Only basic life safety improvements are planned for the approximately 500 domiciliary care beds. These beds will be used to house patients while outplacement facilities are being developed in the community as well as for placement of patients while other buildings are vacated for the necessary reconstruction. These buildings will be demolished or converted to patient support use, depending upon need at the completion of reconstruction. Current plans envision the reconstruction effort requiring approximately five years. The funds designated for the J.B. Johnson facility will be used to assure the building's acceptability as a skilled nursing facility under the Medicare-Medicaid programs. The facility will be used to house SEH patients designated as requiring outplacement to community facilities. It is the Department's intent that the J.B. Johnson facility be turned over to the District of Columbia for operation, financing and administration. WEDNESDAY FEBRUARY 21, 1978. SOCIAL SECURITY ADMINISTRATION ASSISTANCE PAYMENTS WITNESSES BARRY VAN LARE, ASSOCIATE COMMISSIONER FOR FAMILY ASSISTANCE FRANCIS D. DeGEORGE, ASSOCIATE COMMISSIONER FOR MANAGEMENT AND ADMINISTRATION MARILYN G. O'CONNELL, ASSISTANT BUDGET OFFICER, OFFICE OF FINANCIAL MANAGEMENT, OFFICE OF MANAGEMENT AND ADMINISTRATION KENNETH S. LEVINE, DEPUTY ASSISTANT SECRETARY FOR LEGISLATION WILFORD J. FORBUSH, DEPUTY ASSISTANT SECRETARY, BUDGET Mr. FLOOD. We are still with the Department of Health, Education, and Welfare. We now will take the Social Security Administration, assistance payments. The witness is Mr. Barry Van Lare, Associate Commissioner for Family Assistance. Will you let us know the people you have with you. Mr. VAN LARE. Francis D. DeGeorge, Associate Commissioner for Management and Administration; Kenneth S. Levine, Deputy Assistant Secretary for Legislation; on my left, Marilyn G. O'Connell, Assistant Budget Officer, and Wilford J. Forbush, Deputy Assistant Secretary of the Budget. Mr. FLOOD. You have a prepared statement. What would you like to do with that? Mr. VAN LARE. I would like to submit it for the record. Mr. FLOOD. Without objection, that will be done, along with your biographical sketch. [The information referred to follows:] DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE SOCIAL SECURITY ADMINISTRATION Name: Barry L. Van Lare. Position: Associate Commissioner for Family Assistance, Social Security Administration, Department of Health, Education, and Welfare since December 5, 1977. Former Positions: Director, Division of Human Resources, National Governors' Conference, September 1976-December 1977; Deputy Director for Human Resources, National Governors' Center for Policy Research and Analysis, 1976-1977; Chaired the New Coalition's Welfare Reform Staff Advisory Group, 1976-1977; Commissioner of Social Services, County of Erie, New York, February 1976September 1976; Director, Community Services for the State of Washington, September 1974-February 1976; Various positions with Executive and Legislature in State of New York, July 1962-September 1974 including: Director, State Senate Task Force on Critical Problems; Executive Secretary, Health Planning Commission; Acting Commissioner and Executive Deputy Commissioner, State Department of Social Services; Assistant Secretary to the Governor for Human Resources; Deputy Commissioner for Human Rights. Education: University of Rochester, A.B.-Political Science, 1962; Graduate work in Public Administration, Graduate School in Public Affairs, Albany, New York. Affiliations: Member of the American Public Welfare Association. STATEMENT BY BARRY VAN LARE, THE ASSOCIATE COMMISSIONER FOR FAMILY ASSISTANCE ON 1978 SUPPLEMENTAL REQUEST FOR ASSISTANCE PAYMENTS Mr. Chairman and members of the Committee: I am pleased to have this opportunity to discuss the supplemental request that is contained in the budget for the Aid to Families with Dependent Children program, which is funded through the Assistance Payments Appropriation. This request is for $187 million to cover the fiscal relief for State and local welfare costs authorized by the Social Security Amendments of 1977 (Public Law 95-216, enacted December 20, 1977). The provision in question amends title IV-A, section 403 (a) of the Social Security Act. The provision calls for this payment to be made in a single installment to the States as soon after October 1, 1977 as is administratively feasible. States in which local units of Government are responsible for meeting part of the costs of the Aid to Families with Dependent Children program must pass the fiscal relief through to the local governments up to the full amount of the payment but not more than 100 percent of the amount of the AFDC costs for which the local government was otherwise responsible. We have computed the distribution of these funds to the States under the two part formula provided in the law. One-half of the $187 million will be distributed among the States in proportion to each State's share of total expenditures under the AFDC program for December 1976. The other half will be distributed under the general revenue sharing formula. The supplemental justification before you includes the distribution by State of this payment. Based on estimates of payments under the Assistance Payments programs at the time we submitted the budget we believed we could not absorb the fiscal relief payment in the 1978 appropriation. We have since discovered that we had a larger surplus in FY 1977 than we had originally estimated and believe we can make the payments out of existing budget authority. We are discussing this with the Office of Management and Budget and will advise the Committee this week whether or not we can withdraw this request. We plan to make the payment to the States as soon as funds are available. Since the act calls for the payment to be made as soon after October 1, 1977 as is possible, we have already been contacted by a number of States and local jurisdictions requesting payment and indicating their need for quick action for fiscal relief. Mr. Chairman, we would be glad to respond to any questions which you and the members of the Committee may have. FISCAL RELIEF Mr. FLOOD. Here we have the classic "now you see it, now you don't" welfare fiscal relief supplemental. First we get a request for $187 million in the President's budget. Then we have a proposed statement for this hearing indicating it is absolutely necessary. That was a week ago. Last Thursday, however, we had a phone call saying no supplemental was required; that you had found enough extra funds to make this payment. Will you explain for us how this miracle came to pass? WITHDRAWAL OF SUPPLEMENTAL Mr. VAN LARE. The basic change is that in reviewing the total 1978 appropriation for public assistance an additional $166 million in addition to the $629 million which was reported at the end of the fiscal year, was found to be unobligated for fiscal 1977. Upon discovering that, the Department talked with OMB and it was agreed these funds were available and could be made available for this purpose. Mr. FLOOD. You indicate in your statement a final decision will be, made within the week. Can we expect a formal amendment at that time withdrawing the request which is now before the Congress? Mr. FORBUSH. I don't think a formal budget amendment will be submitted. We have gotten the word from OMB; they have cleared the withdrawal of the supplemental request. They have approved our spending existing funds for this purpose, if you concur. Mr. VAN LARE. The committee has received a letter from Mr. Champion indicating our desire to use the money in this way. I will submit it for the record. [The letter follows:] THE UNDER SECRETARY OF HEALTH, EDUCATION, AND WELFARE FEB 2 .978 The Honorable Daniel J. Flood Dear Mr. Chairman: The fiscal year 1978 Labor-HEW Appropriation Bill included authority for unobligated balances in the FY 1977 Public Assistance account to be carried forward into FY 1978. When FY 1977 accounts were closed, an unobligated balance of $629 million was reported to Treasury and reflected in the FY 1979 budget. However, we have since become aware that an additional $166 million remains unobligated in FY 1977. Therefore, the amount of unobligated balances in the FY 1977 Public Assistance account available for 1978 program costs is $795 million. This additional carryover now makes it possible to fully fund the $187 million "fiscal relief" payment to the States as authorized by Section 401 of the Social Security Amendments of 1977, eliminating the need for Congress to appropriate supplemental funds. It is also possible to utilize unobligated public assistance funds to meet the $1.2 million in pay raise costs, also requested as a 1978 supplemental, in the "Assistance Payments" account. Merger of the AFDC payment and Federal administrative activities into the same appropriation as a result of the reorganization of the Social and Rehabilitation Service makes it possible to reprogram excess AFDC costs to meet administrative expenses, such as additional pay raise costs. 29-226 (Pt. 1) O 78-8 |