Statement of Dennis P. Williams, Acting Assistant Secretary for Management and Budget,
 U.S. Department of Health and Human Services

Testimony Before the Subcommittee on Human Resources
of the House Committee on Ways and Means

Hearing on Bush Administration Budget Proposals

July 11, 2001

Mr. Chairman and members of the subcommittee, I am pleased to appear before you today to discuss the President’s FY 2002 budget request for the Administration for Children and Families (ACF). I am Dennis Williams, the Acting Assistant Secretary for Management and Budget in the Department of Health and Human Services. The Administration for Children and Families is the Department’s lead agency responsible for serving our Nation’s most vulnerable populations, including preschool age children, adolescents, and families and children in crisis. The agency's FY 2002 budget reflects the Administration’s commitment to improving the lives of these children and families by maintaining critical investments and targeting new initiatives to help them thrive and prosper as well as increasing support for the charitable organizations that can make such a difference in people’s lives.

I would like to begin my testimony today by providing an overview of ACF’s overall FY 2002 budget and then focus on areas that I know are of particular interest to this subcommittee.

Overview

The FY 2002 budget for the Administration for Children and Families is $44.4 billion. This request represents an increase of 2.9 percent above the FY 2001 enacted level and reflects the President’s commitment to a balanced fiscal framework while at the same time increasing support for America’s children and families.

Two thirds or $31.8 billion of the ACF budget request is for entitlement programs including the Temporary Assistance for Needy Families (TANF) program, Child Support Enforcement, Foster Care and Adoption Assistance, and the Child Care Entitlement. The remaining $12.6 billion of this request represents the discretionary portion of ACF's budget and funds programs such as the Low Income Home Energy Assistance Program (LIHEAP), the Child Care and Development Block Grant, Head Start, Community Services Block Grant and Refugee and Entrant Assistance.

I would like to turn now to a few key programmatic initiatives in ACF's FY 2002 request that we look forward to working with you on such as responsible fatherhood, support for charitable organizations, child care, Safe and Stable Families and independent living.

Promoting Responsible Fatherhood

ACF's budget seeks to strengthen families by recognizing the critical role that fathers play in the lives of their families. A new $64 million program would be authorized to strengthen the role of fathers in families and marriage. This initiative shares many of the same goals as the legislation this subcommittee has supported over the last several years. The President’s proposal would provide competitive grants to faith-based and community organizations to help low-income non-custodial parents (mainly fathers) support their children financially and improve parenting skills and to promote marriage. We commend the subcommittee for your leadership in focusing attention on responsible fatherhood and look forward to working with you in this area of mutual commitment.

Support for Charitable Organizations

In addition to reaching out to the expertise of faith- and community-based organizations in our child care, fatherhood and mentoring initiatives, ACF’s budget seeks funding under the Social Security Act’s section 1110 demonstration authority for a compassion capital fund. The fund would provide start-up capital and operating funds totaling $89

million in 2002 to support qualified charitable organizations that wish to expand or emulate model social programs. This funding would build on the efforts of charitable organizations by supporting the creation of public/private partnerships in addressing the needs of low-income families. In addition, these funds would be used to promote research on best practices among charitable organizations.

Further, to encourage States to create State tax credits for contributions to designated charities, this budget proposes to allow States to use Federal Temporary Assistance for Needy Families funds to offset revenue losses, from such contributions.

Child Care

The FY 2002 request proposes to increase the discretionary funds available for the Child Care and Development Block Grant by $200 million for a total FY 2002 level of $2.2 billion. The President's budget includes a $400 million set-aside to provide parents with certificates to obtain after-school child care with a high quality education focus for eligible children up to 19 years of age. This would help low-income working parents pay for the cost of care to children especially vulnerable to crime and at-risk behavior when left unsupervised after school. Additionally, the 2002 budget includes a $150 million increase in pre-appropriated entitlement funds which are subject to the rules of the Child Care and Development Block Grant. In total, this translates to a $350 million increase in child care funding and will provide after school care investment for up to 500,000 additional children.

Promoting Safe and Stable Families

In addition, ACF’s budget takes steps to help our most vulnerable and at-risk children live safe and productive lives in conjunction with reauthorization of the Promoting Safe and Stable Families program, scheduled to expire on September 30, 2001. First, we are proposing a $200 million increase for the Promoting Safe and Stable Families program, which supports State and Tribal child welfare agencies in carrying out family preservation, family support, family reunification, and adoption promotion and assistance services. These additional funds will be used to help serve the best interests of children by either keeping them with their biological families when it is safe and appropriate, or by expediting adoptive placement when it is not. Second, we are proposing to create a new discretionary initiative that will provide $67 million within the Promoting Safe and Stable Families program to assist children of prisoners. America is home to 1.5 million children of prisoners on an average day who suffer disproportionate rates of many severe social problems including substance abuse, gang involvement, early child-bearing, and delinquency. This additional new funding would go to States to provide a range of activities, including family rebuilding programs that serve low-income children of prisoners and probationers.

Independent Living

We are also seeking a $60 million increase in funding for the Independent Living Program within the Foster Care and Adoption Assistance entitlement. This funding is intended to provide vouchers worth up to $5,000 for education and training to help young people who age out of foster care to develop skills to lead independent and productive lives. Currently, 16,000 youth age out of the foster care system annually and often do not have the resources to pay for higher education and vocational training

that can be critical to increasing their opportunity to secure work and become contributing members of adult society.

Other Budget Priorities

Before concluding, I would like to take this opportunity to mention several additional priorities in ACF’s budget which fall outside this committee’s jurisdiction. First, the budget includes $33 million for community-based, adult supervised group homes for teenage mothers and their children under the Runaway and Homeless Youth Program. The homes would provide safe, stable, nurturing environments for teenage mothers and their children who cannot live with their own families because of abuse, neglect, or other extenuating circumstances.

In addition, the FY 2002 budget request for Head Start would increase by $125 million to $6.3 billion. This will support all Head Start programs in maintaining the current level of services while efforts are undertaken to improve the program’s focus on child and family literacy in order to better prepare children for school.

Finally, the FY 2002 request for Federal Administration is $175 million, an increase of $11 million or 4.9 percent over the FY 2001 enacted level. This level is expected to fund 1,532 full-time equivalent staff (FTE) and provide 15 new FTE needed to support the Department’s Faith-Based Center established in accordance with the President's recent Executive Order. Also, ACF envisions committing an additional $2 million as needed to meet the intensive staffing and travel requirements generated by the child welfare monitoring reviews.

Conclusion

In conclusion, the President’s FY 2002 budget for ACF identifies crucial areas of need for our Nation's children and families. We look forward to working with you to ensure these needs are addressed.

Thank you, Mr. Chairman. I will be happy to answer any questions you and the Committee may have at this time.