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by a lack of full comprehension of rehabilitation and by an inadequate grasp of the social work training and skills necessary to a program of rehabilitation. Rehabilitation includes vocational and physical rehabilitation, but in full meaning is broader and deeper. Despite these reservations, and others of lesser importance, the report is a major contribution to the reorganization of the State social welfare program for better services to New York State.

Recently the Governor appointed a Moreland Act commission of 11 members under the chairmanship of S. Hazard Gillespie to investigate the State's public welfare organization and program. We confidently look to this commission for clear guidance in the development of our State's public welfare program, and gladly offer our services. We also commend to their attention and favorable action the penetrating study and enlightened recommendations by the Cresap firm.

STATEMENT OF ILLINOIS STATE CHAMBER OF COMMERCE IN RESPECT TO H.R. 10032. PUBLIC WELFARE AMENDMENTS OF 1962, INTRODUCED BY MR. MILLS AND REFERRED TO COMMITTEE ON WAYS AND MEANS

The Illinois State Chamber of Commerce is a statewide organization with a membership of over 18,000 businessmen representing companies in 418 towns and cities in every part of the State of Illinois. These members are engaged in virtually every type of business, ranging from some of the Nation's largest corporations to many smaller corporations and the self-employed.

This statement is based upon recommendations prepared in the first instance by the Illinois State Chamber's Public Assistance and Welfare Committee of 65 members having competence in the field of public assistance, and representative of the chamber's membership. Reflected herein is the considered judgment of our committee members and also the Illinois State chamber's 70-man board of directors, which has endorsed the recommendations of the public assistance and welfare committee. Viewpoints expressed herein broadly represent those of Illinois businessmen concerning two sections of H.R. 10032 on public assistance programs.

SECTION 131. PERMANENT EXTENSION OF THE AID TO DEPENDENT CHILDREN PROGRAM TO CHILDREN OF UNEMPLOYED PARENTS

Recommendation.-Provisions of Public Law 87-31 making aid to dependent children available to dependent children of unemployed parents should not be extended beyond June 30, 1962.

Explanation.-Prior to last May the aid to dependent children program covered only families with children deprived of parental support or care by reason of the death, continued absence from the home, or physical or mental incapacity of a parent. Congress changed this longstanding concept by temporarily including children of unemployed parents in the ADC program to ease the financial burden on the States of high unemployment during the recent recession. Traditionally, during the last quarter century, assistance to unemployed families had been provided by the States and/or local governments through their general assistance programs. We believe that providing aid to unemployed families with children should be the responsibility of the States and/or local governments within each State under their general assistance programs.

Illinois spent $9,769,768 on the ADC-unemployed program from May through January 1962, receiving $4,566,908 or 46.75 percent of this amount from the Federal Government to provide aid to a matchable load that had increased from 7,156 persons last May to 35,383 persons in January. Thirteen States, including Illinois, had this program in operation by November 1961, and the combined cost to the States and Federal Government was $33,252,725 for the first 7 months. Our tax department estimates that the taxpayers of Illinois, individual and corporate, pay approximately 7 percent of taxes required to meet Federal budget expenditures. Assuming that the Federal Government matched 48.05 percent of the cost through November, Federal costs of this program were approximately $15,977,934. Of this, $1,118,455 would have been paid by Illinois taxpayers. Actually, however, Illinois received $3,168,664 in Federal matching funds during this period, representing a net gain of $2,050,209. Notwithstanding this so-called gain, the Illinois State chamber believes that public assistance programs should be financed by the States wherever possible: that the ADC-unemployed parents program should be terminated and returned

to State financing and control. This temporary program marked the initial intervention of the Federal Government last May into a portion of the general assistance programs which had always been administered and financed by State and/or local governments since the inception of the aid to dependent children program in 1935.

Because the Federal Government established this new temporary program, Illinois is now involved in what we believe to be a serious and harmful sideeffect of that program. The attorney general of Illinois recently ruled that strikers and their families, who qualify under the Illinois Public Aid Commission's definition of need, are entitled to grants from the temporary aid to dependent children-unemployed parents program. This puts the State and Federal Government in the position of taking sides in a labor dispute, financing elements of one party to the dispute with funds derived from all. This the Illinois State chamber believes is contrary to the intent of the public assistance programs and contrary to the impartial role a government should pursue in such disputes.

SECTION 137. ADDITIONAL FEDERAL FUNDS FOR STATES WITHOUT ANY RESIDENCE REQUIREMENTS UNDER PUBLIC ASSISTANCE PROGRAMS

Recommendation.-Eligibility for grants from public assistance programs should include a residence requirement of at least 1 year.

Explanation.-H.R. 10032 provides that the Federal Government will increase the Federal percentage to which a State is entitled during any quarter, if the State removes all residence requirements in public assistance programs which receive support of matching Federal funds.

There is wide variation between the States in the average payment per recipient receiving grants from the various public assistance programs. For instance, the average payment per recipient in June 1961 for aid to the blind in the industrial States ranged from $73.33 in Pennsylvania to $126.45 in Massachusetts, compared to $78.77 in Illinois. We believe that residence requirements are a necessary requisite to establishing eligibility for aid under these Federal-State programs, and that the Federal Government should not offer an inducement to the States to remove all these residence requirements.

Hon. WILBUR D. MILLS,

AMERICAN VOCATIONAL ASSOCIATION, INC.,

OFFICE OF THE EXECUTIVE SECRETARY,
Washington, D.C., February 15, 1962.

U.S. Representative, Second District of Arkansas,
U.S. House of Representatives, Washington, D.O.

MY DEAR CONGRESSMAN MILLS: This letter deals with proposed amendments to H.R. 10032 by the American Vocational Association, a national, professional, nonprofit organization, with a membership of more than 30,000 located in every State and political subdivision of the Nation.

The amendments to H.R. 10032 proposed in this letter could prevent duplication of effort and possible conflict at State and local levels.

There are in existence in every State and virtually every political subdivision in the Nation programs of vocational education which are being administered and operated by well-trained, competent vocational educators. These existing facilities and others that could be provided, if needed, should be utilized to the fullest extent possible for the vocational training of recipients of public assist

ance.

The proposed amendments set forth herewith would make it necessary for public assistance agencies-if vocational training is desirable-to provide such vocational training for its clients to the maximum extent possible through the Vocational education agencies already in existence in every State.

In light of the above, the American Vocational Association proposes the following amendments:

Amendment 1

(a) Page 5 before line 5,

(b) Page 8 before line 7, (c) Page 11 before line 3,

(d) Page 14 before line 1, and

(e) Page 60 before line 24, insert:

"Any service referred to in clause (4) (A) and (B), of a kind available under a State program administered by an agency of the State other than the State agency, shall be provided through such other agency of the State except to the extent agreed upon by the State agency and such other agency of the State."

Amendment 2

After the word "subject"-

(a) On page 5, line 17,

(b) On page 8, line 12,

(c) On page 11, line 15,

(d) On page 14, line 13, and

(e) On page 61, line 11,

insert "to the conditions of the preceding sentence and".

Amendment 3

Amend the bill by striking out all matter after the word “Secretary”—

(a) On page 15 at line 18, through line 22,

(b) On page 16 at line 5, through line 10,
(c) On page 16 at line 16, through line 20,

(d) On page 52 at line 16, through line 21,

and in lieu of the matter struck out at each place, in the bill, insert the following: "and provide for entering into cooperative arrangements with other agencies of the State primarily responsible for providing similar or related services, for their maximum utilization in providing services herein authorized."

It is our hope that the above proposed amendments to H.R. 10032 will be given due and full consideration by your committee. Respectfully submitted.

M. D. MOBLEY, Executive Secretary.

THE JUNIOR LEAGUE OF THE CITY OF NEW YORK, INC.,
New York, N.Y., February 19, 1962.

Re H.R. 10032.

Mr. LEO H. IRWIN,

Chief Counsel, Committee on Ways and Means,
House of Representatives,

Washington, D.C.

DEAR MR. IRWIN: I have been asked by our day study group on the public welfare issues underlying the Newburgh controversy to forward their views on H.R. 10032-the public welfare amendments of 1962. The Junior League is a membership organization for young women who share a concern for the community in which they live and a desire to participate through volunteer service, in its health, education, welfare, and culture. Its dual purpose is the training of its membership and service to the community.

For the last 3 years a small group of our membership has been studying the crisis in foster care in New York City; the aid to dependent children program of the New York Department of Public Welfare; and currently the broader public welfare issues. Therefore, the administration's request that H.R. 10032 be favorably acted upon has the support of our study group which can speak firsthand on some of the problems which the bill aims to remedy.

The study group is in full sympathy with the intent of the President's proposal which stresses services instead of support, rehabilitation instead of relief, and training for useful work instead of prolonged dependency.

The study group attaches particular importance, because of its knowledge, on the provision of Federal financial participation in day care for children, whose parents are unable, during a part of the day, to provide supervision. Here in New York City where the day-care program has been in the vanguard, there are long waiting lists because full financial support of the program must derive from city funds. The study group believes that if Federal funds can be made available, the State of New York would be in a better position to provide financial help to the city. Thus, the waiting lists would be decreased and the high cost of institutionalization would be obviated as more children would be enabled to stay in their own homes.

The study group also attaches primary significance to the provision in the bill which would stimulate States to expand their efforts in training welfare personnel.

Likewise, our group is strongly supportive of the intent to provide Federal financial participation in payments under the ADC program made to needy persons for work done under community work and training programs.

We are pleased to note the Federal financial incentive for States to remove the residence requirements from public welfare programs. The membership of the Junior League of the City of New York is officially on record with the State of New York in opposition to residence requirements for public welfare.

Finally, the study group notes with sympathy and appreciation, the intent of the administration's bill to increase the knowledge of public welfare on the part of all citizens through such means as periodic advisory councils to assure careful public review of the entire program from time to time. Here in New York City, there is an advisory board of citizens to the commissioner of welfare which is now beginning to interpret forcefully to the general public, various aspects of the problems and progress in the administration of this vast program. Sincerely,

Hon. WILBUR D. MILLS,

Mrs. THOMAS H. BARTON, President.

HOUSE OF REPRESENTATIVES, Washington, D.C., February 13, 1962.

Chairman, Ways and Means Committee,
House of Representatives, Washington, D.C.

DEAR COLLEAGUE: In connection with the hearings being conducted by the House Committee on Ways and Means on H.R. 10032, Public Welfare Amendments of 1962, I take the liberty of forwarding herewith a statement by Dr. Guillermo Arbona, secretary of health, Commonwealth of Puerto Rico, with the request that it, together with this letter, be made a part of the record on H.R. 10032.

I fully subscribe to the viewpoints expressed by Dr. Arbona and add my sup port to H.R. 10032, which would eliminate the ceiling for Federal participation in public assistance payments in Puerto Rico.

As you may know Operation Bootstrap, Puerto Rico's program for industrial and economic progress, has been immensely successful in creating employment opportunities and in raising living standards for most Puerto Ricans. Nevertheless, considering the low position in economic development from which we started, the problem has had to be attacked on many fronts simultaneously. This has meant an enormous financial challenge to the Commonwealth government, and it has most severely taxed us economically. Despite the great progess made in Puerto Rico, we still have a greater percentage of unemployment than is the case in any State. In addition, our success in improving health standards and lowering the death rate in Puerto Rico, even below that of continental United States, has had the effect of increasing our senior citizen population, many of whom require public assistance.

Dr. Arbona details these and other considerations in his statement, which supports the recommendation of the administration, and I hope your committee will give due consideration to these views and accept the President's recommendation for Puerto Rico in reporting on Public Welfare Amendments of 1962. In addition to the statement by Dr. Arbona, I am including two tables which I request also be made a part of the record of H.R. 10032. The first is a cost

comparison of the public assistance program in Puerto Rico, 1961-62, in terms of three alternatives, and the second is a table of funds available, showing number of cases and average monthly payment, by category, in public assistance in Puerto Rico, 1943-44 to 1959-60. These tables were made available to me by the Department of Health, Commonwealth of Puerto Rico.

Sincerely,

A. FERNÓS ISERN, Resident Commissioner.

STATEMENT BY DR. GUILLERMO ARBONA, SECRETARY OF HEALTH, ON H.R. 10032, THE PUBLIO WELFARE AMENDMENTS OF 1962

The proposals embodied in this bill aim at the improvement of public welfare programs throughout the Nation. It will enable the States to incorporate into their programs long-needed services and administrative procedures that will strengthen the rehabilitative and preventive aspects of public welfare.

The Commonwealth of Puerto Rico strongly endorses the provisions contained in part E, section 151 of the bill, which provide for the removal of money limitation on total public assistance payments to Puerto Rico, the Virgin Islands, and Guam. This measure, if approved, will constitute a strong incentive for the improvement of our welfare program.

When the social security assistance titles were extended to the Commonwealth of Puerto Rico in 1950, the intended matching formula for Federal participation was established at 50 percent. However, a statutory money limitation on the total public assistance payments has limited the realization of the dollar-perdollar matching formula. Although increases in the ceiling have been authorized by Congress at different times, the Commonwealth's appropriation have remained above the Federal Government's share. Figures published by the U.S. Department of Health, Education, and Welfare for fiscal year ending June 30, 1961, show that the Commonwealth of Puerto Rico has been providing 53.8 percent of the total cost of its asistance program. The Commonwealth government's share during 1961 was 52.7 percent of its old-age assistance program, 53.8 percent of the aid to dependent children, the costliest of the assistance programs, and 52.9 percent of the aid to the blind and to the permanently and totally disabled.

The Commonwealth of Puerto Rico is making great efforts to improve the living conditions, the standard of living of its population. These efforts actually could be considered as designed to prevent dependency. A large proportion of the Commonwealth's fiscal resources have been directed to cope with the unemployment problem through the industrialization of the island and the improvement of its agricultural programs. Great efforts have also been directed to the development of an adequate school program, stressing both the academic and vocational training of children of school age, as well as providing opportunities for adult education. Accelerated programs for housing, including slum clearance, road construction, and public health have been developed. In spite of the high costs of these programs, the Commonwealth's appropriation for public assistance has been raised from $3 million in 1943 to $8 million in 1956 and over $10 million at present. This, in addition to other welfare programs such as child welfare services, institutional care for children, special services to other handicapped families, and medical and hospital care for the medically needy. Around 54 percent of the total Commonwealth budget is being appropriated at present for health, education, and welfare services.

The industrialization program and the creation of additional employment opportunities have been extremely successful in Puerto Rico. Our per capita income has risen from $121 in 1935 to $641 in 1961. The gross national product has been increasing on a 9-percent average during the last 10 years. Our starting baseline was so low, however, that the extraordinary efforts of the last 20 years have not been sufficient to do away with such problems as unemployment and dependency. Thus, we still have from 9- to 13-percent unemployment in our labor force and the number of public assistance beneficiaries is very large.

The demographic characteristics of Puerto Rico help define the situation we face. According to the 1960 census, 50 percent of our population is constituted by children and youths under 18 years. Although persons 65 years of age and

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