SOCIAL SECURITY PROGRAMS We have now reached the Social Security trust fund portion of the budget again. This portion of the budget really requires no direct action by this committee but in your review of the salaries and expenses budget of the Social Security Administration you do, of course, need to concern yourselves with these data. There is a proposal in the budget for some cost control devices to be introduced in medicare. They would increase cost sharing as do our proposals in medicaid. The other significant item I would call to your attention is a fairly sharp increase of $131 million in assistance to disabled coal miners. This program which, as you know is at the beginning of the second year, has taken a very sharp rise in terms of persons eligible. The number of people eligible for the program is exceeding both the expectation of the sponsors of the original legislation and the Department's expectations. SOCIAL SECURITY ADMINISTRATION (In Millions) Bob Ball, when he appears before you, will give you some very interesting case histories. Mr. FLOOD. If he doesn't, I will. Mr. CARDWELL. Yes, sir; I am aware of your interest in the program. SPECIAL INSTITUTIONS AND DEPARTMENTAL MANAGEMENT As I mentioned at the outset for inclusion in the Department's activities are funding support for the so-called special institutions, Howard University and so forth. I would mention that this part of the budget does include the funds needed to construct the physical facilities for the model secondary school for the deaf here in Washington, D.C., and funds to increase faculty salaries at both Gallaudet and Howard. There is also money in the Howard University budget to plan an ambulatory care annex to the new Freedman's Hospital. Before I left to come over here about noon today, I got word that the estimates of costs for the construction of the hospital are again going up. Congress has made two appropriations in the last 5 years to finance that project and it is still falling behind. The rising cost of construction is still jumping out ahead of the appropriation. We do, of course, show an increase in Head Start in 1972, a net increase of $17 million. I might mention departmental management does include direct operation of the Office of the Secretary, including the activities of the Office for Civil Rights. The only staffing increases at the departmental level in 1972 would be for that office for contract compliance activities required under law. DISTRIBUTION OF FEDERAL FUNDS BY FUNCTION This is a breakdown that this subcommittee is quite familiar with. It emphasizes the fact that 95 percent of the total HEW budget which you will be examining goes out in the form of grants and payments to States, local agencies, and private nonprofit organizations in the broad areas of health, education, and welfare. 1972 HEW APPROPRIATIONS DISTRIBUTION BY FUNCTION About 5 percent of the budget, $1.1 billion is for direct operations. Those include the operation of the Public Health Service Hospitals, Indian Health Hospitals, intramural research at NIH, the Communicable Disease Center in Atlanta, and so forth. Thank you very much for your attention. I hope this proves helpful in the chores that lie before you. I know how severe they will be in the days ahead. Thank you again. Mr. FLOOD. That was an excellent presentation. I am sure the committee would join me in that statement. Mr. CARDWELL. Thank you, Mr. Chairman. STATEMENT OF HON. ELLIOT LEE RICHARDSON, SECRETARY OF HEALTH, EDUCATION, AND WELFARE Mr. FLOOD. Mr. Secretary, we are happy to see you again after so many years' absence from the Department of Health, Education, and Welfare. Secretary RICHARDSON. Thank you very much, Mr. Chairman. I caught the last part of Bruce Cardwell's presentation. As I am sure this subcommittee is better aware than anyone else could be, Mr. Cardwell fills very large shoes. I knew Jim Kelly myself when I served in HEW before and I was glad to find him still on board when I first got back to the Department in June but he had already committed himself to go to Georgetown University. I think it was a tribute to him that he began from an early date in developing the staff that could succeed him at whatever time he left. I think we are all very fortunate that Bruce Cardwell was there in line to take over from him when he left the Department. Mr. FLOOD. If we agree with you for the rest of the hearings as we do with regard to what you just said, you will have a very happy season. Secretary RICHARDSON. Thank you very much, sir. I trust you will but I obviously am prepared to discover there may be points, from time to tine, on which we do not entirely see eye to eye. Mr. FLOOD. That is a very careful understatement. The State Department taught you that, I suppose. Secretary RICHARDSON. Yes; I did get something out of that experience. Mr. FLOOD. It is customary for us at this point in the record to insert your biographical sketch. We have had it presented by your staff. Without objection, we will insert that at this point. (The biographical sketch follows:) BIOGRAPHICAL SKETCH OF HON. ELLIOT LEE RICHARDSON, SECRETARY OF HEALTH, EDUCATION, AND WELFARE Elliot Lee Richardson was nominated by President Nixon on June 6, 1970, to be Secretary of Health, Education, and Welfare, and was sworn into office on June 24 by the Chief Justice of the United States, Warren E. Burger. Secretary Richardson has been concerned with health, education, and welfare matters throughout his career of public service. As HEW Assistant Secretary for Legislation during the Eisenhower administration, he was responsible for developing and presenting to Congress, bills on aid to education, social security, public health, and juvenile delinquency. His imprint was on the National Defense Education Act, a watershed education measure. From 1964 to 1966, as Lieutenant Governor of the Commonwealth of Massachusetts, the Secretary played a vital role in the coordination of the State's health, education, and welfare programs under Gov. John A. Volpe. During this period he headed the task force which produced the Community Mental Health Act and developed a multiservice agency program. Secretary Richardson was also active in other areas touching directly on the lives of Bay State citizens during a 2-year term as U.S. attorney for Massachusetts, and in 1966, when he was elected attorney general of the State. While U.S. attorney, he conducted a widespread investigation of highway landtaking frauds and initiated a drive against organized crime. As attorney general of the Commonwealth, he established the Nation's first State-level organized crime section and moved to investigate and prosecute consumer fraud and unfair trade practices. During his service as chairman of the Governor's Committee on Law Enforcement and Administration of Criminal Justice, he directed a complete evaluation of the State's criminal justice system and recommended and implemented programs for its improvement. Until assuming the leadership of HEW, Secretary Richardson was Under Secretary of State from January 24, 1969. As Under Secretary, he participated in meetings of the National Security Council and was chairman of the NSC Under Secretaries Committee. In addition, he was chairman of the board of the Foreign Service, an interagency body, which is undertaking a major review of the organization and personnel systems of the Foreign Service. Secretary Richardson was born in Boston, July 20, 1920. He was graduated from Harvard College with the class of 1941, and from Harvard Law School in 1947. In 1942, he enlisted in the U.S. Army, rose from the ranks to the grade of first lieutenant and was honorably discharged in 1945. He served in the European Theater of Operations during World War II and went ashore with the 4th Infantry Division on D-Day in Normandy. He was awarded the Bronze Star Medal for Heroic Service and the Purple Heart Medal with Oak Leaf Cluster. Upon graduation from law school where he was president of the Harvard Law Review, he became law clerk to the late Judge Learned Hand of the U.S. Court of Appeals. He served as law clerk in 1949 for the late Supreme Court Justice Felix Frankfurter. During the years 1949-53, he was an associate in the Boston law firm of Ropes, Gray, Best, Coolidge & Rugg. In 1953 and 1954, Secretary Richardson served in Washington as assistant to Senator Leveret Saltonstall. He was a partner in the Boston law firm of Ropes & Gray from September 1961 to January 1962 and from January 1963 to December 1964. The Secretary is a former member of the Board of Overseers of Harvard College. He is a member of the Council on Foreign Relations, a Fellow of the American Academy of Arts and Sciences, and a Fellow of the American Bar Foundation. President Nixon has appointed him to the Board of Governors of the American National Red Cross. As a member of the President's Cabinet, the Secretary is Chairman of one Presidential Advisory Committee, the Public Advisory Commitee, and six interdepartmental committees. These include the Presidential Air Quality Advisory Board, the Interdepartmental Committee on Children and Youth, the Presidential Committee on Mental Retardation, and the Presidential Council on Aging. Secretary Richardson is a member of 29 interdepartmental committees. Among these are the Cabinet Committee on Environment, Advisory Council to the President's Committee on Employment of the Handicapped, the Council of Rural Affairs, the Council of Urban Affairs, and the Domestic Council. He is married to the former Anne F. Hazard of Peace Dale, Rhode Island. They have three children, Henry, Nancy, and Michael. Mr. FLOOD. We think that you are no amateur in this subject. We know that you served this department some years ago. And we know when you went back home to Massachusetts in your capacity as attorney general and lieutenant governor you continued that interest for the benefit of the people of Massachusetts. We know there have been some interesting changes in your personnel. We have a very high regard for some of those who have appeared here many times before, and we hope that the new breed carry the burden as well. Mr. Secretary, I see you have here a prepared statement. How do you wish to proceed? Secretary RICHARDSON. I Would welcome, Mr. Chairman, the opportunity to read the statement, and I would be prepared at the close of the statement to respond to any questions you or the members of the committee may have. If possible, from my point of view, I would hope we might be able to proceed to the questioning part of the statement perhaps tomorrow. Has that been suggested? Mr. FLOOD. I understand that you have an appointment with the President tomorrow morning in connection with a mesage which is to come to the Congress later in the day. We, therefore, intend to take the new Commissioner of Education tomorrow morning. We discussed this and I know no reason we can't do as you wish. Secretary RICHARDSON. I would be glad to stay as long as necessary. Mr. FLOOD. I don't think we would want to impose upon you by keeping you late, in view of all the circumstances. We are starting oarly, we are the prize subcommittee in that regard as well as with |