on the mandated studies on the combined impact of all taxes on the elderly and the interrelationships of benefit programs.

We have held three meetings of the full Council and two meetings each of the three committees which we have formed. Establishing these three sub-units of the Council is an effort to categorize and facilitate our work on the sizable assignment given to us by the Congress. Our Committee on Senior Services is headed by John Martin, former Commissioner an Aging. Nelson Cruikshank, President of the National Council of Senior Citizens and member of several advisory committees to the Social Security Administration chairs our Committee on the Economics of Aging. A past President of the Gerontological Society and eminent scientist, Carl Eisdorfer chairs our committee on Research and Manpower in the Field of Aging. We do not see these Committee groupings as permanent and expect to rearrange ourselves to fit our priorities.

Developing priorities for the Federal Council on the Aging, aside from the specific assignments given to us by Congress, has been one of our most difficult tasks. There are so many matters affecting the elderly that demand our attention. We do not want to be a passive advisory body but neither do we want to be a chatterbox for superficial criticisms and proposals nor just an endorser of what others determine as good for older Americans.

While we shall continue to work on short-range and mid-range problems and observations on the implementation of Federal laws and programs, we determined at our December meeting to try to focus on two long-range matters affecting the elderly that are not yet receiving the prominence of national policy debate which we believe they deserve.

We have narrowed down our target group to persons usually but not always over the age of 75 who require one or several supportive services in order to cope with daily life. They are expected to become a sizable percentage of this country's population well before the end of this country. Today we are talking about them in such problem areas as "nursing home reform," "alternatives to institutionalization," "community care," "home care" and "isolation."

We hope to focus national attention on the policy issues inherent in the needs of this vulnerable population with their long-term and costly requirements for support services. At the next regular meeting of the Council in March, we are bringing together a group of experts to help us in further defining the problem and on what unique and specific action the Federal Council might carry on to stimulate attention to this major national problem.

'At our March meeting, we have also invited Administration officials to share their thinking on our second priority. We are concerned with the development of an income assurance system for this nation's elderly which successfully integrates Supplemental Security Income, Social Security payments, private pensions with appropriate Federal safeguards and other private income sources. We want all older persons to have a solid income flow but we especially want to assure financial security to the most vulnerable and fragile of the nation's elders.

FCA Membership

The Council is now at its full complement of fifteen members with the recent appointment of Mr. Selden Hill of Florida. In addition, as you know, the Secretary of HEW and the Commissioner on Aging are ex-officio members. Our roster of membership is attached to these written remarks. In addition to those of us who bring to the Council the very personal experience of being older Americans, we are also pleased to have the perspective of one 30-year old member and several middle-aged professionals in the field of aging.

Staff Support

As staff for the Federal Council, we inherited the Staff Director and Administrative Assistant of the Advisory Committee on Older Americans. HEW and the Administration on Aging has since augmented our staff with two professional persons and a secretary. We hope to have a slot for an additional professional person during this fiscal year. We have used contractual and temporary help to assist with our Congressional studies and will continue to use this means for projects of short-term and defined scope. Limited staff assistance also comes from AoA, HEW and other Federal staff. We are operating at a budget level of some $600,000 for this fiscal year and are still negotiating for FY 1976. The FCA Secretariat is located structurally and physically in the Administration on Aging in the Office of Human Development from which we receive valuable administrative support.

FCA Activities

GENERAL

Recommendations were made to the President and to the Secretary of Health, Education, and Welfare, and the Commissioner on Aging following a meeting of the Council on September 10-11, 1974. These recommendations concerned : setting the Intermediate Budget level of the Bureau of Labor Statistics for older retired persons (autumn 1973, $5,414 U.S. average for retired urban couples) as the standard for national income policies for older Americans; giving appropriate attention to the employment of persons 55 years of age or older in implementation of the Comprehensive Employment Training Act; funding of senior employment programs under Title IX of the Older Americans Act; assuring that the new Legal Services Corporation meets the needs of older persons; and maintaining the level of funding for Senior opportunities and Services programs in any reorganization of OEO.

ADMINISTRATIVE RECOMMENDATIONS TO THE SECRETARY OF HEW

In response to FCA recommendations to the Secretary of HEW, positive action was taken by him in requesting Arthur Flemming, as Chairman of the Interdepartmental Working Group on Aging, to establish a Task Force on Manpower Needs in the Field of Aging. Dr. Flemming is also to provide the Council with available information relative to Federal research expenditures and program activities affecting the elderly for fiscal year 1974 and proposals for fiscal year 1975.

In response to another FCA recommendation, the Secretary designated Dr, Carl Eisdorfer as an ex-officio member of the National Advisory Council on Aging to the National Institute on Aging.

PROPOSED BUDGET CUTS

The FCA expressed to the President and to Congress their deep concern about the finanical burden that would fall on the elderly as a result of proposed 1975 budget cuts, in particular the additional costs that would have to be borne by the aged in relation to Medicare, Medicaid and food stamps.

Roy Ash, Director of the Office of Management and Budget responded for the White House, acknowledging their awareness of the Council's concern. We are attaching Mr. Ash's response with which we do not necessarily agree. Stories on the Council's position were featured in the New York Times (December 12, 1974, p. 94) and the Washington Star-News (December 17, 1974, p. 1).

WORLD ASSEMBLY ON AGING

The Council took action, in letters to the President and other administration officials, endorsing the concept of a World Assembly on Aging, possibly in conjunction with a World Year on the Aging under the auspices of the United Nations.

The State Department informed us that the U.S. delegation to the United Nations would consult informally with representatives of both industrialized and developing countries on the possibility of holding such a meeting.

HOLT-HELMS AMENDMENTS TO LABOR-HEW APPROPRIATIONS BILL

The Council expressed to Congress strong opposition to the Holt and Helms amendments to the appropriations bill, as impediments to HEW activities to improve the status of older women and minority group members.

HEARINGS

As directed by the Older Americans Act provisions regarding the Federal Council, we undertook two hearings during 1974 to "provide public forums for discussing and publicizing the problems and needs of the aging". A hearing conducted by the.Council's Committee on, Aging Research and Manpower was held on October 31st in Portland, Oregon. The date and location were chosen to coincide with the combined annual meetings of the Gerontological Society and the American Geriatrics Society. Leading gerontologists were asked to provide their assessments of research activities in the field of aging to give

guidance to the Federal Council on the Aging in their monitoring responsibilities relative to federal research programs.

The second hearing was conducted by the Committee on Senior Services as part of the development of the recommendations regarding revisions to State formulae for funding programs of the Older Americans Act. Only a few State agencies on aging were able to send representatives to Washington but many more provided valuable written comments which were included in the final report of the Council.

Amendments to the Older Americans Act

As you begin deliberations for possible changes in the Older Americans Act, we hope that you will find our report and recommendations on the formulae for allotment among the States of program funds under the Older Americans Act to be of assistance. As we mentioned previously, the full report has been submitted to the Chairman of the House Committee on Education and Labor but we would like to highlight our work for you.

As set forth by law, we were to examine the effects of the formulae specified in Section 303 (Area Planning and Social Service Programs). The Commissioner on Aging asked us to expand the scope of our study to include the funding of planning, coordination, evaluation, and administration of State plans in Section 306 and the funding of nutrition programs in Section 703.

Our major recommendations are:

1. Add Poverty Factor.-The factor of "the population aged 60 or over who are living in poor households" should be added to the factor of the number of State residents aged 60 or over in all the present State allotment formulae in the Older Ameriycans Act. The Council concluded that the most simple and accurate single indicator of vulnerability among the elderly is poverty.

2. Increase and Modify State Administrative Funding.-The authorization and appropriation for funding State Administrative costs in Section 306 of Title III should provide for the following:

a. In FY 1976, increase the dollar" minima to $200,000 (States) and $62,500 (territories).

b. In FY 1976, no State should receive less than a 10% increase over its FY 1975 funding level.

c. In each succeeding fiscal year of the period for which the authorization of the Act is extended, the "dollar" minima and total funding in Section 308 should increase at least 10%.

d. The eventual phaseout of the "dollar" minima to the complete use of the "percentage" minima for State administration in Section 306 should occur when the funding level would sufficiently cover the basic State administrative costs, The costs of administering programs was a major area of concern expressed by State agencies to the Federal Council. For the future, we suggest to Congress that whenever a new program is added to the Older Americans Act which a State is expected to administer, and whenever there is a sizable increase in the appropriation for Title VII, Congress should consider increasing the overall amount available for administrative purposes.

Aside from the points included in our Formulae Report, the Federal Council on the Aging is not making any further recommendations for substantive legislative changes during this time of renewal of the authorization of the Older Americans Act. In general, we feel that the major new programs in the Older Americans Act need a longer period of experience and evaluation before revisions are made by the Congress.

Let me say again how much of a pleasure it is to appear before the Subcommittee this morning. We look forward to a continuing relationship as we bring back to you the results of our deliberations. We shall do our best-as you have charged us to be a voice for older Americans at the Federal level.

EXECUTIVE OFFICE OF THE PRESIDENT,
OFFICE OF MANAGEMENT AND BUDGET,
Washington, D.C.

MS. BERTHA S. ADKINS,

Chairman, Federal Council on Aging,
Washington, D.C.

DEAR MS. ADKINS: I am writing in response to your letter of December 9, 1974, to the President in which concern was expressed regarding the impact on the elderly of proposed 1975 budget reductions.

Insofar as it is possible, both the White House and the Office of Management and Budget give special consideration to the advice and counsel provided by

your organization, along with the expressed views of other concerned agencies and citizens.

Indeed, the inclusion of the Secretary of the Department of Health, Education, and Welfare and the Commissioner on Aging as ex-officio members of the Federal Council on Aging provides an additional policy input mechanism for calling our attention to issues of concern to the elderly.

We are not unmindful of the particular needs of the elderly. In fact, under the programs which you mention, benefits for those in need including the elderly will rise substantially in fiscal year 1975 over 1974 as follows: Medicare―+$1,962 million; Medicaid—+$606 million; Food Stamps-+$850 million. In addition, income assistance benefits will increase by the following amounts: Social Security +$7,200 million, and Supplemental Security Income-+$200 million. On November 26, 1974, the President sent a message urging the Congress to take action on the Administration's proposed economic program. The President said, "Responsible restraint of government is an integral part of my economic program." As we help to develop the President's budget proposals, therefore, we are seeking ways to eliminate expensive mismanagement in federally supported programs and to alter them to achieve more equitable treatment and to achieve a better balance in the sharing of financial responsibility between Federal, State, local, and private agencies and invdividuals. The Administration is convinced that this can be achieved while continuing to pursue its commitment to the goal of assisting our elderly citizens to live in dignity and self-respect. Sincerely,

ROY L. ASH, Director.

Mr. BRADEMAS. Thank you very much, Miss Adkins. We are very grateful to you for coming.

I have just two or three questions. I notice in your prepared statement the concern which the Council expressed with respect to the possibility of service cuts in Federal programs for the aged.

Miss ADKINS. We protested as vigorously as we know how because it does seem to us that the programs affecting this particular segment of the population are the ones which must be maintained at present level and must be ready to expand to meet needs in the future. We do. not approve at all of the proposed approach of the administration, Mr. BRADEMAS. That to me is very gratifying because you haveMiss ADKINS. I think we did not attach to our statement a letter which we sent to the President. We did attach the report from Mr. Ash.

Mr. BRADEMAS. That is very gratifying because I think you will have at least a couple of opportunities to be heard from again.

One, when the deferrals and rescissions to which we have made reference earlier today are published, probably today, and second when the budget message comes out next week.

May I ask in that respect, Miss Adkins, does the administration request advice of the Council on the Aging before making decisions which affect policy for the elderly?

Miss ADKINS. I will say in all candor that our advice was not sought before the decisions were made. We recognize that we are few. We know that in order to gain recognition, shall we say, as a group which has a worthwhile point of view, we perhaps should be longer lived and have demonstrated that our judgment is sound and based upon quite thoughtful deliberations.

As I have stated in my written comments, we don't want to become a group which just, you know, reacts off the top of our heads and with emotion and yet we do want people to recognize that we are established for a very specific reason and therefore should be brought into deliberations.

We have, as our ex-officio members the Secretary of Health, Education, and Welfare and the Commissioner on Aging. I will say that the Commissioner on Aging is extremely cooperative and we have a very close association with him. We do not have that same association with the Office of Management and Budget.

Mr. BRADEMAS. Few of us do, Miss Adkins.

My only other question touches upon your observation about the reports that you are undertaking. As I recall, two of them, one of them having to do with the impact of taxes on the elderly to which you referred and the other having to do with the interrelationships of several benefit programs were to have been completed by the end of the year.

Can you tell us when you think those might be finished?

Miss ADKINS. We have asked, as you know, for an extension. Since we did not get started until July or June 1974, we have asked for a delay.

Now, the taxation study, when you get into local pictures as you know, they vary so, Mr. Chairman, I would hesitate to predict when we can give a preliminary report, but I would think by the end of June on this.

Ms. TAVANI. Probably the end of this year, 1975.

Miss ADKINS. The benefit program we are getting underway now. As you can imagine, we have to have some of this work and research done under contract with people who are well qualified for this type of exploration.

One of the people who is working has started, as I understand it, the work on this. This has delayed us somewhat.

Again, we certainly want to be well underway by the end of June. Mr. BRADEMAS. That is encouraging. I would hope that you can do that because this Congress will be working on a tax reform bill this year hopefully and what you have to say I think can have some impact. Miss ADKINS. We hope it will have impact; yes.

Mr. BRADEMAS. Thank you very much.

Mr. Cornell.

Mr. CORNELL. I would like to say, too, it is most gratifying to see your observations here or your protests, I guess you would call it, on the administration's proposal for funding of the older Americans programs. I was somewhat taken back, to put it mildly, yesterday when it was reported to us that the administration proposes a $17 million cutback in funds for the elderly.

That on top of the fact that the President, of course, has previously announced that he wanted the social security increase frozen at 5 percent.

Already since last July since the last increase in social security the cost of living index has gone up 6 percent to this date. It is anticipated it might go to 8.5 percent or higher.

I think we have much to be concerned about this problem. I am happy to see that your group has indicated that.

Miss ADKINS. Thank you.

Mr. BRADEMAS. Mr. Beard.

Mr. BEARD. Don't give up. Don't give up. It is obvious that the President didn't even give you a chance by listening to your advice or taking your advice.