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DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1992

THURSDAY, MARCH 21, 1991

U.S. SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, DC.

The subcommittee met at 10 a.m., in room SD-192, Dirksen Senate Office Building, Hon. Tom Harkin (chairman) presiding. Present: Senators Harkin, Specter, and Gorton.

ACTION

STATEMENT OF JANE A. KENNY, DIRECTOR

ACCOMPANIED BY GARY KOWALCZYK, COMPTROLLER AND ACTING ASSOCIATE DIRECTOR FOR MANAGEMENT AND BUDGET

OPENING REMARKS OF SENATOR HARKIN

Senator HARKIN. Good morning. The Subcommittee on Labor, Health and Human Services, Education, and Related Agencies will come to order this morning.

We will hear testimony from 8 of the 15 related agencies on this jurisdiction of the subcommittee.

First will be the ACTION agency, followed by Federal Mediation and Conciliation Service, the National Mediation Board, the Railroad Retirement Board, the Federal Mine Safety and Health Review Commission, the National Labor Relations Board, and the Occupational Safety and Health Review Commission.

Jane Kenny, the Director of ACTION is our first witness. I understand you are requesting $198.5 million for fiscal year 1992, an increase of $7.2 million or about 3.8 percent over last year, specifically requesting a 16-percent increase for VISTA, a 33-percent cut in the special volunteer programs, level funding for the Older American Volunteer Programs, a 4.2-percent increase for inspector general, and a 7.5-percent increase for program administration.

Ms. Kenny, please introduce your colleague who is with you and summarize your opening statement. I would appreciate it.

I will leave the record open at this point for any statements that Senator Specter has. And I would yield to my friend from Washington, Senator Gorton.

Senator GORTON. I am ready to hear the witness.

Senator HARKIN. Thank you. Ms. Kenny, please proceed.

INTRODUCTION OF ASSOCIATES

Ms. KENNY. Mr. Chairman, accompanying me at the hearing is Gary Kowalczyk, who is our Comptroller and also the acting associate director of ACTION for management and budget.

Mr. Chairman and members of the committee, I am pleased to appear before you today to discuss the fiscal year 1992 budget request for ACTION. With your permission, Mr. Chairman, I have a statement that I would like to have inserted into the record. I will summarize the key points in that statement.

BUDGET REQUEST

The request totals $198.6 million, an increase of $7.3 million or 3.8 percent above amounts available in fiscal year 1991. With these moneys in fiscal year 1992, ACTION will carry out its fundamental mission to stimulate voluntary citizen participation in community based efforts to meet the needs of the poor, the disadvantaged, and the elderly.

In fiscal year 1992, ACTION's programs will support approximately one-half million diverse volunteers who will engage in a wide variety of programs and projects such as home care for the elderly, literacy enhancement, drug abuse prevention and education, assistance for at-risk youth, and housing projects for lowincome families.

VOLUNTEERS IN SERVICE TO AMERICA

Turning to our specific programs, for VISTA our request of $35.8 million, an increase of $5.5 million or 18 percent, will support, first, 3,200 volunteer service years, second, an average subsistence allowance at 105 percent of the poverty index, third, increases in the stipend for volunteers from $90 to $95 per month, and fourth, 1.5 percent of available sums to expand public awareness and recruitment activities.

In addition, the VISTA budget includes increases for expenses related to the health contract for volunteers and continues the training expansion initiated in this fiscal year. Our budget for the Literacy Corps will support 440 volunteer service years in fiscal year 1992, the same level as in fiscal year 1991.

STUDENT COMMUNITY SERVICE PROGRAM

We are proposing $976,000, the same level as in fiscal year 1991 for the Student Community Service Program. ACTION is committed to tapping volunteer resources found among the Nation's youth. And this program is a proven and effective vehicle for accomplishing this goal.

Grinnell College, located in your home State, Mr. Chairman, is an excellent example of a successful project established with a Student Community Service Program grant. Now in its third and final year of ACTION funding, the Grinnell Community Service Center coordinates student volunteers and community needs at 15 work sites. In fact, I am pleased to report that today one out of every four students at Grinnell participate in some type of volunteer ac

tivities. That is an excellent result for a minor investment of $30,000 of Federal funds.

DRUG ALLIANCE

Our budget also includes $1.451 million for the funding of grants to combat drug abuse through volunteer programs. These grants are awarded to nonprofit organizations engaged in addressing the serious problems of illicit drug abuse, primarily among at-risk youth in low-income communities through voluntary efforts.

OLDER AMERICAN VOLUNTEER PROGRAMS

For the Older American Volunteer Programs, we are requesting $123.9 million, the same amount as is available in fiscal year 1991. In general, we will support the same number of projects and volunteers as in fiscal year 1991. With this level of funding, our budget provides moneys to support a stipend increase for low-income senior volunteers from $2.35 to $2.40 per hour in both the Foster Grandparent and the Senior Companion Programs.

INSPECTOR GENERAL

In fiscal year 1992, we are requesting $1 million and 12 positions for the Office of the Inspector General.

For program administration, we are requesting $30.4 million, an increase of $2.1 million above prior year amounts. The increase reflects a level that is essential to assure sound administration of ACTION programs and to continue the increased support provided by Congress last year for administration.

In that regard, Mr. Chairman, I would like to take this opportunity to thank you. I learned from my parents that you should be quicker to say thank you than you are to say please. Last year, in fact, you did support our request for an increase in program administration funds.

As a result of the increase we received, among other things, we have been able to increase our field travel by 40 percent, add 13 recruitment positions for the VISTA Program, and significantly increase participation in training conferences for both our projects and our volunteers. So your support of our efforts have not gone unnoticed. And they will greatly enhance the product of our agency, I am confident, not only this year but in the years to come.

PREPARED STATEMENT

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Last, with regard to the fiscal year 1992 budget we have submitted, the increase reflects a level that is essential to assure sound administration of ACTION programs and to continue the increased support provided for us. The increase will cover mandatory cost increases, mostly in the areas of personnel and benefits as well as support the agency at a full-time equivalent level of 438 positions. Mr. Chairman, that summarizes ACTION's budget request for fiscal year 1992. I would be pleased to answer any questions that the subcommittee may have.

[The statement follows:]

STATEMENT OF JANE A. KENNY

Mr. Chairman and members of the committee, I am pleased to appear before you today to discuss the fiscal year 1992 budget request for ACTION.

Our budget request totals $198.6 million, an increase of $7.3 million, or 3.8 percent, above amounts available in fiscal year 1991. With these moneys in fiscal year 1992, ACTION will carry out its fundamental mission to stimulate voluntary citizen participation in community-based efforts to meet the needs of the poor, the disadvantaged, and the elderly.

This budget request reflects the Administration's commitment to fostering voluntarism across the Nation, including the creation of public/private partnerships to address the needs of local communities. ACTION, through support of established programs and encouragement of local volunteer efforts, will continue to challenge all Americans to use their energy, innovative spirit, experience and skills to the fullest advantage to address critical needs of communities and the Nation.

In fiscal year 1992, ACTION's programs will support approximately one-half million diverse volunteers-old and young, low income and financially able, stipended and non-stipended, full-time and part-time, students and workers-who will engage in a wide variety of programs and projects, such as home care for the elderly, literacy enhancement, drug abuse prevention and education, assistance for at-risk youth, and housing projects for low income families. As in the past, the programs we support will be defined, developed and implemented by local communities, thereby assuring that their needs are being addressed.

ACTION's basic goals, as reflected in the fiscal year 1992 budget, are as follows: (1) Provide leadership as the Federal domestic volunteer agency by expanding and promoting voluntarism nationwide; (2) develop and sustain standards of excellence in existing programs; (3) develop greater financial self-sufficiency of ACTION funded programs; (4) develop, test, and promote innovations in voluntarism; (5) enhance systems for volunteer recruitment, training, and placement; and (6) enhance and enrich the quality of life of ACTION funded volunteers.

I will now summarize the major components of the budget.

VOLUNTEERS IN SERVICE TO AMERICA (VISTA)

For VISTA, our request of $35.8 million, an increase of $5.5 million, or 18 percent, will support a number of planned changes: 3,200 volunteer service years, an increase of 278 above the anticipated fiscal year 1991 level of 2,922 and an amount equivalent to the minimum floor established in the Domestic Volunteer Service Act of 1973, as amended, for fiscal year 1992; increases in the subsistence levels for individual volunteers to provide an average subsistence allowance at 105 percent of the poverty index for a single individual; increases in the stipend for volunteers from $90 to $95 per month; and provision of 1.5 percent of available sums to expand public awareness and recruitment activities.

In accordance with the Domestic Volunteer Service Act Amendments of 1989, the 3,200 volunteer service years under the VISTA program will increase the size of the regular program by over 22 percent over a 3-year period, fiscal year 1989-92. Further, when combined with the VISTA Literacy Corps, the volunteer service years supported within VISTA will total 3,640 in fiscal year 1992.

In fiscal year 1992, the subsistence allowance under the VISTA program will be raised to an average of $609 per month, an increase of $43, or 7.7 percent, above the level provided in fiscal year 1991. In accordance with the Domestic Volunteer Service Act of 1973, as amended, individual allowances are adjusted to reflect differences in the cost of living in various parts of the country.

The increase in the stipend, from $90 to $95 per month, will increase the amount a volunteer completing an assignment after twelve months of service will receivefrom $1,080 to $1,140.

For public awareness and recruitment activities, we anticipate spending $537,000 in program funds in fiscal year 1992. We will use these monies to implement a newly developed marketing plan for the VISTA program, where we are targeting to increase the number of recent college graduates who become VISTA Volunteers.

In addition, reflecting escalating costs in the health industry, the VISTA budget includes increases for expenses related to the health contract for volunteers. Further, our budget proposes to continue the enhanced training begun in fiscal year 1991. We continue to believe that this additional training is essential if we are to provide projects with Volunteers having up-to-date skills who are capable of providing high quality service.

As in the past, VISTA Volunteers will focus their efforts on the needs of lowincome people, including projects designed to address the problems of at-risk youth, illiteracy, unemployment, hunger, substance abuse, and homelessness.

LITERACY CORPS

We propose an increase of $309,000, or 7 percent, to provide greater support for existing volunteers, including the same increases for subsistence allowances, stipends, and public awareness as are requested for other VISTA Volunteers. Our budget will support 440 volunteer service years in fiscal year 1992, the same level as in fiscal year 1991.

Volunteers under the Literacy Corps program will serve as mobilizers and catalysts in recruiting and training community volunteers to provide tutoring and other literacy promoting functions. As in the past, volunteers funded by the regular VISTA appropriation will also participate in literacy projects.

STUDENT COMMUNITY SERVICE PROGRAM

We are proposing $976,000, the same level as in 1991, for the Student Community Service Program. ACTION is committed to tapping volunteer resources found among the Nation's youth, and this program is a proven and effective vehicle for accomplishing this goal. Unlike any other Federally funded programs directed at students, the Student Community Service Program supports volunteers who receive no remuneration or tuition assistance and provide assistance only to low-income communities.

Under this program small grants are given to colleges, universities, secondary schools, and non-profit organizations to act as a stimulus in the promotion of student volunteer activities. Students direct their volunteer activities to address the needs of low-income individuals in the community in which the institution is located.

SPECIAL VOLUNTEER PROGRAMS

Our budget includes $1.451 million for the funding of grants to combat drug abuse through volunteer programs.

These grants are awarded to non-profit organizations engaged in addressing the serious problems of illicit drug abuse, primarily among at-risk youth in low-income communities, through voluntary efforts. Self-help programs include illicit drug abuse education and prevention activities.

ACTION's drug abuse program is an integral part of the Administration's overall effort to curtail substance abuse. In the aggregate across all of our programs, ACTION expects to spend approximately $11.1 million for this activity in fiscal year 1992, an increase of $150,000 above the estimated amount in fiscal year 1991.

OLDER AMERICAN VOLUNTEER PROGRAMS

For Older American Volunteer Programs, we are requesting $123.9 million, the same amount as is available in fiscal year 1991.

Within this level funding, our budget provides moneys to support a stipend increase for ACTION-funded, low-income volunteers, from $2.35 to $2.40 per hour, in both the Foster Grandparent and Senior Companion Programs. Moneys to support this stipend increase are available within an overall level budget in fiscal year 1992, because the appropriation for fiscal year 1991 contains one-time funding for the fiscal year 1991 stipend increase for non-ACTION funded volunteers.

The Domestic Volunteer Service Act of 1973, as amended, authorizes an hourly stipend of $2.50 for fiscal year 1992, subject to the availability of funds to maintain the same number of volunteers as in the prior year. Within available funding, we are proposing to maintain the same number of volunteers as in fiscal year 1991, and then to increase the stipend to $2.40 per hour. As the Committee is aware, the stipend was increased from $2.20 to $2.35 in fiscal year 1991.

In fiscal year 1992 we are requesting $33.4 million for the Retired Senior Volunteer Program (RSVP), $62.9 million for the Foster Grandparent Program (FGP), and $27.6 million for the Senior Companion Program (SCP). RSVP promotes voluntarism among retired Americans and uses their skills in projects important to the community. FGP supports low-income seniors in providing one-to-one assistance to children with special or exceptional needs. SCP provides older low-income seniors the opportunity to provide personal assistance and companionship to older persons with physical, mental, or emotional impairments which put them at risk of institutionaliza

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