orthotics, rehabilitation psychology, rehabilitation counseling, recreation for the ill and handicapped, and other specialized fields contributing to vocational rehabilitation. Grants under Sec. 7 are to support short-term specialized courses of training by those who can furnish special technical training in various aspects of rehabilitation. Grants are also made to most of the medical schools to help provide basic orientation to rehabilitation for undergraduate medical students. Method of Financing: Sec. 4-Grants are intended to pay part of the costs of training projects. For in-service training grants, $1 of State funds for every $9 of Federal funds is required. Under Sec. 7 for training and research fellowships, no matching funds are required. Appropriations: $29,700,000.

CONSTRUCTION GRANTS (SEC. 12)

Purpose: To provide for both State and local planning for rehabilitation facilities and workshops and to assist in the cost of construction and initial staffing of rehabilitation facilities and workshops.

Method of Financing: Initial State planning grants are available for a twelvemonth period, and each State may make a separate application for a continuation planning grant for each of the four subsequent years. No State shall receive a sum greater than $75,000 for any one year. The project development grants are awarded on the basis of individual application and are not determined by regional or State considerations. Construction and initial staffing projects are distributed each year to each region. Unused funds may be redistributed. Federal participation cannot exceed 90 percent of the cost of any State planning project. Matching rates for construction grants are the same as Hill-Burton matching rates, varying from one-third to two-thirds. Initial staffing grants may extend through a period of 44 years with Federal participation up to 75 percent for first fifteen months; 60 percent to 45 percent to 30 percent for the final 12 months period, at which time the application must be prepared to assume full financial responsibility for staffing costs.

Appropriations: $4,500,000.

EXPANSION GRANTS (SEC. 4) (a) (A)

Purpose: Grants to States and other public and private, non-profit agencies to encourage programs which will result in the rehabilitating of greater numbers of handicapped persons.

Method of Financing: Federal funds are available for a maximum of 90 percent of the cost of each expansion project for not over three years. Appropriations: $6,310,000.

Number of Projects: 123.

STATEWIDE PLANNING GRANTS (SEC. 4) (a) (2) (B)

Purpose: A 2-year program of grants to pay the cost of planning for the development of a comprehensive vocational rehabilitation program in each State, including the orderly development of services and resources (public and nonprofit) (private) so that by July 1, 1976 or sooner, vocational rehabilitation services will be available to all handicapped individuals in the State.

Method of Financing: No special formula for distribution of Federal funds was prescribed in the act except that the maximum Federal Aid to any State for any fiscal year could not exceed $100,000. Funds appropriated for both 1966 and 1967 will remain available through June 30, 1968.

Appropriations: $3,250,000.

Number of Projects: 51.

TRAINING SERVICE GRANTS (SEC. 13) (a)

Purpose: To assist in the cost of projects which provide training services, leading to gainful employment, to handicapped individuals in public or other nonprofit workshops and rehabilitation facilities. Federal financial participation may assist in the costs of such services as training in occupational skills, work evaluation, work testing, provision of occupational tools and equipment necessary for training purposes and job tryouts.

82-736-67

Method of Financing: Federal funds may pay up to 90 percent of the cost of training services as well as a weekly training allowance for the trainee and his dependents. Such training allowances may not exceed $25 per week plus $10 for each dependent, with a maximum payment of $65 weekly to any individual trainee. Limited to 2 years for any individual.

Appropriations: $2 million.

WORKSHOP IMPROVEMENT GRANTS (SEC. 13) (b)

Purpose: To assist in the costs of analyzing, increasing, or improving those aspects of a workshop's operations which affect its capacity to provide employment and services for the handicapped.

Method of Financing: Funds are available each year to each region on the basis. of population. Funds may be redistributed if not used within the region. Grants are made on a one-year basis with no project eligible for more than three years in succession. Federal funds are available for 90 percent of the total project cost.

Appropriations: $4 million.

INTERNATIONAL RESEARCH AND TRAINING

(The Vocational Rehabilitation Act as amended: Agricultural Trade Development and Assistance Act of 1954; International Health Research Act of 1960) Purpose: To support international rehabilitation research and interchange of rehabilitation specialists which supplement and complement the VRA domestic program. The grant program is financed by foreign currency resources and is available to qualified governmental and non-governmental and non-profit agencies and institutions abroad.

Method of Financing: Grants are made without regard to formula in countries where excess foreign currencies are available.

Appropriations: $3 million.

Number of Projects: 110.

(Other programs and activities)

ARCHITECTURAL BARRIERS TO THE HANDICAPPED (SEC. 15)

Purpose: The VR Amendments of 1965 authorized appointment of a National Commission on Architectural Barriers to study and make recomendations on the extent to which architectural barriers impede access to and use of buildings by the handicapped and what efforts are, and can be, made to eliminate them. This effort brings together a wide variety of Federal, State, local, public and privateagencies with interests in this problem and its solutions.

CORRECTIONAL REHABILITATION MANPOWER STUDY (SEC. 16)

The Correctional Rehabilitation Study Act of 1965 amended the VR Act to authorize grants to nongovernmental agencies to pay part of the cost of carrying out a program of research and study of the personnel practices and current and projected personnel needs in correctional rehabilitation, and of the availability and adequacy of the educational and training resources for persons in or preparing to enter the guild of correctional rehabilitation.

Appropriations: $800,000.

VENDING STANDS OPERATED BY THE BLIND

For over 30 years the Vocational Rehabilitation Administration has administered the Randolph-Sheppard Act under which blind persons are licensed to operate vending stands on Federal and other property. The law gives preference to qualified blind persons to operate stands on Federal property. Generally, the State agency serving the blind is the licensing agency. State rehabilitation agencies provide training and retail services to prepare blind persons for the work and also supervise stand operations. Through this program in 1966 over 2,650

stands provided employment for over 2,900 operators. Gross income for all stands totaled over $65 million, providing annual earnings of $4,932 per operator.

ATTACHMENT B
BACKGROUND MATERIAL

(S. 1618, the Vocational Rehabilitation Amendments of 1967)

1. Amendments and estimated costs.

2. Appropriations (Sec. 2).

3. Statewide Planning (Sec. 3).

4. Centers for Deaf-Blind Youths and Adults (Sec. 4).

5. Services for Migratory Agricultural Workers (Sec. 5).

6. Residence Requirement (Sec. 6).

VOCATIONAL REHABILITATION

A. National Center for Deaf-Blind Youths and Adults

Inserts new Section in the Vocational Rehabilitation Act to authorize (1) the construction, equipping, staffing, and operation of a national center for complete service to the deaf-blind, and (2) planning for additional facilities based on experience with the initial facility.

B. Extension of Appropriation Authorization for Grants to States for Basic Support

Proposal amends Section 1(b) of the Vocational Rehabilitation Act to extend appropriation authorizations to include FY 1969 ($500 million) and FY 1970 ($600 million). Current authorization extends only through FY 1968.

Program costs (in millions):

1968 1969

1970

C. Project Grants for Services for Migratory Workers

$343 408

Inserts new Section in the Vocational Rehabilitation Act to authorize pilot demonstration projects for provision of vocational rehabilitation services to migratory workers and their families.

Costs (in millions):

1968

D. Residence Requirement

$9.0

Amends Section 5(a) of the Vocational Rehabilitation Act to require that State plans, to be approved, must provide that no residence requirement will be imposed in determining eligibility of handicapped individuals for vocational rehabilitation services.

Costs: None.

E. Grants to States for Development of Comprehensive Programs (State-wide Planning)

Amends Section 4(a) (2) (B) of the Vocational Rehabilitation Act to extend for one additional year (through fiscal 1968) the appropriation authorization, to permit completion of planning now under way in the States.

Costs (in millions):

1968

$3.0

AUTHORIZATION FOR FISCAL 1969 AND 1970 FOR SECTION 2 OF THE VOCATIONAL REHABILITATION ACT

(Sec. 2, S. 1618)

The 1965 amendments to the Vocational Rehabilitation Act contained an authorization of $300,000,000 for 1966, $350,000,000 for 1967 and $400,000,000 for 1968. An authorization of $500,000,000 is requested for 1969 and an authorization of $600,000,000 for 1970.

During 1966 and 1967 States have been redesigning their programs to take full advantage of the broadened scope of vocational rehabilitation activity and more liberal financing provided by P.L. 89-333. For example, State vocational rehabilitation agencies have been amending their State Plans to provide for extended evaluation services to determine the rehabilitation potential. They have stepped up their cooperative programs with other public agencies. They have increased staffing from 8,600 man-years in 1965 to 10,600 in 1966. By the end of fiscal 1967, State agency man-years financed under the Vocational Rehabilitation Act are expected to total 14,900.

State funds are continuing to increase at a rapid rate. Between 1965, the last fiscal year before the amendments, and 1968 State funds increased 58%. The increase in 1969 over 1968 State funds is expected to be about 20% and the increase in 1970 over 1969, 18%.

It has been Administration policy-before and after the 1965 amendments-to move State vocational rehabilitation programs ahead as fast as possible. The requested authorizations for 1969 and 1970 were set at such levels in order to accomplish this purpose.

Prior to the 1965 amendments, it had been Administration policy to match all State funds available for vocational rehabilitation. The requested authorizations were designed to continue this policy with few exceptions, the most notable being the District of Columbia.

The attached table reflects estimated State funds, estimated grants, and estimated rehabilitations under the authorizations proposed for 1969 and 1970.

The 1969 State funds reflect State estimates sent to the Vocational Rehabilitation Administration through February 1967. The 1970 State funds were estimated on a State-by-State basis by the Vocational Rehabilitation Administration, based on individual increases in 1968 over 1967, and appear to be very conservative. The table shows that the authorization of $500,000,000 for 1969 and of $600,000,000 for 1970 will be favorable for moving ahead State vocational rehabilitation programs.

It is essential to maintain forward movement at this time. The psychological implications of leveling off just as States are gaining momentum and establishing goals and plans to make vocational rehabilitation services available to all handicapped individuals would be tragic indeed.

The proposal also provides that the Federal Government will not be committed beyond the amount that is actually appropriated each year in the regular appropriation process.

Under the present law, the Act specifies the amount to be allotted among the states each year, and provides a formula for making such allotments. It has been felt that such an allotment constituted an obligation on the federal government to provide whatever federal funds are required to match all state expendi tures under an approved state plan, to the extent of a state's allotment.

The proposed amendment would make clear that the amount of federal funds appropriated for a year would constitute the maximum obligation of the federal government, regardless of the amount alloted. Should the amount of the appropriation be less than is required to match all state funds within the allotments, the Secretary would, after consultation with the states, make pro rata or other appropriate adjustments in the grant amounts for the states in such a way as a assure the most effective use of available funds.

Sec. 2

SEC. 2 AUTHORIZATION

Actual, 1966 Estimate, 1967 Estimate, 1968 Proposed, 1969 Proposed, 1970

ESTIMATED FEDERAL ALLOTMENT AND STATE FUNDS REQUIRED FOR THE SUPPORT PROGRAM FOR FISCAL YEAR

(a) Support program (sec. 2) based on allotment percentages effective for 1968 and 1969; (b) population used for both 2 and sec. 3 is that of July 1, 1966, as reported in Bureau of the Census release series P-25, No. 348, dated Sept. 16, 5, except for Guam and the Virgin Islands which was estimated separately by the Bureau of Census on Sept. 22, 1966. State funds required to meet the 1965 effort.