NUMBER OF CHILDREN RECEIVING BENEFITS UNDER OLD-AGE AND SURVIVORS INSURANCE AND NUMBER RECEIVING AID 1,000 PERSONS UNDER 18 YEARS, BY STATE, JUNE 1954 GRANTS TO STATES Senator HILL. Mr. Roney, will you come around, please? You have been doing a thriving business in recent years, too. You heard the Commissioner's statement. Do you have a statement you would like to add? Mr. RONEY. I have something summarized here. GRANTS TO STATES FOR PUBLIC ASSISTANCE APPROPRIATION ESTIMATE Grants to States for public assistance: For grants to States for old-age assistance, aid to dependent children, aid to the blind, and aid to the permanently and totally disabled, as authorized in titles I, IV, X, and XIV of the Social Security Act, as amended (42 U. S. C., ch. 7, subchs. I, IV, X, and XIV), [$1,438,000,000 $1,400,000,000, of which such amount as may be necessary shall be available for grants for any period in the prior fiscal year subsequent to March 31 of that year. Introduction The request of $1,400 million for 1956 is $38 million less than that for 1955, including the regular appropriation of $1,200 million and the supplemental of $238 million. The estimate for 1955, however, includes an amount of $9,307,748 that was used to meet part of the States' requirements for 1954. Thus, the decrease in the States' expenditures from Federal funds in 1956 over 1955 is estimated at $29 million. The system of grants established under the public assistance titles of the Social Security Act provides for quarterly advances to States on the basis of estimates and for adjusting the amounts granted by adding to or deducting from subsequent grants on the basis of the States' actual expenditures. Any balance of funds not granted to States at the end of a fiscal year reverts to the United States Treasury. Extension of 1952 amendments The Social Security Act amendments of 1952, Public Law 590, 82d Congress, made additional Federal funds available to all jurisdictions, except Puerto Rico and the Virgin Islands, by raising the maximum on the amount of the payments in which the Federal Government shares and by changing the formula for computing the Federal share. These amendments, which became effective on October 1, 1952, and were due to expire on September 30, 1954, were extended for a 2-year period to September 30, 1956, by Public Law 761, 83d Congress. Under these amendments, the maximum on individual assistance payments in which the Federal Government shares is $55 in the adult categories; and for aid to dependent children, $30 for the first child, $21 for each additional child, and $30 for a needy adult relative with whom any dependent child is living. The Federal share in the adult categories is four-fifths of the first $25 of the average monthly assistance payment, plus one-half of the remainder within the Federal maximums on individual payments; and in aid to dependent children, four-fifths of the first $15 of the average monthly assistance payment per recipient, including the needy relative, plus one-half the remainder within the Federal maximums on individual payments. Payments to recipients The estimated decrease in assistance payments of $29,500,000 in 1956 from the States' expenditures in 1955 is based on the assumption that the number of recipients of old-age assistance and aid to dependent children will decline from 1955 to 1956; it also reflects a drop in average monthly payments from 1955 to 1956 under all 4 programs. The budget does not include an amount for new State plans for aid to the permanently and totally disabled since it is uncertain whether additional plans will be submitted for approval in the fiscal year 1956; it includes an estimated increase in the number of recipients under programs already in operation. A small increase in the number receiving aid to the blind also is anticipated. Amendments extending coverage under the OASI program, enacted by the 83d Congress, will not affect the number of recipients of old-age assistance until the fiscal year 1957. OLD-AGE ASSISTANCE Assistance payments from Federal, State, and local funds in the 53 jurisdictions with approved plans for old-age assistance are estimated at $1,535,700,000 of which the Federal Government will contribute an amount estimated at $865,500,000 or 56.4 percent. The Federal share represents a decrease of $27,800,000 from the amount estimated for 1955. For the fiscal year 1956, it is estimated that the average number of recipients of old-age assistance will be $2,543,000 or 176 per 1,000 of the population 65 years of age and over. The average monthly payment per recipient included in the estimate is $50.32 for the country as a whole; a wide range among the States underlies this average. The variation among the States in average payments reflects differences in eligibility requirements, standards of assistance, and the amount of State and/or local funds appropriated for the program. Decrease in number of recipients.-The estimated average number of recipients. in 1956 is 1.0 percent fewer than is estimated for 1955. For the past 4 years the change in number of recipients has been as follows: It is believed that the downward trend will continue and that the average number of recipients in 1956 will be 2,543,000. Decrease in average monthly payment per recipient.-A fairly steady increase in the average monthly payment occurred from early 1951 through September 1952. In October 1952, when the 1952 amendments became effective, the average payment increased sharply. The changes from December 1951 through October 1954 for all jurisdictions with approved plans were as follows: It has been assumed that in 1956 the average monthly payment will be $50.32, a decrease of $1.06 from the estimated average for 1955; part of this decrease is attributable to the increase in OASI benefits that will be in effect for the entire year 1956, in contrast to only 3 quarters of the fiscal year 1955. October payments were $0.24 per recipient less than in September. AID TO DEPENDENT CHILDREN Assistance payments from Federal, State, and local funds in the 52 jurisdictions with approved plans for aid to dependent children are estimated at $596,700,000, of which the Federal Government will contribute an amount estimated at $345 million or 57.8 percent. The Federal share represents a decrease of $9,600,000 from the amount estimated for 1955. For the fiscal year 1956, the estimates presented provide for an average of 593,400 families to receive assistance in behalf of 1,587,000 children and 519,000 needy adults who are caring for the children. The estimated number of children to be assisted is about 27 per 1,000 of the population under 18 years of ago. The average monthly payment included in the estimate is $83.80 per family and $23.61 per person for the Nation as a whole; these averages vary widely among the States, for the reasons noted above under old-age assistance. Decrease in number of recipients.-The estimated average number of persons who will receive assistance in 1956 is about 1.8 percent fewer than is estimated for 1955. The number of persons-children and needy adult relatives-receiving assistance in recent years has been as follows: It has been assumed that the upward trend in the number of recipients, which occurred in the fiscal year 1954 and has continued into the fiscal year 1955, will be reversed beginning in the latter part of the current fiscal year, and that in 1956 the average number to be assisted will be 2,106,000 persons, including 1,587,000 children and 519,000 needy adults. Decrease in average monthly payment.-Trends in average monthly payments per person are shown in the table below. The increase in 1951 occurred largely as a result of the provision, effective October 1, 1950, for Federal sharing in payments on behalf of the needy adult relative with whom the dependent children are living. The increase from December 1951 to December 1952 reflects a gradual increase throughout the year coupled with a relatively large increase in October 1952, when the 1952 amendments became effective. Since the sharp increase that occurred in late 1952 when the rate of Federal participation went up, the average payment per person has not changed appreciably. The budget estimate is based on the assumption that the average payment in 1956 will be $23.61 per person. AID TO THE BLIND Assistance payments from Federal, State, and local funds in the 53 jurisdictions with approved plans for aid to the blind in 1956 are estimated at $69,400,000 of which the Federal Government will contribute an amount estimated at $34,500,000 or 49.7 percent. The Federal share represents an increase of $100,000 from the amount estimated for 1955. It is estimated that during the fiscal year 1956, an average of 103,800 individuals will receive aid to the blind under approved plans for this program. The average monthly payment included in the estimate is $55.72 for the country as a whole; the average varies widely among the States for the reasons noted above under old-age assistance. Increase in number of recipients.-The estimated average number of recipients in 1956 is about 1.4 percent greater than is estimated for 1955. The number of recipients in recent years is shown in the table below. The large increase from 1950 to 1951 is due primarily to the approval of new plans in Missouri and Pennsylvania. It is believed that the small upward trend will continue into 1956 and that the number of recipients in 1956 will be 103,800. Decrease in average monthly payment per recipient.-From December 1951 to September 1952, a substantial increase in average payment occurred, followed by yet another upward change resulting from the 1952 amendments. The trend is shown in the following table. |