956, For 1959-60 the proposed limita- eted for the activities of the Bureau but the implementing budget requests of Federal Credit Unions. Operating for 1956-57 and 1957-58 were not 2 The 1956 amendments to the Social funds for this Bureau are derived approved by Congress and were omit- Security Act, which established the dis- from the fees it charges for services ted from the budget presented for ability insurance trust fund, provide for disbursement of administrative expenses performed. These services include 1958-59. The present proposal calls for the entire old-age, survivors, and dis- chartering new Federal credit unions, for $1.8 million: $1.0 million for ability insurance program from the old- supervising established Federal credit training grants to provide about 350 age and survivors insurance trust fund unions, and making periodic exam- and traineeships for and for subsequent reimbursement by the fellowships disability insurance trust fund of its share inations of their financial condition State and local public welfare per- of these costs. and operating practices. Since 1953 sonnel to make them better able to help assistance recipients attain self-support and self-care-one of Table 1 .-Appropriations 1 budgeted for Social Security Administration pro- the stated objectives of the 1956 grams, fiscal years 195748, 195849, and 1959-60 amendments-and $700,000 for the [In thousands] initiation of about 30 research and demonstration projects and studies 195859 of social security under grants, con- 1957-58, 1959-60, tracts, and jointly financed coopera- Bureau, item, and source of appropriation enacted /IProposed 1 proposed Enacted Total tive arrangements with public or fortrans- hiter i mission 1 nonprofit organizations and with I- States. Total, cash consolidated budget .______$1,966,400 1;1,997,043 $206,010 ~$2203,053 Grants to the States under the I- Qeneral funds, total (administrative budget).-’ 1,813,OOO 1,854,344 170,287 :2,024,631 2,083,967 continuing Children’s Bureau pro- Bureau of Public Assistance.-.~~.~--~-.---...-~- 1,769,157 l,E08,3RO 1&3,5si 1,976,96i 2,035.845 grams are proposed at the same level Qrants to States for public assistance-.--~-.--- 1,767,177 1,806,400 168,400 L,974,ROO 2,033,500 Salariesandexpenscs ._._. -.-.-.-_-._.-- ______1,980 1,9X0 187 2,167 2,345 for 1959-60 as in the current fiscal Children’s Burenu----.---.....--...-.....--..-.- 43,543 45.650 1,072 47,322 46,000 Grants to States for maternal and child health year-$43.5 million. Of this total, and child welfares.... ---...- 41,500 45,000 43,500 $16.5 million is requested for mater- White House Conference on Children and I’outh....-....---.-.---.-.--....---.-.-.-... ---...--.. 150 nal and child health services, includ- SalsriesandrrpensPs..---.-.-...- -..-.-I 2.043 2,172 2,:: OfIke of the Cotimissioner: ing $1.0 million for special projects Bnlsri~sandexpensesz---...--..-.-.-.-.-...-.- 300 342 337 for mentally retarded children-a Grants for social security training and studies-.,...... I. 1,785 program started in 1957; $15.0 mil- Trust 3 and public enterprise 4 funds: Bureau of Old-Age and Survivors Insurance- -- 150,642 139,377 35,i23 175,100 191,876 lion is requested for crippled chil- Limitation on salaries and expenses-...... 144.692 139,131 34,401 173,532 191,600 dren’s services; and $12.0 million Limitation on construction.. .- 5,710 1,300 1,300 Reimbursement, snlnries and expenses of for child welfare services. Also re- Office of the Commissioner...... -- -’ 240 24G 268 276 quested is $1.5 million for open heart Bureau of Federal Credit Unions, operating fund./ 2,758 3,322 3,322 3,645 surgery for children with congenital 1 New obligational authority. disnhility insurnnre trust fund. heart disease; t,his sum is proposed 2 Excludes amounts reimbursed from old-aae and 4 Funds derived from Bureau of Federal Credit for later transmission in 1958-59 survivors insurance and disability insurance trust Unions operations. funds. Source: The Rudqef of the C’nited States Oowrn- as a supplemental appropriation for 3 Old-age and survivors insurance trust fund and ment for the Fiscal Year Ending June SO, 1960, 1959.

16 Social Security the Bureau’s income and outgo have Bore persons needed aid in 1957- Federal share went up, largely be- been budgeted as a public enterprise 58 than in 1956-57. cause the increase in Federal partici- fund. Expenditures of all Federal The growth in expenditures for pation under the 1956 amendments Government, public enterprise funds assistance during 1957-58 mainly was in effect for the entire fiscal are subject to the approval of the reflected the fact that, because of the year 1957-58 but for only the last 3 Bureau of the Budget; their opera- loss of jobs and the exhaustion of quarters of the preceding year. In tions are included in the Govern- unemployment insurance benefits, addition, the 1956 amendments re- ment’s cash consolidated budget as more persons lacked sufficient in- sulted in an increase in the amount are the operations of all trust funds come with which to buy the neces- of Federal funds used for vendor and other special funds. sities of life. The average monthly payments for medical care during number of persons receiving general 1957-58. assistance rose almost 248,000 or 34 The Federal share of assistance percent, and in aid to dependent chil- payments for all programs combined Source of Funds Expended dren the average number of recipi- varied considerably among the States for Public Assistance ents increased nearly 246,000 or 11 in 1957-58, ranging from a low of Payments, 1957-58” percent. More than one-fourth of the 33.4 percent in Connecticut to a high Public assistance payments for increase of 24,000 in the average of 79.7 percent in Mississippi (table needy persons in the United States monthly number of persons receiving 2). This wide variation in the amounted to $31/4billion in the fiscal aid to the permanently and totally amount of Federal participation re- year 1957-58. This total was $280 disabled is attributable to the four flects State differences in the size million, or more than 9 percent, States that either initiated or ex- of payments to recipients under higher than payments in the preced- panded their programs. Since the the four federally aided categories ing year. Expenditures for assistance number of recipients of aid to the and in the scope of their general payments went up in each of the blind remained about the same and assistance programs. (The Federal five assistance programs. The largest the number of aged recipients de- Government does not participate in increases took place in general assist- clined slightly, larger expenditures general assistance, and large expend- itures for that program thus tend ance (22.6 percent) and aid to de- in these programs resulted from pendent children (16.4 percent), the higher average payments per recipi- to reduce the proportion of total as- programs most sensitive to changes ent. sistance expenditures that Federal in economic conditions. The relative- funds represent.) Because of the ly sharp rise in payments to the The Federal share of total assist- Federal matching maximums in ef- disabled-12.4 percent-resulted ance expenditures declined during fect for the special types of public largely from the initiation of new 1957-58 but increased in the feder- assistance during 1957-58, the Fed- programs for aid to the permanently ally aided programs. eral share was lowest in States mak- ing most of their payments in excess and totally disabled in California and Because expenditures for general Texas and the expansion of pro- assistance, which is financed entirely of those maximums. On the other hand, the more favorable Federal grams in Illinois and Pennsylvania. from State-local funds, rose much matching on the first part of the as- Amounts spent for aid to the blind more sharply than expenditures for and old-age assistance rose 5.9 per- the federally aided categories, the sistance payments led to the highest Federal participation in States with cent and 4.4 percent, respectively. Federal share in total assistance ex- penditures declined slightly-from the lowest payments. 50.7 percent in 1956-57 to 50.5 percent The level of assistance payments *Prepared in the Division of Program Statistics and Analysis, Bureau of Public in 1957-58 (table 1). In each of and the scope of the general as- Assistance. the federally aided programs the sistance programs are, in turn, re-

Table 1.-Expenditures for assistance to recipients, by program and source of funds, 195748 1

Amount (in thowrmdT) of expenditures Percentage distribution Percentage distribution by by program source of funds Program

Total...... -..-.-...--~$3.249,672 !$1,641,572 ,$X,209,858 Specisl types of public assistance...... -I 2,911,17F 1,641,572 1,043,742 225,862. Old-ngrsssistnnce... --..-.-...--.! 1,798,374 1,002,652 fiE4,Oil 111,651 Aid to dependent children.. -. -.-. .-.’ 815,196 486,113 246,852 S2,231 ~ Aid to the blind...... -.-..-.’ 85,39i 41,035 37,989 8,373 Aid to the permsnently and totally disabled . .._. ..______.._ ---.--- 212,209 111,773 74,830 25,607 6.5 ’ 6.8 6.2 General assistance- .._._..._._. -___-__--, 338,496 166,116 , 13.7 172,380 1 10.4 / --... I

1 Includes all money payments and assistance in kind to recipients and Data not comparable with annual data based on monthly series or with amount vendor payments on behalf of recipients for goods and services to meet their of Federal grants to States. maintenance needs and for medical care; excludes vendor payments for burial.

Bulletin, March 1959 17