RECOMMENDATION 7-PROVISION OF MEANS TO EXAMINE BASIC CAUSES OF FAMILY DISRUPTION We know much through research and experience that, if carried out, would protect and strengthen child and family life in the United States. But the Council believes that every effort should be made to extend our understanding of the basic causes which contribute to problems of children and families-for example, desertion, divorce, neglect, alcoholism, unemployment. Therefore, the Council recommends: (a) That the Secretary of Health, Education, and Welfare through the Children's Bureau be charged to examine and look into the basic causes underlying those phenomena which result in problems to children and families, and (b) that Congress provide the necessary funds. THE 1958 AMENDMENTS So far in this report, the Council has made recommendations for new and extensive Federal legislation for grants-in-aid for child welfare services. Since it was charged by Congress specifically with making recommendations and advising in connection with "the effectuation of the provisions of part 3 of title 5 of the Social Security Act, as amended by the Social Security Amendments of 1958," the Council is also submitting specific recommendations relating to the 1958 amendments. The Council believes these recommendations should be considered by the Congress if the broader and more extensive recommendations made earlier in this report cannot be immediatey put into effect. RECOMMENDATION 8-CONTINUATION OF USE OF FEDERAL FUNDS IN URBAN AREAS One of the 1958 amendments makes possible the use of Federal funds for child welfare services in urban areas on the same basis as in rural areas. Prior to this amendment, these funds could be used only to pay for part of the cost of district, county, or other local child welfare services "in predominantly rural areas" and for "developing State services for the encouragement and assistance of adequate methods of community child welfare organization in predominantly rural areas and in other areas of special need." The Council recommends no change in the present law on this point. RECOMMENDATION 9-CHANGE IN FORMULA FOR APPORTIONMENT OF FEDERAL FUNDS FOR CHILD WELFARE SERVICES The 1958 amendments make two changes in the formula for apportioning Federal child welfare services funds. First, the uniform grant is increased from $40,000 to $60,000. The amount each year bears the same relationship to $60,000 that the total appropriation bears to the full amount authorized to be appropriated. For the current year, the amount appropriated is $13 million and the full amount authorized to be appropriated is $17 million. Thus, the uniform grant is $45,882, or thirteen-seventeenths of $60,000. The second change is to provide for apportioning the remainder through a combination of two factors: total child population and per capita income. Previously, the remainder was apportioned solely on the basis of the child population under the age of 18 in each State who were living in rural areas. Now, briefly, this amount is apportioned in direct ratio to the total child population under 21 in each State, and in inverse ratio to the per capita income of the State. In order to assure that States will not have to reduce services in rural areas because of the change in the formula, the amendments also provide a base allotment for each State. This base allotment is the amount the State would receive for a particular year with an appropriation of $12 million, which is the appropriation that had been made when the amendments were enacted, and the formula in effect prior to these amendments. Accordingly, the formula recognizes the extension of Federal funds. for services to children in urban areas on the same basis as to children in rural areas. At the same time, it also recognizes the importance of continuing services in rural areas initiated under the previous law. Problems have arisen because appropriations have not been increased sufficiently to enable States to benefit by the changes in the formula rather than because of the formula itself. The Council recommends that no change be made in the apportionment formula as applied to the existing law. RECOMMENDATION 10-INCREASE IN AUTHORIZATION Another amendment increased the amount authorized for the annual appropriation for child welfare services from $12 million to $17 million. The amount actually appropriated for the fiscal year 1959 was $12 million and for fiscal 1960, $13 million. Thirty-six States received for 1960 only the base allotment as defined by the amendment. The remaining States received increases above the base allotment but these additional funds probably will be absorbed by the increase in child population and higher costs of services and care. The level of services for these States thus will be approximately the same as for 1959. But in the 36 States that received the base allotment in 1960, the 1959 level of services cannot be maintained. While the 1958 increase in the authorization was a forward step, the Council believes that a further increment is needed immediately to enable the States to make more adequate provisions for child welfare services. Additional funds should be authorized and appropriated not only to expand services in urban areas but also to enlarge training programs to relieve present problems in recruiting and retaining qualified personnel. The States also report the need: (a) To develop special facilities for the care of children, such as foster family homes, group care for emotionally disturbed children, and day-care centers. (b) To expand services, including adoption, homemaker, protective, and preventive services. (c) To conduct research to benefit child welfare programs. Federal appropriations would have to increase greatly to expand services in urban areas and even to maintain programs in rural areas at the same level. It is known that one State, because of higher salaries, has had to cut out its program to unmarried mothers and its special study of children being placed for adoption and to trim its training program by half. The Council recommends that the authorization and appropriation for child welfare services be raised substantially, pending passage of legislation for Federal participation in the total cost of public child welfare services. Testimony before the Congress has established the need for an immediate authorization and appropriation of $25 million as a first step. RECOMMENDATION 11-FEDERAL SHARE REQUIREMENT This amendment provides for variable matching of Federal funds for child welfare services by State and local funds, through defining the State percentage and the "Federal share" (or the Federal percentage) of the total sum expended under the State plan. This amendment became effective on July 1, 1959. Consequently, its effect upon programs is largely unknown. Even so, evaluation of this brief experience points up some problems in the application of the amendment within the context of other provisions of title V, part 3, of the Social Security Act. The "Federal share" concept contemplates a "total" of Federal and State funds for child welfare services. However, the maximum amount of the Federal funds for each State under the closed-end appropriation is fixed by the total appropriation. Hence, most States expend more than is required of them as a State share. The amount of Federal funds appropriated for 1960 was $13 million. The total estimated expenditures by States and local public welfare agencies for child welfare services in fiscal year 1959 was $183.7 million, 93.5 percent of which was from State and local funds. The provision for "establishing, extending and strengthening" child welfare services included in the present law places primary emphasis on stimulation rather than support of child welfare programs and is inconsistent with the "Federal share" concept. Therefore, if legislation is not immediately passed to enable the Federal Government to pay part of the total cost of public child welfare services: The Council recommends that the Congress and the Secretary examine this amendment to determine legislative changes needed to provide matching requirements more appropriate to the purposes of title V, part 3 of the act. RECOMMENDATION 12.--REALLOTMENT PROVISION This amendment provides for the reallotment of funds not certified as required by some States to other States that have need for and ability to use these funds. It specifies that such funds are to be distributed to the States after taking into consideration the same factors as are used in apportioning the annual appropriation. The experience in reallotment of funds in the fiscal year 1959 indicates the desirability of a provision for reallotting funds. Fifteen States received additional funds from $208,350 released for reallotment by four States. This sum which would not have been used in prior years, was used for meeting special program needs in the States. The reallotment of funds in 1959 appears to have stimulated all the States to more active and effective program planning not only for the year but on a long-range basis. Since funds are reallotted by the fixed formula, a problem has arisen. It appears that the amount which will be available for reallotment in the fiscal year 1960 will be nominal, if any funds at all are available. Almost half the States have indicated they will request additional funds. This will mean the distribution of the funds by the fixed formula will result in amounts so small as to be of little use to States. The Council believes that the reallotment provision has accomplished its objective of full utilization of Federal child welfare funds for the purpose for which they were appropriated. The Council also recognizes that division of funds in small amounts achieves no substantial gains in the individual States receiving them. The Council recommends continuation of a provision for reallotment of funds certified by States as not required for carrying out their State plans. It recommends, however, that provision be made for administrative discretion in the reallotment of these funds. RECOMMENDATION 13-PROVISION FOR RETURN OF RUNAWAY CHILDREN This amendment makes a minor modification in the provision, first included in the act in 1950, for paying the cost of the return of runaway children to their home community in another State. The primary changes were: upper limit in age of children was raised from 16 to 18; and the maintenance of children pending completion of plans for their return was authorized. In general, to State welfare agencies the problem of returning runaway children to other States does not loom large. About a third of the States do not encounter the problem at all. The effect of the amendment appears to have been slight. Of the 50 children returned to another State in fiscal 1959 with the aid of Federal funds, only 7 were in the age group 16 to 18, and only 2 children received maintenance, as authorized in the amendment. Even though the problem of returning runaway children to another State is negligible in relation to other problems dealt with by State welfare agencies, the provision with its amendment is a means of enabling States to meet the individual needs of these children. It also focuses attention upon this special group as an area for broad program planning of State welfare agencies with other agencies that carry responsibility for runaway children. The Council recommends that no change should be made in the provision for return of runaway children. RECOMMENDATION 14-INCLUSION OF GUAM The 1958 amendments to the Social Security Act changed the definition of State as used under the act to include Guam, effective for the fiscal year 1960. Until otherwise provided by Congress, the Secretary may, as he may deem appropriate, allot a smaller amount to Guam for child welfare services than would be alloted under the formula. The Council believes that the needs of children in Guam are the same as in other States and jurisdictions and that the Federal Government should assist Guam through Federal funds and consultation, to develop child welfare services. Reports indicate the lack of public or voluntary child welfare services and great unmet needs in Guam. The Council recommends that Guam should receive Federal funds for child welfare services as provided for other States and jurisdictions. RECOMMENDATION 15-EXPANDING CHILDREN'S BUREAU SERVICES Since 1912, when it was established by act of Congress, the Children's Bureau has pioneered for a better life for children. The Bureau began its career by undertaking to learn about why babies died. In 1913 as a Nation we did not know accurately how many babies were born each year, how many died, and why they died. The Bureau then turned to developing standards in many fields of child care-taking leadership in establishing birth registration, working for good adoption practices, juvenile courts, children's institutions, day care centers, county organization for child welfare, illegitimacy, child dependency, fighting child labor abuses, mother's pensions, and many, many others. Today the Children's Bureau administers $46,500,000 in grants-inaid to the States. With help from the Bureau, State public health and welfare agencies have been able to pool Federal, State, and local funds to strengthen and improve maternal and child health, crippled children's and child welfare services. Constant queries reach the Bureau's consultative staff from States and communities, agencies and citizens groups-wanting to know: "Can you help us set up a homemaker service?" *** "How can we improve our detention home?" * * * "Is our convalescent care outdated?" Within the limits of the size of its staff, the Bureau helps launch new programs, overhaul old ones, or make changes as the case may be. The Bureau also has served as a reservoir of information on new developments in other States and across the country in the child welfare field. State public welfare departments want to know about new techniques and methods of work, new types of facilities for child care, and new tools for more effective services-and they are asking the Children's Bureau for this information. Despite its outstanding record, the Children's Bureau has not been able to contribute in this way as fully as it should. The Bureau has far too little staff to help every State do a good job in child welfare. Seven of the Bureau's nine regions-areas ranging from four to eight States each have one lone child welfare representative. (Two of the regions also have a foster care consultant.) This representative's first responsibility is administering Federal grants-in-aid for child welfare services. The remainder of his time he tries to devote to the many public and voluntary agencies and committees who would like to consult with him-committees concerned about migrant, dependent, delinquent, emotionally disturbed, and handicapped children and the many official and citizens groups working on all types of child welfare services. A big job for one person. There aren't enough hours in the day for this worker to begin to carry it-or enough travel funds for him to get about as he should. In the field of research, there is not enough staff to find answers to many important questions, such as "Why do so many children remain for so long in foster care? What does this do to them? How are agencies working with parents while their children are away from |