munity services as urban transportation, city planning and urban renewal, water and sewer works, preservation of law and order, and parks and recreation. Admittedly, the dividing line is arbitrary. Some legal aid services are included with the special OEO OEO programs and some juvenile delinquency services with child welfare. But the maintenance of courts, police departments, reform schools, and prisons seem better treated as a general function of government and omitted from this series. Similarly, one can

recognize the importance of urban transportation in assuring access to jobs and steady earnings without classifying it as a social welfare program. Recreational facilities, or at least organized recreational services, and library services may be regarded as closer to the borderline. They continue to be omitted, however, except where they may be hidden in expenditures for schools or other activities. Unless such distinctions were retained, the series would become almost a listing of government expenditures for nondefense purposes and

lose much of its intended character and usefulness.

The series continues to relate to direct expenditures and to exclude such indirect types of subsidy or support as loans, loan guarantees, or income-tax

exemptions. The basic series relates to public programs. Related private expenditures for health, education, and income maintenance and welfare services are brought together in the regular BULLETIN series, as heretofore. The forthcoming

Excludes financial interchange transactions between OASDHI and railroad retirement.

Hospital insurance and supplementary medical insurance included in total shown directly above. Benefit payments began July 1, 1966; 1965-66 data represent administrative expenses only.

Excludes refunds of employee contributions; includes payments to retired military personnel and survivors. Data for administrative expenses not available for Federal noncontributory retirement.

6

• Includes unemployment compensation under State programs, programs for Federal employees and ex-servicemen, and cash training allowances.

7 Cash and medical benefits in the 4 States with programs. Includes private plans where applicable and State costs of administering State plans and supervising private plans. Data for administrative expenses of private plans not available.

• Included in total shown directly above; excludes administrative expenditures, not available separately but included for entire program in preceding line.

Cash and medical benefits paid under Federal laws and under State laws, by private insurance carriers, State funds, and self-insurers. Includes Alaska and Hawaii beginning 1959-60; excludes administrative costs of private carriers and self-insurers.

10 Represents payments under the Social Security Act and, from State and local funds, general assistance. Data for 1939-40 include $1.0 million in administrative costs for which distribution by source of funds is not available.

11 Work relief, other emergency aid, surplus food for the needy, food stamps, and Job Corps, Neighborhood Youth Corps, and work-experience programs under the Economic Opportunity Act.

Excludes expenditures for domiciliary care in institutions other than

mental or tuberculosis and services in connection with OASDHI, State temporary disability insurance, workmen's compensation, public assistance, Vocational rehabilitation, and veterans' and antipoverty programs. (Included in total expenditures for these programs.)

13 Includes cost of medical care for military dependent families. 14 Includes services for crippled children.

15 For detailed description of this item and its components, see forthcoming monograph, Social Welfare Expenditures Under Public Programs in the United States, 1929–66.

16 Includes burial awards.

17 Excludes servicemen's group life insurance.

18 Federal expenditures for administrative costs (Office of Education) and research not shown separately but included in total.

19 Construction costs of vocational and adult education programs included under elementary-secondary construction expenditures. 20 Not available.

"Includes surplus food for institutions.

"Cash and commodities under the National School Lunch Act; special milk, pilot school breakfasts, and nonfood cash assistance under the Child Nutrition Act of 1966; and surplus food for schools. State and local funds represent direct appropriations only.

Represents primarily child welfare services under title V of the Social Security Act.

Includes community action, migrant workers, and VISTA programs and all administrative expenses of the Office of Economic Opportunity. Other OEO programs listed in appropriate subsections under public aid and education.

25 Includes administrative expenses of the Commissioner of Welfare and the Secretary of Health, Education, and Welfare; Indian welfare and guidance; aging activities; certain manpower activities; and other items. 26 Less than $50,000.

"Except as otherwise noted (see footnotes 7 and 9).

Source: Data taken or estimated from Treasury reports, Federal budgets, and available reports of Federal, State and local administrative agencies. For detailed description of sources, see forthcoming monograph, Social Welfare Expenditures under Public Programs in the United States, 1929–66.

monograph covers only the public program data. Some consideration is being given to the desirability of a companion volume that would describe the concepts, data sources, and methods of estimating that underlie the private expenditure figures. These items have, of course, been summarized in successive BULLETIN articles in this or other series prepared by the Social Security Administration. There is some question, however, whether the considerable amount of staff time necessary to elaborate the explanations in the same detail as was thought essential for the public expenditures can be devoted to the project.

Although many detailed refinements and revisions of estimates have been introduced, the revised figures for the major categories and for the total differ little from those previously published. The following tabulation shows the totals for selected years, by 5-year intervals, as revised and as published in the BULLETIN for December 1966.

Most of the changes result from a cleaning-up process as duplications in data from several different sources were identified and eliminated or estimates for programs only recently of any significant size were carried back to earlier years. Other changes are the result of new estimating techniques for those expenditures for which data are not available through normal sources. One example is the new methodology developed for estimating State and local expenditures for institutional care- -an item that has shown fluctuating estimates in earlier years as different techniques were applied. Another example is the development of comprehensive estimates of expenditures under public employee retirement systems.

For recent years, the major changes dollarwise have occurred within the education category. Federal expenditures for higher education were adjusted downward to exclude certain basic research, research facilities, and development expenditures that are not education-oriented-mili

tary and space research, for example. State and local expenditures were adjusted upward to incorporate new Office of Education estimates of higher education expenditures, especially for construction. Because these two adjustments were offsetting to a large degree, however, the net effect was not great.

The tables presented here and in the monograph contain several new lines. One is veterans' life insurance, which had been excluded heretofore partly because of the voluntary nature of the coverage. This program, along with the voluntary program of supplementary medical insurance under OASDHI, is included in the series in accordance with a new conceptual framework adopted for social security and related programs. This framework calls for inclusion not only of expenditures under programs that require compulsory participation but also of those under programs authorized by public law that provide for voluntary participation in which the program or risk is underwritten or insured exclusively by the government.

Further changes include: (1) the addition of an item, "other" housing programs, that encompasses programs other than those meeting the definition of public housing, such as rent supplements, housing rehabilitation grants, rural housing, and low-income demonstration grants; (2) the establishment of a separate subsection "vocational and adult education" under education; and (3) the addition of a new subsection "social welfare, not otherwise classified" under a renamed category "other social welfare." The new subsection includes such items as Indian welfare and guidance, activities in the field of aging, certain manpower activities, and the administrative expenses of such coordinating bodies as the Office of the Secretary in the Department of Health, Education, and Welfare.

Users of the series will probably note that expenditures reported for several other lines have undergone what seem to be extensive revisions. Some of these changes, however, are merely the reshuffling of data between categories. For example, the transfer of expenditures for Job Corps and Neighborhood Youth Centers from "special OEO programs" to "other public aid" accounts largely for the changes in these two lines. The establishment of a separate subsection on vocational and adult education had its effects on the

other components of the education series, especially on data for elementary and secondary education expenditures.

Detailed description of the changes in the series are provided in the monograph, which also summarizes the factors responsible for the differences between the earlier and the revised figures and explains the current estimating techniques.

EXPENDITURES IN FISCAL YEAR 1967

The $12 billion increase in total social welfare expenditures in the fiscal year 1967 was the largest absolute year-to-year increase in the entire period covered. The relative increase of 13.9 percent has not been exceeded since 1958 (tables 1 and la).

As in the preceding year, a major share of the increase was attributable to the OASDHI program. Benefits and cost of administration under the new program of health insurance for the aged amounted to $3.4 billion. Cash benefit payments under OASDHI increased about $1 billion.

The first full year of Medicaid (the new medical assistance program under title XIX of the Social Security Act) brought a net increase of $608 million in vendor payments for medical care under public assistance.

Health and medical programs listed under this major category showed a rise in expenditures of almost $1 billion that resulted from a variety of developments. Expansion of medical benefits to dependents of military personnel and the increased tempo of the Viet Nam conflict were responsible for $375 million of the rise; medical research accounted for another $150 million; construction for $145 million; and other public health activities for $175 million. The latter figure includes additional Federal expenditures of more than $100 million in the areas of community and environmental health services, chronic disease programs, and food and drug control. Also included are the new comprehensive health planning and services program ($4.5 million) and the new regional medical programs ($7.5 million).

When all health expenditures are totaled (including those under such programs as OASDHI, public assistance, and the antipoverty group), the increase from fiscal year 1966 is more than $5 billion-the largest absolute and relative increase in the history of the series, except for one year dur

ing World War II when expenditures almost doubled because of military medical expenditures.

Expenditures for veterans' program rose $650 million, the largest absolute increase since the years immediately following World War II. Mainly responsible for this increase is the new educational benefits program for veterans serving after the Korean conflict. Expenditures under the latter program amounted to more than $325 million in the first full year of operation.

Contributing to the increased expenditures under public aid were the work-training antipoverty programs, which expended some $300 million more in fiscal year 1967 than they had in the preceding year. Included in the 1967 expenditures was $72 million for the new special "impact" programs providing employment to youth and adults in areas of high, hard-core unemployment.

Educational expenditures continued to increase, though not at the same pace as in the preceding years. Federal educational expenditures had risen by an unprecedented $2 billion in fiscal year 1966, primarily as the result of the introduction of such new programs as assistance for educationally deprived children, economic opportunity grants, school library materials grants, supplementary educational centers, and construction of health professions teaching facilities. The year 1967 saw a continuation of these programs, with some upward expenditures but no new programs of consequence. Total Federal expenditures increased by $660 million; State and local expenditures rose by $2.4 billion-almost the same increase relatively as that for the preceding year.

Expenditures in fiscal year 1967 for "other social welfare" programs were higher by almost $500 million-the largest increase since the series began. Contributing to the increase were additional expenditures of $110 million under vocational rehabilitation and of $180 million under the special OEO programs. Included is a pilot breakfast program added to the school lunch program; the authorization for the breakfast program was $2.0 million (only $600,000 was actually expended in the first year).

The reorganization within the Department of Health, Education, and Welfare, which created a new Social and Rehabilitation Service and separated the administration of cash assistance payments from social services, will in all probability be reflected in some regroupings of data in subse