(-$5, 520, 000) Bureau of the Budget reduction: Esti-
mates of the costs of the supplementary
medical insurance program were based
on the assumption that 87.5 percent of
persons eligible would enroll in the sup-
plementary medical insurance program.
By reducing this assumption to 80 per-
cent, a related reduction of $8,600,000
was made in the estimate. The estimated
cost of the bill payment function in pro-
gram to be performed by intermediaries
was reduced by $6,900,000. A partially
offsetting increase of $10,000,000 in the
contingency reserve was made should
the actual enrollment rate be higher than
80 percent.

(-16, 623, 000) Bureau of the Budget reduction: Number
of SSA district offices proposed for con-
struction reduced from 72 to 30 (-$16,-
623,000).

-15, 000, 000 Bureau of the Budget reduction: Lower
estimate by the Bureau of the Budget of
future liabilities to the trust funds
(-$15,000,000).

-92,875,000 Bureau of the Budget reduction: Reduction
in estimate for matching contributions
to the supplementary medical insurance
trust fund based on 80 percent participa-
tion rate (-$54,000,000); reduction in the
estimate of the amount of hospital insur-
ance benefits for the uninsured (-$12,-
000,000); a shift in financing of 1966
administrative costs from 1967 to 1966
(-$25,799,000) and interest (-$1,076, 000).
Total reduction (-$92, 875,000).

Grants to States for public as-
sistance.1

$3, 603, 000, 000 $3,926, 000, 000 $3,926, 000, 000 $3, 746, 400, 000 -$179,600,000

Explanation of difference

-$179,600,000 Bureau of the Budget reduction: Reflects
a judgement that State and local pro-
grams would not expand as rapidly as
the Department had forecast under the
impact of the 1965 social security amend-
ments. This means that of the funds re-
leased because of the new program of
health insurance for the aged, a smaller
amount (than had been forecast by the
Department) will be reinvested in the
program and be spent for other program
improvement and expansion.
Bureau of the Budget reduction: Relates
primarily to a lower daily rate and a
lower number of patient years for men-
tally ill repatriates in St. Elizabeths
Hospital.

-925,000 Departments reduction: Reflects the De-
partment-wide policy of partial absorp-
tion in 1967 of the pay raise.

Bureau of the Budget reduction: Elimi-
nates 103 of the new positions requested.
This reduction was applied as follows:
51 for providing policies, standards,
guides and other assistance to States; 17
for research and statistical activities;
25 for administrative review of State
and local operations; and 10 for increase
in workload in inquiry mail and manage-
ment areas.

Assistance for repatriated U.S. nationals.

452, 000

500,000

500,000

460,000

-40,000

-40,000