1/ Distribution is based on the most recent birth through two population data. The Outlying Areas receive one percent of the total appropriation. The Secretary of the Interior receives 1.25 percent of the aggregate amount available to all States. No State receives less than 0.5 percent of the aggregate amount available to all States.

2/ As a result of the change in status of the Federated States of Micronesia and the Marshall Islands, formerly part of the Trust Territory, these entities are not eligible for funding under this program. The Republic of Palau, however, continues its trust relationship with the United States and is eligible for funding.

285

MONDAY, APRIL 11, 1988.

REHABILITATION SERVICES AND HANDICAPPED

RESEARCH

WITNESSES

MADELEINE C. WILL, ASSISTANT SECRETARY FOR SPECIAL EDUCATION AND REHABILITATIVE SERVICES

SUSAN S. SUTER, ACTING COMMISSIONER, REHABILITATION SERVICES ADMINISTRATION

JAMES B. RESWICK, ACTING DIRECTOR, NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION RESEARCH

SALLY H. CHRISTENSEN, DIRECTOR, BUDGET SERVICE, OFFICE OF PLANNING, BUDGET AND EVALUATION

CAROL A. CICHOWSKI, DIRECTOR, DIVISION OF SPECIAL EDUCATION, REHABILITATION AND RESEARCH ANALYSIS, OFFICE OF PLANNING, BUDGET AND EVALUATION

Mr. NATCHER. We take up at this time the budget request for fiscal year 1989 for Rehabilitation Services and Handicapped Research. We have before the committee Mrs. Madeleine C. Will, Assistant Secretary for Special Education and Rehabilitative Services. Ms. Will, before you give us your statement concerning your budget request, who do you have with you at the table?

Ms. WILL. Mr. Chairman, on my left I have Sally Christensen and Carol Cichowski from the Office of Planning, Budget and Evaluation. On my right, I have the Acting Commissioner of the Rehabilitation Services Administration, Mrs. Susan Suter. On my far right is the Acting Director of the National Institute on Disability and Rehabilitation Research, Dr. James Reswick.

OPENING STATEMENT

Mr. NATCHER. Thank you, Ms. Will, and we will be pleased to hear from you at this time.

Ms. WILL. Mr. Chairman and members of the committee, I appreciate this opportunity to discuss the fiscal year 1989 budget request for the Rehabilitation Services and Handicapped Research account, which includes activities of the Rehabilitation Services Administration and the National Institute on Disability and Rehabilitation Research.

The President's budget maintains a priority on programs which provide vocational opportunities for handicapped persons. The total requested for this account is $1,600,000,000, an increase of $26,000,000 over the 1988 appropriated level.

The Vocational Rehabilitation State Grants, Grants for Indians, Supported Employment, Client Assistance and Comprehensive Services for Independent Living Programs would receive increases

84-626 0-88-24

in 1989 over the 1988 appropriated level. No funding is requested for recreational programs. All other programs are maintained at the 1988 appropriation level.

BASIC STATE GRANTS

The fiscal year 1989 budget request for Basic State Grants is $1,400,000,000, an increase of $27,600,000 over the fiscal year 1988 appropriation of $1,380,000,000. The 1989 level would enable States to maintain their ongoing programs of rehabilitation services to disabled persons and to continue giving priority to severely disabled individuals.

Approximately the same number of disabled persons are expected to be served and rehabilitated in fiscal year 1989 as in fiscal year 1988.

The Indian Program will be funded from a set-aside from the Basic State Grant Program. This set-aside provision for Indian programs would receive an increase of $69,000 over the fiscal year 1988 appropriated level, for a total of $3,500,000. This level would allow for the continuation of six ongoing projects and eight new projects.

SUPPORTED EMPLOYMENT PROGRAM

We are requesting $26,500,000 for the Supported Employment formula grant program, an increase of $519,000 over the fiscal year 1988 appropriated level. These additional funds reflect the Department's high priority on State-operated programs that provide opportunities to severely disabled persons.

CLIENT ASSISTANCE PROGRAM

We are requesting $7,650,000 for the Client Assistance Program, an increase of $150,000 over the fiscal year 1988 appropriation. These funds should enable agencies to continue to provide the full range of services specified by the law. The minimum allotment would be increased for States to $75,000 and $45,000 for Territories, the new statutory amounts established by the 1986 amendments.

SERVICE AND DEMONSTRATION PROJECTS

We are requesting a total of $44,700,000 for Service and Demonstration Projects. The request for Special Demonstration Programs is $16,600,000; $475,000 for Model Transition Grants; and $9,500,000 for Supported Employment Projects. Projects with Industry and Migratory Worker Projects are proposed at the fiscal year 1988 appropriations levels of $17,000,000 and $1,100,000, respectively.

No funds are requested for recreational programs in 1989. Recre ation is an activity more appropriately funded by private charities, local organizations, and other non-Federal sources. Since the Indian program would be funded through the Title I set-aside, no funds are requested for this program under Service and Demonstration Projects.