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This file contains materials relating to the Council of State Governments, the Meals - on - Wheels program, Older Americans Month, the American Association of Retired Persons, the National Retired Teachers Association, Grady Means, and Decker Anstrom.
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Aging - General (5)
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Aging - General (5)
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This file contains materials relating to the Council of State Governments, the Meals - on - Wheels program, Older Americans Month, the American Association of Retired Persons, the National Retired Teachers Association, Grady Means, and Decker Anstrom.
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Sarah C. Massengale Files (Ford Administration)
Sarah Massengale's Health, Social Security and Welfare Files
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Presidential messages
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The original documents are located in Box 2, folder "Aging - General (5)" of the Sarah C.
Massengale Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the
United States of America her copyrights in all of her husband's unpublished writings in National
Archives collections. Works prepared by U.S. Government employees as part of their official
duties are in the public domain. The copyrights to materials written by other individuals or
organizations are presumed to remain with them. If you think any of the information displayed
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Library.
(re request) : Decker anstrom's
THE WHITE HOUSE
WASHINGTON
Pam-
-
lee p. 7 for
menture of elderly
of food
file Peggy
4/7
PRESS CONFERENCE NO. 9
of the
PRESIDENT OF THE UNITED STATES
11:05 A.M. EDT
February 26, 1975
Wednesday
In the Convention Hall
At the Diplomat Hotel
Hollywood, Florida
THE PRESIDENT: Good morning. Will you please
sit down.
First, let me express my appreciation to the
people of Florida for their hospitality. It has been
a pleasure being here, and I look forward to the rest of
the day.
Before answering questions, I have a short
prepared statement that I would like to make at the
outset. It reads as follows:
"There have been reports in recent weeks of
attempts in the international banking community to
discriminate against certain institutions or individuals
on religious or ethnic grounds.
"There should be no doubt about the position
of this Administration and the United States. Such
discrimination is totally contrary to the American
tradition and repugnant to American principles. It has
no place in the free practice of commerce as it has flourished
in this country.
"Foreign businessmen and investors are most
welcome in the United States when they are willing to
conform to the principles of our society. However, any
allegations of discrimination will be fully investigated
and appropriate action taken under the laws of the
United States.
Mr. McDermott.
QUESTION: Mr. President, what was behind Dr.
Kissinger's recent observation that some day we might have
to go in and destroy the oil wells of the Middle East?
Do you envision such a possibility ever happening?
MORE
(OVER)
Page 2
THE PRESIDENT: I do not recollect the
precise statement that is attributed to the Secretary.
I suspect you are referring to the oft quoted statement
about strangulation.
I have answered that question, as has the
Secretary, on a number of occasions. To be repetitive
at this point I think might only increase speculation.
The facts are that there was an answer to a very
hypothetical question of the most extreme circumstances,
and both the Secretary and I have indicated our views
on the subject.
QUESTION: Thank you, Mr. President.
QUESTION: Mr. President, is what you call our
moral commitment to arm South Vietnam and Cambodia open-
ended, and what are you doing specifically to bring the
warring parties to the peace table?
THE PRESIDENT: The commitment that we have to
the South Vietnamese and the commitment that we have to
some extent in Cambodia is one that we, as the United
States, agreed at the Paris Peace accords, that we would
withdraw our forces and that hopefully peace would be
established in Indochina.
Part of our commitment was that we would, in
the process or as the result of the withdrawal of our
own military personnel, we would continue to supply
arms on a replacement basis, and that commitment was
predicated on the willingness of the South Vietnamese
to fight aggression from North Vietnam.
The South Vietnamese are fighting, are trying
to protect their country, and are seeking to defend their
country from invasion. It seems to me that as we look back
at our participation in the Paris accords, and the
promises that were made, as long as they were willing to
fight against aggression and invasion, that we had an
obligation to help them with military equipment on
a replacement basis.
The situation there is one that I iam willing to
negotiate with the Congress. I indicated that if the
Congress would join with me, we would make a firm and
final decision on a three-year basis to permit South
Vietnam to get over the current crisis that they face.
I think that would be a reasonable solution.
I am told that the South Vietnamese in a three-year
period, with our military and economic aid, would be
able to handle the situation.
MORE
Page 3
QUESTION:
What about Cambodia?
THE PRESIDENT: Cambodia, the problem there is
extremely critical. Unless there is additional U. S. military
aid, as I have recommended, the Cambodians will run out of
ammunition in a relatively short period of time. I think
that that would be most unfortunate because if they are able
between now and the end of the dry season -- to maintain their
national integrity -- the present government -- there is a
possibility of negotiations that might end the war in Cambodia.
QUESTION: Mr. President with reference to your
energy-economic program, Congress is going off in one direction.
You have suggested another direction. You have also suggested
that you are willing to compromise. I wonder if you might
specify some of those areas of compromise?
THE PRESIDENT: I wish there was a single plan proposed
by the majority party in the Congress. It is a slight exaggeration,
but there are many, many plans that have been discussed by the
majority party. I can think of three in particular, the plan
that is proposed by Senator Pastore, the plan that is proposed
by Congressman Jim Wright of Texas and the plan that has been
proposed by Chairman Al Ullman of the House Committee on Ways
and Means.
And I understand there are many more. What we need
is a plan that the Democrats can agree on, if they can, and
then we can sit down and, hopefully, negotiate. I am willing
to cooperate, but we have to have something to cooperate with,
and so far, they have not come up with anything where they are
in agreement, so until they do, we are going to pursue our plan,
which I think is fair and equitable and a solution to the energy
problem.
QUESTION: Are you saying, a single package plan from
the Democrats before you will negotiate?
THE PRESIDENT: I think that is a fair statement, and
I think it is a fair proposition. We have to sit around a table
with a group or somebody, where they say, "Here is our plan
and here is my plan,' and then we can try to integrate them.
But until they have some consensus on their side, we are in
the position where there is no real viable plan for us to take
a look at.
Now, I intend to keep the pressure on The pressure
that I have used in legal and legitimate ways has precipitated
more response in the Congress than any time in the last three
years. We still have some time, and when I get back to
Washington, if they have got a plan where they agree, then we
can sit down and negotiate.
9W MORE
I
B to
Jon I
Page 4
QUESTION: Mr. President, some of the news executives
who had breakfast with you this morning report that you talked
about Congress not acting on an anti-recession tax cut until
June. Are you really that pessimistic about the outlook?
THE PRESIDENT: I certainly hope that Congress acts
before then, but I submitted my economic plan for the
stimulation of our economy, so we could reduce unemployment,
so we could increase employment, in January I think it was
January 15th of this year.
And our proposal was very simple and hopefully it
would result in Congress acting very quickly. It is almost five
weeks now, and the House of Representatives has not yet acted.
I hope they act this week. Hearings probably will start in the
Senate Committee on Finance next week, and then it has to go
to the Senate. And then, if there are differences between
the Senate plan and the House plan, it will have to go to
conference. That could conceivably take until June.
I think that is very ill-advised and extremely
serious. We had hoped that Congress would act by the middle
of March at the latest, and they could have, if they had taken
the simple specific tax reductions that I recommended.
Unfortunately, the parliamentary process has been
slowed down in the Congress, and the country has been the loser.
We need a stimulant now, and I hope the Congress will realize
the urgency of the need for action. And I trust that now that
they have been reminded of their slowness, that they will
expedite the process.
QUESTION: Good morning, Mr. President. I am Dick
Powers from the Fort Lauderdale Sun-Sentinel.
Last week, here, in South Florida, George Meany
proposed the nationalization as an ultimate solution of the
oil industry. Heretofore, there have been proposals from
Congress for the nationalization of health insurance and for
utilities and for the railroads. Do you see these proposals as
reluctance on the part of the American people to tough out our
economic woes and accelerate a drift into socialism, sir?
THE PRESIDENT: I do not think the nationalization of
any industry in the United States is in our best interest. Nor
do I think a government monopoly in any industry is a good
answer without being critical of individual employees of the
Postal Service, I think the Postal Service has not been as good
an answer as we would like to the delivery of mail. We are
trying to improve it, but it does seem to me that there is a
better answer to the energy problem than the nationalization
of the oil industry.
We do have to stimulate production. We do have to,
through the windfall profits tax that I have proposed, keep
profits at a reasonable level. We do have to make sure that
we get away from foreign oil imports, but I honestly do not
believe nationalization is the best answer.
MORE
Page 5
QUESTION: Mr. President, on oil with
your favoring of a minimum price level and oil deregulation --
won't you be guaranteeing to the oil companies a
revenue bonanza that is based solely on the arbitrarily
high price levels that have been set in the past year or
so by the OPEC countries?
THE PRESIDENT: My energy program does not
guarantee any specific price except that we have been
negotiating with other consuming nations for what is a
minimum price or a floor price
A minimum price at a reasonable levelis a way
in which we can continue to stimulate domestic production
of additional oil, additional natural gas, and other
energy sources such as solar, geothermal, et cetera.
We are not guaranteeing oil companies any
particular price, and if there is a windfall profit,
then the Congress has an obligation to enact my windfall
profits tax so that there will not be inequitable
benefits from the energy crisis by the oil companies
QUESTION: Bill Groves from Jacksonville.
Mr. President, is it true that either rationing
or allocation would be less inflationary than the package
you have proposed, and would be less burdensome on those
least able to pay?
THE PRESIDENT: I do not think that is the
fundamental issue that is involved. Rationing, gasoline
rationing, for example, would be very inequitable, and
it would notoprovide any stimulant for new sources of
energy, either oil, natural gas or any of the others.
Allocations--import allocations I assume you
are referring to--according to the experts that have
looked at it, that I have listened to, tell me that would
probably be more injurious to our economy than any
other procedure that was used. You would have government
officials making arbitrary decisions as to how much oil
could go to one industry or to another and that would
inevitably be discriminatory.
I happen to think that the price mechanism
procedure which I have proposed is a better plan
because it gives flexibility to users to make those
basic decisions
The plan that I recommended has, according to
the experts that we have talked with and I have listened to, would
have aone-shot increase in cost. On the other hand,
through the tax rebate program that I have recommended,
the added energy cost to individuals, to business, to
government, would be returned to those people who have had
an added cost.
So, it would be fruitful as far as the users are
concerned, and it would stimulate production, which is
what we really want.
MORE
Page 6
QUESTION: Mr. President, now that unemployment
has reached a very high point and it seems likely to
go even higher, is there anything that you can do as
President to alleviate the situation without going now
to Congress, and if there is, what is it and do you
intend to do it and if so, when?
08
THE PRESIDENT: Number one, we submitted an
economic plan to the Congress, a tax reduction proposal
that would have returned to taxpayers or resulted in
a reduction in taxes of some $16. 5 billion. That
proposal is on the agenda of the Congress.
I wish they would act more quickly, and some
of our problems might be alleviated. Other than that,
I think we have to seek to restore public confidence
in the system and in the prospects for economic
revival.
There is some evidence that the public: now
believes, as most experts agree, that we are
bottoming out, so to speak, and the prospects for an
increase in employment and a decrease in unemployment
will come sometime in the third or fourth quarter of
1975.
QUESTION What you are saying then is there
is really nothing more that you as President can do
THE PRESIDENT: I do not believe so. On the
other hand, if there is anything, instead of increasing
expenditures, as some have suggested, I would favor a
larger tax decrease, but at the present moment I do
not think we have reached that point.
I simply would hope that the Congress would act
so we could find out whether that is enough stimulant,
but other than that, I know of no other proposal.
bluow QUESTION: Mr. President, your Hispanic adviser,
Fernando DeBaca, told the Miami News yesterday that you
have never formally re-evaluated U.S. foreign policy toward
Cuba since you became the President. Are you in the process
of re-evaluating the government's position, and do you
foresee any lifting of economic and diplomatic sanctions
toward Cuba in the immediate future?
I
THE PRESIDENT: Very frequently in my daily
meetings with Secretary of State Kissinger we discuss
Latin American policy, including our policy toward
Cuba. The policy today is the same as it has been,
which is that if Cuba will re-evaluate and give us some
indication of a change of its policy toward the United
States, then we certainly would take another look, but
thus far there is no sign of Mr. Castro's change of
heart, and so we think it is in our best interest to
continue the policies that are in effect at the present
time.
85
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Page 7
QUESTION: Mr. President, a number of
responsible Americans, including Senator Mansfield, have
expressed concern that we are selling more arms than
ever to more nations. We now sell to Pakistan as well
as India, to Arab countries as well as Israel
What is your credo in regard to arms sales? Is
it influenced by the state of the economy, and what
do you say to those who say that such sales are immoral?
THE PRESIDENT: First, let me be very specific.
The sales of U.S. military equipment to any country is
not predicated on trying to help the U.S. economy. We
do have a policy of selling arms to other nations if
that country feels it has an internal security problem;
and number two, if it is necessary for one or any of the
countries to maintain their national integrity or security.
We believe that in many areas of the world a
proper military balance is essential for internal as
well as external security of various countries. And
where other nations, such as the Soviet Union, does sell
or give arms to one country or another, if another
country feels that for its own security it needs additional
military equipment and has the cash, then we feel that it
is proper to make a sale from the United States to that
country.
QUESTION: Mr. President, South Florida has a
disproportionate number of elderly persons, thousands of
poor and elderly who are finding it hard to even have
one hot meal a day. How can we justify Federal programs
that would reduce or take away what little assistance
they are getting now, particularly when we continue to
pump billions of dollars in foreign aid overseas?
The question they are asking is, when does
charity begin at home?
THE PRESIDENT: Let's take the food for the
elderly program. In this current fiscal year the
Federal Government is spending $202.5 million for that
program under the older citizens legislation, which is
six times what it was four years ago.
We will continue to monitor the situation, and
if that is inadequate, we will do our utmost to find
additional funding.
But I think it has to be put in perspective
that $202 million plus is not an inconsequential amount
just for that one program, plus the other programs that
are aimed at helping our older citizens.
I feel very strongly that they should be given
adequate aid and assistance, plus Social Security, and I
should say that I have not recommended a reduction in
Social Security, but have recommended a 5 percent
increase in Social Security benefits, along with other
programs.
MORE
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QUESTION: Mr. President, good morning. I
wonder now that the sentences have been handed down in
the Watergate case against the former top Administration
figures how you would feel on the issue of pardon for
those men, especially in the light of their contention
that they have done nothing that is any more wrong than
the President under whom they served.
THE PRESIDENT: It seems to me, number one,
since they are appealing their sentencing, that it
would be inappropriate for me to make any comment
one way or another. And number two, if and when the time
comes, the proper thing for them to do would be to apply
in the regular procedure or process, which is through the
pardon attorney in the Department of Justice.
QUESTION: Without getting into specific
cases on the general premise, would you be sympathetic
more in these particular cases toward a pardon because
of the circumstances?
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THE PRESIDENT: I don t think it would be
appropriate to make a comment in that regard because al
they are limited in number, and I would not want to
prejudice their current appeal by any comment that I
might make.
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Page 9
QUESTION: Mr. President, as you know, Florida Doasts
some of the highest electrical power bills in the Nation.
Won't the people who pay those bills be hurt substantially by
your foreign oil import program, since most, if not all, of
the oil that Florida power companies burn comes from Venezuela?
THE PRESIDENT: The energy program that I have
recommended would not result in Florida paying a disproportionate
share of any cost increase. As a matter of fact, under the
administrative action that I have taken, we have, under the
first dollar, exempted heating oil as far as Florida is con-
cerned, as far as New England is concerned, as far as Hawaii,
the areas that are, as you indicate, in the same circumstances
as Florida.
And under the permanent program that I have recommended,
the added energy cost to a family, or to business, or to
government, would be rebated to the individual, to the business
and to the governments, so there would be a neutral impact.
Therefore, it seems to me that my proposal is extremely
equitable and would not result in any disproportionate burden
being placed on Florida or any State in a comparable situation.
QUESTION: Mr. President, your opening statement
seemed to imply that the United States was planning some sort
of action against the Arab nations that have embargoed Jewish-
owned banks. Could you be more specific? What sort of things
might we do in this case, if the embargoes continue?
THE PRESIDENT: All we have so far are some
allegations. I have asked the Departments of Justice, Commerce
and State to investigate any allegations. The actual action
that would be taken will be forthcoming from recommendations
by those departments. They have not been placed on my desk
at the present time.
QUESTION: Mr. President, you have referred to the
FORD LIBRARY
question of aid to Cambodia as a moral one relating to the
credibility of the United States. But is the issue of
credibility really at stake when so many of those with whom we
would want to maintain it criticized our involvement in that
area to begin with and long urged us to get out before we did?
THE PRESIDENT: Are you referring to other nations?
QUESTION: Other nations, yes.
THE PRESIDENT: I do not think we can conduct American
foreign policy on the basis of what other nations think is
in our best interest. The United States has to predicate its
foreign policy on what it thinks is in America's best interest.
Now, we respect the right of other nations to be
critical of what we do, but it is my responsibility and, I
think, the responsibility of people in authority in the United
States to make decisions that are based on what we think is
good for America, and that is the way it will be decided as
long as I am President.
MORE
Page 10
QUESTION: Mr. President, there has been a. new
crop of reports in recent days about the possibility of
Secretary Kissinger leaving office this year to be succeeded
by Ambassador Elliot Richardson. Could you comment on these
reports, and specifically, do you expect Dr. Kissinger to
remain in office at least until November of next year?
THE PRESIDENT: I happen to feel very strongly that
Secretary Henry Kissinger is an outstanding Secretary of State,
and he and I have never discussed any change in his responsibilities.
I know of no plans of any kind whatsoever on my part, or his
part, to change the responsibilities the very heavy and
important responsibilities that he has.
85
On the other hand, I recently submitted the name of
Elliot Richardson to be Ambassador to Great Britain. I picked
him because I think he will do a first class job there, and
he has been recently confirmed. And I am confident, when he
goes to London, he will carry out those responsibilities in
that job in a very exemplary way.
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Page 11
QUESTION: Mr. President, it is estimated by
immigration officials here in South Florida that
there are up to 90,000 illegal aliens gainfully employed
in Southeast Florida alone. It is also estimated that
our unemployment figure runs close to that amount. What
is your office doing to address itself to this particular
problem?
THE PRESIDENT: We have been trying to strengthen
the arm of the Immigration and Naturalization Service,
the Department of Justice, in order to handle in an appro-
priate way the illegal alien problem.
Florida has a serious problem. California has
an equally serious problem. We are trying to work with
the Mexican government, for example, primarily out in
the Western states. We are fully cognizant of the
adverse impact that illegal aliens have on employment
opportunities of American citizens, but we are trying
to stop the flow in. We are seeking to send back illegal
aliens as quickly as possible under the laws of the
United States.
QUESTION: Mr. President, Senator Pastore is
proposing that there be a special election anytime an
appointed Vice President succeeds to the Presidency;
that is, if there is more than one year of the term
remaining.
Since you are the only such person, what is
your feeling about it? Would you recommend or endorse
a change in the Twenty-fifth Amendment?
THE PRESIDENT: I am not sure that I ought to
pass judgment on the validity of the Twenty-fifth
Amendment. I guess I could say it worked pretty well
this time. (Laughter)
But I think it is appropriate that the Congress
take another look at the Twenty-fifth Amendment. It
was passed, as I think most of us know, not to meet the
unique circumstances that developed in 1973 and 1974.
Perhaps this experience does require the Congress
to take a look, to see whether there is a better way or
a different way where a Vice President might be
selected.
QUESTION: Do you feel any handicap for not
having won a Presidential election, and still holding
the office?
THE PRESIDENT: The answer is no.
MORE
Page 12
QUESTION: Mr. President, Jim Reynolds, WIOD
News, Miami.
You stated that the Congress has been slow to act on
two of the Nation's major issues -- energy and the tax
cut. As a former Congressman, can you give us any
insight into why you feel the Congress is having this
difficulty?
THE PRESIDENT: In the failure of the Congress
to act quickly enough in reducing taxes, as I
recommended, I am really perplexed because we recommended
a very simple method of returning $16.5 billion to the
American people and to American business.
That should have been quickly considered,
acted on very rapidly, and I do not understand why there
has been the kind of delay that has taken place.
In the case of the energy problem, that is
more understandable. Even though I don't like it,
it is a very comprehensive program that involves 170
pages in one bill that I recommended and that will
require hearings and action.
But what disappoints me -- and this I do not
understand -- is why there have not been hearings
before the proper committees in the House and the
Senate on either my plan or the thoughts that the Democratic
Members in the Congress have on their plans.
But that is why I have the pressure on with the
import levy. I think they are now beginning to focus on
the need and the necessity. Up until recently, they
just hoped the problem would go away. Now they are
beginning to realize it is serious, and hopefully there
will be some affirmative action.
QUESTION: Mr. President, in answering an
earlier question about Cambodia, you used the phrase
"the commitment that we have to some extent to Cambodia,'
to distinguish it from Vietnam. Just what is our
commitment to Cambodia when at the time the American
troops went in there in 1970, people were told there was
not going to be any long-term commitment? Could you
explain that, sir?
THE PRESIDENT: Cambodia is in a somewhat
different situation from Vietnam. Vietnam is involved
in the Paris accords. Cambodia was not in an official
way. So, our obligation, which I think is important,
is that they want to maintain their national integrity, and
their security of their country against outside forces.
MORE
Page 13
The policy of this country is to help
those nations with military hardware, not U.S. military
personnel, where the government and the people of a
country want to protect their country from foreign
aggression or foreign invasion.
This is, to a substantial degree, in post-
World War II the tradition of the United States, and I
think if people in a country want to fight for freedom
for their country, to the degree that we can, I
think we ought to expand.freedom around the world.
THE PRESS: Thank you, Mr. President.
THE PRESIDENT: Thank you very much.
END (AT 11:35 A.M. EDT)
THE WHITE HOUSE
WASHINGTON
February 14, 1975
MEMORANDUM TO:
JACK CASSERLEY
(spuch writed
FROM:
PAMELA NEEDHAM
SUBJECT:
Policies Regarding the Elderly
Enclosed is some material that should be helpful to you in
FORD is LIBRARY 976879
understanding the dimensions of the problem we have been
having in selling our program to the elderly. The page
from the budget gives you the facts on social security,
the Q and A provides an answer to critics on that issue,
and my memo to Ted Marrs explains the rationale behind the
main policies that are troubling this group.
I'd say the most critical issues here are our proposals to
hold down social security increases, to increase food stamp
costs, to cut Medicaid State matching and to increase Medi-
care cost-sharing. Each has a strong explanation as can be
seen in the Marrs memo. But each still has strong opposi-
tion from the elderly. For instance, their entitlement to
cost of living social security increases was a benefit they
fought hard for and they are just unaccepting of an attempt
to limit it. And the point that they have enjoyed increases
in recent years totalling more than the cost of living makes
it fair, that in this time of economic difficulties we ask them
to be held to a 5 percent increase, is met with the response
that they have already carried their share of the burden and
do not care to continue making sacrifices at this stage in
their lives.
Hopefully, this will give you an idea of the issues and points
of difficulty. I've asked Arthur Flemming to prepare a 250-
word speech insert and also a fact sheet on the elderly that
should put it all in the best possible light.
Call me if you have questions.
200
HE BUDGET FOR FISCAL YEAR 1976
Annuitants. -In all four federally run contributory retirement
augment the
systems, the berefit calculations are based upon past earnings and are
income of SC
subsequently increased to reflect cost-of-living increases. All four
estimated to
systems have also overcompensated for inflation. Between 1970 and
1976, the CPI will have increased 51% while OASI benefits have
Aged wives
increased 77% and civil service and foreign service benefits have
railroad reti
increased 55%.
their own, ar
Under old-age and survivors insurance (OASI), 12.4 million retired
a wife has (
workers received benefits in 1974. Some recipients in 1974 were pri-
earnings hist
mary beneficiaries under the railroad retirement system, but about
larger benefi
39% of these retirees were also beneficiaries under the social security
benefits. In 1
system. A total of 691,000 persons were beneficiaries of the civil service
security in W
and of the foreign service retirement system. Approximately 43% of
own earnings
the beneficiaries of the two Federal civilian employee systems are
also receiving social security.
Table L-5. BEN
The probable total number of primary beneficiaries of all the
BENEFICIAR
contributory retirement systems is thus 11.9 million persons in 1974
and 13.1 million in 1976.
Table L-4. ANNUITIES TO PRIMARY BENEFICIARIES IN CONTRIBUTORY
RETIREMENT SYSTEMS: ANNUITY BENEFITS, BENEFICIARIES, AND
AVERAGE PAYMENTS BY SYSTEM
Benefits to aged
Social security
Benefit outlays
Number of primary
Average monthly
DI) member
(millions)
beneficiaries (thousands)
payments
Railroad emple
1974
1975
1976
1974
1975
1976
1974
1975
1976
Federal civilia
actual
est.
est.
actual
est.
est.
actual
est.
est.
ployees
Uniformed
Old-age and survivors
members
insurance
26,556
30,488
33,194
12,394
12,859
13,616
179
203
227
Coal miners
Railroad Retirement
Benefits to aged
Board
1,394
1,572
1,743
386
399
401
296
319
350
living retiree
Civil Service Commission
3,831
4,946
5,400
688
762
777
464
541
579
Social security
Foreign Service retire-
DI) mèmber
ment
32
46
54
3
3
4
971
1,208
1,278
Railroad emple
Minimum benef
Total
31,813
37,051
40,391
ments:
Social security
DI) member
Other aged.-This category includes income support to the aged in
Railroad empl
Dependents of :
which the benefits are based upon criteria other than past earnings.
tirees: Social
The criterion of the program may be a work history of some related
(OASDI) men
person, and is not necessarily based on any measure of need. Under-
Aged retirees U
lying the purpose of these programs is the presumption that persons
services
Aged veterans
past a certain age (for example, 65) are generally not self-supporting
Medicare
through their own current earnings.
Public assistanc
aged:
Aged widows.-Aged widows account for $15.4 billion in benefit out-
Old-age assist
Supplemental
lays in 1976-or 36% of all benefits to the aged outside of annuities
income
to primary beneficiaries. The 32.8% increase in benefit outlays to aged
Medicaid
widows between 1974 and 1976 is due largely to the increase in widows'
In-kind benefits
benefits to 100% of the deceased husband's primary insurance amount
aged:
Food
and increased benefit levels under the social security and the railroad
Housing
retirement systems. Some 4.8 million aged widows will receive bene-
fits from social security in 1976 with 1.2 million widows covered in
Total
other programs. There is considerable overlap of these program bene-
1 Benefits for
ficiaries with those covered by social security. Tax expenditures again
2
Benefits for
3
Federal pay
SOCIAL SECURITY
Question:
Given the cost of living these days, how does the Adminis-
tration justify holding down social security benefit in-
creases for our Nation's senior citizens to just 5 percent?
Answer:
Everyone is aware that social security benefits have been
rising steadily over the past several years. In fact, they
have increased at a rate that has more than equaled the in-
crease in the cost of living in the Nation. By this June,
the cost of living will have increased 51 percent since 1970
while average social security benefits will have gone up
77 percent. You are all aware, too, that something must be
done either to slow down the rate of benefit increases or
find some new ways of financing the fund payout procedures.
This is a critical national question.
FORD i LIBRARY 076830
2/7/75
PGN
THE WHITE HOUSE
WASHINGTON
February 6, 1975
MEMORANDUM TO:
TED MARRS
FROM:
PAMELA NEEDHAM
SUBJECT:
Federal Budget Cuts Effecting the
Elderly
In response to the National Council on the Aging's statement
on the budget and the elderly, I'm sure I do not have to say
that this is a particularly difficult topic to come out on
top of. And, since this statement was released, the budget
has come out with more bad news for the aged. Examining each
proposal separately, we do have good explanations. And in
talking about them in general, I think we have to stress that
if the President does not keep the budget down as much as
possible and conquer our economic troubles we will all be in
even worse shape. Thus he had to cut wasteful and ineffi-
cient spending wherever feasible; at the same time he has
tried, in each of these programs, to see that the available
resources are targeted on the truly needy.
Although it is not in the statement, one of the first ques-
tions will be about the 5 percent social security increase
lid. The most important fact to point out here is that in the
past 6 years the elderly have done extremely well under social
security. For instance, between 1970 and 1976, the CPI will
have increased 51 percent while average social security bene-
fits have increased 77 percent. So the President's request
that this one year's increase be limited to 5 percent is not
unfair in view of the restraints the economic situation has
placed on other citizens.
With regard to our medicare proposals, we have seen that uti-
lization varies depending on the availability of free service.
For example, in the West -- which has 5.9 hospital beds per
1,000 population -- lengths of stay for medicare beneficiaries
average 10.1 days. In the Northeast -- which has 8.7 hospital
-2-
beds per 1,000 -- lengths of stay average nearly 50 percent
longer, 15.0 days. Thus it was decided that moderate cost-
sharing can improve cost awareness in utilization decisions.
Also, the $750 limit on cost-sharing will protect the elderly
from catastrophic illnesses, replacing the present medicare
open-ended liability. In fact, under the current system, a
beneficiary could be subject to $4,462 in copayments for in-
patient services and unlimited liability for physician
services.
Our medicaid proposal is devised to target more Federal
medicaid funds toward improving the low eligibility and bene-
fits in lower income States. Although the present medi-
caid matching formula provides higher Federal matching to low
income States, most of the program funds go to high income
States because they are the ones most able and willing to
expand the population and services covered. For example,
6 of the highest income States received over 50 percent of
all Federal medicaid funds in 1974 and 2 States -- New York
and California -- received over 30 percent of this money.
Only the 13 highest income States would be affected by our
proposal to lower the minimum Federal matching from 50 per-
cent to 40 percent.
Finally, we have proposed that the option of retroactive
entitlement of social security benefits up to one year before
retirement would be barred if such entitlement would result
in retirement before age 65 and, therefore, in reduced future
benefits. Although this measure will result in budget savings
over the next few years, individual benefits will be maintained
at higher levels in the longer term.
suly:
THE WHITE HOUSE
WASHINGTON
February 6, 1975
GERALD FORD LIBRARY
MEMORANDUM TO:
TED MARRS
FROM:
PAMELA NEEDHAM
SUBJECT:
Federal Budget Cuts Effecting the
Elderly
In response to the National Council on the Aging's statement
on the budget and the elderly, I'm sure I do not have to say
that this is a particularly difficult topic to come out on
top of. And, since this statement was released, the budget
has come out with more bad news for the aged. Examining each
proposal separately, we do have good explanations. And in
talking about them in general, I think we have to stress that
if the President does not keep the budget down as much as
possible and conquer our economic troubles we will all be in
even worse shape. Thus he had to cut wasteful and ineffi-
cient spending wherever feasible; at the same time he has
tried, in each of these programs, to see that the available
resources are targeted on the truly needy.
Although it is not in the statement, one of the first ques-
tions will be about the 5 percent social security increase
lid. The most important fact to point out here is that in the
past 6 years the elderly have done extremely well under social
security. For instance, between 1970 and 1976, the CPI will
have increased 51 percent while average social security bene-
fits have increased 77 percent. So the President's request
that this one year's increase be limited to 5 percent is not
unfair in view of the restraints the economic situation has
placed on other citizens.
With regard to our medicare proposals, we have seen that uti-
lization varies depending on the availability of free service.
For example, in the West -- which has 5.9 hospital beds per
1,000 population -- lengths of stay for medicare beneficiaries
average 10.1 days. In the Northeast -- which has 8.7 hospital
-2-
beds per 1,000 -- lengths of stay average nearly 50 percent
longer, 15.0 days. Thus it was decided that moderate cost-
sharing can improve cost awareness in utilization decisions.
Also, the $750 limit on cost-sharing will protect the elderly
from catastrophic illnesses, replacing the present medicare
open-ended liability. In fact, under the current system, a
beneficiary could be subject to $4,462 in copayments for in-
patient services and unlimited liability for physician
services.
Our medicaid proposal is devised to target more Federal
medicaid funds toward improving the low eligibility and bene-
fits in lower income States. Although the present medi-
caid matching formula provides higher Federal matching to low
income States, most of the program funds go to high income
States because they are the ones most able and willing to
expand the population and services covered. For example,
6 of the highest income States received over 50 percent of
all Federal medicaid funds in 1974 and 2 States -- New York
and California -- received over 30 percent of this money.
Only the 13 highest income States would be affected by our
proposal to lower the minimum Federal matching from 50 per-
cent to 40 percent.
Finally, we have proposed that the option of retroactive
entitlement of social security benefits up to one year before
retirement would be barred if such entitlement would result
in retirement before age 65 and, therefore, in reduced future
benefits. Although this measure will result in budget savings
over the next few years, individual benefits will be maintained
at higher levels in the longer term.
THE WHITE HOUSE
WASHINGTON
January 24, 1975
Cam Deidham
MEMORANDUM FOR:
KEN COLE
THRU:
BILL BAROODY
B
FROM:
TED MARRS NM
The attached statement appears to be worthy of
consideration. What is in fact our policy and
rationale?
I have an upcoming conference with the members
of this organization.
Enclosure
NC
ted Mary
The National Council On The Aging, Inc.
1828 L STREET, N.W., WASHINGTON, D.C. 2003
AREA CODE 202/223-625
December 18, 1974
Mr. William J. Baroody, Jr.
Assistant to the President
The White House
Washington, D.C. 20500
Dear Mr. Baroody:
The National Council on the Aging (NCOA) is a private, nonprofit agency re-
presenting individuals and organizations who serve America's older citizens. Res-
ponding to President Ford's proposed budget cutbacks in programs which affect the
elderly, the Executive and Public Policy Committees of NCOA's Board of Directors
have adopted the enclosed statement.
NCOA is committed to correcting these injustices and we are deeply apprecia-
tive of any assistance you can give in this regard.
We look forward to working with you in the future to improve the quality of
life for the nation's aged population.
Sincerely,
President
Vice Presidents
Secretary
ALBERT J. ABRAMS
MOTHER M. BERNADETTE DE LOURDES, O. CARM.
HUGH W. GASTON, A.I.A.
HOBART C. JACKSON
Executive Director
INABEI R UNDSAY DSW
Treasurer
The National Council On The Aging, Inc.
1828 L STREET, N.W., WASHINGTON, D.C. 2003
AREA CODE 202/223-625
STATEMENT
OF
THE NATIONAL COUNCIL ON THE AGING
FORD & LIBRARY 076870
ON
FEDERAL BUDGET CUTBACKS AFFECTING THE ELDERLY
The National Council on the Aging asks President Ford to reconsider his pro-
posed executive order to increase the cost of food stamps on March 1, 1975.
It also urges the President to reconsider his other proposals that will re-
sult in unnecessary hardship for the elderly poor; increasing the cost of Medicare,
barring retroactive entitlements in the Social Security program, and cutting back
on the Federal share of Medicaid costs. It asks the Congress to reject these pro-
posals which, unlike the food stamp order, must be acted upon by the Congress.
The President specifically promised that his efforts to fight inflation would
spare the elderly poor. His food stamp price increase will hit hardest at elderly
couples or older people living alone. A senior citizen with an adjusted monthly in-
come of $105 would have the cost of a $46 supply of food stamps increased from $18
to $31 a month. An elderly couple with a $200 a month income would pay $60 instead
of $50 for $82 worth of food stamps, a reduction of one-third in their value.
Those older people receiving Supplemental Security Income benefits will be hit
even harder. Those receiving the basic $146 a month will have to pay $43 to receive
the $46 in stamps for which they now pay $30.
The humanitarian reasons for withdrawal of the President's proposals are obvi-
ous. It can also be expected that many older people dropped from the food stamp
program will wind up needing health services. Where is the economy in this?
These cutbacks are morally indefensible, counterproductive, and economically un-
justifiable. We ask all to join us in our efforts to prevent them.
HEALTH EDUCATION EDUC ATION
Aging
DEPAR: ONY MENT DEPARTMENT
DEPARTMENT OF HEALTH, EDUCATION. AND WELFARE
USA
STATEMENT
OF
FORD is LIBRARY GERALD
ARTHUR S. FLEMMING
COMMISSIONER ON AGING
U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
BEFORE THE
SELECT EDUCATION SUBCOMMITTEE
COMMITTEE ON EDUCATION AND LABOR
UNITED STATES HOUSE OF REPRE SENTATIVES
THURSDAY, JANUARY 30, 1975
I appreciate the opportunity of appearing before this Committee
in support of the extension of the Older Americans Act of 1965.
The concept incorporated in both the 1973 and 1974 amendments to
the Older Americans Act is a sound one. It provides the basis for the
installation and operation of a nation-wide network on aging. During
the fiscal year 1974 we placed primary emphasis on the installation of
this network. During the present fiscal year we are endeavoring to do
everything we can to help the network operate in such a manner as to
make a significant contribution to serving the needs of today's older
persons.
In this statement it is my purpose to identify some of the steps
that we have taken and are taking in order to achieve the objectives
set forth in the Act. I am prepared to discuss with the Committee,
or to provide for the record, specific information relative to actions
taken under each one of the Titles of the Act.
The network to which I have referred the Administration on Aging,
the State Offices on Aging, 412 Area Agencies on Aging, and 665 nutrition
projects.
As all of us who are a part of this network discharge our responsi-
bilities, I feel that we should keep in mind the following points:
1. We are charged, at all levels of government, with
becoming focal points for aging.
-2-
2. We are charged, at all levels of government, with serving
as advocates for older persons in connection with all
issues confronting the lives of older persons.
3. Our major task is to develop a cooperative network to
serve older persons through a system of comprehensive
coordinated services designed to meet their needs.
In the light of these points, I would like to discuss with the
members of the Committee some processes which we are endeavoring to
keep uppermost in our minds as we work on the implementation of the
provisions of the Act and its amendments.
1. The process of communication. We recognize both the
importance and complexities of this process. We endeavor
to communicate with both the States and the Areas in
the following manner:
a. Stating the provisions of the Older Americans
Act, As Amended.
b. Promulgating regulations which are designed to
implement the provisions of the law in the most
effective and expeditious manner. These regula-
tions are binding.
c. The transmission of program instructions designed
to clarify questions of policy arising out of
provisions of the law or regulations issued under
the law. Program instructions are also issued when
-3-
it is concluded that it would be advantageous to
older persons for all of the States, in their
roles as focal points for aging and as advocates
for older persons, to deal simultaneously with a
specific issue. Program instructions are binding.
d. The transmission of guidelines in order to provide
technical assistance. They are not binding.
States are free to follow or not follow them at
their discretion.
e. The transmission of information memoranda in order
to provide information which we feel will be help-
ful to State Agencies on Aging in the discharge of
their duties and responsibilities. They do not
mandate any action on the part of the States. A
good example is the Administration on Aging
Information Memorandum 75-5 which relates to the
Department of Labor Manpower Programs for Older
Americans. The purpose of this communication was to
provide the States with the latest information
about developments in the employment area and to
suggest ways in which the State and Area Agencies
might become involved in the interest of meeting
the needs of older persons in this area.
-4-
2. The process of locating authority. The process of
identifying what person or what group of persons has
authority to, act and under what circumstances is one
of the most important processes in government. In
issuing regulations, guidelines, and program
instructions we do everything possible to insure that
they are in compliance with both the letter and the
spirit of the law.
3. The process of coordinating the resources made available
under the Older Americans Act with other public and
private resources for the delivery of services to older
persons. We all recognize that our ability to meet the
needs of today's older persons depends on our ability,
working together, to make this process work. Here are
some of the factors that we believe will help to make
this process work:
a. The Older Americans Act. Section 301 of the Act
calls specifically for State and Area Agencies to
enter into new cooperative arrangements with each
other and with providers of social services to
bring about comprehensive and coordinated service
systems on behalf of older persons.
-5-
b. The regulations issued under the Older Americans Act.
These regulations underscore the importance of
coordinated programs at both the State and Area
levels. They provide that maximum coordination
should be achieved between the State Agency and the
Area Agency and the social services and medical
services Titles under the Social Security Act. They
underline the importance of action programs designed
to achieve coordination of the delivery of existing
services.
c. A high priority has been given in Fiscal Year 1975 to
working out and implementing inter-agency agreements.
The Administration on Aging recognizes that the
development of effective interagency working relation-
ships at both the State and Area levels depends to a
considerable degree on establishing these relation-
ships at the Washington level.
This is why major emphasis is being given during this
Fiscal Year to developing formal working agreements
with a number of agencies, both inside and outside the
Department of Health, Education, and Welfare. A
summary of what has happened up to now follows:
-6-
1. Transportation--A working agreement with the
Department of Transportation is in effect.
2. Utilization of Volunteers- A working agreement
with ACTION is in effect.
3. Information and Referral -A working agreement
with the Social Security Administration and the
Social and Rehabilitation Service
has been developed and is about to be issued.
A second working agreement with eleven
departments and agencies outside of the Depart-
ment of Health, Education, and Welfare is also
in the final stages of negotiation.
/
4. Adult Services Programs- A working agreement has
been developed by the Administration on Aging and
the Community Services Administration of the
Social and Rehabilitation Service and will be signed
shortly.
5. Medicaid Services. A working agreement has been
developed by the Administration on Aging and the
Medical Services Administration.
6. Rehabilitation Services. A working agreement between
the Administration on Aging and the Rehabilitation
Services Administration is in the process of being
completed.
-7-
7. Health Services. A working agreement has been
developed between the Administration on Aging
and the Public Health Service and is in effect.
8. Use of School Buses for the Elderly - -Work is
moving forward on an agreement which will in-
volve the Department of Transportation and the
Office of Education.
9. Housing - Work is now underway to identify those
parts of the Housing and Community Development
Act which will lend themselves to joint agree-
ments between the Administration on Aging and
the Department of Housing and Urban Development.
10. Research on Aging An Interdepartmental Task
Force on Research on Aging is about to request
proposals for a joint contract to inventory
Federal Research on Aging. Nine departments and
agencies are involved in this project.
11. Coordination with School Lunch Programs and
Facilities- The Office of Education and the
Administration on Aging have reached an agreement
in this area.
-8-
12. Energy--An agreement has been reached which
involves the Department of Agriculture,
Department of Labor, Department of Housing
and Urban Development, Federal Energy
Administration, the new Community Services
Administration, and ACTION.
We do not expect to develop at the outset what might be
regarded as ideal interdepartmental working agreements.
As soon as we have reached an agreement at the
Washington level we transmit it to the Regions and the
States. We invite immediate reactions from them and,
through the States, the Areas. As soon as the reactions
have been analyzed we will reconvene those who worked
on the agreement at the Washington level to determine
whether any changes should be made. In the meantime,
State executives who feel that they are in a position
to implement all or parts of any agreement immediately
are urged to do so.
d. The information memoranda we issue which are designed to
keep States abreast of significant developments at the
Federal level and which could have an impact on their
efforts to pool resources. Memoranda which have been
issued in the areas of transportation, manpower, use of
-9-
voluntary services, natural disasters and energy are
illustrative of what has and can be done.
The objective of all of these steps is to facilitate
the coordination of the delivery of services for older
persons and to bring about a pooling of resources.
4. The process of involving the States and Areas in the evolution
of policy under the Older Americans Act. In view of the fact
that the Federal Government has assigned major management
responsibilities to the States and Areas under the Older
Americans Act we believe it is important that the experiences,
capabilities and insights of their personnel be drawn on as new
policies or policy changes are considered. In order to achieve
this objective the following steps have been taken:
a. We held in December 1974 a national meeting of State
and Area executives on aging.
b. Four meetings have been held with all State executives.
Four meetings have been held with the members of the
executive board of the National Association of State
Units on Aging.
c. Four meetings have been held with the Urban Elderly
Coalition.
d. We are arranging to meet with a new national organiza-
tion of area agencies on aging.
-10-
e. If other organizations emerge we will be delighted
to meet with them as we see in all of these
organizations an opportunity to open up channels
of communication and to provide additional
opportunities for involvement in the evolution of
policy.
f. Provision has been made in the regulations for
consultation with the States before national
objectives are established for each Fiscal Year.
FORD LIBRARY
In subsequent years we will also invite, through
the States, reactions from the Areas.
5. The process of providing the State and Area Agencies with
the maximum opportunity to respond to the priority needs
of older persons within their jurisdictions. We believe
that it is the intent of Congress that we should do every-
thing we can to make this process a reality.
In order to achieve this objective our regulations and
program instructions are designed to give both State and
Area Agencies on Aging a wide latitude in determining how
they should use the Federal dollars made available to them.
-11-
For example, as the interdepartmental working agreements
become available we recognize that the ability to
implement these agreements at the State and Area levels
will vary from State to State and from Area to Area.
Although we will encourage each State to use the agree-
ments in at least a few Areas, we will make it clear that
in the beginning the decision as to whether to use an
agreement, and the extent to which it will be used, will
be left to the judgment of the State in consultation with
the Areas.
As we gain experience in the implementation of the agree-
ments we may conclude, after consultation with the States
and, through the States, the Areas, that some can and
should be implemented on a nation-wide basis.
6. The process of insuring that, when it is possible to do so,
high priority needs of older persons, wherever they may live,
are dealt with on a national basis. In the implementation
of this process the following steps have been taken:
a. The Title III regulations provide that there must be
included in area plans and budgets provisions for
an action program designed to coordinate the delivery
of existing services for older persons and the pooling
of available but untapped resources from both the private
and public sectors for services for older persons.
-12-
This provision was included because of a conviction
that there is an opportunity for implementing the
provision in all Areas and that when it is done some
older persons will be receiving services they are
not receiving today.
b. The goal has been established of assuring that by
June 30, 1975 information and referral services that
meet minimum standards will be accessible at
convenient locations to all older persons.
c. In the submission of State plans for 1975 the States
have been required to include an action program designed
to bring about a pooling of some of the resources
available under Title III of the Older Americans Act
with some of the resources available under the Social
Services Titles of the Social Security Act. This
requirement has been instituted because of a belief
that the existence of resources under both titles in
all of the States calls for positive action designed to
pool the resources in the best possible manner.
d. Also, in the submission of State plans for 1975 the
States have been required to include an action program
designed to deal with some of the unique issues that
confront older persons as a result of the energy crisis.
-13-
We have initiated this effort because of our
conviction that the State Agency on Aging should
be the focal point for aging concerns and the
advocate for those concerns. Published stories,
evidence presented to the Congress and to the
Pre-Economic Summit Conference on the Elderly
all underscore the problems older persons are
confronting because of the energy crisis. We
have concluded that those of us who are working
in the field of aging should tackle this on a
national basis. We hope that the interdepartmental
working agreement we have developed will be of
assistance in dealing with these issues.
7. The process of providing technical assistance. This process
is reflected in the discussion of some of the other
processes. Nevertheless, it should be highlighted. We
believe that the Administration on Aging has the obligation
to provide technical assistance to the States and to help
them provide technical assistance to the Area Agencies and,
through the Area Agencies on Aging, to providers of services.
-14-
8. The process of monitoring and assessing by the Administration
on Aging of the programs and activities of State Agencies on
Aging, by State Agencies of the programs and activities of
Area Agencies, and by Area Agencies of organizations which
they have funded for the delivery of services. The manner in
which this process is handled will determine to a considerable
degree whether or not the objectives set forth by the
Congress in the Act will be achieved.
9. The process of advocacy. This is one of the most important
processes for which those of us who are working in the field
of aging are responsible. Here are some of the steps that
have been taken at the Federal level in order to implement
this process:
a. We have made recommendations, to give a few illustrations,
relative to (1) regulations issued by the Department of
Agriculture in connection with the use of commodities in
the nutrition programs for older persons; (2) regulations
issued by the Department of Labor in connection with the
Older Americans Community Service Employment Act;
(3) regulations issued by the Department of Health,
Education, and Welfare for skilled nursing and
intermediate care facilities; (4) regulations of the
Department of Health, Education, and Welfare relative
to the Social Service titles of the Social Security Act;
-15-
(5) regulations issued by the Department of Health,
Education, and Welfare relative to the Supplemental
Security Income program; and (6) regulations issued
by the Department of Transportation relative to
providing funds for capital investments for
transportation of older persons in rural areas.
b. We have developed and are developing, as noted
earlier, inter-agency agreements designed to
strengthen the Federal Government's involvement in
the field of aging. These activities often involve
the advocacy role in that, in some instances, other
departments and agencies do not recognize initially
the unique problems confronting older persons and the
necessity of developing special programs in order to
respond effectively to these problems.
c. Through inter-agency agreements and information memoranda
we are endeavoring to provide State and Area Agencies on
Aging with tools which they can use as advocates in
such areas as (1) helping older persons to deal with the
unique problems that confront them when they are the
victims of natural disasters or an energy crisis; (2)
insuring that older persons receive their fair share
of general revenue sharing funds and specialized revenue
-16-
sharing funds in such areas as manpower and community
development and social services; (3) developing
relationships which will result in greater use of
school lunch facilities with the end in view of
broadening the base of the nutrition program for
older persons; (4) opening up opportunities for
minority contractors in the field of aging; and (5)
providing opportunities for minorities and women to
occupy key positions in the field of aging at both
the State and Area levels.
d. We meet regularly with the leaders of the national
organizations of older persons in order (1) to have
them identify the issues which they feel we should be
pursuing as advocates for older persons, and (2) to
explain to them steps that the Administration on Aging
or other agencies contemplate taking so that they can,
if they so desire, relate their advocacy roles to
these developments.
e. We meet regularly with the top staff related to
Congressional committees dealing with issues in the
field of aging in order (1) to have them identify
issues which they feel we should be pursuing in the
field of aging, and (2) to explain to them steps that
we have taken or contemplate taking under existing law.
-17-
I hope that this testimony has helped to provide some understanding
of the manner in which we are undertaking to implement the basic concepts
incorporated in the Older Americans Act as amended in 1973 and 1974. Our
experiences to date lead me to believe that the concepts are sound. I
recommend that we continue to work on implementing them over a period of
the next two years. At the end of that period we will be in a position
to determine whether the evidence, growing out of indepth experiences,
points to the desirability of making basic changes.
FORD LIBRARY
1/15/75
file
THE ELDERLY AND THE PRESIDENT'S ECONOMIC PROGRAM
--
Program devised to combat recession with smallest
possible inflationary impact.
--
This is in best interests of elderly as they
are ones hit hardest by inflation.
--
The increase of the low-income allowance would benefit
those low-income elderly as would P wposale for reduc. rates in tax
--
Elderly who pay taxes would benefit from tax rebate
proposal, while those who do not would still receive
money from the Government.
While does limit increase in social security -- this
one year -- it would not be unduly burdensome if
efforts to combat inflation succeed.
--
Finally, general talk about how the stakes in this
economic battle are high for all Americans, and the
elderly, along with the rest of us, stand to gain greater
economic security if the twin dangers of recession and
inflation are successfully combated.
Survit tough, at toughance fus
like the stackworks
FORD & LIBRARY GERALD
FEDERAL COUNCIL ON THE AGING
WASHINGTON, D.C. 20201
MEMORANDUM
pm
FOR: JAMES H. CAVANAUGH
For your information
Disb W. 11
F. Richard Williams
Assistant to the Chairman
Aging
HARRISON A. WILLIAMS. JR., N.J., CHAIRMAN
JENNINGS RANDOLPH. W. VA.
JACOB K. JAVITS, N.Y.
CLAIRORNE PTLL, R.1.
WINSTON 1.. PROUTY, VT.
EDWARD M. KENNEDY, MASS.
PETER H. DOMINICK. COLO.
GAYLORD NELSON, WIS.
RICHARD S. SCHWI IRER, PA.
WALTER F. MONDALE, MINN.
BUB PACKWOOD. OREG.
THOMAS F. EAGLETON. MO.
ROBERT TAFT. JR., OHIO
United States Senate
ALAN CRANSTON, CALIF.
1. GLENN BEALL. JR., MD.
HAROLD E. HUGHES. IOWA
ADLAI E. STEVENSON III, ILL.
COMMITTEE ON
LABOR AND PUBLIC WELFARE
STEWART E. MOCLURE, STAFF DIRECTOR
ROBERT E. NAGLE, GENERAL COUNSEL
WASHINGTON, D.C. 20510
December 20, 1974
Honorable Bertha S. Adkins
Chairman, Federal Council on Aging
Administration on Aging
Department of Health, Education, and Welfare
330 01 C Street, S. W. 400 6th. Street, S.W.
Washington, D. C. 20201
Dear Miss Adkins:
We are writing concerning the provisions of section 205
of the Older Americans Comprehensive Services Amendments
of 1973 which require that certain studies be conducted
by the Federal Council on Aging for submission by the
President to Congress no later than eighteen months after
the offective date of the legislation. Since the law
became effective on May 3, 1973, the eighteen-month period
would expire on or about January 3, 1975.
We can well understand the impossibility of completing
and submitting these studies within the time specified in
view of the long delay by the President in submitting
nominations for the Federal Council on Aging and the
subsequent delay in confirming those nominations by the
Senate. There is no question that the Council has not
had sufficient time to comply with the statutory deadline.
We want you to know that we are certainly willing to extend
that time limit until December 1, 1975. We look forward
to receiving your reports at that time.
Best regards.
Very truly yours,
Tam Baglita
Thomas F. Eagleton
Glenn Beall, Beall Jr. h
FORD LIBRARY & GENALD
from Fleming
file
ADMINISTRATION ON AGING
THE OBJECTIVE
Comprehensive, coordinated service systems to meet
the needs of older persons.
THE TARGET GROUP
30 million older persons (60+)
Priority on needs of 5 million low income and minority
older persons.
THE AGING NETWORK
Administration on Aging
State Agencies on Aging
Area Agencies on Aging
(multi-county, county, or city)
FORD LIBRARY 3 GERALD
Nutrition projects
Advisory committees to State and Area Agencies
and nutrition projects
HOW THE NETWORK OPERATES (STATE PLANS)
Governors designate State Agencies on Aging
(56 State Agencies on Aging)
States identify planning and service areas
States designate Area Agencies on Aging in as
many areas as funds will allow
(585 PSA's -- 465. AAoA's)
Annual State Plan is submitted by Governor to
Administration on Aging
- Management-by-objectives format
- Identifies needs and resources
- Sets objectives for State and identifies action
programs for implementing objectives
- Public hearings
- Basis for formula grant by AcA
HOW THE NETWORK OPERATES (AREA PLANS)
Annual Area Plan and proposed budget is submitted by
Area Agency on Aging to State Agency on Aging
- Management-by-objectives format
- Focus on development of comprehensive, coordinated
service system, not just on funding available to
the Agency on Aging
- Public hearings
- Approval of budget by State Agency on Aging
- Area Agency on Aging enters into contracts or makes
grants for delivery of services in accordance with
approved budget
Annual Plan and budget for operation of nutrition projects
submitted to State Agency on Aging by Area Agency on Aging
or agency designated by State Agency
- Public hearings
OR Area Agency on Aging or other designated agency enters
into contracts or makes grants for delivery of services
in accordance with approved budget
- 675 Nutrition projects
(4,200 sites; 245,000 meals per day)
PROMOTION OF COORDINATION THROUGH INTERAGENCY AND
INTERDEPARTMENTAL WORKING AGREEMENTS
AoA AS FEDERAL FOCAL POINT ON AGING
16 Intra and Inter-Department agreements signed
to promote coordination and comprehensiveness
of services at State and local levels (e.g. g. I&R,
Social Services, Health, Housing, Transportation)
138 Interagency agreements at State level;
498 at Area level
Interdepartmental contract to identify and catalog
all research on aging sponsored by Federal agencies
Joint evaluation with SRS of Title XX services
to older people
GOALS
1.
Increase State and Area Agency capacity to direct
programs that will lead to an effective and coordinated
delivery of services to older persons
Respond to requests of State and Area Agencies
for technical assistance
Monitor, assess and evaluate State and Area
Agency performance
When performance falls below a reasonable
standard take action designed to raise the
level of performance
2. To increase capacity to implement inter-agency and
inter-departmental working agreements at Federal,
State, and Area levels
Monitor and assess work of agreements on
a continuous basis
Make changes in agreements based on experience
has Nixon era info
check facts for
not info for Ford Admin
inaccuracies -
check W/OMB
FACT SHEET: ACTIONS TAKEN SINCE 1971
TO ASSIST OLDER AMERICANS
Since the White House Conference on Aging, which
was held in December 1971, a number of actions have been
taken in response to the recommendations and concerns
expressed at that Conference that have helped today's older
persons. These actions have addressed a wide array of
objectives, including:
1. Improving the income position of older persons.
2. Helping older Americans lead dignified, independent
lives in their own homes.
3. Expanding opportunities for the involvement
of older persons in community life.
4. Organizing the Government to meet the changing
needs of older Americans.
One example of increased concern for the status of
older persons since the White House Conference on Aging is
the increase in overall Federal spending under the Older
Americans Act; spending under this Act has risen from
$33.65 million in fiscal year 1971 to a proposed $202.6
million in the President's fiscal year 1976 budget--an
almost six fold increase.
1. IMPROVING THE INCOME POSITION
OF OLDER AMERICANS
FORD is LIBRARY
A. Social Security
Since 1971 Social Security benefits have been
increased by 52%, while the cost of living index has
increased 21.8% over that same period of time. The retired
individual received an average of $132 a month in benefits
in 1971, and received $187 a month in September 1974. The
President has proposed another 5% increase in benefits
effective July 1975.
Other important reforms have been made in the Social
Security program, including a modified retirement earnings
guiths CPI by 31%
1
-2-
test to allow an individual to earn more after retirement
without losing Social Security benefits; increased benefits
for delayed retirement; special minimum benefits for
people who have worked for 15 or more years under Social
Security; an automatic cost-of-living escalator, designed
to make benefits inflation proof; and an increase to 100%
in the amount of a spouse's benefit that widows and
widowers can collect.
B.
Supplemental Security Income
The Supplemental Security Income program (SSI),
funded from general revenues at a FY 1976 level of $5.5
billion, went into effect in January 1974. This program
establishes a Federally-guaranteed income floor for older
persons which, when combined with other income will provide
$146 a month for an individual and $219 a month for a couple.
Currently 2.3 million older Americans are receiving benefits
through this program, compared to 1.8 million older persons
who had been receiving Old Age Assistance under State
administered public assistance programs prior to
implementation of the SSI program. 36 States supplement
these benefits to further assist many of these older
persons. Recent action has established an automatic cost-
of-living escalator designed to make Federal payments under
SSI inflation proof.
The Administration launched an outreach campaign with
the assistance of national organizations of older persons
and the American Red Cross in 1974 that continued through
1975, SSI Alert, that was designed to notify persons who
were potentially eligible for the SSI program.
C. Food Stamps
The bonus value of food stamps has been increased by 43%
for a one-person household and 33.3% for a two-person household
since 1971, and since 1974, coupon values are adjusted
twice a year to reflect increases in the cost of living.
SSI recipients--a large percentage of whom are older persons--
are categorically eligible for food stamps, with the
exception of those individuals in the five States that have
"cashed out" their food stamps benefits. During 1972 and
-3-
1973 an outreach campaign, Project FIND, was launched by
the Administration with the assistance of the American
Red Cross, to increase the participation of older persons
in the food stamp program. As a result of this effort,
more than 190, 000 older persons were added to the food
stamp program.
D. Veterans and Other Retirement Benefits
Older veterans have benefitted by a total 43.7 %
increase in veteran's pensions since 1971.
Vanuary
Benefit for retired Federal employees and their
families have been improved by increasing annuities as the
cost of living rises, and by liberalizing health and other
retirement benefits.
E. Pension Reform
Legislation has been enacted which will protect
workers' investments in private pension plans, in order to
insure that those persons who are enrolled in such plans
receive the pension security they have earned. The legislation
requires and establishes standards for disclosure and reporting
to participants and beneficiaries of financial and other
information; provides a reinsurance system to protect workers
from pension plan failures; and establishes standards for
vesting which grant employees a nonforfeitable right to
accrued credits. The Pension Reform Act is a major step
toward guaranteeing income security for workers in their
retirement years.
F.
Property Taxes
The Administration proposed legislation which would
encourage States to adopt State financed tax rebate provisions
designed to alleviate some of the property tax burden of
low-income and elderly people. The proposal would allow low
and middle-income persons 65 or over a credit against Federal
income tax not to exceed 5's $500 in cases where real property
taxes paid are excessive in relation to income.
4-
G.
Health Care
noturs
The Administration introduced a Comprehensive Health
Insurance Program (CHIP) in 1974 which would have resulted
in more comprehensive health care coverage for the entire
population, with special protection in the case of
catastrophic illness.
L
In addition to consideration of national health
insurance proposals, major reforms have been undertaken to
provide for review of physician performance and better
health care standards, through the establishment of
Professional Standards Review Organiztions- groups of local
physicians who review and evaluate the necessity and
quality of medical care in their communities provided
under Medicare, Medicaid and Child Health Programs;
implementation of utilization review standards; working
out State buy-in agreements for Medicare which allow
States to pay Medicare premiums for Supplemental Security
Income recipients; and the encouragement, through funding
and technical assistance, of Health Maintenance Organizations.
FORD LIBRARY is GENALD
2. ENHANCING THE INDEPENDENCE
OF OLDER AMERICANS
To help older persons lead independent lives in
their own homes or other places of residence, a number of
actions have been taken since 1971, including:
Enactment and implementation of the 1973
amendments to the Older Americans Act. These'
amendments are designed specifically to enable
older persons to live independent lives in their
own homes or other places of residence. Under
Title III of the Older Americans Act State
Agencies on Aging have been strengthened, and 412
Area Agencies on Aging have been established
throughout the country. Both the State and Area
Agencies are designed to serve as focal points
and advocates for older persons. The Area Agencies
on Aging are charged with continually defining
and redefining objectives and priorities,
coordinating the delivery of existing resources,
pooling available but untapped resources, and
providing services to older persons. $96 million
has been made available for this Title.
Enactment and implementation of Title VII of the
Older Americans Act, the Nutrition Program for the
Elderly. This program, budgeted at a $100 million
level, is designed to provide low-cost, hot
nutritious meals in congregate settings to older
persons. 665 projects, with approximately 4,100
sites, are now in operation serving about 220,000
meals a day, five days a week.
Enactment of Title XX of the Social Security Act.
This Act, which will become effective October 1, 1975,
does away with the categorical eligibility found
in current public assistance programs and will allow
States to establish broad income eligibility criteria,
thereby making more persons eligible for social
services. Because the income eligibility criteria
are broad--allowing provision of free services to
persons whose income is lower than 80% of the median
income of the State, and services for a fee to
persons whose income is less than 115% of the State's
median income-the majority of older persons will
be eligible for social services.
-2-
Enactment on August 22, 1974, of the Housing
and Community Development Act of 1974, omnibus
legislation which includes a number of provisions
which can have a significant effect on the lives
of older Americans. Specifically:
Title I - authorizes a Community Development
Program which provides Federal assistance for the
support of: 1) the acquisition, construction, or
installation of neighborhood facilities, senior
centers, parks, recreational facilities; 2) special
projects directed toward the removal of material
and architectural barriers which restrict mobility
of elderly and handicapped persons; and, under
certain conditions; 3) the provision of a range of
public services.
Title II - (Assisted Housing) Renews the
Section 202 direct loan program for housing for the
elderly and handicapped and revises it to assure
that a range of social services provided under other
Federal programs are available.
Enactment of the Federal-Aid Highway Act of 1973,
which authorizes a Rural Highway Mass Transportation
Demonstration Program. One of the criteria for
project selection under this program is that the
demonstrations must be adaptable to the needs of the
elderly and handicapped.
The set-aside by the Department of Transportation
of $20 million from the FY'75 Capital Assistance
budget, for capital assistance grants and loans
to private, nonprofit corporations and associations
for transportation services for the elderly and
handicapped.
Enactment of the National Mass Transportation Act
of 1974, which requires recipients of funds under
provisions of the Act to charge no more than half-
fare for the elderly and handicapped during off-peak
hours and authorizes "free fare" demonstrations.
In addition, the Act authorizes, for the first time,
$500 million for capital assistance to rural areas.
-3-
Continuing efforts to upgrade the quality of
nursing homes. These efforts have included:
(1) New comprehensive regulations to cover
Skilled Nursing Facilities, and regulations
for Intermediate Care Facilities, were
published which are designed to improve the
quality of nursing home care and facilities;
(2) Long Term Care Standards Enforcement directors
have been appointed in each HEW Regional
Office;
(3) More than 74,000 long term care provider
personnel have been trained. Long term
care education coordinators have been
appointed in each HEW Regional Office;
(4) Efforts have been made to enforce the
standards set forth in the Life Safety Code;
(5) Over 2,000 State nursing home surveyors have
been trained; and
(6)
A nursing home ombudsman demonstration program
has been developed in seven States.
3.
EXPANDING OPPORTUNITIES
FOR INVOLVEMENT
To expand opportunities for the involvement of older
persons in society, the following actions have been taken
since 1971:
The budget for the Retired Senior Volunteer
Program (RSVP) has been doubled. There are
currently 666 locally sponsored RSVP projects
involving more than 117,000 retired senior
volunteers providing service to their communities.
The budget for the Foster Grandparent Program
has been tripled, with over 12,500 Foster Grand-
parents serving in 156 local projects throughout
the country.
A new Senior Companion Program, first authorized
in 1973 by Title II of the Domestic Volunteer
Service Act, is in operation. 750 Senior
Companions are now providing service to adults
in need in 18 projects.
A national effort of volunteer organizations
designed to help older persons remain in their
own homes has been supported.
In 1972 and 1973 funds for the manpower program
Operation Mainstream, designed to assist older
workers, were doubled.
The Community Service Employment Program was enacted
in 1973, and is now funded at a level of $12 million.
Enforcement activities under the Age Discrimination
in Employment Act have increased.
The enactment of the Comprehensive Employment and
Training Act of 1974 (CETA), omnibus legislation which
provides manpower funds to State and local governments
- -2-
prime sponsors, provides increased opportunities
for the employment of older workers in public
service employment both in the general program
authorized under Title I and through specially
earmarked programs for older workers authorized
under Title III. States and localities are
spending more than $2 billion under the CETA
authorities of 1975.
4. ORGANIZING THE GOVERNMENT
In order to make the government more responsive to
the needs of older persons, and to better coordinate existing
resources that benefit older persons, the following actions
have been taken:
A Domestic Council Committee on Aging has been
established, chaired by the Secretary of the
Department of Health, Education, and Welfare.
An Interdepartmental Working Group of the
Domestic Council Committee was created, chaired
by the Commissioner on Aging. This Working
Group has established task forces in the areas
maybet may
of nutrition, transportation and energy,
information and referral, data collection, and
research. Interdepartmental Working Agreements
in the areas of nutrition, information and referral,
Die.
energy conservation, and research have been
developed through the work of these task forces.
The 1973 amendments to the Older Americans Act
established a new Federal Council on the Aging.
This fifteen member group, appointed by the
President and confirmed by the Senate, advises
the Commissioner on Aging, the Secretary of HEW,
the President, and the Congress.
A National Institute on Aging was created within
the National Institutes on Health under the
Research on Aging Act of 1974 in order to bring
together research expertise on the problems of
older persons.
The Secretary of Housing and Urban Development
created a new position of Special Assistant to
the Secretary for the Elderly and Handicapped.
-2-
An Office of Nursing Home Affairs was established
within the Department of Health, Education and
Welfare.
The Administration on Aging has developed, in
conjunction with a number of Federal Departments
and agencies, working agreements in the areas of
opening school lunch programs for older persons,
medical services, information and referral, energy
conservation, research, transportation, rehabilitation
services, and housing and community development--
all designed to better coordinate existing Federal
resources.
FACT SHEET: ACTIONS TAKEN SINCE 1971
TO ASSIST OLDER AMERICANS
Since the White House Conference on Aging, which
was held in December 1971, a number of actions have been
taken in response to the recommendations and concerns
expressed at that Conference that have helped today's older
persons. These actions have addressed a wide array of
objectives, including:
1. Improving the income position of older persons.
2. Helping older Americans lead dignified, independent
lives in their own homes.
3. Expanding opportunities for the involvement
of older persons in community life.
4. Organizing the Government to meet the changing
needs of older Americans.
One example of increased concern for the status of
older persons since the White House Conference on Aging is
the increase in overall Federal spending under the Older
Americans Act; spending under this Act has risen from
$33.65 million in fiscal year 1971 to a proposed $202.6
million in the President's fiscal year 1976 budget--an
almost six fold increase.
1. IMPROVING THE INCOME POSITION
OF OLDER AMERICANS
A. Social Security
Since 1971 Social Security benefits have been
increased by 52%, while the cost of living index has
increased 21.8% over that same period of time. The retired
individual received an average of $132 a month in benefits
in 1971, and received $187 a month in September 1974. The
President has proposed another 5% increase in benefits
effective July 1975.
Other important reforms have been made in the Social
Security program, including a modified retirement earnings
-2-
test to allow an individual to earn more after retirement
without losing Social Security benefits; increased benefits
for delayed retirement; special minimum benefits for
people who have worked for 15 or more years under Social
Security; an automatic cost-of-living escalator designed
to make benefits inflation-proof; and an increase to 100%
in the amount of a spouse's benefit that widows and
widowers can collect.
B.
Supplemental Security Income
The Supplemental Security Income program (SSI),
funded from general revenues at a FY 1976 level of $5.5
billion, went into effect in January 1974. This program
establishes a Federally-guaranteed income floor for older
persons which, when combined with other income will provide
$146 a month for an individual and $219 a month for a couple.
Currently 2.3 million older Americans are receiving benefits
through this program, compared to 1.8 million older persons
who had been receiving Old Age Assistance under State
administered public assistance programs prior to
implementation of the SSI program. 36 States supplement
these benefits to further assist many of these older
persons. Recent action has established an automatic cost-
of-living escalator designed to make Federal payments under
SSI inflation-proof.
The Administration launched an outreach campaign with
the assistance of national organizations of older persons
and the American Red Cross in 1974 that continued through
1975, SSI Alert, that was designed to notify persons who
were potentially eligible for the SSI program.
C. Food Stamps
The bonus value of food stamps has been increased by 43%
for a one-person household and 33.3% for a two-person household
since 1971, and since 1974, coupon values are adjusted
twice a year to reflect increases in the cost of living.
SSI recipients--a large percentage of whom are older persons--
are categorically eligible for food stamps, with the
exception of those individuals in the five States that have
"cashed out" their food stamps benefits. During 1972 and
-3-
1973 an outreach campaign, Project FIND, was launched by
the Administration with the assistance of the American
Red Cross, to increase the participation of older persons
in the food stamp program. As a result of this effort,
more than 190,000 older persons were added to the food
stamp program.
D. Veterans and Other Retirement Benefits
Older veterans have benefitted by a total 43,7%
increase in veteran's pensions since January 1971
Benefit for retired Federal employees and their
families have been improved by increasing annuities as the
cost of living rises, and by liberalizing health and other
retirement benefits.
E.
Pension Reform
Legislation has been enacted which will protect
workers' investments in private pension plans, in order to
insure that those persons who are enrolled in such plans
receive the pension security they have earned. The legislation
requires and establishes standards for disclosure and reporting
to participants and beneficiaries of financial and other
information; provides a reinsurance system to protect workers
from pension plan failures; and establishes standards for
vesting which grant employees a nonforfeitable right to
accrued credits. The Pension Reform Act is a major step
toward guaranteeing income security for workers in their
retirement years.
GERALD FORD VIBRARY
F.
Property Taxes
The Administration proposed legislation which would
encourage States to adopt. State-financed tax rebate provisions
designed to alleviate some of the property tax burden of
low-income and elderly people. The proposal would allow low
and middle-income persons 65 or over a credit against Federal
income tax not to exceed $500 in cases where real property
taxes paid are excessive in relation to income.
4-
G.
Health Care
The Administration introduced a Comprehensive Health
Insurance Program (CHIP) in 1974 which would have resulted
in more comprehensive health care coverage for the entire
population, with special protection in the case of
catastrophic illness.
L
In addition to consideration of national health
insurance proposals, major reforms have been undertaken to
provide for review of physician performance and better
health care standards, through the establishment of
Professional Standards Review Organiztions--groups of local
physicians who review and evaluate the necessity and
quality of medical care in their communities provided
under Medicare, Medicaid and Child Health Programs;
implementation of utilization review standards; working
out State buy-in agreements for Medicare which allow
States to pay Medicare premiums for Supplemental Security
Income recipients; and the encouragement, through funding
and technical assistance, of Health Maintenance Organizations.
2. ENHANCING THE INDEPENDENCE
OF OLDER AMERICANS
To help older persons lead independent lives in
their own homes or other places of residence, a number of
actions have been taken since 1971, including:
Enactment and implementation of the 1973
amendments to the Older Americans Act. These'
amendments are designed specifically to enable
older persons to live independent lives in their
own homes or other places of residence. Under
Title III of the Older Americans Act State
Agencies on Aging have been strengthened, and 412
Area Agencies on Aging have been established
throughout the country. Both the State and Area
Agencies are designed to serve as focal points
and advocates for older persons. The Area Agencies
on Aging are charged with continually defining
and redefining objectives and priorities,
coordinating the delivery of existing resources,
pooling available but untapped resources, and
providing services to older persons. $96 million
has been made available for this Title.
Enactment and implementation of Title VII of the
Older Americans Act, the Nutrition Program for the
Elderly. This program, budgeted at a $100 million
level, is designed to provide low-cost, hot
nutritious meals in congregate settings to older
persons. 665 projects, with approximately 4,100
sites, are now in operation serving about 220,000
meals a day, five days a week.
Enactment of Title XX of the Social Security Act.
This Act, which will 'become effective October 1, 1975,
does away with the categorical eligibility found
in current public assistance programs and will allow
States to establish broad income eligibility criteria,
thereby making more persons eligible for social
services. Because the income eligibility criteria
are broad--allowing provision of free services to
persons whose income is lower than 80% of the median
income of the State, and services for a fee to
persons whose income is less than 115% of the State's
median income-the majority of older persons will
be eligible for social services.
-2-
Enactment on August 22, 1974, of the Housing
and Community Development Act of 1974, omnibus
legislation which includes a number of provisions
which can have a significant effect on the lives
of older Americans. Specifically:
Title I - authorizes a Community Development
Program which provides Federal assistance for the
support of: 1) the acquisition, construction, or
installation of neighborhood facilities, senior
centers, parks, recreational facilities; 2) special
projects directed toward the removal of material
and architectural barriers which restrict mobility
of elderly and handicapped persons; and, under
certain conditions; 3) the provision of a range of
public services.
Title II - (Assisted Housing) Renews the
Section 202 direct loan program for housing for the
elderly and handicapped and revises it to assure
that a range of social services provided under other
Federal programs are available.
Enactment of the Federal-Aid Highway Act of 1973,
which authorizes a Rural Highway Mass Transportation
Demonstration Program. One of the criteria for
project selection under this program is that the
demonstrations must be adaptable to the needs of the
elderly and handicapped.
The set-aside by the Department of Transportation
of $20 million from the FY'75 Capital Assistance
budget, for capital assistance grants and loans
to private, nonprofit corporations and associations
for transportation services for the elderly and
handicapped.
Enactment of the National Mass Transportation Act
of 1974, which requires recipients of funds under
provisions of the Act to charge no more than half-
fare for the elderly and handicapped during off-peak
hours and authorizes "free fare" demonstrations.
In addition, the Act authorizes, for the first time,
$500 million for capital assistance to rural areas.
-3-
Continuing efforts to upgrade the quality of
nursing homes. These efforts have included:
(1) New comprehensive regulations to cover
Skilled Nursing Facilities, and regulations
for Intermediate Care Facilities, were
published which are designed to improve the
quality of nursing home care and facilities;
(2) Long Term Care Standards Enforcement directors
have been appointed in each HEW Regional
Office;
(3) More than 74,000 long term care provider
personnel have been trained. Long term
care education coordinators have been
appointed in each HEW Regional Office;
(4)
Efforts have been made to enforce the
standards set forth in the Life Safety Code;
(5)
Over 2,000 State nursing home surveyors have
been trained; and
(6)
A nursing home ombudsman demonstration program
has been developed in seven States.
3. EXPANDING. OPPORTUNITIES
FOR INVOLVEMENT
To expand opportunities for the involvement of older
persons in society, the following actions have been taken
since 1971:
The budget for the Retired Senior Volunteer
Program (RSVP) has been doubled. There are
currently 666 locally sponsored RSVP projects
involving more than 117,000 retired senior
volunteers providing service to their communities.
The budget for the Foster Grandparent Program
has been tripled, with over 12,500 Foster Grand-
parents serving in 156 local projects throughout
the country.
A new Senior Companion Program, first authorized
in 1973 by Title II of the Domestic Volunteer
Service Act, is in operation. 750 Senior
Companions are now providing service to adults
in need in 18 projects.
A national effort of volunteer organizations
designed to help older persons remain in their
own homes has been supported.
In 1972 and 1973 funds for the manpower program
Operation Mainstream, designed to assist older
workers, were doubled.
The Community Service Employment Program was enacted
in 1973, and is now funded at a level of $12 million.
Enforcement activities under the Age Discrimination
in Employment Act have increased.
The enactment of the Comprehensive Employment and
Training Act of 1974 (CETA), omnibus legislation which
provides manpower funds to State and local governments
-2-
prime sponsors, provides increased opportunities
for the employment of older workers in public
service employment both in the general program
authorized under Title I and through specially
earmarked programs for older workers authorized
under Title III. States and localities are
spending more than $2 billion under the CETA
authorities of 1975.
4. ORGANIZING THE GOVERNMENT
In order to make the government more responsive to
the needs of older persons, and to better coordinate existing
resources that benefit older persons, the following actions
have been taken:
A Domestic Council Committee on Aging has been
established, chaired by the Secretary of the
Department of Health, Education, and Welfare.
An Interdepartmental Working Group of the
Domestic Council Committee was created, chaired
by the Commissioner on Aging. This Working
Group has established task forces in the areas
of nutrition, transportation and energy,
information and referral, data collection, and
research. Interdepartmental Working Agreements
in the areas of nutrition, information and referral,
energy conservation, and research have been
developed through the work of these task forces.
The 1973 amendments to the Older Americans Act
established a new Federal Council on the Aging.
This fifteen member group, appointed by the
President and confirmed by the Senate, advises
the Commissioner on Aging, the Secretary of HEW,
the President, and the Congress.
A National Institute on Aging was created within
the National Institutes on Health under the
Research on Aging Act of 1974 in order to bring
together research expertise on the problems of
older persons.
The Secretary of Housing and Urban Development
created a new position of Special Assistant to
the Secretary for the Elderly and Handicapped.
-2-
An Office of Nursing Home Affairs was established
within the Department of Health, Education and
Welfare.
The Administration on Aging has developed, in
conjunction with a number of Federal Departments
and agencies, working agreements in the areas of
opening school lunch programs for older persons,
medical services, information and referral, energy
conservation, research, transportation, rehabilitation
services, and housing and community development--
all designed to better coordinate existing Federal
resources.
LIBRARY
FORD
is
16
1977 Spring Planning Review
Issue #3 : Aging Block Grant
Statement of Issue
What is the appropriate Federal role for meeting the particular social services
needs of the aged as authorized by the Older Americans Act of 1965, as amended. (OAA)
Background
The OAA amendments of 1973 substantially increased the authorization levels for
programs administered by the Administration on Aging and recent congressional action
has substantially increased their funding levels. The rapid implementation of in-
creased services, the initiation of new activities, and the paucity of evaluation
data, coupled with the short history of these programs indicate the need for administra-
tive action to limit the growth of these categorical programs.
These service programs overlap each other as well as other programs. Title VII of
the OAA authorizes a nutrition program for the elderly with ancillary services which
duplicates and/or overlaps:
- the OAA Title III comprehensive services component which is separately administered
by the Administration on Aging
- the USDA Food Stamp program
- authority available under Titles VI and XX of the Social Security Act (Social
Services)
17
- services provided by various veterans and health programs
Alternative #1 - Group the funded activities under Title III authority by administrative
action.
Alternative #2 - Business as usual.
Analysis
The OAA Title III authority approximates the block grant concept. States are
allotted funds via a population formula and encouraged to concentrate resources in a
planned and coordinated manner to develop and provide comprehensive services to older
persons.
On the other hand, the congressionally popular Title VII nutrition authority offers
a narrow categorical approach to providing the aged services linked to the provision of
meals. Recent economic problems have highlighted the nutrition component which provides
meals to the non-poor as well as the poor.
Arguments for Combining the Activities
We believe that this action can be taken administratively without requiring a
legislative amendment. Such an action could:
- place a "cap" on the growth of these programs tied to the authorization level
for Title III
- be attractive to the States since it would reduce their administrative burden
and at the same time make available more State administrative funds.
18
- change the Federal matching requirement from 90% (Title VII) to 75% (Title III)
- allow State governments greater flexibility in identifying problems and assigning
priorities in their solution
- permit better coordination with other Federal programs (Food Stamps, etc.)
- allow modest Federal personnel savings
- enhance targetting on the low-income aged since Title III authority provides for
priority to be given intra-State to geographic concentration of low-income aged.
This is consistent with the recommendations of Federal Council on Aging formulae
study.
In addition, a New York State 1975 audit of programs for the aged indicated:
"Basic coordination among county office staff (Title III) and nutrition program
staff (Title VII) both funded through the OA (State Office for the Aging) does not
occur in many counties.
In 14 counties the staffs are separate and distinct. The lack of coordination and
integration between two programs funded under the OAA through the OA is at odds
with the basic coordination goals OA has set for itself."
"Federal guidelines require the integration (in 1975) of all Title VII staff with
Title III staff."
Budget Impact
- remove the Title VII program from its forward funded pattern and possibly make
available $62.5 million in BA for FY 1976.
19
Arguments against combining the activities
- These programs are popular with the Congress and have developed and organized
strong special interest and advocacy group support. Any major modification of
these programs may be interpreted as flouting the intent of Congress.
- States may resist continued funding of the nutrition programs at the 75% matching
rate.
- Aging programs at the State and local level may not have reached a point in
programmatic maturation to effectively test the Title III conceptual framework.
Budget Impact
No savings from recommended funding levels can be anticipated; however, a stronger
case would be developed to resist congressional increases.
OMB Recommendation - Alternative #1
The recommended decategorization action offers an opportunity for short-term
improvement in addressing overlap and duplication in these service programs. The
long-term issue is the Federal role in setting up a separate and isolated delivery
system for services to the elderly. Increased use of Title III funds may exacerbate
tensions between the needy, in general, and the particular needs of the elderly for
social services.
Nonetheless, consistent with the President's budget message, the combining of these
two programs under a single authority would enhance coordination, reduce duplication
and overlap, and may serve to bring about better equity. Such an action affords an
20
opportunity to allow the States to identify problems and set their own priorities in
their solution consistent with the New Federalism. Finally, this action may serve
to limit the rapid growth of these sensitive programs.
1975 Spring Planning Review
Department of Health, Education, and Welfare
Special Programs for the Aged
Services:
Title III (Community Services)
Title VII (Nutrition)
1. Information and Referral
2. Transportation
LIBRARY
1. Same
2. Same
3. Nutrition
FORD
3. Same
4. Counseling
4. Same
5. Education
is
6. Escort
GERALD
5. Same
6. Shopping
7. Housing Assistance
7. Same
8. Legal Services
8. Same
9. Consumer Education
9. Consumer Protection
10. Recreational
10. Same
11. Health Related Services
11. Health Related Services
- Preventive Services, Periodic Screening
- Diagnostic Screening
and Evaluation
- On-site Treatment
- Home Health
- Treatment by referral
- Homemaker/Home Health
- Prevention
- Health Promotion
- Deinstitutionalization
12. Homemaker
12. Gerontology (Aging)
13. Chore Services
14. Friendly Visiting Services
15. Telephone Reassurance
16. Protective
17. AND ANY OTHER SERVICES; if such services are necessary
for the general welfare of older persons
May 20, 1975
1977 Spring Planning Review
Department of Health, Education, and Welfare
Special Programs for the Aging
($ in millions)
Community Services
1968
1969
1970
1971
1972
(Area Planning and Social
BA
0
BA
0
BA
0
BA
0
BA
0
Services, State Aging
10
8
16
11
15
16
21
15
35
15
Activities, Model Projects,
Evaluation, etc.)
Title III (Community Services)
1973
1974
1975
1976
Interim
1977
1978
1979
1980
BA
0
BA
0
BA
0
BA
0
BA
0
BA
0
BA
0
BA
0
BA
0
91
41
107
99
105
111
96
100
24
25
96
104
96
107
96
103
96
102
Title VII (Nutrition)
200
70
125
129
100
118
25
38
100
116
150
153
150
166
150
161
May 20, 1975
Nall last on 4gmg
meals in wheels
homemaker
National NAH Institute on aging
LIBRARY
FORD
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research transfered lindep
total earmarked for research people
$ 23.3 m
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were part of mental health instil
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$13m annual budget
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As President, I intend to do everything in my power to help our
nation demonstrate by its deeds a deep concern for the dignity and
worth of our older persons. By so doing, our nation will continue to
benefit from the contributions that older persons can make to the
strengthening of our nation.
The single greatest threat to the quality of life of older Americans
is inflation. Our first priority continues to be the fight against
inflation. We have been able to reduce by nearly half the double digit
inflation experienced in 1974. But the retired, living on fixed incomes,
have been particularly hard hit and the progress we have made in reducing
inflation has not benefited them enough. We will continue our efforts to
reduce federal spending, balance the budget, and reduce taxes. The
particular vulnerability of the aged to the burdens of inflation, however,
requires that specific improvements be made in two major Federal programs,
Social Security and Medicare.
We must begin by insuring that the Social Security system is beyond
challenge. Maintaining the integrity of the system is a vital obligation
each generation has to those who have worked hard and contributed to
it all their lives. I strongly reaffirm my commitment to a stable and
financially sound Social Security system. My 1977 budget and legislative
program included several elements which I believe are essential to
protect the solvency and integrity of the system.
FORD LIBRARY is SERALD
- 2 -
First, to help protect our retired and disabled citizens against
the hardships of inflation, my budget request to the Congress included
a full cost of living increase in Social Security benefits, which became
effective with checks received in July 1976. This will help maintain
the purchasing power of 32 million Americans.
Second, to insure the financial integrity of the Social Security
trust funds, I proposed legislation to increase payroll taxes by three-
tenths of one percent each for employees and employers. This increase
will cost no worker more than $1 a week, and most will pay less. These
additional revenues are needed to stabilize the trust funds so that
current income will be certain to either equal or exceed current outgo.
Third, to avoid serious future financing problems I submitted a
change in the Social Security laws to correct a serious flaw in the
current system. The current formula which determines benefits for workers
who retire in the future does not properly reflect wage and price
fluctuations. This is an inadvertent error which could lead to
unnecessarily inflated benefits.
I believe that the prompt enactment of these proposals is necessary
to maintain a sound Social Security system and to preserve its financial
integrity.
Income security is not our only concern. We need to focus also on
the special health care needs of our elder citizens.
In my State of the Union Message I proposed protection against
catastrophic health expenditures for Medicare beneficiaries. This will
be accomplished in two ways. First, I propose extending Medicare
- 3 -
benefits by providing coverage for unlimited days of hospital and
skilled nursing facility care for beneficiaries. Second, I propose
to limit the out-of-pocket expenses of beneficiaries for covered services,
to $500 per year for hospital and skilled nursing services and $250
per year for physician and other non-institutional medical services.
This will mean that each year over a billion dollars of benefit
payments will be targeted for handling the financial burden of prolonged
illness. Millions of older persons live in fear of being stricken by
an illness that will call for expensive hospital and medical care over
a long period of time. Most often they do not have the resources to pay
the bills. The members of their families share their fears because they
also do not have the resources to pay such large bills. We have been talking
about this problem for many years. We have it within our power to act
now so that today's older persons will not be forced to live under
this kind of a shadow.
We have made progress in recent years. We have responded, for
example, to recommendations made at the 1971 White House Conference on
Aging. A Supplemental Security Income program was enacted. Social
Security benefits have been increased in accord with increases in the cost
of living. The Social Security retirement test was liberalized. Many
inequities in payments to women have been eliminated. The 35 million
workers who have earned rights in private pension plans now have increased
protection.
In addition we have continued to strengthen the Older Americans
Act. I have supported the concept of the Older Americans Act since
its inception in 1965, and last November signed the most recent amendments
I. 4 -
into law.
A key component of the Older Americans Act is the national network
on aging which provides a solid foundation on which action can be based.
I am pleased that we have been able to assist in setting up this network
of 56 State and 489 Area Agencies on Aging, and 700 local nutrition
agencies. These local nutrition agencies for example provide
300,000 hot meals a day five days a week.
Today's older persons have made invaluable contributions to the
strengthening of our nation. They have provided the nation with a vision
and strength that has resulted in unprecedented advancements in all
of the areas of our life. Our national moral stength is due in no
small part to the significance of their contributions. We must continue
and strengthen both our commitment to doing everything we can to
respond to the needs of the elderly and our determination to draw on
their strengths.
Our entire history has been marked by a tradition of growth and
progress. Each succeeding generation can measure its progress in part
by its ability to recognize, respect and renew the contributions of
earlier generations.
32UOH 3TIHW 3HT
please иот make a
file is National
Council on Aging - :MORY :OT
and put under in
Aging file
THE WHITE HOUSE
WASHINGTON
DATE 8/29
TO:
FROM: SARAH MASSENGALE over
Address tug lano
eligi pujot
file National councel
on Agung
Ant Fleming
NCOA
Neot
Oder Amer Act me cutical negotions
NCOA 25th annie mtg
DC
=30 SEPT
organiz. of ryanizations -council
all voluntary org. upi in aging belong
representative groups
dinner on 30th, speaking engagement
00 Fleming wd. like to sign amendments there
has discussed with Jerry Jones
CERALD R. FORD LIBRARY
Hdvance copy
Attn Joe Vasquez
nonorable James 2. Lynn
7202 NEOB
cr increases
ment would be about 214 million for fiscal year 1276 and assuaing NO
further increases program expansion and in fcod-awny-fron-home costs--
nearly 20 million for fiscal year 1977.
M.M. 5922 would require the Secretary to nake purchases Oil the open Harket.
of high protein foods, about, and Meat alternates for distribution in the
Title VII Program during Fiscal Year 1975 and 1970 and during the transi-
tional period outwoen came 30, 1976 Have Detober 1, 1975. (Note: the fiscal
years reforred to here are the Blue an identified in section 111(c) (1)
of H.R. 3922, as enrolled.) Since, for the purposes of the bill, these
high protein items would not be considered donated commodities, the
purchases would be in addition to the community assistance level of
15 cents per Lical in FY '76 and 25 cents per meal in TY 177. This, the
Department's additional costs for food distribution for the program
would increase by whatever amount is appropriated for meat and protein
purchases.
The Department believes that the bill would add to the undnistrative
complexition of the Nutrition Program for the Iderly by further dividing
program recponsibility and oversight between USDA and M.M. Jince operat-
ing costa for the program are already funded nationally almost entirely
by the latter aguacy, 20 clear whether donotion of foods by UBDA
is date efficient than an expended cash grant program entirely administered
by MM. No believe that State and local agencies are better able to
determine the nutritional needs of the elderly and availability and
economic purchase of Codus on the open market.
Sincerely,
would appear that
GERALD R. LIBRARY FORD