oversight

Budget Issues: Human Resource Programs Warranting Consideration as Human Capital

Published by the Government Accountability Office on 1990-04-30.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                    United   States   General   Accauntinrt     Office
 Y




GAO                 Report-to the Chairman, Committee on
                    the Judiciary, House of Representatives



April   1990
                    BUDGET ISSUES
                    Hums Resource
                    Programs Warranting
                    Consideration as
                    Human Capital




               RESTRICTED --Not       to be released outside    the
               General Accounting   OfAce unless specifically
               approved by the Office of Congressional
               Relations.                       1
                   United States
                   General Accounting Office
                   Washington, D.C. 20548

                   Accounting and Financial
                   Management Division

                   B-235504.2

                   April 30,199O

                   The Honorable Jack Brooks
                   Chairman, Committee on the Judiciary
                   House of Representatives

                   Dear Mr. Chairman:

                   In an April 3, 1989, letter, you expressed concern that our proposal’ for
                   restructuring the current unified budget-which     would include a capital
                   and an operating budget within the unified budget-did not include
                   human capital programs in the capital component. You stated some peo-
                   ple believe that human capital investments should be included in a capi-
                   tal budget. Consequently, you asked us to identify, describe, and
                   categorize all federal human resource programs that could be candidates
                   for inclusion in a capital budget.


                    Human capital is not clearly defined in either the public or private sec-
Results in Brief    tor. The Office of Management and Budget (OMB) uses the term “human
                    resources” in the budget to describe federal programs that are designed
                    to enhance individuals’ well-being. We identified 154 such federal pro-
                    grams warranting consideration as human capital investments, with
                    total outlays of $534 billion in fiscal year 1988. The programs, in our
                   judgment, represent a universe of programs from which human capital
                    programs may be identified. As requested, we classified these programs
                    into four categories (and included their fiscal year 1988 outlays):
                   (1) education and training ($25 billion), (2) health ($131 billion),
                   (3) social assistance ($69 billion), and (4) retirement and disability
                    ($309 billion). In the private sector, many economists and researchers
                    agree that some education and training programs are investments in
                    human capital. However, there is no consensus on what other programs
                    should also be classified as human capital.


                   For nearly 4 years, we have been examining the concept of a restruc-
Background         tured unified budget as a step in strengthening financial management




                   ‘Budget Issues: Capital Budgeting for the Federal Government (Exposure Draft) (GAO/AFMD-88-44,
                   July 1988).



                   Page I                                           GAO/AlWIMO-62      Human Resource Programa
B236504.2




within the federal government.2 In an October 1989 report, Managing
the Cost of Government: Proposals for Reforming Federal Budgeting
Practices (GAO/AFMD-go-i), we proposed a restructured budget which pro-
vides sections and subtotals on trust funds, enterprise-type funds, and
other government funds, and then divides these into capital and operat-
ing components.

In our published restructured budget proposals, we have only included
physical investments (such as equipment, construction, and land) and
financial investments (such as notes and loans receivable) in the capital
component of our restructured budget. As we stated in our report,
Budget Issues: Restructuring the Federal Budget-The Capital Compo-
nent (GAOIAFMD-894x?), excluding human capital (and research and devel-
opment) investments from the capital component of the budget does not
reflect a belief that these investments are of lesser importance to the
nation or to the individuals whom they serve. Nevertheless, we have not
included human capital investments (or research and development) in
the capital component of our restructured budget because of the concep-
tual and technical difficulties involved in defining and identifying them.
For example, it is not easy to measure the investment portion and the
depreciation rate of many such programs’ outputs.

There are varying opinions as to whether or not human capital invest-
ments should be included in a capital budget. By excluding these invest-
ments from a capital budget, some organizations and individuals argue
that this will create a budget bias in favor of physical investments. They
contend that federal programs designed to assist segments of the Ameri-
can population in areas such as education, job training, and health rep-
resent an investment in human capital and, therefore, should also be
included in a capital budget. They point out that federal outlays for
human capital investments are just as important to the nation’s econ-
omy as the government’s physical investments.

At your request, we will convene a panel of individuals from within and
outside the federal government who are familiar with human capital to
study the issues surrounding this subject. In the meantime, this report


*Budget Issues: Capital Budgeting Practices in the States (GAO/AFMD-86-63FS, July 15. 1986); Cap
ital Budgeting for the Federal Government (GAO/T-AFiiID-88-3, December 8, 1987); Budget Reform
for the Federal Government (GAO/T-AmD-88-13, June 7, 1988); Budget Issues: Trust Funds and
Their Relationship to the Federal Budget (GAO/AFMD-88-56, September 30, 1988); Budget Issues:
State Practices for Financing Capital Projects (GAO/AFMD-89-64, July 1989); and Budget Issues:
fiestructuring the Federal Budget-The Capital Component (GAO/AFMD-89-52, August 24. 1989).



Page 2                                            GAO/AFMD-OM2Huma.n         ResourcePrograms
1
                        B-235504.2




                        provides a starting point for identifying possible human capital
                        programs.


                        The basic objective of this study was to identify, describe, and catego-
Objectives, Scope,and   rize all human resource programs in the federal budget that could con-
Methodology             ceivably be included in a capital budget. Initially, we reviewed books,
                        articles, and other published reports on human capital investments in
                        the private sector as well as human resource programs in the federal
                        government to obtain information and insight on this issue. (See bibliog-
                        raphy.) Also, we talked with various legislative and executive branch
                        officials in the Congressional Budget Office (CBO), the Congressional
                        Research Service (CRS), the Office of Management and Budget, and other
                        federal agencies to obtain their views on what federal programs they
                        believe should be classified as human capital investments.

                        In developing our list of human resource programs warranting consider-
                        ation as human capital investments, we selected programs contained in
                        the “human resources suoerfunction” of the Budget of the United States
                        Government, Fiscal Year-1990 and the Budget ofihe United States Gov-
                        ernment, Fiscal Year 1990-Appendix      that were established to assist
                        segments of the American population in obtaining education and train-
                        ing, housing assistance, income assistance, health care, and social assis-
                        tance. We were unable to add the training of federal civilian and
                        military employees to our human resource list because of the difficulty
                        in obtaining accurate information on such programs.

                        As you requested, we classified the human resource programs that could
                        be candidates for inclusion in a capital budget into four categories based
                        on the type of assistance provided: (1) education and training,
                        (2) health, (3) social assistance, and (4) retirement and disability. We did
                        not include programs representing the government’s investment in loans
                        and other financial instruments, since they are currently included in the
                        capital component of our restructured budget proposal. Our methodol-
                        ogy is discussed in more detail in appendix VIII.

                        As agreed with the Committee, we did not obtain formal comments on
                        this report from OMB or CBO. However, we discussed our work with their
                        officials and incorporated their comments where appropriate in the
                        report, Our work was performed in Washington, D.C., from June 1, 1989,
                        through March 21, 1990.




                        Page 3                                 GAO/AFMDso-52   Human Resource Programs
                      5235504.2




                      Human capital is not clearly defined in either the public or private sec-
Human Capital Not     tor. OMB uses the term human resources to categorize such programs as
Clearly Defined       education and training. The private sector researchers, on the other
                      hand, consider many types of human resource spending as investments
                      in human capital. According to most private sector researchers, such
                      investments would include expenditures for education and training pro-
                      grams. However, there is less consensus among the researchers on what
                      other programs are human capital investments.

                      Applying the concept of human capital in budgeting and accounting
                      poses many challenges. These challenges include resolving conceptual
                      issues, such as the breadth of activities that represent investments (as
                      opposed to consumption or operating expenses), and addressing practi-
                      cal issues of measurement.

                      One key conceptual issue is whether human capital programs should be
                      restricted to those increasing productivity, such as many education and
                      training programs, or also include those increasing well-being-such     as
                      some health programs. Another issue concerns the classification of pro-
                      grams that provide benefits for more than 1 year-investment-type       pro-
                      grams-or less than 1 year-consumption-type        programs. A third issue
                      is the measurement of the human capital share of a given program and
                      its rate of depreciation. To date, the conceptual and practical issues sur-
                      rounding implementation of the human capital concept have not been
                      resolved.


Federal Perspective   The federal government, specifically OMB, has not defined human capi-
                      tal. As such, OMB does not use the term human capital to describe any
                      federal human resource programs, including those that it classifies as
                      investment-type activities. Federal agencies use OMB Circular A- 11, “Pre-
                      paration and Submission of Budget Estimates,” to prepare data for the
                      budget document entitled “Special Analysis D, Federal Investment Out-
                      lays” of the Budget of the United States Government. The OMB circular
                      defines an investment-type activity as “one whose budget outlays are
                      expected to yield benefits in the future.” The circular categorizes educa-
                      tion and training programs as an investment-type activity, and it
                      includes such programs as Student Financial Assistance, Compensatory
                      Education for the Disadvantaged, Education for the Handicapped, Guar-
                      anteed Student Loans, Training and Employment Services, Health
                      Resources and Services, and Rehabilitation Services and Handicapped
                      Research.



                      Page 4                                 GAO/AFMD-90.52 HumanResourcePrograms
                             B-235604.2




Private Sector Perspective   In the private sector, most economists and researchers generally con-
                             sider human capital as a nonphysical investment which provides a long-
                             term measurable benefit and increases an individual’s productivity and
                             well-being. For example, economists and researchers generally agree
                             that many education and job training programs are good candidates for
                             human capital investments. They cite numerous studies conducted over
                             the years which show that the more education and/or training a person
                             receives, the higher that person’s future income potential.

                             The impact of education and training on productivity can be substantial.
                             A May 1989 report issued by the American Society of Training and
                             Development reported that productivity research over the last 50 years
                             found that on-the-job training contributed 55 percent and formal learn-
                             ing in schools and colleges provided 26 percent of all productivity
                             improvement.

                             Further, a May 1989 study prepared by Isabel Sawhill and Jason Juffras
                             entitled Financing Human Capital states that estimates of private sector
                             expenditures for formal training range between $10 billion and $35 bil-
                             lion a year and that the informal, on-the-job training that occurs daily in
                             businesses may represent an investment worth hundreds of billions of
                             dollars.

                             In our research, we found that some researchers also consider health
                             care programs as candidates for human capital investments. Those who
                             support classifying health care as human capital believe that expendi-
                             tures which reduce the incidence of death and disability in the popula-
                             tion generally lead to long-term increases in productivity and welfare.

                             However, this view is not uniformly accepted by all researchers. Dis-
                             senters note that not all expenditures for health care increase future
                             productivity. In addition, they believe that it is extremely difficult to
                             separate the investment and consumption components of health care in
                             order to determine which components produce future benefits and
                             which produce present benefits.

                             We also found that social services and social welfare programs, such as
                             food assistance, appear to give private sector researchers the most diffi-
                             culty in terms of whether or not they should be considered human capi-
                             tal. Some feel these programs include both human capital and
                             consumption elements since some of them provide potential future eco-
                             nomic benefits, while others provide no benefit beyond the current
                             period.


                             Page 5                                 GAO/AFMD-9@52 Human Resource Programs
                          B-235604.2




                          Furthermore, our research showed that most researchers do not con-
                          sider retirement and disability programs as examples of human capital.
                          These programs are viewed as sustaining the immediate living standard
                          of the beneficiaries rather than enhancing their skills and future
                          productivity.


                          We identified 154 federal human resource programs,3 with total outlays
Human Resource            of $534 billion in fiscal year 1988, that could be potentially classified as
Programs Warranting       human capital investments. In examining the programs, we found that
Consideration as          they ranged from those designed to show a potential return of some
                          future economic benefit, such as education programs, to those whose
Human Capital             main purpose is providing a minimum standard of living, such as rental
                          housing assistance and food stamps. As requested, we classified the pro-
                          grams into four categories based on the type of service or assistance
                          they provide-(l)     education and training, (2) health, (3) social assis-
                          tance, and (4) retirement and disability-to    illustrate the range of
                          human resource activities that can be considered as candidates for inclu-
                          sion in a capital budget. Our description of each of the four categories
                          follows:

                      . Education and training - programs that improve individuals’ abilities to
                        obtain an education and marketable job skills. (See appendixes I and II.)
                      l Health - programs that finance and support activities involving health
                        care services and disease prevention. (See appendixes I and III.)
                      . Social assistance - programs that provide cash and noncash benefits to
                        individuals, states, localities, and public and private institutions to
                        enhance the quality of an individual’s life. (See appendixes I and IV.)
                      l Retirement and disability - programs that provide statutorily defined
                        benefits to retired or disabled individuals and their beneficiaries. (See
                        appendixes I and V.)




                          3The 154 programs include 7 programs which we classified in two categories.



                          Page 6                                             GAO/AF’MD-90-52 Human Resource Programs
                                          B-236504.2




Table 1: Human Resource Programs
Warranting Consideration as Human         Dollars In billions
Capital
1999 in the Capital Budget, Fiscal Year                                                                                Percentage
                                                                                                                           of total      Percentage
                                                                                                          Human             human            of total
                                                                                   Number of            resource         resource            federal
                                          Category                                 programs               outlays          outlays          outlay3
                                          Education and training                              79               $25                  5                     2
                                          Health                                              15               131                 24                11
                                          Social assistance                                   36               69                  13                 5
                                          Retirement and disability                           24              309                  58                25
                                          Total                                             154              $534                100                 43
                                          aFor fiscal year 1988, total outlays were $1,233 blllion This figure Includes OMB’s reported outlays
                                          ($1,064 bllllon) plus offsetting collectlons from the public ($134 billlon) and proprietary receipts from the
                                          public ($35 billIon).


                                          Table 1 shows the outlays made in each of the four human resource cat-
                                          egories. Together, they accounted for 43 percent of total federal outlays
                                          in fiscal year 1988. The retirement and disability category accounted for
                                          the largest outlays-25 percent of total federal outlays and 58 percent
                                          of total human resource outlays. On the other hand, education and train-
                                          ing accounted for the smallest outlay amounts--2 percent of total federal
                                          outlays and 5 percent of total human resource outlays. Appendix I lists
                                          for each of the four categories, the programs included in each category
                                          and their fiscal year 1988 outlays. Appendix VII analyzes the impact of
                                          including human capital programs in our capital budget proposal.

                                          As discussed earlier, in identifying human resource programs warrant-
                                          ing consideration as human capital, we did not include education and
                                          training costs associated with federal civilian and military personnel
                                          because of problems in obtaining accurate information. For example, an
                                          Office of Personnel Management official told us that non-Defense agen-
                                          cies’ education and training costs in fiscal year 1988 were about $1 bil-
                                          lion, but that this figure did not include all non-Defense agencies’ costs.
                                          A Department of Defense official told us that about $18 billion was
                                          spent on manpower training in fiscal year 1988.

                                          As agreed with your office, unless you publicly announce the contents
                                          of this report earlier, we will not distribute it until 30 days from its date.
                                          At that time, we will send copies of this report to the Director of the
                                          Congressional Budget Office, the Director of the Office of Management
                                          and Budget, and interested congressional committees. Copies will be
                                          made available to other parties on request.




                                          Page 7                                                   GAO/AF'MDBO-62 Human Resource Programa
B-235604.2




Please contact me at (202) 275-9573 if you or your staff have any ques-
tions. Other major contributors are listed in appendix IX.

Sincerely yours,




James L. Kirkman
Director, Budget Issues




Page 8                               GAO/AFMD-90-62 Human Resource Programs
Page 9   GAO/AFMD99452 Human Resource Programs
Contents


Letter                                                                 1

Appendix I                                                            14
Human Resource
Programs Warranting
Consideration as
Human Capital in a
Capital Budget
Appendix II                                                           21
Description of
Education and
Training Programs
Appendix III                                                          33
Description of Health
Programs
Appendix IV                                                           36
Description of Social
Assistance Programs
Appendix V                                                            41
Description of
Retirement and
Disability Programs
Appendix VI                                                          45
Human Resource
Programs With a
Research and
Development
Component

                        Page 10   GAO/AFMD-90-62 Human Resource Programs
                        Contents




Appendix VII                                                                                     48
Analysis of Including
Human Resource
Programs in GAO’s
Capital Budget
Proposal
Appendix VIII                                                                                    49
Methodology Used for
Selecting Human
ResourcePrograms
Appendix IX
Major Contributors to
This Report
Bibliography                                                                                     54

Tables                  Table 1: Human Resource Programs Warranting
                            Consideration as Human Capital in the Capital
                            Budget, Fiscal Year 1988
                        Table VII. 1: Human Resource, Physical, and Financial                    48
                            Investments Warranting Consideration as Capital
                            Investments in a Capital Budget, Fiscal Year 1988




                        Page 11                              GAO/AFMD-!30-52 Human Resource Programs
Contents




Abbreviations

AFDC       Aid to Families With Dependent Children
CBO        Congressional Budget Office
CRS        Congressional Research Service
GAO        General Accounting Office
HIV        human immunodeficiency virus
HUD        Department of Housing and Urban Development stIHA
OMB        Office of Management and Budget
PHA        Public Housing Agency
VA         Department of Veterans Affairs


Page 12                             GAOiAFMD-SO-52 Human Resource Programs
Page 13   GAO/APMD-90-62 Human Resource Programa
Appendix I                                                                                          -
Human ResourcePrograms Warranting
Consideration as Human Capital in a
Capital Budget
              This appendix lists four categories of human resource programs-edu-
              cation and training, health, social assistance, and retirement and disabil-
              ity-that    warrant consideration as human capital investments in a
              capital budget. For each category, we identify the individual program by
              its budget subfunction (for example, Ground Transportation, 40 1) and
              its fiscal year 1988 outlays. Some programs in this appendix are
              included in more than one category and/or have a research and develop-
              ment component. These programs are designated by an asterisk (*). In
              addition, we listed program administration accounts for consistency
              purposes because administrative costs are buried in many of the pro-
              gram amounts. These programs are designated by a pound sign (#). A
              plus sign (+) denotes amounts totaling less than $500,000.


              Dollars in mullions
                                                                                         1988 outlavs
              Education and Training Programs

              General Science and Basic Research (2511
              Science and Enqrneennq Education Activrties’                                         $88

              Agricultural Research Services (352)
              Extension Servrce                                                                   $318
              Foreiqn Aqrtcultural Service                                                          85
              National Agrrcultural Library                                                         12
              Cooperative State Research Service’                                                   7
                Total                                                                            $422

              Other Advancement of Commerce (3781
              Minority Business Development                                                        $40

              Ground Transportation (401)
              Research, Tramrnq. and Human Resources’                                              $18

              Water Trammortation     14031
              Ooeration and Trarnina’                                                              $73

              Elementary, Secondary, and Vocational Education (501)
              Compensatory Education for the Disadvantaged*                                      $4,031
              Education for the Handicapped’                                                      1.443
              Vocational and Adult Education*                                                     1,261
              Impact Ard                                                                            654
              School Improvement Programs’                                                          442
              Operatton of Indian Education                                                         273
                                                                                           (continued)



              Page 14                                         GAO/AF’MD-90-62 Human Resource Programs
n



    Appendix I
    HumanBeaourceProlplunsWarranting
    Consideration aa Human Capital in a
    Capital Budget




                                                                             1988 outlays
    lndran Educatron                                                                    18
    Bilinoual, Immtarant, and Refugee Educatton’                                       157
    Special lnstrtutions for the Handicapped’                                           23
    Program Admrnistration’#                                                             19
      Total                                                                        $8,320

    Hiaher Education 1502)
    Student Financial Assistance                                                    $5,273
    Higher Education*                                                                  401
    Howard University’                                                                 164
    Special lnstrtutions for the Handicapped’                                           62
    James Madison Memorial Fellowship Foundation                                         13
    Harry S. Truman Scholarship Trust Fund
    Barry Goldwater Scholarship and Excellence in Education Fund
    Payment to the Institute of American Indian and Alaska Native Culture
      and Arts Development
    Program Administration’#                                                           72
      Total                                                                        S5.988

    Research and General Education Aids (503)
    Corporation for Public Broadcastina                                               $214
    Grants and Administration                                                          166
    National Endowment for the Humanities                                              134
    Libraries’                                                                          96
    Education Research and Statistics*                                                  25
    Grants and Administration                                                           21
    National Capital Arts and Cultural Affairs                                            5
    Collection and Distribution of Library Materials                                     +
    Commission on Education of the Deaf                                                  +
    Gifts and Donations, Humanities                                                      +
    Gifts and Donations, Arts                                                            +
    Gifts and Donations, Museum Services                                                 +
    National Center for the Studv of Afro-American Historv and Culture                   +
    National Commission on Libraries and Information Science,
       Contributions                                                                     +
    Science, Space, and Technology Education Trust Fund                                  0
    Pavment to Endowment Challenae Fund                                                  0
    Program Administration*#                                                          132
      Total                                                                          $793

    Training and Employment (504)
    Training and Employment Services*                                                $3,695
                                                                               (continued)




    Page 16                                         GAO/AFMIMWS2 Human Resource Programs
Appendix I
Human Resource Programs Warranting
Consideration aa Human Capital in a
Capital Budget




                                                                         1988 outlays
Unemployment Trust Fund’                                                         1,009
Community Service Employment for Older Amencans                                    324
Work Incentives                                                                     90
Program Admrnrstration’#                                                           62
  Total                                                                        95.180

Social Services (508)
Rehabtlltatton Services and Handicapped Research*                               $1.484
Human Development Services’                                                         41
Payments to States for Foster Care and Adoption Assistance*                          3
Program Administratron’#                                                            19
  Total                                                                        $1,547

Health Care Services (551)
Health Resources and Services’                                                     $10

Education and Training of Health Care Work Force (553)
Health Resources and Servtces’                                                    $227
National Institute of General Medical Scrences’                                     63
National Library of Medicine*                                                       43
National Heart, Luna. and Blood Institute*                                          40
Alcohol, Drup Abuse, and Mental Health’                                             29
National Cancer Instrtute’                                                          25
National Institute of Diabetes, and Digestive and Kidney Diseases*                  22
National Institute of Neurological (and Communicative) Disorders and
   Stroke’                                                                          15
National Institute of Child Health and Human Development*                           14
National lnstrtute of Allergy and Infectious Diseases’                              12
National Institute of Environmental Health Sciences*                                11
National Institute on Aaina’                                                         a
National Institute of Arthritis, Musculoskeletal, and Skin Diseases’                 6
National Institute of Dental Research*                                               5
Nahonal Eye Institute*                                                               5
National Center for Nursina Research*                                                2
Research Resources*                                                                  2
National Institute of Deafness and Other Communication Disorders*                    0
Office of the Director#                                                             10
  Total                                                                          $539
                                                                           (continued)




Page 16                                        GAO/AFMD-So-62 Human Resource Programs
Appendix I
HumanReso~~Warrauting
Consideration aa Human Capital in a
Capital Budget




                                                                          1988 outlays
Other Income Security (809)
Refugee and Entrant Assistance’                                                     $66
Supplemental Security Income Program*                                                13
  Total                                                                             579

Social Security (851)
Federal Disabilitv insurance Trust Fund*                                            $18

Veterans Education, Training, and Rehabilitation (702)
Readiustment Benefits                                                              $700
Post-Vietnam Era Veterans Education Account                                         303
Veterans Job Training                                                                25
  Total                                                                         $1,028

Hospital and Medical Care for Veterans (703)
Medical Care*                                                                      $541
Assistance for Health Manpower Training Institutions                                  +
  Total                                                                           s541

Criminal Justice Assistance 1754)
National Institute of Corrections*                                                   $6
    Total Education and Training Programs                                      $24,890

Health Progmms

Health Care Services (551)
Grants to States for Medicaid                                                  $30,462
Health Resources and Services Administration*                                    1,217
Federal Indian Health Service                                                      935
Alcohol, Drug Abuse, and Mental Health Administration*                             720
Disease Control, Research, and Training*                                           484
Public Health Service Emergency Fund                                                27
Federal Indian Health Administration                                                 0
Vaccine (Injury Compensation) Improvement Program                                    0
Program Management’#                                                                51
Public Health Service Manaaement’#                                                  43
  Total                                                                        $33,939

Health Research (552)
Disease Control, Research, Training*                                                 38
Program Management*                                                                  11
Public Health Service Manaaement’#                                                   45
  Total                                                                             $94
                                                                            (continued)



Page 17                                         GAO/‘AFMD9M%   Human Resource Progmma
Appendix I
HumanResource~gramaW-ting
Consideration as Human Capital in a
Capital Budget




                                                                             1988 outlays
Medicare (571)
Federal   Hospital Insurance Trust Fund                                           $52,730
Federal   Supplementary Medrcal Insurance Fund                                     34,947
Federal   Catastrophrc Drug Insurance Trust Fund                                        0
Federal   Supplementary Medical Insurance, Catastrophic                                 0
Federal   Hospital Insurance Catastrophic Coverage Reserve Fund                         0
  Total                                                                           $87,677

Hospital and Medical Care for Veterans (703)
Veterans Health Service and Research Administration*                                $9,139
    Total Health Programs                                                        $130,849

Social Assistance Programs

Farm Income Stabilization (351)
Temporary Emergency Food Assistance Program                                             $49

Social Services (506)
Social Servrces Block Grant                                                         $2,666
Human Development Services*                                                          2,135
Payments to States for Foster Care and Adoption Assistance*                            988
Community Services Block Grant                                                          408
Interim Assistance to States for Legalization                                            IO
Housing Counseling Assistance                                                           3
  Total                                                                            $6,210

Unemployment Compensation (603)
Unemployment Trust Fund*                                                           $17,589
Federal Unemployment Benefits and Allowances                                           131
  Total                                                                           $17,720

Housing Assistance (604)
Rental Housing Assistance                                                          $11,042
Payments for Operation of Low-Income Housing Projects                                1,489
Rental Housrng Assistance Fund                                                           70
Emergency Shelter Grants Program                                                  -__    23
Rural Housing Voucher Program                                                            15
Very Low-Income Housing Repair Grants                                                    13
Transitronal and Supportive Housing Demonstration Program                                11
Congregate Services                                                                       5
Interagency Council on the Homeless                                                      +
Nonprofit Sponsor Assistance                                                               0
HUD Public Housing Interest Subsidy Payments                                              0
                                                                               (conttnued)



Page 18                                        GAO/APMIMJMZ       Human Resource Programs
Appendix I
HumanResou.rceProgmmsWarmnting
Consideration M Human Capiti in a
CapitaI Budget




                                                                            1988 outlays
Flexible Subsidy Fund                                                                 (36)
  Total                                                                         612.632

Food and Nutrition Assistance (605)
Food Stamp Proaram                                                               $12.265
Child Nutrition (Proqrams) Payments to States                                       4.286
Special Supplemental Food Program for Women, Infants, and Children                  1,852
Nutrition Assistance for Puerto Rico                                                  880
Funds for Strenathenina Markets, Income, and Supply (Section 32)                      382
Cash and Commodities for Selected Groups                                              194
Emergency Food and Shelter Program                                                    120
Special Milk Proaram                                                                   18
Food Proqram Administration#                                                           85
  Total                                                                          $20,082

Other income SecuriW (609)
Family Support Payments to States                                                $10,764
Low Income Home Energy Assistance                                                  1,585
Refugee and Entrant Assistance*                                                      255
Payments to States from Receipts for Child Support                                     +
Payments to States for Aid to Families With Dependent Children
  (AFDC) Work Programs                                                                  0
Familv Suo~ort Administration’#                                                        86
  Total                                                                          $12,672

    Total Social Assistance Programs                                             $69,365

Retirement and Disability Programs

General Retlrement and Disabilitv Insurance (601)
Railroad Social Security Equivalent Benefit Account                                $6,396
Rail Industry Pension Fund                                                          2,468
Special Benefits for Disabled Coal Miners                                             919
Black Luna Disabilitv Fund                                                            639
Federal Windfall Subsidy                                                              349
Supplemental Annuity Pension Fund                                                     114
Special Workers’ Compensation Expenses                                                 75
Special Benefits                                                                        4
Pension Benefit Guaranty Corporation Fund                                             222
                                                                                 $11,186
                                                                              (contrnued)




Page 19                                         GAO/~sob2        Human Resource Programa
Appendix I
Human Resource Programs Warranting
Consideration ae Human Capital in a
Capital Budget




                                                                         1988 outlays
Federal Employee Retirement and Disability (602)
Civil Service Retirement and Disabihty Trust Fund                             $28,140
Mihtarv Retirement Fund                                                         19.009
Foreign Service Retirement and Disability Trust Fund                               287
Federal Employees’ Compensation Act Benefits                                       212
Judictal Survivors’ Annuities Fund                                                   4
Retired Pav. Defense                                                                 2
Tax Court Judges Survivors Annuity Fund                                              +
Judicral Officers’ Retirement Fund                                                   0
Panama Canal Commission Fund                                                         0
  Total                                                                       $47,654

Other Income Security (609)
Supplemental   Security Income*                                               $15,191

Social Security (651)
Federal Old-Age and Survivors Insurance Trust Fund                           $197,902
Federal Dlsabllity Insurance Trust Fund*                                       22,339
  Total                                                                      $220,241

Income Securitv for Veterans (701)
Compensation                                                                  $11,252
Pensions                                                                        3,935
Reinstated Entitlement Proaram for Survivors Under Public Law 97-377                (1)
  Total                                                                       $15,186

    Total Retirement and Disability Programs                                 $309,458
Total Human Resource Programs                                                $534,362




Page 20                                         GAO/APMD-9062 Human Resource Programs
Appendix II

Description of Education and
Training Programs

                        This appendix describes the individual programs listed under the educa-
                        tion and training category in appendix I.’ Some of the programs in this
                        appendix have parts which are included in more than one category and/
                        or have a research and development component. This information is pro-
                        vided in the description for those programs.


                        Science and Engineering Education Activities-This     program provides
General Scienceand      funding for the following activities: research career development; mate-
Basic Research          rials development research and informal science education; teacher
                        preparation and enhancement; studies and program assessment; and
                        undergraduate science, engineering, and mathematics education. This
                        program has a research and development component; see appendix VI.
                        (z-72)


                        Extension Service-This service provides funds that are used primarily
Agricultural Research   for the employment of county extension workers and paraprofessionals
and Services            who provide advice and assistance in the application of improved meth-
                        ods for agricultural production, marketing, nutrition, family living, and
                        community development. (E- 12)

                        Foreign Agricultural Service -This service provides assistance to Amer-
                        ican farmers and traders by helping them take maximum advantage of
                        increased opportunities to (1) sell U.S. agricultural commodities abroad
                        and (2) increase their farm income. (E- 16)

                        National Agricultural Library -This library acquires, preserves, and
                        disseminates a comprehensive collection of reliable information in all
                        phases of the agricultural and allied sciences. (E-13)

                        Cooperative State Research Service-This service administers grants
                        and payments to state institutions for agricultural research and higher
                        education. This program has a research and development component;
                        see appendix VI. (E-10)


                        Minority Business Development -This program fosters, promotes, and
Other Advancement of    develops minority business enterprise by providing grants, contracts,
Commerce                and other agreements with public or private organizations. (F-12)

                        ‘The summaries were condensed from the Budget of the United States, Fiscal Year 1990-Appendix.
                        The corresponding budget page number follows each summary.



                        Page 2 1                                          GAO/AFMD-90-62 Human Resource Prognmts
                       Appendix II
                       Description of Education a.nd
                       Training Progmns




                       Research, Training, and Hur
Ground                 grants for advance training
Transportation         field; grants to public and p
                       establishing or continuing p
                       and research for mass tram
                       pose of developing, testing,
                       of improving the cost-effect
                       tion services; grants for ent:
                       grams; and grants for huma
                       minority business enterprise
                       research and development c




                       and for supplementary trail
                       personnel. This program ha
                       see appendix VI. (R-45)


                       Compensatory Education fc
Elementary,            vides funds to local educatic
Secondary, and         of providing educational se1
Vocational Education   capped! or neglected childrc
                       students from low income f:
                       and their parents. It also prc
                       activities. This program has a
                       appendix VI. (I-l)

                       Education for the Handicappes
                       educational agencies and st;
                       cial educational services to
                       17, (2) media and captionin
                       tion services, (5) technical z
                       to assist severely handicap1
                       and development componer

                       Vocational and Adult Educ:
                       vocational education and tc
                       obtaining a high school dip1
                       research and development (




                       Page 22
-   ~~~~~
            Appendix LI
            Description of Mucation   and
            Training Programs




            Impact Aid-This program provides (a) payments to school districts for
            losses incurred due to the federal activities in their areas, (b) disaster
            assistance, and (c) funds for construction in school districts that serve
            children who have a parent connected with a federal activity. (I-Z)

            School Improvement Programs-These programs provide grants to
            states to (1) improve the quality of elementary and secondary education
            for children in public and private schools, (2) assist educators in adopt-
            ing various educational programs, (3) combat drug and alcohol abuse in
            schools and communities, (4) educate teachers in drug and alcohol
            abuse, and (5) provide financial assistance to eligible magnet schools,
            students, and educators. This program has a research and development
            component; see appendix VI. (I-2)

            Operation of Indian Education -This Department of the Interior pro-
            gram provides financial assistance to Indian students for chapter 1 pro-
            grams such as education for the handicapped, bilingual education, math
            and science education, and drug education. (N-48)

            Indian Education-This     Department of Education program provides
            grants to local educational agencies and tribal schools for supplemen-
            tary elementary and secondary education programs to meet the special
            educational and culturally-related academic needs of Indian children.
            Also, it funds special programs for Indian students and adults. (I-4)

            Bilingual, Immigrant, and Refugee Education-This        program provides
            grants t,o school districts to help finance educational services for immi-
            grant students. This program has a research and development compo-
            nent; see appendix VI. (I-5)

            Special Institutions for the Handicapped-This    program supports the
            production of free educational materials for blind students below the
            college level by the American Printing House for the Blind. Also, it sup-
            ports Gallaudet University’s Model Secondary School for the Deaf and
            the Kendall Demonstration Elementary School for younger children.
            This program has a research and development component; see appendix
            VI. (I-9)

            Program Administration-This     program provides centralized support,
            administrative services, and overall policy development and strategic
            planning. (I-25)




            Page 23                                GAO/APMD-gO-52 Human Resource Programs
                   Appendix II
                   Description of Education and
                   Training Programs




                   Student Financial Assistance-This    program provides grants, loans, and
Higher Education   work-study opportunities to eligible students in postsecondary schools.
                   (I-l 1)

                   Higher Education- This program provides financial assistance to histor-
                   ically black colleges and universities, legal training for the disadvan-
                   taged, scholarships and fellowships for outstanding students, aid to
                   college students from disadvantaged backgrounds, training programs
                   for the unemployed and disadvantaged, and other programs. This pro-
                   gram has a research and development component; see appendix VI.
                   (I-18)

                   Howard University- This program provides partial support for univer-
                   sity programs and for the teaching hospital facilities. This program has
                   a research and development component; see appendix VI. (I-19)

                   Special Institutions for the Handicapped-This     program provides sup-
                   port for the National Technical Institute for the Deaf, a national residen-
                   tial center which provides postsecondary technical education to prepare
                   deaf people for employment. Also, it provides support for Gallaudet
                   University’s undergraduate higher education program for deaf persons,
                   a preparatory program for students who need training to qualify them
                   for college admission, a graduate program in fields of study related to
                   deafness, and continuing education and public service programs. This
                   program has a research and development component; see appendix VI.
                   (I-9)

                   James Madison Memorial Fellowship Foundation-This        fund awards
                   fellowships to individuals selected for their academic achievement and
                   their potential to become secondary school teachers of social studies and
                   American history. (Z-53)

                   Harry S. Truman Scholarship Trust Fund-This fund awards scholar-
                   ships to qualified college students who demonstrate outstanding poten-
                   tial for and interest in careers in local, state, or federal service. (Z-42)

                   Barry Goldwater Scholarship and Excellence in Education Fund-This
                   fund awards scholarships and fellowships to outstanding graduate and
                   undergraduate students who intend to pursue careers or advanced
                   degrees in science or mathematics. (Z-6)

                   Payment to the Institute of American Indian and Alaska Native Culture
                   and Arts Development- This nonprofit corporation provides grants to


                   Page 24                                 GAO/AFlUD-fJO-62 Human Resource Programs
                       Appendix II
                       Description of Education and
                       TrainingPrograms




                       native Americans who wish to pursue a postsecondary education in var-
                       ious fields of Indian art and culture. (Z-45)

                       Program Administration -This program is described under “Elemen-
                       tary, Secondary, and Vocational Education” in this appendix. (I-25)


                       Corporation for Public Broadcasting- This corporation provides direct
Research and General   payments to public television and radio stations to be used at their dis-
Education Aids         cretion for purposes related primarily to program production or acquisi-
                       tion (Z-12)

                       Grants and Administration-This      National Endowment for the Arts
                       fund provides grants to, or contracts with, groups or individuals of
                       exceptional talent, and state or regional organizations engaged in or con-
                       cerned with the arts. (Z-65)

                       National Endowment for the Humanities-This        program funds activities
                       intended to improve the quality of education and teaching in the human-
                       ities, to strengthen the scholarly foundation for humanities study and
                       research, and to advance understanding of the humanities among gen-
                       eral audiences. (I-l 1)

                       Libraries-This    program provides grants to public library systems,
                       library programs at institutions of higher education, and major research
                       libraries. This program has a research and development component; see
                       appendix VI. (I-24)

                       Education Research and Statistics-This        program (1) provides funding
                       to research centers that focus on topics of national concern in education,
                       (2) collects statistics on educational institutions and on individuals to
                       monitor trends in education, and (3) surveys young Americans to pro-
                       vide reliable information about the nation’s attainment in certain impor-
                       tant skill areas. This program has a research and development
                       component; see appendix VI. (I-24)

                       Grants and Administration-This     Institute of Museum Services program
                       provides competitive grants to a broad range of museums. (Z-67)

                       National Capital Arts and Cultural Affairs-This   program provides gen-
                       eral operating support to Washington, D.C., arts and other cultural orga-
                       nizations. (Z-8)



                       Page 25                                GAO/APMD-9052 Human Resource Programs
Appendix U
Description of EMucation and
Training Programs




Collection and Distribution of Library Materials-This     Library of Con-
gress program collects and distributes copies of foreign library material
to libraries and research centers in the United States. (A-14)

Commission on Education of the Deaf-This commission studies the
availability and quality of education programs provided to deaf individ-
uals. (Z-103)

Gifts and Donations, Humanities-This     program uses money and other
donated property to support the activities of the Institute of Museum
Services. (Z-67)

Gifts and Donations, Arts-This National Endowment for the Arts pro-
gram uses money and other donated property to support art projects
and activities. (Z-66)

Gifts and Donations, Museum Services-This Institute of Museum Ser-
vices program uses money and other donated property to support the
activities of the Institute. (Z-67)

National Center for the Study of Afro-American History and Culture-
This program provides support for a commission which is responsible
for making recommendations on the development and operation of the
National Center for the Study of Afro-American History and Culture.
(Z-56)

National Commission on Libraries and Information Science, Contribu-
tions-This commission uses contributions to develop and coordinate
plans to meet the Nation’s library and information needs, and for advis-
ing the President and the Congress on national library and information
science policy. (Z-60)

Science, Space, and Technology Education Trust Fund-This program
provides grants for activities directed at improving science, space, and
technology education in the United States. (W-7)

Payment to Endowment Challenge Fund-This fund provides income
for the educational and administrative activities of the Woodrow Wilson
International Center for Scholars. (Z-101)




Page 26                               GAO/APMD-90-52 Human Resource Programs
                  Appendix II
                  Description of Education and
                  Training Programs




                  Program Administration-This     program is described under “Elemen-
                  tary, Secondary, and Vocational Education” in this appendix. This pro-
                  gram has a research and development component; see appendix VI.
                  (I-25)


                  Training and Employment Services- This program provides grants to
Training and      states and federally administered programs for the purpose of establish-
Employment        ing job training programs and providing other services for economically
                  disadvantaged persons. This program has a research and development
                  component; see appendix VI. (P-l)

                  Unemployment Trust Fund-This program provides benefit payments
                  to eligible unemployed individuals. One component of this program is
                  veterans’ employment and training. Most of this program is included in
                  the social assistance category; see appendix IV. (P-6)

                  Community Service Employment for Older Americans-This      program
                  provides part-time work experience in community service activities to
                  unemployed, low-income persons aged 55 and over. (P-3)

                  Work Incentives-This    program provides assistance to individuals
                  receiving support from the Aid to Families with Dependent Children
                  program to achieve self-support through a program of training, employ-
                  ment, and support services. (K-4)

                  Program Administration -This Employment and Training Administra-
                  tion program provides (1) job training, policy direction, and manage-
                  ment for the administration of the nationwide public employment
                  service system and the unemployment insurance services in each state,
                  (2) the settlement of trade adjustment petitions, (3) a system of collect-
                  ing and analyzing labor market information, and (4) financial and
                  administration management. This program has a research and develop-
                  ment component; see appendix VI. (P-l)


                  Rehabilitation Services and Handicapped Research-This program pro-
Social Services   vides matching funds to state vocational rehabilitation agencies to assist
                  physically and mentally handicapped individuals to become employed.
                  It includes the following programs: Vocation Rehabilitation State Grants,
                  Supported Employment, Client Assistance, Service and Demonstration
                  Projects, Helen Keller Center, Independent Living Training, National
                  Institute on Disability and Rehabilitation Research, and Technology


                  Page 27                                GAO/AFMD-W-52 Human Resource Programs
                       Appendix II
                       Description of Education and
                       TrainingPrograms




                       Assistance. This program has a research and development component;
                       see appendix VI. (I-7)

                       Human Development Services-This program provides grants to states
                       for services for children, the elderly, and other special groups. It funds
                       the following programs: Head Start; Child Development Associate Schol-
                       arships; Runaway and Homeless Youth; Child Abuse State Grants; Child
                       Abuse Discretionary Activities; Child Abuse Challenge Grants; Depen-
                       dent Care Planning and Development Grants; Temporary Child Care and
                       Crisis Nurseries Grants; Child Welfare Services; Child Welfare Training;
                       Child Welfare Research and Demonstration; Adoption Opportunities;
                       Family Violence Grants; Family Crisis Programs; Title III Services and
                       Meals; Grants to Indian Tribes; Research, Training and Discretionary
                       Programs; State Grants and Advocacy; Administration for Native Amer-
                       icans; and Human Services Research, Training, and Demonstration. Most
                       of this program is included in the social assistance category; see appen-
                       dix IV. Also, the program has a research and development component;
                       see appendix VI. (K-41)

                       Payments to States for Foster Care and Adoption Assistance-This       pro-
                       gram provides assistance for children who must be placed outside the
                       home and subsidies for families adopting children with special needs. Its
                       programs include: Foster Care, Independent Living, and Adoption Assis-
                       tance. Most of this program is included in the social assistance category;
                       see appendix IV. Also, the program has a research and development
                       component; see appendix VI. (K-43)

                       Program Administration -This program is described under “Elemen-
                       tary, Secondary, and Vocational Education” in this appendix. (I-25)


                       Health Resources and Services-This program supports health
Health Care Services   resources and health services categorical programs, and the Maternal
                       and Child Health block grant. Most of this program is included in the
                       health category; see appendix III. (K-3)


Education and          “Health Care and Services” in this appendix. (K-3)
Training of Health
Care W&k Force         National Institute of General Medical Sciences-This institute supports
                       biomedical research and research training in the areas of cellular and



                       Page 28                               GAO/AFMD-So-62 Human Resource Programs
Appendix II
Description of Education and
Training Programs




molecular basis of disease, genetics, pharmacological sciences, physiol-
ogy, biophysics, physiological sciences, human genome research, and
minority access to research careers. This program has a research and
development component; see appendix VI. (K-16)

National Library of Medicine-This  institute supports medical library
services, and research and development in biomedical communications.
This program has a research and development component; see appendix
VI. (K-22)

National Heart, Lung, and Blood Institute-This    institute supports
research and research training in the areas of heart, lung, blood vessel,
and blood diseases. This program has a research and development com-
ponent; see appendix VI. (K-13)

Alcohol, Drug Abuse, and Mental Health-This       institute supports treat-
ment, prevention, research, and research training in the areas of alcohol,
drug abuse, and mental health. Most of this program is included in the
health category; see appendix III. Also, the program has a research and
development component; see appendix VI. (K-25)

National Cancer Institute-This   institute attempts to reduce the inci-
dence of morbidity and mortality from cancer through a broad range of
basic and applied research, prevention, control, and resource develop-
ment activities. This program has a research and development compo-
nent; see appendix VI. (K-13)

National Institute of Diabetes, and Digestive and Kidney Diseases-This
institute supports research and research training in the areas of diabe-
tes, and digestive and kidney diseases. This program has a research and
development component; see appendix VI. (K-15)

National Institute of Neurological (and Communicative) Disorders and
Stroke-This institute supports research and research training in the
areas of neurological disorders and stroke. This program has a research
and development component; see appendix VI. (K-15)

National Institute of Child Health and Human Development-This      insti-
tute supports research and research training in maternal and child
health and in population sciences. This program has a research and
development component; see appendix VI. (K-17)




Page 29                                GAO/AFMD-QO-52 Human Resource Programs
Appendix II
Description of Education and
Training Programs




National Institute of Allergy and Infectious Diseases-This institute
supports research and research training in allergy, immunology, and
transplant programs and in microbiology and infectious diseases. This
program has a research and development component; see appendix VI.
(K-16)

National Institute of Environmental Health Sciences-This institute sup-
ports biomedical research and research training related to environmen-
tal health hazards and toxicology research. This program has a research
and development component; see appendix VI. (K-18)

National Institute on Aging-This institute supports biomedical
research and research training in the field of aging. This program has a
research and development component; see appendix VI. (K-19)

National Institute of Arthritis and Musculoskeletal and Skin Diseases-
This institute supports biomedical research and research training in the
areas of arthritis, and musculoskeletal and skin diseases. This program
has a research and development component; see appendix VI. (K-19)

National Institute of Dental Research-This institute supports research
and research training in diseases of the teeth and supporting tissue and
in disorders of craniofacial structure, functions, and behavior. This pro-
gram has a research and development component; see appendix VI.
(K-14)

National Eye Institute-This    institute supports research and research
training in the areas of eye diseases and visual disorders. This program
has a research and development component; see appendix VI. (K-17)

National Center for Nursing Research -This institute supports biomedi-
cal research and research training in the field of nursing. This program
has a research and development component; see appendix VI. (K-20)

Research Resources-This National Institutes of Health program devel-
ops and supports specialized transdisciplinary research resources in the
nation’s research institutions. This program has a research and develop-
ment component; see appendix VI. (K-20)

National Institute of Deafness and Other Communication Disorders-
This institute supports biomedical research and research training in the
field of deafness and other communication disorders. This program has
a research and development component; see appendix VI. (K-2 1)


Page 30                                GAO/AFMD-90-52 Human Resource Programs
                        Appendix LI
                        Description of Education and
                        Training Programs




                        Office of the Director-This  office provides overall administration of
                        the National Institutes of Health through centralized services, policy
                        development, and program coordination. (K-22)


                        Refugee and Entrant Assistance-This     program provides assistance to
Other Income Security   refugees seeking employment, job training, and English-as-a-second-
                        language training. Also, it provides payments to states for administering
                        the refugee assistance program. Most of this program is included in the
                        social assistance category; see appendix IV. (K-39)

                        Supplemental Security Income Program-This         program provides voca-
                        tional rehabilitation and monitors the treatment extended to alcoholics
                        and drug addicts who receive supplemental security income. Also, it
                        provides a minimum income benefit to individuals or couples who are
                        either aged, blind, or disabled. A part of this program is included in the
                        retirement and disability category; see appendix V. (K-37)


                        Federal Disability Insurance Trust Fund-This program reimburses
Social Security         states for vocational rehabilitation, funds research and development
                        projects, and provides income to insured disabled workers and their
                        dependents. Most of this program is included in the retirement and disa-
                        bility category; see appendix V. Also, it has a research and development
                        component; see appendix VI. (L-2)


                        Readjustment Benefits- This program finances the education and train-
Veterans Education,     ing of veterans and service persons whose service was, at least in part,
Training, and           between February 1, 1955, and December 31, 1976, and certain peace-
Rehabilitation          time veterans and eligible dependents of those veterans. Also, it-pro-
                        vides vocational rehabilitation to certain disabled veterans, grants for
                        specially adapted housing, and grants for cars with the approved adap-
                        tive equipment. (T-5)

                        Post-Vietnam Era Veterans Education Account-This      program provides
                        educational assistance payments to eligible Vietnam era veterans. (T-21)

                        Veterans Job Training-This     program provides job training and related
                        benefits to eligible veterans who entered the program prior to March 3 1,
                        1990. (T-8)




                        Page 31                                GAO/AFMD-90-52 Human Resource Programs
                       Appendix II
                       Description of Education and
                       TrainingPmgranla




                       Medical Care-This Veteran’s Health Service and Research Administra-
Hospital and Medical   tion program provides payments for residency and other health training
Care for Veterans      services. Most of this program is included in the health category; see
                       appendix III. (T-24)

                       Assistance for Health Manpower Training Institutions-This      program
                       awards grants to assist in the establishment of five new state medical
                       schools located in proximity to and operated in conjunction with VA med-
                       ical centers. (T-28)


                       National Institute of Corrections-This   program awards contracts and
Criminal Justice       grants to correctional organizations for technical assistance, training,
Assistance             research, and evaluation of correctional activities, and to maintain an
                       information service on the latest developments in the field of correc-
                       tions. This program has a research and development component; see
                       appendix VI. (O-21)




                       Page 32                               GAO/APMD-90452 Human Resource Programs
Appendix III

Description of Health Programs


                       This appendix describes the individual programs listed under the health
                       category in appendix 1.’ Some of the programs in this appendix have
                       parts which are included in more than one category and/or have a
                       research and development component. This information is provided in
                       the description for those programs.


                       Grants to States for Medicaid-This    program assists the states in pro-
Health Care Services   viding medical care to their low-income populations by granting federal
                       matching payments under Title XIX of the Social Security Act. (K-30)

                       Health Resources and Services-This program provides funding for
                       health resources and health services categorical programs, and the
                       Maternal and Child Health block grant. A part of this program is
                       included in the education and training category; see appendix II. (K-2)

                       Federal Indian Health Administration-This     program provides funding
                       for medical care and public health services for American Indians and
                       Alaska natives. (K-9)

                       Alcohol, Drug Abuse, and Mental Health Administration-This       program
                       provides federal support for the treatment, prevention, research, and
                       research training in the areas of alcohol and drug abuse, and mental
                       health. A part of this program is included in the education and training
                       category; see appendix II. Also, the program has a research and develop-
                       ment component; see appendix VI. (K-25)

                       Disease Control, Research, and Training-This      program includes pre-
                       ventive health block grants; efforts to prevent and avoid complications
                       from sexually transmitted diseases; provisions for immunization against
                       such diseases as polio; efforts to improve or develop preventive, diag-
                       nostic, and control methods for infectious diseases; efforts to reduce or
                       prevent illness associated with certain chronic diseases and to reduce
                       the adverse impacts of environmental hazards; efforts to eliminate and
                       control occupational safety and health hazards; efforts to contain
                       epidemics; efforts to collect, maintain, analyze, and disseminate statis-
                       tics on health; and efforts to prevent the spread of human immu-
                       nodeficiency virus (HIV). A part of this program is included under
                       “Health Research” in this appendix. Also, the program has a research
                       and development component; see appendix VI. (K-l 1)

                       ‘The summaries were condensed from the Budget of the United States, Fiscal Year 1X%--Appendix.
                       The corresponding budget page number follows each summary.



                       Page 33                                           GAO/AFMD-9062 Human Resource Programs
                  Appendix III
                  Description of Health Programs




                  Public Health Service Emergency Fund-This fund provides grants to
                  states for the purchase of drugs effective against HIV-related illnesses.
                  (K-27)

                  Federal Indian Health Administration-This      program provides medical
                  care, public health services, and health professions scholarships for
                  American Indians and Alaska natives. (K-9)

                  Vaccine (Injury Compensation) Improvement Program-This        program
                  provides compensation for vaccine-related injuries or deaths. (S-10)

                  Program Management- This Health Care Financing Administration pro-
                  gram provides funding for research, medicare contractors, state certifi-
                  cation, and administrative costs. (K-31)

                  Public Health Service Management-This      account provides funds for
                  management staffing of the Public Health Service, health services
                  research, disease prevention and health promotion; programs on adoles-
                  cent family life, family planning, and minority health, and physical fit-
                  ness and sports. (K-26)


                  Disease Control, Research, and Training-This   program is described
Health Research   under “Health Care Services” in this appendix. (K-l 1)

                  Program Management- This Health Care Financing Administration pro-
                  gram is described under “Health Care Services” in this appendix. (K-31)

                  Public Health Service Management-This     program is described under
                  “Health Care Services” in this appendix. This program has a research
                  and development component; see appendix VI. (K-26)


                  Federal Hospital Insurance Trust Fund-This fund pays for the hospital
Medicare          and related care for most individuals age 65 or older and for disabled
                  people. (K-32)

                  Federal Supplementary Medical Insurance Trust Fund-This fund pays
                  for physician and certain other medical services, and the treatment of
                  end-stage renal disease for eligible enrollees. (K-34)

                  Federal Catastrophic Drug Insurance Trust Fund-This fund, beginning
                  in 1990, will phase in coverage of outpatient prescription drugs in


                  Page 34                                GAO/AF’MDW52   Human Resource Programs
                       Appendix III
                       Description of Health Programs




                       accordance with the Medicare Catastrophic Coverage Act of 1988.
                       (K-36)

                       Federal Supplementary Medical Insurance, Catastrophic-This       fund
                       pays for medical services provided to eligible program participants
                       when the cost of those services exceeds the federal medicare limit.
                       (K-35)

                       Federal Hospital Insurance Catastrophic Coverage Reserve Fund-This
                       fund provides financing for hospital insurance (Part A) catastrophic
                       benefits. (K-33)


                       Veterans Health Service and Research Administration-This         program
Hospital and Medical   provides payments for the (1) maintenance and operation of VA facili-
Care for Veterans      ties, (2) hospitalization of patients in VA and other federal hospitals,
                       (3) care given to veterans in community nursing homes and vi\-spon-
                       sored state home care facilities, (4) outpatient care, (5) medical and
                       prosthetic research, and (6) other miscellaneous health-related services
                       provided to veterans. A part of this program is included in our educa-
                       tion and training category; see appendix II. (T-24)




                       Page 35                               GAO/AFMDM-62   Human Resource Programs
Appendix IV

Description of Social Assistance Programs


                  This appendix describes the individual programs listed under the social
                  assistance category in appendix I.’ Some of the programs in this appen-
                  dix have parts which are included in more than one category and/or
                  have a research and development component. This information is pro-
                  vided in the description of those programs.


1Farm Income
                  vides funds to states for the storage and distribution costs incurred by
Stabilization     Commodity Credit Corporation commodities, and for the purchase of
                  additional commodities. (E-32)


                  Social Services Block Grant-This block grant provides grants to states
Social Services   to (1) prevent, reduce, or eliminate economic dependency, (2) prevent
                  neglect, abuse, or exploitation of children and adults, (3) prevent or
                  reduce inappropriate institutional care, (4) secure admission or referral
                  for institutional care when other forms of care are not appropriate, and
                  (5) provide services to individuals in institutions. (K-41)

                  Human Development Services- This program provides grants to states
                  for services for children, the elderly, and other special groups. It funds
                  the following programs: Head Start; Child Development Associate Schol-
                  arships; Runaway and Homeless Youth Child Abuse State Grants; Child
                  Abuse Discretionary Activities; Child Abuse Challenge Grants; Depen-
                  dent Care Planning and Development Grants; Temporary Child Care and
                  Crisis Nurseries Grants; Child Welfare Services; Child Welfare Training;
                  Child Welfare Research and Demonstration; Adoption Opportunities;
                  Family Violence Grants; Family Crisis Programs; Title III Services and
                  Meals; Grants to Indian Tribes; Research, Training and Discretionary
                  Programs; State Grants and Advocacy (Developmental Disabilities);
                  Administration for Native Americans; and Human Services Research,
                  Training, and Demonstration, A part of this program is included in the
                  education and training category; see appendix II. Also, this program has
                  a research and development component; see appendix VI. (K-41)

                  Payments to States for Foster Care and Adoption Assistance-This      pro-
                  gram provides support maintenance assistance for children who must be
                  placed outside the home and subsidies for families adopting children
                  with special needs. Its programs are: Foster Care; Independent Living;

                  ‘The summaries were condensed from the Budget of the United States, Fiscal Year 1990-Appendix.
                  The corresponding budget page number follows each summary.



                  Page 36                                           GAO/AFMLW@62 Human Resource Programs
                     Appendix IV
                     Description of Social Assistance Programs




                     and Adoption -4ssistance. A part of this program is included in the edu-
                     cation and training category; see appendix II. Also, the program has a
                     research and development component; see appendix VI. (K-43)

                     Community Services Block Grant-This block grant provides funds to
                     states for services and activities having a measurable or potential major
                     impact on causes of poverty in the community or those areas of the com-
                     munity where poverty is a particularly acute problem. (K-40)

                     Interim Assistance to States for Legalization-This     program provides
                     grants to states to assist in providing financial, medical, and educational
                     assistance to newly legalized aliens. (K-41)

                     Housing Counseling Assistance -This program provides comprehensive
                     housing counseling services to eligible homeowners or tenants, including
                     default, prepurchase, and renter counseling. (M-4)


                     Unemployment Trust Fund-This program provides benefit payments
Unemployment         to eligible unemployed individuals. It includes the following programs:
Compensation         federal-state unemployment insurance, state administrative expenses,
                     federal administrative expenses, interest on refunds, repayment of
                     advances from the general fund, and railroad unemployment insurance.
                     A part of this program is included in the education and training cate-
                     gory; see appendix II. (P-6)

                     Federal Unemployment Benefits and Allowances-This         program pro-
                     vides resources, including weekly cash benefits, training, job search and
                     relocation allowances to workers displaced by trade conditions and/or
                     natural disasters. It includes the following programs: trade adjustment
                     assistance benefits, trade adjustment assistance training, and unemploy-
                     ment assistance and payments under other federal unemployment pro-
                     grams. (P-3)


                     Rental Housing Assistance-This    program provides funding for the fol-
Housing Assistance   lowing housing programs: Lower Income Housing (section 8); Public and
                     Indian Housing; Rent Supplement; Homeownership and Rental Housing
                     Assistance (sections 235 and 236); Rental Housing Development Grants;
                     Rental Rehabilitation Grants; and Nehemiah Grants. (M-2)

                     Payments for Operation of Low-Income Housing Projects-This pro-
                     gram provides operating subsidy payments to local Public Housing


                     Page 37                                     GAO/APMDW52   Human Resource Programs
Appendix IV
Description of Social Assistance Programs




Agencies (PHA) and Indian Housing Authorities (IHA) to assist in meeting
certain deficits in operation of Pm-owned and mkowned low-income
housing. (M- 17)

Rental Housing Assistance Fund- This fund contains rental collections
in excess of the established basic rents for units in section 236 subsi-
dized projects. (M-13)

Emergency Shelter Grants Program-This        program provides grants to
voluntary organizations at the local level to supplement their programs
for emergency food and shelter. (M-26)

Rural Housing Voucher Program-This       program provides tenants with
vouchers that will cover the difference between 30 percent of a recipi-
ent’s income and the median rent cost in the recipient’s residential area.
(E-53)

Very Low-Income Housing Repair Grants-This program provides
grants to very low-income, elderly residents of rural areas to improve or
modernize their dwellings. (E-53)

Transitional and Supportive Housing Demonstration Program-This
program provides assistance to deinstitutionalized homeless individuals;
homeless families with children; homeless individuals with mental disa-
bilities; and other homeless persons in obtaining, rehabilitating, and
operating housing structures. (M-4)

Congregate Services- This program provides payments to local public
housing agencies and other nonprofit corporations who supply support
services for the elderly or the handicapped. (M-4)

Interagency Council on the Homeless-This program reviews federal
activities and programs to help the homeless; works with state and local
governments and private organizations on homeless-related efforts; col-
lects and disseminates information; and prepares reports on the home-
less issue for the President and the Congress. (Z-104)

Nonprofit Sponsor Assistance- This program provides interest-free
loans to nonprofit organizations which in turn plan housing projects that
are financed under section 202 of the Housing for the Elderly or Handi-
capped Program. (M-15)




Page 38                                     GAO/AFMD&-M&   Human Resource Programs
                     Appendix N
                     Description of Social Assistance Programs




                     HUD Public Housing Interest Subsidy Payments-This       program provides
                     payments to cover the additional interest expenses incurred on direct
                     loans to local public housing projects under section 5(c) of the United
                     States Housing Act of 1937. (S-7)

                     Flexible Subsidy Fund-This program provides funding for essential
                     repairs to correct deficiencies resulting from deferred maintenance and
                     for major capital improvements in subsidized projects. (M-14)


                     Food Stamp Program-This        program provides to eligible members of
Food and Nutrition   low-income households food stamp coupons that can be used to pur-
Assistance           chase food at retail stores. (E-85)

                     Child Nutrition (Programs) Payments to States-This program provides
                     cash and commodity meal subsidies to eligible participants through the
                     School Lunch, School Breakfast, Summer Food Service, and Child Care
                     Food programs. (E-87)

                     Special Supplemental Food Program for Women, Infants, and Chil-
                     dren-This program provides food supplements to low-income preg-
                     nant, postpartum, and breastfeeding women, as well as to infants,
                     children, and low-income elderly. (E-88)

                     Nutrition Assistance for Puerto Rico-This program provides a grant to
                     the Commonwealth of Puerto Rico for the establishment of a food assis-
                     tance program tailored to the needs of its low-income households. (E-86)

                     Funds for Strengthening Markets, Income, and Supply (Section 32)-
                     This program provides funding for expanding outlets for nonbasic com-
                     modities and for child nutrition programs. Its activities include child
                     nutrition program purchases, emergency (food) surplus removal, disas-
                     ter relief, and sunflower oil purchases. (E-80)

                     Cash and Commodities for Selected Groups-This program provides
                     food commodities to individuals on Indian reservations and the Island of
                     Palau, and to nonprofit charitable institutions serving homeless persons.
                     It also provides cash and commodity subsidies for meals served to the
                     elderly. (E-89)

                     Emergency Food and Shelter Program-This         program provides grants to
                     volunteer organizations at the local level to supplement their programs
                     for emergency food and shelter. (Z-28)


                     Page 39                                     GAO/AFMD9O-62 Human Resource Programs
                        Appendix N
                        Description of Social Assistance Programs




                        Special Milk Program-This   program subsidizes the purchase of milk by
                        low-income students in schools and institutions that do not participate
                        in other federally funded meal programs. (E-86)

                        Food Program Administration-This      program provides federal operat-
                        ing expenses of the Food and Nutrition Service programs. (E-85)


                        Family Support Payments to States-This program provides grants to
Other Income Security   states for (1) the federal share of expenditures for AFDC,(2) child sup-
                        port enforcement, and (3) related activities. (K-38)

                        Low Income Home Energy Assistance-This       program provides grants to
                        states and Indian tribes to aid low-income households, energy suppliers,
                        and building operators with high energy costs. (K-39)

                        Refugee and Entrant Assistance- This program provides payments to
                        states for administering the refugee assistance program and provides
                        federal subsidies for the normal state share of AFDCand Medicaid costs
                        for new refugees. This program also provides employment services, pri-
                        marily job skills and English-as-a-second-language training. A part of
                        this program is included in the education and training category; see
                        appendix II. (K-39)

                        Payments to States From Receipts for Child Support-This     account
                        receives Internal Revenue Service collections obtained on behalf of the
                        child support enforcement program. The collections are given to the
                        states to pay for related services. (K-41)

                        Payments to States for AFDCWork Programs-This          program provides
                        funds for the job opportunities and basic skills training program and for
                        transitional work incentives funding for states. (K-40)

                        Program Administration-This    Family Support Administration program
                        provides for administration and related research and evaluation costs.
                        This program has a research and development component; see appendix
                        VI. (K-38)




                        Page 40                                     GAO/AFMD-9@62 Human Resource Programs
Description of Retirement and
Disability Programs

                     This appendix describes the individual programs listed under the retire-
                     ment and disability category in appendix I.’ Some of the programs in
                     this appendix are included in more than one category and/or have a
                     research and development component. This information is provided in
                     the description for those programs.


General Retirement   funds the retirement income of railroad retirees, which is the equivalent
and Disability       of a social security benefit. (Z-93)
Insurance            Rail Industry Pension Fund-This program provides to railroad retirees
                     payments that are generally equivalent to a social security benefit.
                     (z-90)

                     Special Benefits for Disabled Coal Miners-This program provides
                     monthly benefits to coal miners disabled from pneumoconiosis, to sur-
                     viving widows, and to dependents. (K-37)

                     Black Lung Disability Fund-This program pays compensation, medical,
                     and survivor benefits to eligible miners and their survivors, if mine
                     employment terminated prior to 1970 or no mine operator can be
                     assigned liability. (P-14)

                     Federal Windfall Subsidy-This program provides a federal subsidy to
                     the rail industry pension fund for costs not financed by the railroad sec-
                     tor. (Z-87)

                     Supplemental Annuity Pension Fund-This Railroad Retirement Board
                     program provides supplemental annuities to railroad workers retiring at
                     age60 with 30 years of creditable railroad service or at age 65 with 25
                     to 29 years of creditable service. (Z-92)

                     Special Workers’ Compensation Expenses-This program provides sup-
                     plementary compensation benefits to individuals or their beneficiaries
                     who received secondary injuries which, when combined with a previous
                     disability, result in increased permanent partial disability, permanent
                     total disability, or death. (P-14)



                     ‘The summaries were condensed from the Budget of the United States, Fiscal Year 1990-Appendix.
                     The corresponding budget page number follows each summary.



                     Page 41                                           GAO/~90-52         Human Resource Programs
                   Appendix V
                   Description of Retirement and
                   Disability Programs




                   Special Benefits- This program provides compensation benefits for eli-
                   gible participants covered under the Longshore and Harbor Workers’
                   Compensation Act and the Federal Employees’ Compensation Act.
                   (P-12)

                   Pension Benefit Guaranty Corporation Fund-This program provides
                   benefit payments, investment management assistance, and legal and
                   financial services to insolvent employers whose pension benefit plans
                   are about to be terminated. (P-9)


                   Civil Service Retirement and Disability Trust Fund-This program pays
Federal Employee   annuities to retired employees or their survivors; makes refunds to for-
Retirement and     mer employees for amounts withheld and to beneficiaries of employees
Disability         who died before retirement or before the annuities equaled the amount
                   withheld; and pays the administrative expenses of the Office of Person-
                   nel Management and the Merit Systems Protection Board in administer-
                   ing the program. (X-6)

                   Military Retirement Fund-This program provides retirement pay to
                   retired Army, Navy, Marine Corps, and Air Force personnel, including
                   the reserve components thereof, and retainer pay for inactive fleet
                   reserve personnel. (H- 11)

                   Foreign Service Retirement and Disability Trust Fund-This program
                   provides payments to eligible former foreign service personnel retiring
                   or leaving the system due to disability. (Q-7)

                   Federal Employees’ Compensation Act Benefits-This     program provides
                   payments to eligible participants covered under the Federal Employees’
                   Compensation Act and the Longshore and Harbor Workers’ Compensa-
                   tion Act. (P-12)

                   Judicial Survivors’ Annuities Fund-This program provides benefits to
                   eligible beneficiaries, upon the deaths of justices, judges, the director of
                   the Federal Judicial Center, and the director of the Administrative
                   Office of the U.S. Courts. (B-9)

                   Retired Pay, Defense-This       program provides payments to retired mili-
                   tary personnel. (H-l 1)




                   Page 42                                  GAO/AFMD-90-62 Human Resource Programs
                        Appendix V
                        Description of Retirement and
                        Disability Programs




                        Tax Court Judges Survivors Annuity Fund-This program provides
                        payments to eligible surviving spouses and dependent children of
                        deceased judges of the U.S. Tax Court. (A-22)

                        Judicial Officers’ Retirement Fund-This     program provides payments
                        to retired judicial officers. (B-9)

                        Panama Canal Commission Fund-This program provides funds to meet
                        the Panama Canal Commission’s obligations for workers’ compensation
                        costs. (P-13)


                        Supplemental Security Income Program-This         program provides a mini-
Other Income Security   mum income benefit to individuals or couples
                                                                   *    who are either aged, blind,
                        or disabled. Also, it provides vocational rehabilitation and monitors
                        treatment for alcoholics and drug addicts who receive supplemental
                        security income. A part of this program is included in the education and
                        training category; see appendix II. (K-37)


                        Federal Old-Age and Survivors Insurance Trust Fund-This program
Social Security         provides income to retired workers, their dependents, and survivors.
                        (L-1)

                        Federal Disability Insurance Trust Fund-This program provides
                        income to insured disabled workers and their dependents and reim-
                        burses states for vocational rehabilitation. A part of this program is
                        included in the education and training category; see appendix II. Also,
                        the program has a research and development component; see appen-
                        dix VI. (L-2)


                        Compensation-This       program provides benefit payments to veterans
Income Security for     for disabilities incurred or aggravated during active military service.
Veterans                Death and indemnity compensation is paid to survivors of service-
                        persons or veterans whose death occurred while on active duty or as a
                        result of service-connected disabilities. (T-12)

                        Pensions-This program provides benefit payments to (1) veterans who
                        were either on active duty for a specific length of time during a desig-
                        nated war period or who were permanently and totally disabled during
                        their service or (2) their survivors. (T-3)



                        Page 43                                GAO/AFMD-!W52 Human Resource Programs
Appendix V
Description of Retirement and
Disability Programs




Reinstated Entitlement Program for Survivors Under Public Law 97-
377-This program provides social security benefits to certain surviv-
ing spouses or children of veterans who died of service-connected
causes. (T-7)




Page 44                              GAO/AFMD-9062 Human Resource Programs
Appendix VI

Human ResourcePrograms With a Research
and Development Component

              This appendix lists by category-education     and training, health, social
              assistance, or retirement and disability-the   human resource programs
              listed in appendix I which also have a research and development compo-
              nent. Currently, the federal government expenses research and develop-
              ment costs. Some experts believe, however, that these costs should be
              capitalized and thus included in a capital budget. In this study, we iden-
              tified human resource programs included in our analysis that had a
              research and development component. We used OMB’S Circular A-l 1 cri-
              teria in identifying those programs with a research and development
              component. This appendix only includes human resource programs with
              a research and development component and not all federal programs
              with a research and development component. The plus sign (+) repre-
              sents amounts less than $500,000.


              Dollars In mullions
                                                                                       1988 outlavs
              Education and Training Programs

              General Science and Basic Research (251)
              Science and Enqtneennq Educatron                                                    $9

              Agriculture Research Services (352)
              Cooperatwe State Research Servrce                                                $277

              Ground Transportation (401)
              Research, Trarntng, and Human Resources                                             $1

              Water Transportation (403)
              Operatton and Tralnrng                                                              $0

              Elementary, Secondary, and Vocational Education (501)
              Compensatory Educatton for the Disadvantaged                                        $2
              Education for the Handicapped                                                       14
              Vocational and Adult Educatton                                                      15
              School Improvement Programs                                                          2
              Bilingual, Immigrant, and Refugee Education                                          3
              Specral Institutions for the Handicapped                                             +
                Total                                                                           $38
                                                                                         (contrnued)




              Page 46                                        GAO/AFMD-90-52 Human Resource Programs
                                                                                        .
Appendix M
Human Resource F’rograms With a Research
and Development Component




                                                                            1988 outlays
Higher Education (502)
Higher Education                                                                       $1
Howard University                                                                       3
Special Institutions for the Handicapped                                                4
  Total                                                                                $8

Research and General Education Aids (503)
Libraries                                                                             $3
Education Research and Statistics                                                      17
  Total                                                                               $17

Training and Employment (504)
Training and Employment Services                                                       $6
Employment and Training Administration                                                  2
  Total                                                                                $8

Social Services (506)
Rehabilitation   Services and Handicapped   Research                                  $52

Criminal Justice Assistance (754)
National Institute of Corrections                                                      $5

     Total Education and Training Programs                                          $413

Health Programs

Health Care Services (551)
Disease Control, Research, and Training                                               $63

Health Research (552)
National Cancer Institute                                                          $1,379
National Heart, Lung, and Blood Institute                                             917
National Institute of Allergy and Infectious Diseases                                 530
National Institute of General Medical Science                                         523
National Institute of Diabetes, and Digestive and Kidney Diseases                     496
National Institute of Neurological (and Communicative) Disorders and
   Stroke                                                                             492
Alcohol, Drug Abuse, and Mental Health Administration                                  445
National Institute of Child Health and Human Development                               349
National Institutes of Health, Research Resources                                      329
National Institute of Environmental Health Sciences                                    236
National Eye Institute                                                                 212
                                                                              (continued)




Page 46                                          GAO/AFMDW52     Human Resource Programs
Appendix VI
Human Resource Programs With a Research
and Development Component




                                                                           1988 outlays
National lnstrtute on Aging                                                         172
Natronal lnstltute of Arthritis, Musculoskeletal, and Skin Diseases                 135
National Institute of Dental Research                                               116
Dtsease Control, Research, and Training                                              24
Nattonal Library of Medicine                                                         19
Natlonal Center for Nursing Research                                                 17
National lnstltute of Deafness and Other Communtcation Drsorders                      0
Publrc Health Service Management                                                     20
  Total                                                                          $6.411

    Total Health Programs                                                        $6,474

Social Assistance Programs

Social Services (506)
Human Development Services                                                          $40
Payments to States for Foster Care and Adoption Assistance                           13
  Total                                                                             $53

Other Income Security (609)
Family Support Administration                                                       $10

    Total Social Assistance Proarams                                                $63

Retirement and Disabilitv Proarams

Social Security (651)
Federal Disability Insurance Trust Fund                                              $3

    Total Retirement and Disability Programs                                         $3

Total Human Resource Programs With Research and
  Development Component                                                          $6,953




Page 47                                         GAO/AFMD-90-52 Human Rrsourcr Prt)grams
Appendix VII                                                                                                                                             .


Analysis of Including Hums Resource
Programs in GAO’s Capital Budget Proposal

                                          In our recent report on restructuring the federal budget, Budget Issues:
                                          Restructuring the Federal Budget-The Capital Component (GAO/
                                          AFMD89-62, August 24, 1989), we identified $141 billion in capital invest-
                                          ments for fiscal year 1988. The amount represented $106 billion in
                                          physical investments and $35 billion in financial investments. Because
                                          we did not include human capital programs in our capital budget propo-
                                          sal, capital investments represented 11 percent of total federal outlays
                                          in fiscal year 1988.

                                          As table VII.1 shows, if we had included the $25 billion in education and
                                          training programs-generally      recognized as human capital-in our pro-
                                          posed capital budget, capital investments would have represented 13
                                          percent of total federal outlays in fiscal year 1988-l 1 percent for
                                          physical and financial investments and 2 percent for education and
                                          training. By also including health programs (11 percent)-which       some
                                          private sector researchers consider human capital-in our capital
                                          budget proposal, capital investments would have represented 24 percent
                                          of total federal outlays. If we had included the entire $534 billion in
                                          human resource outlays in our proposed capital budget, the total capital
                                          budget for fiscal year 1988 would have represented 54 percent of all
                                          federal outlays.

Table VII.1: Human Resource, Physical,
and Financial Investments Warranting      Dollars in billions
Consideration as Capital Investments in                                                                     Percentage of
a Capital Budget, Fiscal Year 1988                                                                            total human
                                                                              Human resource,                    resource,           Percentage of
                                                                                  physical, and              physical, and            total federal
                                          Category                            financial outlays          financial outlays                 outlays”
                                          Education and training                                $25                       4                              2
                                          Social assistance                                      69                        10                            5
                                          Health                                                131                        19                        11
                                          Physical and financial
                                            investments                                         141                        21                        11
                                          Retirement and disability                            309                         46                       25
                                          Total                                               $875                       100                        54
                                          “For fiscal year 1988, total outlays were $1,233 billion This figure includes OMB’s reported outlays
                                          ($1,064 blllion) plus offsetting collectlons from the public ($134 billion) and propnetary recetpts from the
                                          public ($35 bllllon).




                                          Page 48                                                  GAO/AFMD-gOa2 Human Resource Programs
                                            sr .
                                            _,
Appendix VIII

-MethodologyUsed for SelectingHuman
ResourcePrograms

                    In identifying human resource programs that warrant consideration as
                    human capital in a capital budget, we first reviewed various publica-
                    tions on human capital investments in the private sector and human
                    resource programs in the federal government to obtain information and
                    insight on this issue. (See bibliography.) Also, we interviewed various
                    officials in cno, CW, OMB, and other federal agencies to obtain their views
                    on what federal programs they believe should be classified as human
                    capital investments.

                    In developing our list of human resource programs warranting consider-
                    ation as human capital investm ents, we used four principal sources of
                    information. They included the Budget of the United States Government,
                    Fiscal Year 1990; Budget of the United States Government, Fiscal Year
                    1990-Annendix:     “Snecial Ana .lysis D, Federal Investment Outlays” of
                                         A




                    the Budget of the’united States Government; and the 1989 Catalog of
                    Federal Domestic Assistance.

                    Using the Budget of the United States Government, Fiscal Year 1990, we
                    found that human resource programs in the federal budget are included
                    in six budget functions, which are collectively known as the “human
                    resources superfunction.” The following is a description of each budget
                    category in the human resources superfunction:

                . Social security - provides cash benefits for retired workers, their eligible
                  dependents, and eligible survivors of deceased workers and for disabled
                  workers and their eligible dependents.
                l Income security - provides funding for retirement and disability pro-
                  grams other than social security; unemployment compensation; food and
                  housing assistance for low-income people; and cash welfare for needy
                  people who are aged, blind, disabled, or for families with dependent
                  children.
                . Medicare - provides funding for physician and related services, and in-
                  patient health care for people age 65 and older and certain disabled
                  people.
                . Health - provides funding for medicaid, grants to states for various
                  health resource services, funding for the National Institutes of Health,
                  education and training of health care workers, and the regulatory activi-
                  ties of the Food and Drug Administration and the Occupational Safety
                  and Health Administration.
                l Education, training, employment, and social services - provides grants to
                  states and local governments for (1) elementary, secondary, and voca-
                  tional education programs, (2) job training programs, and (3) social ser-
                  vices for the elderly, families with children, the disabled, and other


                    Page 49                                GAO/AFMD-90-52 Human Resource Programs
                                                                                                                      .
                                        Appendix VIII                                                                           .
                                        Methodology Used for   SelectingHuman
                                        Resource Programs




                                        groups. This program also helps postsecondary students finance their
                                        education.                                                                        s:
                                    l   Veterans benefits and services - provides cash assistance for needy and
                                        disabled veterans and survivors of veterans, veterans’ education bene-            st-
                                        fits, the Veterans Administration hospital and medical care program,
                                        and veterans housing benefits.                                                    !
                                                                                                                          O-
                                        Again using the Budget of the United States Government, Fiscal Year               5
                                        1990, we identified the subfunctions contained in each of the six human
                                        resource budget functions. We selected the budget functions and sub-
                                        functions listed below for further study because, in our judgement, they          Id
                                        represent activities directed towards improving the education, training,          3-
                                        health, and general well-being of the American people.


Education, Training,            . Elementary, secondary, and vocational education (501)
Employment,      and   Social   l       H&$ereducationGW
                                  Research and general education aids (503)                                               nt
Services (500)
                                l


                                . Training and employment (504)
                                l Other labor services (505)                                                              tl
                                . Social services (506)


Health (550)                    . Health care services (551)                                                              i
                                . Health research (552)                                                                   -
                                l Education and training of health care work force (553)
                                . Consumer and occupational health and safety (554)


Medicare (570)

Income Security (600)           l General retirement and disability insurance (excluding social security)
                                  (601)                                                                                   1

                                l Federal employee retirement and disability (602)                                        i
                                l Unemployment compensation (603)                                                         .
                                l Housing assistance (604)
                                s Food and nutrition assistance (605)
                                . Other income security (609)




                                        Page 60                                 GAO/AF‘MD-90-52 Human Resource Programs
                                Appendix VIII
                                Methodology Used for Selecting Human
                                Resource Programs




Social Security (650)

Veterans Benefits and     Income security for veterans (701)
                            l



Services (700)            Veterans education, training, and rehabilitation
                            l                                                     (702)
                        . Hospital and medical care for veterans (703)
                        l Veterans housing (704)
                        l Other veterans benefits and services (705)

                                To identify the accounts and outlays in the budget subfunctions shown
                                above, we used OMB'S fiscal year 1990 budget tape. The budget tape only
                                provides account numbers; therefore, we used OMB'S Budget of the
                                United States Government, Fiscal Year 1990-Appendix      to obtain the
                                title and description of each account.

                                In addition, we analyzed the OMB printout “Summary of Total Outlays by
                                Investment Category by Defense (Grants/Nongrants) and Nondefense
                                (GrantsjNongrants)”     and selected nonphysical and nondefense
                                investment-type activities in the education and training and the
                                research and development categories. Using the document, we obtained
                                the titles and fiscal year 1988 outlay data for the accounts in both cate-
                                gories. In addition, we used the Budget of the United States Government,
                                Fiscal Year 1990-Appendix       to obtain the descriptions of the accounts.

                                Based on our analysis of the human resource accounts and the
                                investment-type accounts, we grouped them into four categories, which
                                we define as:

                        . Education and training - programs that improve individuals’ abilities to
                          obtain an education and marketable skills.
                        . Health - programs that finance and support activities involving health
                          care services and disease prevention.
                        l Social assistance - programs that provide cash and noncash benefits to
                          individuals, states, localities, and public and private institutions to
                          enhance the quality of a person’s life.
                        . Retirement and disability - programs that provide statutorily defined
                          benefits to retired and disabled individuals, and their beneficiaries.

                                Finally, we systematically reviewed the descriptions provided for each
                                budget account in the Budget of the United States Government, Fiscal
                                Year 1990-Appendix      and the 1989 Catalog of Federal Domestic Assis-
                                tance to ensure that we had identified the human resource programs



                                Page 51                                GAO/-W62      Human Resource Programs
        Appendix VIII
        Methodology Used for Selecting Human
        Resource Programs




        that, in our judgement, represented an investment in the American pop-
        ulation. We subsequently added the following programs:

l       Education and training

    l    Science and Engineering Education Activities, National Science
         Foundation
    l    Extension Service, Department of Agriculture
    l    Research, Training, and Human Resources, Urban Mass Transporta-
         tion Administration
    l    Cooperative State Research, Department of Agriculture
    l    Maritime Administration, Operation and Training
    l    National Institute of Corrections, Department of Justice
    l    Foreign Agricultural Service
    l    National Agricultural Library
    l    Minority Business Development

l   Social assistance

    . Temporary Emergency Food Assistance Program

    In developing our list of human resource programs warranting consider-
    ation as human capital investments, we had intended to include the
    training of federal civilian and military employees. However, we were
    unable to because of the difficulty in obtaining accurate information on
    these programs. In addition, we excluded research and development pro-
    grams from consideration because they were not the focus of our assign-
    ment. Also, we did not include programs that represent the govern-
    ment’s investment in loans and other financial instruments, since they
    are currently included in the capital component of our restructured
    budget proposal.

    Appendix I provides our list of human resource programs in the fiscal
    year 1990 federal budget that could conceivably be classified as human
    capital investments in a capital budget. Appendixes II, III, IV, and V
    describe each program included in our education and training, health,
    social assistance, and retirement and disability categories. Appendix VI
    lists those programs in appendix I which have a research and develop-
    ment element. Appendix VII provides an analysis of including human
    resource programs in our capital budget proposal.

    This review was conducted in Washington, D.C., from June 1, 1989
    through March 21, 1990.


    Page 62                                    GAO/AFMD-90-52 Human Resource Programs
Appendix IX

Major Contributors to This Report


Accounting and           (202) 275-1981
Financial Management   Phillis L. Riley, Evaluator-in-Charge
                       Kell E. George, Evaluator
Division,
Washington, DC.




                       Page 63                                 GAO/~90-52   Human Resource Programs
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               Page 54                              GAO/AFMD-90-52 Human Rwourcr Programs
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     Page 56                                GAO/AFMD-90-62 Human Resource Programs
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