(g) Unissued vouchers and ID cards are safely secured at the local clinics. Although control procedures vary from state to state, we are certain that the utilization of these controls, which is mandated federally by the Department of Agriculture, Food and Nutrition Service WIC Office, provides a consistent approach throughout the 50 states, whether the states are on a direct food distribution system, food coupon system, or food voucher system, such as in Washington State. 2. Costs have been reduced to the lowest possible overhead. The system has virtually assured that 90% of all food dollars are distributed to disadvantaged women, infants and children in the form of nutrient food. No more than 10% is expended on management and administrative costs-a very modest cost percentage compared to many governmental programs. Interestingly enough, all participating organizations are able to meet their project costs and overhead. For once business and industry have not been asked to subsidize a governmental food delivery program designed for the disadvantaged. The following statistics indicate the status and success of the WIC Program in Washington State for the month of January, 1975: Assigned caseload___. Number of active participants (81 percent of assigned caseload) -- 15, 563 12, 634 $2,476 136, 183 108, 947 247, 606 19.59 247, 606 27, 512 275, 118 Total dollars redeemed for fiscal year July 1, 1974 to March 31, 1975. 1, 846, 068. 83 3. The simplicity of the Washington State voucher system, which is a combination food prescription form and traveler's check, provides a businesslike approach for all users of the program. Service delivery is enhanced by the efficiency and simplicity of the system. Business and industry are able to utilize their standard procedures and delivery systems in dealing with WIC vouchers. In addition, retailers and clinics are aided by the provision of supplementary retailer and clinic kits which explain WIC procedures. 4. Abuses are kept to a minimum. In less than a year, the Washington State program was geared from zero to almost 16,000 participating clientele with very minimal slippage or fraud. Any abuses are promptly detected and corrected because of the extensive checks and balances built in by our computer and accounting subcontractors. 5. Technical assistance is provided by both the State Department of Social and Health Services and INTERACTION through nutritionists in the field to assure competent delivery and minimization of problems of retailers and health service agencies. Furthermore, the combination traveler's check-food prescription form provides a dignified approach to a food delivery program. Recipients sometimes suffer embarrassment in other kinds of governmental delivery systems. Clients and retailers understand and readily accept a food prescription form because it resembles that used by physicians and clinical personnel. The traveler's check concept is acceptable as well since most people have utilized them at some time. Business leaders also believe that WIC is a preventive program which will have long-term benefits for society. Infants who are not properly fed cannot hope to grow into strong, active children alert to potentia's offered by the private sector. Educators have long recognized that children who are not properly fed are difficult to teach. Mothers who are not properly fed seldom get off public assistance programs into the regular work force. In the long run, WIC clients stand a better chance of becoming participating, taxpaying citizens. These results, however, must await many years of performance to assure valid documentation. The business community in Washington State believes that WIC represents a potential model for other governmental food delivery programs and perhaps other governmental programs in general which are targeted to the disadvantaged. WIC may have definite applications to many other governmental projects such as manpower delivery, the Food Stamp Program, day care services, senior citizen services, Medicare, Medicaid, et. al. Before taxpayers' dollars are handed out in the form of food or services to the disadvantaged, certain determinations should be made. First, citizens willing to participate in the program should be certified by an authorized official as being truly disadvantaged. Programs which involve clinical or medical responsibility should use certified clinical or medical personnel. Once the citizens' needs and motivations have been verified, periodic checks should be made to assure responsible participation in the program. Programs delivering taxpayers' dollars to the needy should provide effective and regular accounting and auditing checkpoints. Programs which require documentation and reporting to governmental bodies should provide proper computerization and reporting systems to insure responsibility. Programs, such as WIC, which ask the private sector to participate should guarantee responsible product delivery to the private sector and fiscal return for their efforts. Government should encourage these programs to be contracted, at least in part, to the private sector because we feel that Washington State's cooperative program demonstrates low overhead coupled with maximum return for the tax dollar. Rather than being irresponsible and inflationary, WIC is a responsible program which assists government with the attainment of greater efficiency and program quality with low overhead. In a growing population with growing needs, government is constantly asked to provide more services. To pay for these services is a continual overwhelming problem, and we can no longer rely solely on raising taxes to provide the revenue. We must increasingly look to the private sector cooperating with government to provide more efficent and responsible systems to insure more mileage for existing or diminishing funding available. The WIC Program in Washington State represents this kind of governmental-private sector cooperation and produces more mileage for taxpayers' dollars. The end results are much less participant abuse and much more serviceability. In summary, we in Washington State ask you to continue this program and to make it into a permanent departmental service because we feel that WIC, at least its example in Washington State, represents a potential model for other governmental programs. We feel that our experience has been excellent and that our performance warrants a continuation. We are able to tell the business community that WIC is a governmental program that works, that is effective. It is a program that truly serves the disadvantaged. We understand the fiscal constraints the members of Congress must exercise in the ever more difficult task of trying to balance our national budget. We were appalled, however, when the WIC Program was not included in the Administration's budget. We were appalled because, as we have stated, this is a governmental program that the participating business community in Washington State looks to with favor and with fervor. We feel the Administration was misadvised and hope that our testimony and the testimonies of others will convince the Administration of the significance of the WIC Program. In conclusion, the State Department of Social and Health Services, INTERACTION, the participating private industries, over 45 health departments and local nonprofit health clinics all join me to thank you for permitting us the opportunity to develop and deliver a responsible, quality control effort. Let us continue this model. Respectfully submitted, Mike McManus, President, INTERACTION, in consort with the following: Washington State Department of Social and Health Services, Mr. Charles Morris, Secretary, and Dr. John Beare, Director of Health Services; Washington State Food Dealers Association, Mr. F. N. McCowan, Executive Director; UARCO Business Forms, Inc., Mr. John M. Cronkhite, Sales Representative; Boeing Computer Services, Inc., Mr. S. C. Beckelman, General Manager, Western District: Ross Laboratories, Mr. Coy D. Pennington, District Sales Manager; Seattle-First National Bank, Mr. George Briggs, Senior Vice President; and Washington Dairy Products Commission, Mr. Bob Hallberk, Secretary-Manager. WASHINGTON STATE FOOD DEALERS ASSOCIATION, Mr. MIKE MCMANUS, INTERACTION, Seattle, Wash. DEAR MR. MCMANUS: The Washington State Food Dealers Association which is made up of around one thousand large, medium, and small retail food stores in the state strongly endorses the W. I. C. program. Our membership, to a store, feels the program has been well set-up and is working extremely well in the state of Washington. The W.I.C. program supplies a definite need of all recipients. We appreciate the fact that this business is going through the proper trade channels. The W.I.C. program can be assured of our continued support and cooperation. Mr. MIKE MCMANUS, c/o INTERACTION, Seattle, Wash. UARCO, INC., Seattle, Wash., April 15, 1975. DEAR MIKE: It is my understanding that the W.I.C. Program could possibly lose funding after June of 1975. If this happens, it would be a tragic mistake. Of all the government support programs for the needy and underprivileged, the W.I.C. Program is one of the best for the following reasons: 1. It involves very little red tape and has minimum administrative costs. 2. It deals in food only-essential for good health and education. 3. It is much more cost effective to see that those in need have proper nutrition instead of waiting until such a time that medication, hospitalization and other institutional services are required. The efforts of INTERACTION to implement the W.I.C. Program in the state of Washington have been great and successful. It would truly be unfortunate to see this program terminated. We at UARCO support its continuation. JOHN M. CRONKHITE. BOEING COMPUTER SERVICES, INC., WESTERN DISTRICT, Seattle, Wash., April 8, 1975. Mr. MIKE MCMANUS, INTERACTION, Seattle, Wash. DEAR MR. MCMANUS: Our candid opinion has been asked for regarding our relationship with INTERACTION and more specifically the Women, Infants and Children (WIC) Nutrition Program. Our relationship in its simplest form is to provide the computing services necessary to track, reconcile and report the impact of the WIC program in the State of Washington. We accomplish this responsibility in accordance with the requirements which you have specified. Relative to our relationship with INTERACTION-we like it, primarily because we are able to meet our responsibilities without special and costly handling typical of many other government programs. As a company, we have postured ourselves to provide effective and efficient computing services and we are able to offer this to your organization without unique and costly constraints-the result is both parties benefit. From a computing standpoint, the WIC program is handled in a manner typical to many other applications we process for other customers. Like most high volume transaction applications, we will be looking for ways to reduce the cost of data entry as the volume and economics justify. In summary, BCS is pleased to be of service on a program which appears to get the right type of help to the people that need it, and that our participation can be provided in a standard business approach. Very truly yours, S. C. BECKELMAN, General Manager, Western District. ROSS LABORATORIES, Columbus, Ohio, April 14, 1975. MIKE MCMANUS, President, INTERACTION Seattle, Wash. DEAR MR. MCMANUS, ROSS Laboratories has been actively working with WIC programs since it's inception. We have attempted to work with WIC projects at every level. It is our goal, along with many other people's, to affect better health through better nutrition for as many woman, infants and children as possible. We have been able to, and hope to continue to, make available our nutritional products to WIC recipients with the same high quality and respect every other customer is entitled too. In addition, we have, and expect to continue, to make available literally dozens of informational pamphlets and materials to assist physicians, perimedical people and anyone else involved with the WIC program, including the recipients, to assist in the nutritional education of pregnant woman, infants and children. It has been my personal observation, that the recipients of the WIC projects in my district have benefited greatly from both the educational materials and nutritional products received. It is our hope that WIC will continue to provide this badly needed program to recipients throughout this country. If there is anything else I can do to be of service, be sure to let me know. Sincerely, COY D. PENNINGTON, SEATTLE-FIRST NATIONAL BANK, Mr. MIKE MCMANUS, President, INTERACTION, Seattle, Wash. DEAR MIKE: We are pleased to inform you that our experience during this past year in servicing your account has been most satisfactory. While we are unable to make judgments relating to the effectiveness of the W.I.C. Nutrition Program, our view of your role as fiscal intermediary has complied with all of the agreements incorporated in our letters of December, 1973. The volume of transactions have increased more dramatically in recent months than anticipated but adequate compensation has been provided. We would hope that future coupons supplied by you will be of a more substantial quality, thereby, allowing for more efficient computer runs. It is our understanding that you are currently renegotiating your contract with the Department of Social and Health Services and the Department of Agriculture. We wish you success and hope we can continue to serve your banking needs. Sincerely, GEORGE BRIGGS, Senior Vice President. WASHINGTON DAIRY PRODUCTS COMMISSION, Mr. MIKE MCMANUS, President, INTERACTION, Seattle, Wash. DEAR MR. MCMANUS: It may be helpful to you when you present testimony in Washington, D.C. in a few days to be able to say that the dairy farmers of the State of Washington are empathetic to the goals of the WIC program. Dairy farmers in this state, and in other parts of the nation, have invested many millions of dollars through the years in research on the nutrition value of milk and 52-880 0-75—14 foods made from milk. It is gratifying to us that milk and cheese have been selected as eligible foods essential to diets of pregnant women, infants, and growing children. The nutritionists and dietitians on the staff of the Washington State Dairy Council, and others of us in the industry who are familiar with the program, feel that INTERACTION has done an effective job in administering the WIC program in our area for the more than 12,000 women, infants, and children who are benefited. We hope that you will be able to relay our endorsement of the special food program for women, infants, and children to our elected representatives in the national capital. Sincerely yours, BOB HALLBERG, Senator CLARK. We are going to hear next from David Goldberg from Burlington, Vt., and I know that Senator Leahy, who is a member of this committee, has other obligations immediately and I am going to permit him, if it is all right with the committee, to ask some questions at the outset. Senator LEAHY. Thank you, Mr. Chairman. Senator CLARK. Mr. David Goldberg is Director of the WIC program with the Vermont Department of Health in Burlington, and before you proceed with your statement, as I said, Senator Leahy has another commitment and he would like to ask you a question or two in advance of your testimony. Senator LEAHY. Thank you, Mr. Chairman, and I realize that we have a vote on. I might say that I am extremely pleased that Mr. Goldberg is able to be here to testify. The WIC program is run, in my estimation, very well indeed in the State of Vermont, and I feel that that is, to a large part, due to his extremely impressive stewardship of that program. Mr. Goldberg, S. 850 provides increased funding for nutrition education and outreach programs. What kinds of programs would you be able to implement if this becomes law? STATEMENT OF DAVID GOLDBERG, DIRECTOR, WIC PROGRAM, VERMONT DEPARTMENT OF HEALTH, BURLINGTON, VT. Mr. GOLDBERG. Senator, I appreciate your support, by the way, for our program in Vermont. I believe our situation in Vermont, with a single statewide program under one agency, permits us some economies that are not available to some smaller projects, more local projects. I feel that we can keep our administrative costs at the present 10 percent limit. The increase proposed in this legislation for nonfood expenses, would be devoted almost entirely to other activities; to nutrition education. activities, which has been brought to the attention of this committee a number of times as an essential component to this program, that we do not have presently, and to what was referred to by the previous panelists as followup activities, to insure that we are increasing, or strengthening, the role that WIC, as a nutrition component, has, in an overall preventive health picture. Frankly, we are not certain what is the most effective type of a nutrition education program. But we have been hearing a lot from the participants in the program who are expressing to us that they want all kinds of information. The types of information that they |