PUBLIC ASSISTANCE LEGISLATIVE MONDAY, MAY 2, 1977 HOUSE OF REPRESENTATIVES, AND UNEMPLOYMENT COMPENSATION, Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in the committee hearing room, Longworth House Office Building, Hon. James C. Corman (chairman of the subcommittee) presiding. Mr. CORMAN. The subcommittee will come to order. We meet today to consider legislation as it relates to title IV-B and title XX of SSI and to AFDC. As I mentioned earlier, we have some matters that must be legislated before the first of July. We have some others that must be legislated before the first of October. I would hope that as a result of these hearings, we could put together in markup sessions next week the portions of the legislation before us that are relatively noncontroversial so that the Ways and Means Committee may be able to act on them before that committee becomes occupied with the energy bill. Those proposals which develop to be controversial will have to be deferred until later this session. I would also call the attention of the members to the fact that Secretary Califano will be before the committee at 1 o'clock on Wednesday, next, to present to us the welfare reform package, which he is presenting to the President this afternoon. We are meeting this week to hear testimony on public assistance legislative recommendations contained in the Committee on Ways and Means' March 15 report to the Committee on the Budget for fiscal year 1978. These recommendations include the following: Extension of the supplemental security income (SSI) program to Puerto Rico, Guam, and the Virgin Islands. Elimination of the ceiling on Federal funding for the AFDC program in Puerto Rico, Guam, and the Virgin Islands. Establishment of a separate title XX social services entitlement for Puerto Rico, Guam, and the Virgin Islands. Extension of the $200 million increase in the title XX social service ceiling. Establishment of an entitlement program for child welfare services which are not authorized under title IV-B of the Social Security Act. Standardization of the AFDC work expense disregard as proposed in the President's budget for fiscal year 1978. We will also hear testimony on H.R. 4138, 4139 and 5093, all of which deal with the treatment of aliens under the supplemental security income (SSI) program; and H.R. 6124, containing provisions approved by the House but not the Senate during the 94th Congress aimed at simplifying and improving the administration of the SSI program. We have a large number of diverse issues to consider. Because we have a limited amount of time for hearings and subsequent subcommittee and full committee actions, I urge the witnesses to limit their comments to the legislative recommendations identified in the press release announcing these hearings. We have scheduled May 11 and 12 for subcommittee markup on the issues we will be considering in these hearings. I hope the subcommittee will be able to complete its actions during those 2 days so we can be prepared to take a bill to the full committee at the earliest possible date. In order to meet this timetable, we will have to restrict our actions to the issues that have been specified. I ask permission to insert in the record at this point the press release announcing these hearings and part of a Ways and Means Committee print prepared for these hearings by the subcommittee staff. [The information referred to follows:] [Press release of Thursday, April 7, 1977] CHAIRMAN JAMES C. CORMAN (D., CALIF.), SUBCOMMITTEE ON PUBLIC ASSISTANCE AND UNEMPLOYMENT COMPENSATION, COMMITTEE ON WAYS AND MEANS, ANNOUNCES PUBLIC HEARINGS TO BE HELD MAY 2 THROUGH MAY 6, ON THE PUBLIC ASSISTANCE LEGISLATION RECOMMENDATIONS CONTAINED IN THE COMMITTEE ON WAYS AND MEANS' MARCH 15 REPORT TO THE COMMITTEE ON THE BUDGET FOR FISCAL YEAR 1978 The Honorable James C. Corman (D., Calif.), Chairman of the Subcommittee on Public Assistance and Unemployment Compensation of the Committee on Ways and Means, today announced that the Subcommittee will hold public hearings on May 2, 3, 4, 5, and 6, 1977, on the legislative recommendations pertaining to public assistance programs contained in the Committee on Ways and Means' March 15 report to the Committee on the Budget for fiscal year 1978. The hearings will also consider H.R. 4138, 4139, and 5093, all of which pertain to the treatment of aliens under the Supplemental Security Income (SSI) program; and H.R. 6124, containing provisions approved by the House but not the Senate during the 94th Congress which deal with administrative simplification and improvement of the SSI program. The hearings will begin at 10:00 a.m. each day. The place of hearings will be announced at a later date. The legislative recommendations concerning public assistance programs that will be considered during these hearings are described on pages 39-41 of the Committee on Ways and Means' March 15 report for fiscal year 1978 to the Committee on the Budget (Committee on Ways and Means Print: 95-13). These recommendations include the following: 1. Extension of the Supplemental Security Income (SSI) program to Puerto Rico, Guam, and the Virgin Islands. 2. Elimination of the Ceiling on Federal Funding for the AFDC Program in Puerto Rico, Guam, and the Virgin Islands. 3. Establishment of a separate Title XX Social Services entitlement for Puerto Rico, Guam, and the Virgin Islands. 4. Extension of the $200 million increase in the Title XX Social Service Ceiling. 5. Establishment of an entitlement program for child welfare services which are now authorized under Title IV-B of the Social Security Act. 6. Standardization of the AFDC work expense disregard as proposed in the President's Budget for fiscal year 1978. Testimony presented at these hearings will be limited to the Public Assistance legislative recommendations in the Committee on Ways and Means' March 15 Budget Report for fiscal year 1978 and the bills listed above. Those wishing to testify must identify in their request to be heard which of the issues in the March 15 report or bills listed in this press release they will address. Witnesses will be scheduled according to the issues they will be addressing. Other areas, including general welfare reform, will be the subject of a subsequent hearing. It is expected that representatives of the Department of Health, Education, and Welfare will be the leadoff witness, to be followed by the testimony from the interested public. It is requested that all persons and organizations having a common position exert the maximum effort to designate one spokesman to represent their viewpoint. It will be necessary for each witness to summarize his testimony, with the understanding that a more detailed statement can be submitted for review and for inclusion in the printed record of the hearing. If it becomes necessary, the Committee staff will group the public witnesses into panels to expedite the hearing process further. Requests to be heard must be received no later than the close of business Friday, April 22. Requests should be addressed to John M. Martin, Jr., Chief Counsel, Committee on Ways and Means, 1102 Longworth House Office Building, Washington, D.C. 20515, telephone: (202) 225-3625. Confirmation of appearance to those requesting to be heard will be made promptly. If a change in the witness or a cancellation is necessary, please advise this office immediately. The request to be heard should contain the following information: 1. The name, address, and capacity in which the witness appears. 2. A list of any clients (or the firm or association he represents) at whose behest or in whose employ the witness appears. 3. An outline of the comments and recommendations the witness will make, bearing in mind that the only testimony which will be received at this time relates to the subjects herein described. Persons scheduled to appear must submit 35 copies of their prepared statement to the Committee office, Room 1102 Longworth House Office Building at least 24 hours in advance of the appearance. An additional supply may be furnished for distribution to the press and public. Any persons or organizations may, instead of appearing in person, file a written statement for inclusion in the printed record of the hearing. For this purpose, five copies of the statement should be submitted by the close of business Friday, May 6. Additional copies may be furnished for distribution to the members of the Subcommittee, staff. press and public, if submitted to the Committee during the course of the hearings. SUMMARY OF ACTIONS TO DATE AND FUTURE ACTIVITIES REQUIRED BY THE BUDGET CONTROL ACT A. PUBLIC ASSISTANCE BUDGET RECOMMENDATIONS TO THE HOUSE BUDGET COMMITTEE BY THE COMMITTEE ON WAYS AND MEANS FOR FISCAL YEAR 1978 As required by Section 301 (c) of the Congressional Budget Act of 1974, on March 15, 1977 the Committee on Ways and Means submitted a report to the House Budget Committee containing the views and estimates related to matters within the jurisdiction of the Committee on Ways and Means. The following are excerpts from this report: I. PRESIDENT'S BUDGET REQUESTS FOR EXISTING PROGRAMS WHICH REQUIRE REENACTMENT OR MODIFICATION OF AUTHORIZING LEGISLATION FOR FISCAL YEAR 1978 II. PRESIDENT'S BUDGET REQUEST FOR NEW AND EXPANDED PROGRAMS WHICH WOULD REQUIRE AUTHORIZING LEGISLATION FOR FISCAL YEAR 1978 III. PRESIDENT'S BUDGET REQUESTS FOR REDUCTIONS IN EXISTING PROGRAMS WHICH WOULD REQUIRE AMENDMENT OF AUTHORIZING LEGISLATION FOR FISCAL YEAR 1978 Extension of SSI to Puerto Rico, Guam, Budget authority Outlays Comment 135 135 The committee recommends that SSI be extended 16 The committee recommends a separate title XX 266 The committee recommends $266 million be provided under new entitlement authority to provide the option to establish an entitlement program for child welfare services, which would include provision for adequate accountability and emphasis on preventive services. (See item in format V dealing with appropriation for title IV-B child welfare services.) V. PRESIDENT'S BUDGET REQUESTS FOR EXISTING PROGRAMS WHICH DO NOT REQUIRE AUTHORIZING LEGISLATION FOR FISCAL YEAR 1978 The House Budget Committee and the Senate Budget Committee have each report their version of the First Concurrent Resolution on the Budget for fiscal year 1978. One change was made by the House Budget Committee in the March 15 Public Assistance recommendations made by the Committee on Ways and Means. The House Budget Committee did not recommend the establishment of a separate Title XX Social Services entitlement for Puerto Rico, Guam and the Virgin Islands. It should be noted that in addition to accepting the recommendation for a $266 million funding level for child welfare services, the House Budget Committee also accepted the recommendation that the child welfare services now authorized in Title IV-B and with funding levels controlled by the Appropriations Committee be changed to an entitlement program. If finally included in the First Concurrent Resolution on the Budget, allocation for child welfare services in fiscal year 1978 would be in the form of new entitlement authority allocated to the Committee on Ways and Means. The definition of an entitlement program is found in section 401 (c) (2) (C), Congressional Budget Act of 1974, P.L. 93-344: to any person or the United States is "To make payments (including loans and grants) government if, under the provisions of the law obligated to make such payments to persons or governments who meet the requirements established by such law." Under this definition, Title XX of the Social Security Act is an entitlement program, in that if a state meets certain specified conditions the United States is obligated to reimburse that state, generally on a matching basis, for social services it has provided, up to the maximum allocated to the state under the allocation formula provided in the law. TITLE IV-B CHILD WELFARE SERVICES A. WAYS AND MEANS MARCH 15TH BUDGET REPORT RECOMMENDATIONS The primary points in the Committee's recommendation related to changes in the Title IV-B child welfare services program are as follows: 1. Establish an entitlement program for child welfare services that would replace the current authorization/appropriation means of funding. (See definition of an entitlement program in Section II B.) |