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80 percent of the total figure for SLIAG. The total amount is therefore estimated to be $51 million or about 2 percent of the cumulative SLIAG appropriation. C) Adult education totals $548 million; this figure is 23 percent of the cumulative SLIAG appropriation. D) Costs for State and local indigent health care and primary health care programs are estimated to be 93 percent of the amount reported by states for public assistance minus the amount reported for Medicaid. This amount is $511 million or 21 percent of the cumulative SLIAG appropriation. B) Costs reported by States for anti-discrimination education and outreach total $12 million; this amount is 0.5 percent of the cumulative SLIAG appropriation.

Question. What percent of the cumulative SLIAG appropriation is channeled into Medicaid and the programs outlined in the question above?

Answer. Approximately 60 percent of the cumulative SLIAG appropriation has been channeled into Medicaid and the programs outlined in the question at the top of this page.

Question. To what extent has (or will) the uncertainty of SLIAG funding delayed or eliminated continuing literacy instruction for newly legalized persons?

Answer. It is unlikely that the uncertainty of SLIAG funding will delay or eliminate continuing literacy instruction for newly legalized persons. Declines in enrollment and the decline in costs are not inconsistent with the decline in the number of eligible aliens and the completion of the primary objectives of the program, i.e., to ensure the availability of classes necessary to enable legalized aliens to obtain permanent resident status. Even in the absence of SLIAG funding, legalized aliens still would be eligible for regular adult literacy and education programs on the same basis as other U.S. residents.

Question. What is the impact of State anti-discrimination education and outreach efforts? Have State Phase 2 outreach efforts increased use of services (especially education and health care) by the newly legalized population?

Answer. It is too early to determine the extent of the impact of State anti-discrimination efforts. It is not possible to determine the extent of the impact of Phase 2 outreach efforts on the use of services by the newly legalized population because there are no baseline data on the use of services by this population before leg ization.

OFFICE OF HUMAN DEVELOPMENT SERVICES

STATEMENT OF MARY SHEILA GALL, ASSISTANT SECRETARY ACCOMPANIED BY ROBERT STOVENOUR, DIRECTOR, OFFICE OF MAN

AGEMENT SERVICES

BUDGET REQUEST Senator HARKIN. We will now hear from the Assistant Secretary for Human Development Services, Mary Gall.

The fiscal year 1992 budget request for the Office of Human Development Services is $8.8 billion, $5.1 billion of which is in entitlement programs. For discretionary programs, the 1992 budget requests about $3.6 billion, an increase of $205 million over 1991; a $100 million increase for Head Start; $90 million for child welfare services; and $16.2 million for program administration. No increases are sought for programs for the aging, native Americans, runaway and homeless youth, or for family violence and child abuse programs.

We are facing a very tight budget situation this year. I do not need to be told that again. We all know that. We also face some very serious problems, problems which, if we do not address them now, are going to cost us more later on.

We need to develop strategies to deal with the aging of America, with the increased incident of child and elder abuse, and with programs that provide early intervention strategies to mainstream America's disadvantaged children. You are going to hear me talk more about that as you just did with Mş. Barnhart.

So again, just to lead off, I know we have a tight budget situation, but I intend to have this subcommittee do everything we can to focus on early prevention, the early intervention programs. Quite frankly, I am not too happy with some of the freezes in these programs or some of the minimal increases in programs like Head Start.

There is a goal that has been enunciated by Members of the Congress, both Houses, and I think on both sides of the aisle, and by outside interests—I do not know exactly who they all are. I could probably get a list of them—who are pushing for full funding of Head Start by 1994.

Under the President's proposal for a $100 million increase in Head Start, you can correct me if I am wrong, but I think it would take about 60 years to get the full funding for Head Start if we continue down that path.

My overall question is, is this acceptable? Is this acceptable to you and to the administration that we continue on funding Head Start so that in about 60 years we may fully fund it, or do we want to have a shorter timeframe than that?

So with that shot across the bow, Ms. Gall, welcome again to the subcommittee. (Laughter.]

Ms. GALL. Good morning. I am delighted to be here this morning. I have a statement for the record. You have highlighted a number of the program increases requested for fiscal year 1992.

Senator, I am very interested in and pleased with your comments about prevention. We share an interest in that, as is reflected by the increase we are requesting for the Head Start Program, a very important prevention program for our young children and families.

As we take a look at child welfare programs and foster care in particular, the concerns that we have in keeping families together whenever possible rather than removing children from their homes, are reflected in the request for additional funding for preventiontype services to help keep families together whenever we can.

PREPARED STATEMENT I would be happy to answer any particular questions you have. If you would like me to begin by addressing Head Start questions, I would be happy to do that. [The statement follows:)

STATEMENT OF MARY SHEILA GALL Mr. Chairman and members of the committee, I am pleased to have the oppor. tunity to talk to you about the Office of Human Development Services' budget request for fiscal year 1992. The request of $8.84 billion includes: $2.8 billion for the Social Services Block Grant; $3.67 billion for Human Development Services, includ. ing programs for children and families, the aging, persons with developmental disabilities, and Native Americans; and $2.37 billion for Payments to States for Foster Care and Adoption Assistance.

The full authorization of $2.8 billion is requested for the Social Services Block Grant to continue support for a variety of social services in each State.

Within the Human Development Services request, strengthening the family is a primary concern. Increases have been requested: to increase preventive and reunifi

. cation services for children and their families to expand Head Start enrollment, and to support additional positions required to effectively and efficiently administer forty discretionary and formula grant programs. Activities in fiscal year 1992 will also be focused on increasing coordination of child abuse and prevention efforts, improving data collection and dissemination, and gathering additional knowledge about the nature and success of treatment innovations.

To address the growing needs of families who are called upon to deal with increasingly difficult problems, such as substance abuse, a legislative proposal will be submitted which will increase by $90 million the incentive funds available to States for child welfare services. This proposal will also stem the rapid rise of Foster Care administrative costs. The fact that administrative costs are or soon will be higher than maintenance costs in some States is a concern to all of us. Eliminating reimbursement for administrative costs for children who are candidates for title IV-E foster care, but not in foster care, while increasing support for preventive and reunification services, will result in assuring that Federal dollars are supporting services directly related to preventing inappropriate placements. Foster Care Maintenance Payments on behalf of children will remain an open-ended entitlement.

The request for Head Start of $2.05 billion, an increase of $100 million over the 1991 level, will serve over 633,000 children and their families, an increase of over 29,000 children over the number served in 1991. This request will allow Head Start to serve almost 60 percent of disadvantaged children in the year before they enter school. Research has shown that Head Start makes a difference to both children and parents: children who have had a Head Start experience are healthier, better ad. justed and do better upon entering school than their socio-economic peers; and Head Start parents have higher self-esteem and are better able to assume responsibility as the primary educator of their children.

The 1992 budget proposes to maintain or increase 1991 service levels while maintaining 1991 funding levels for the remaining Human Development Services discretionary programs. Service levels will be increased to the extent possible, as a result of management and program operation efficiencies.

In order to better serve the most vulnerable elderly, legislation will be proposed to reauthorize The Older Americans Act and to amend the formulas at both State and sub-State levels to focus funds and services to areas with higher proportions of low-income minority elderly.

The request of $88.2 million and 1,090 FTE for Program Direction is an increase of $16.2 million and 115 FTE over 1991 levels. Additional staff will improve management and oversight of Head Start, Foster Care and Child Welfare, and Administration on Aging programs.

For Payments to States for Foster Care and Adoption Assistance, $2.4 billion is requested. This request is a decrease of $217 million from the 1991 appropriated level. This decrease results from reduced requirements to satisfy prior year claims. -A level of $1.98 billion will support maintenance payments on behalf of an esti

mated 221,000 children in foster care and training costs. Proposed legislation would eliminate reimbursement of administrative expenditures for children who

are candidates for title IV-E Foster Care but who are not in foster care. -The request includes $118.48 million to fund the full estimate of allowable prior

year claims. -A level of $70 million is requested for Independent Living activities designed

to prepare foster care children 16 or older to move successfully into independent living. -A level of $201.86 million will support subsidies for families adopting children with special needs. The request would provide assistance for approximately

56,000 adopted children. Thank you, Mr. Chairman. My colleagues and I will be happy to answer any questions you and the Committee may have.

BIOGRAPHICAL SKETCH OF MARY SHEILA GALL Position: Assistant Secretary for Human Development Services. Birthplace and date: Buffalo, New York; July 19, 1949. Education: B.A., Rosary Hill College, 1971; Additional Coursework: University of Buffalo, Trinity College (Washington, D.C.), Georgetown University.

EXPERIENCE Present: Assistant Secretary for Human Development Services. 1986–1989: Counselor to the Director, Office of Personnel Management. 1981-1986: Deputy Domestic Policy Advisor, Office of the Vice President. 1980–1981: Senior Legislative Analyst, House Republican Study Committee. 1980–1981: Consultant, Reagan-Bush Presidential Campaign. 1979–1980: Director of Research, George Bush for President Campaign.

1977-1979: Director of Special Projects and Casework, Office of U.S. Representative Tom Coleman.

1977: Scheduler, Office of U.S. Representative Jack Kemp. 1971–1977: Director of Regional Office, Office of U.S. Senator James L. Buckley.

HEAD START Senator HARKIN. That was not my first question, but I want to talk about it because I am very interested in that. I see it as a very important part of prevention.

Ms. GALL. Absolutely.

Senator HARKIN. Right now, how many eligible children are being covered by Head Start?

Ms. GALL. About 60 percent of the roughly 825,000 children we are targeting in the year before they enter the public school system.

Senator HARKIN. Congress never intended Head Start to be zeroed on age 4.

Ms. GALL. I understand that, sir.

Senator HARKIN. I refuse to sit here and accept a narrowing of those parameters and to hear we are getting 66 percent or what

age

ever it is that you just said. Congress intended Head Start all the way from

2 on up. Ms. GALL. I understand that, and you will note that our budget for 1992 reflects an increase for parent-child centers associated with Head Start which address the needs of families with children from zero to 3 years old. We understand the congressional intent as it relates to 4 year olds. In fact, about 25 percent of our children are 3 year olds. We serve some 5 year olds too, although many of those children are in the public school system and enter kindergarten at the age of 5.

We would like to reach as many children as possible for a year before they enter the school system, but there is no restriction whatsoever on serving 3 year olds if grantees feel that that is important. That means we may serve 3 year olds for a 2-year period of time. There are no restrictions as far as we are concerned on that.

It is our concern that we reach children for at least a period of 1 year so that they have that important start before they begin working in the school system and, as importantly, that the parents have that head start, or parent involvement, before they enter into the school system as well.

We believe it is important to serve as many children as possible for 1 year, and that would be our first goal. If you look at the studies that have been done over a period of time on children in Head Start, you see significant gains in a period of 1 year when children are in the Head Start Program. You see some gains in the second year, but the most cost-effective approach of reaching as many eligible children as possible is providing that 1-year experience.

I might just note for the record, since 1989 we have increased funding for Head Start by 66 percent, and we are very proud of that record. We are currently serving approximately 600,000 children per year.

Senator HARKIN. Is that 66 percent since 1989 the request that the administration sent down?

Ms. GALL. Yes; last year we received a $400 million increase for fiscal year 1991, and this, coupled with the $100 million we hope to get for 1992, is a significant increase.

Senator HARKIN. Did you include in your figure the money we put in the supplemental last year?

Ms. Gall. That includes the supplemental.

Senator HARKIN. Let me ask this. You mentioned the parentchild program. That is a mandatory program, and it is required by law.

Ms. Gall. Yes; but we are very enthusiastic about it. We think it is a very good program, and we are very enthusiastic about supporting it.

Senator HARKIN. I hope you are as enthusiastic about supporting Head Start.

Ms. GALL. Oh, indeed.

Senator HARKIN. Let us go back through this again. Of the total children eligible under the Head Start Program as passed by Congress 25 years ago, how many children are being served?

Ms. GALL. There are two ways of looking at those figures, Senator. If you are looking at the total population of children from 3

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