This bill requires employment. The work feature is strong. And we are directing the supplemental payments to the family unit.

Mr. SCHNEEBELI. I would like to ask whatever the question is required to get to these charts.

In that question, can you tell us the process of moving people from welfare to work? Is that the key to an explanation for your charts? Mr. Rosow. We finally got the question, now that the Secretary

has left.

Mr. SCHNEEBELI. Thank you. Somebody handed me the question. Mr. PATRICELLI. Mr. Chairman, perhaps while the charts are being unveiled we could give a direct answer to Mr. Vanik's question about the impact of the statute in terms of driving a young adult out of the home in order that he may not have his income counted against the family's eligibility.

That is taken care of in section 445 (e), in which it is possible for such an adult member of the family to segregate his income, under specifications prescribed by the Secretary.

He is not obligated to share his income with his parents. He has no responsibility under the law to support his parents, and the statute follows the general law.

Mr. VANIK. Will not be counted?

Mr. PATRICELLI. Will not be counted.

Mr. VANIK. All right.

Mrs. GRIFFITHS. Is he required to pay rent?

Mr. PATRICELLI. If he does pay rent, then it is counted.

Mr. VANIK. Whatever he contributes?

Mr. PATRICELLI. Whatever he contributes is counted.

Mr. VANIK. That will be all right.

Mr. BURKE (presiding). The Chair will recognize Mr. Bush.

Mr. SCHNEEBELI. I still have some more questions, but I would like to find out about this flow chart he has from welfare to work.

Which do you want me to do?

Mr. Rosow. With your permission, we would like to move the charts a little closer.

Mr. BURKE. I think you better move them closer.

Mr. SCHNEEBELI. Mr. Chairman, if we may have an explanation of the chart, then following it I have some other questions.

Mr. BURKE. That is O.K.

Mr. Rosow. You also have copies of this, members of the committee, in the hand-out that you were furnished this morning which might be helpful in following the flow, since some of the words are written rather small.

(The charts referred to follow :)

1. Maintenance of Benefits:

States must supplement Federal payments ($1600) where necessary to maintain existing benefit levels for dependent families.

No State supplementation of the "working poor"

2. Maintenance of State effort, and fiscal relief: the "50-90 rule"

Every State must contribute at least 50% of its

present costs

No State is required to contribute more than 90%
of its present cost

Thus, State fiscal relief will vary between 10 and 50%
of present welfare costs, not counting new training,
day care, and revenue sharing funds.

Mr. Rosow. This attempts to show in schematic form the flow from welfare to work.

In the left-hand column we have a brief summary of the families with children in poverty, the 25 million persons, 9 million of whom are adults, and 16 million children.

In applying for family assistance benefits, those persons will receive benefits only after they have registered with the Social Security Administration, shown in the second step, or actually the first step in the procedure, since the first square here is just a description of the universe or the population with whom we are dealing.

The people who will be required to register for work are in the sector here, marked in the green. The other individuals whom I will enumerate briefly are shown in more detail on the other chart, with regard to those who are exempt under the law from the work requirement, so you have adults working full time, of whom there are shown on the other chart 1.8 million people, and they will continue to work, so they are already in the job sector of the economy at this time. They are employed more than 30 hours a week.

The able-bodied adults who are available for employment represent 1.1 million people, 500,000 of whom are women, and 600,000 of whom

are men.

Now, if I may, with your permission, Mr. Chairman, I will return to those people and follow them through at the last stage.

Then we have the female heads of families with children under 6, who are exempt by the statute, and who represent 900,000 people, as shown on the tabulation on the right.

We have wives of family heads, another 3.1 million, and they are exempt by virtue of the fact that their husband is working.

We have the old, sick, and disabled, and they represent 1,200,000 people, and then, finally, the adult members who are students or who are needed in the home to care for a family member full time, and that represents 900,000 people.

Returning to the 1.1 million people who will be required to register, and I might say parenthetically we anticipate that there will be a considerable number of people who will volunteer and register. That will include people in the working poor who may register as shown in the little part of the chart at the top, for the upgrading training which will be provided, and for which we are requesting 75,000 additional training opportunities in the first year of the act. And there will be other people in this group, and those programs come into play, whom we would initiate at our own effort, programs to call them in for training.

But dealing with the 1.1 million who must register, the first step is, after they have applied for their benefit, they come to the local employment office and register with the Employment Service, and we, in accordance with priorities, will develop an employability plan for these people, which will include counseling, diagnosis, and preparation of steps leading to their employment, which might involve in some cases a direct referral to a job, for those people who are ready and have some skill, training, or education, or it might involve classroom training, on-the-job training, work experience, the upgrading or basic education that they may require, or related supportive services, to make them job-ready.

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