Increases-Program: 1. Vocation rehabilitation services. 2. Expansion of vocational rehabilitation services__. 3. Construction of facilities and workshops---. 4. Workshop improvement activities: Workshop improvement_ Training services____. Total change requested_---- 75, 500, 000 4, 560, 000 3, 000, 000 2,690,000 2, 000, 000 87,750,000 EXPLANATION OF CHANGES Vocational rehabilitation services The 1967 request for the Federal-State basic support program under section 2 amounts to $236 million. An allotment base of $350 million would permit matching under the formula for most States. This request is an increase of $75,500,000 over the 1966 appropriations for Vocational rehabilitation services. It is estimated that 207,500 persons will be rehabilitated during 1967 as a result of the rehabilitation services provided by the funds requested in this budget. The 1967 request includes a limitation of $5 million for matching donated funds earmarked for specific workshops or facilities. These funds will be used for expansion and improvement of workshops and facilities and for initial staffing of facilities for not more than 1 year. Expansion of vocational rehabilitation services The request for 1967 of $9,560,000, an increase of $4,560,000 over fiscal year 1966, includes $6,310,000 to pay part of the cost of projects to expand vocational rehabilitation services where such projects are likely to substantially increase the number of persons vocationally rehabilitated. This increase of $3,310,000 over 1966 will provide for over 40 additional projects and permit 4,500 persons to be rehabilitated through expansion projects in 1967. The request of $3,250,000 for statewide planning for vocational rehabilitation programs is an increase of $1,250,000 over 1966 and will permit continuation and completion of the planning function authorized. Construction of facilities and workshops An amount of $4,500,000 is requested for this activity in fiscal year 1967. Of this amount $3,700,000 will be used for the initiation of the construction program for rehabilitation facilities and workshops and $800,000 will be used for continuation of the State planning program. Workshop improvement activities An increase of $4,690,000 is requested for this activity. Of this increase, $2 million is to initiate in fiscal year 1967 the training service grant program which authorizes grants to pay 90 percent of the costs of projects for providing training services to handicapped individuals in public or other nonprofit workshops. This will make possible the establishment of about 690 training stations in sheltered workshops throughout the country. The remaining $2,690,000 will be used to fund an additional 108 workshop improvement projects at an average cost of about $25,000 per grant. Summary of Federal appropriation requested for rehabilitation services and facilities GRANTS FOR REHABILITATION SERVICES Summary of program workload under the basic support program GRANTS FOR REHABILITATION SERVICES AND FACILITIES An appropriation of $259,060,000 is requested for grants for vocational rehabilitation services and facilities in 1967. This includes $236 million for the basic support program under section 2 with the provision that not more than $5 million is to be used by the States for the establishment of vocational rehabilitation facilities and workshops for which the State share of the cost is derived from funds donated by private organizations or individuals and earmarked for specific workshops or facilities. Also included is $3 million for grants for the innovation of vocational rehabilitation services under section 3; $3.25 million for grants for planning comprehensive vocational rehabilitation programs in the States; and $6.31 million for grants to expand vocational rehabilitation services under section 4(a) (2) of the act. The amount included for grants for planning for and construction of rehabilitation workshops and facilities and for initial staffing under section 12 is $4.5 million and for grants under section 13 workshop improvement projects and training services, $6 million is included. The estimates for grants under section 2 reflect the States' program plans and are based on the authorization for allotments to States included in the 1965 amendments of $350 million. All States will not fully utilize the portion of the authorization allotted to them. A few States. however, anticipate that State funds will be available in excess of those needed to match their full share of the allotments. The 135,000 persons successfully rehabilitated in 1965 mark a new high in State vocational rehabilitation agency achievement. The rate of rehabilitations to the general population rose from 63 persons rehabilitated per 100,000 people in the United States in 1964 to 70 per 100,000 in 1965. This significant increase continues the move to the goal of providing vocational rehabilitation services to all those disabled individuals who need and want them. During the 11 years the vocational rehabilitation program operated under the 1954 amendments to the Vocational Rehabilitation Act, 1 million disabled persons were rehabilitated. This tremendous achievement was accomplished through the combined efforts of the Federal and State Governments and private rehabilitation resources. It was the result of dedicated work by State and Federal staff to return as many disabled persons as possible to independence through rehabilitation into employment. In 1955 the Federal-State program served 209,000 disabled persons and rehabilitated about 58,000 persons. By 1965 the programs had grown to serve 441,000 persons and rehabilitated 135,000 disabled individuals. This growth in service to the disabled caused the rehabilitation agencies to change their programs of service as well as their organizations and relationships with other units of government and private agencies. Improvements have been made in the rehabilitation services available throughout the country as well as in the way these services are brought to the disabled. Significant among the changes are: Increased support and understanding of the rehabilitation process. This has meant a desire to provide greater financial support in all the States and the con sequent demand for greater accomplishment by the rehabilitation programs (in fact since 1954 State financial support for vocational rehabilitation has increased well over 300 percent). The acceptance of rehabilitation as a worthwhile goal and a source of excellent employees has increased the support of the business community and opened new doors to employment. The increased acceptance of and demand for vocational rehabilitation services has brought about changed patterns of providing services to the disabled. The establishment of rehabilitation units as integral parts of institutions such as general hospitals, mental hospitals, schools, etc., has changed the character of vocational rehabilitation personnel. The use of specialized counseling and medical and paramedical personnel has greatly increased. Great strides have been made in the application of the results of rehabilitation research and demonstrations. The State vocational rehabilitation agencies have applied the results of research projects conducted over the past 11 years and have themselves undertaken research projects and conducted demonstrations to find new and better rehabilitation methods and techniques. The tremendous increase in the demand for vocational rehabilitation services required a like increase in trained staff able to provide the new and more specialized services. The Vocational Rehabilitation Administration's training grants are designed to help meet the need for well trained competent staff in the State Vocational rehabilitation agencies and the other organizations providing rehabilitation services. The impressive accomplishments of the State vocational rehabilitation programs over the years since 1954, both in numbers served and in changes in their programs of services, have moved the country well along toward the vocational rehabilitation goals. The changes in program needs and the size of the number of potential rehabilitants whose needs could not be met under the programs authorized in 1954 caused the Congress to enact the 1965 vocational rehabilitation amendments. In general, the newly enacted legislation provides broadened authority for the provision of services and authority to permit the States to develop plans for rehabilitation programs of the scope and magnitude which by 1975 will be able to provide vocational rehabilitation services to all disabled persons who need and want them. Among the major provisions of this much needed legislative authority are increased matching rates for the basic support program, authority to provide services to assist in determining vocational rehabilitation potential, an increase in the matching rate for projects under section 3 as well as an extension from 3 to 5 years for project support, grants for projects to expand vocational rehabilitation services, grants to support comprehensive statewide planning, authority to make grants to plan and construct rehabilitation facilities and workshops, and to provide for workshop improvements and training services in workshops. The 91 State agencies will continue the difficult task of providing the needed Vocational rehabilitation services to the disabled. With the aid of the 1965 amendments to the Vocational Rehabilitation Act this job is greatly helped. Increased State and Federal financial support is necessary to make the new programs possible and to continue to expand the needed services already being provided. The leadership, support, and guidance provided by the Vocational Rehabilitation Administration will continue to help the States to develop their programs to meet more adequately the needs of the disabled. Through the newly authorized programs, the Vocational Rehabilitation Administration has expanded its role in providing the help needed by the States. Through the establishment of new rehabilitation resources and expanded services, greatly assisted by the provisions of the new legislation, the States have shown their desire and ability to take advantage of Federal leadership and to put Federal financial assistance to the best possible use. Program requirements in 1967 The following table shows the history of Federal and State funds for the basic vocational rehabilitation program under section 2 since 1954: Summary of Federal-State financing under sec. 2 1 Change in authorization and in the matching rates under the 1965 Amendments to the Vocational Rehabilitation Act. Method of allotment (support program) In order to assist the States in providing basic vocational rehabilitation services, the Vocational Rehabilitation Act provides for support of such services through allotments to the States. Funds are allotted on the basis of need, as measured by a State's population, and fiscal capacity, as measured by its per capita income. These provisions were designed to reflect the differences in income and population among the States, with the objective that vocationally handicapped persons have access to needed services regardless of whether they reside in a State with a low or high per capita income or in a sparsely or thickly populated State. The Federal funds requested for 1967 will match State funds of $78.7 million. These State funds are part of the total of over $85 million estimated to be available as a result of the 1965 amendments to the Vocational Rehabilitation Act authorizing Federal matching of State agency expenditures for the management of the business enterprises program and funds expected to be available as a result of the waiver of the requirement that vocational rehabilitation services be provided on a statewide basis. This total also includes about $6.7 million of State funds which cannot be matched within the States' allotments based on the authorization for allotments included in the 1965 amendment to the Vocational Rehabilitation Act. PROGRAM HIGHLIGHTS Rehabilitations in 1965 totaled 134,859, an increase of more than 15,000 over 1964. Another 3,724 disabled persons who were not clients of the State rehabilitation agencies were rehabilitated as a result of Vocational Rehabilitation Administration sponsored research and demonstration projects. Thus a total of 138,583 people were rehabilitated during 1965 compared to about 122,000 during 1964. Another 24,352 State agency clients were in employment at the end of the year but were not considered rehabilitated because more time was needed to be sure their employment was satisfactory. The number of clients who had completed their programs of rehabilitation services but had not at yearend been placed in employment was 24,067. During 1965 over 441,000 clients of the State vocational rehabilitation agencies received rehabilitation services and another 16,700 received services through |