Mr. Chairman and members of the subcommittee, I am pleased to present the President=s budget request for the Administration for Children and Families (ACF) for FY 2002. I am accompanied by Dennis Williams, Deputy Assistant Secretary for Management and Budget for the Department. 

The FY 2002 budget for the Administration for Children and Families is $44.4 billion, of which $25 billion is being requested in new budget authority. The remaining $19.5 billion has been appropriated through the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. 

This budget request for ACF is 2.9 percent above the FY 2001 enacted level and reflects the President=s commitment to a balanced fiscal framework while at the same time increasing support for America=s children and families. Within this context, I would like to share some highlights. 

In FY 2002, the budget for the Administration for Children and Families includes $12.6 billion in discretionary funds and $31.8 billion in entitlement funds. 

In addition to seeking continued funding for a wide range of programs serving some of this nation=s most vulnerable populations, including Low Income Home Energy Assistance, the Community Services Block Grant, programs for persons with developmental disabilities, and services for refugees, the ACF budget includes a number of targeted programmatic increases and new initiatives aimed at improving the quality of life of our nation=s families as well as increasing support for the charitable organizations that can make such a difference in people=s lives. I would like to turn to a few key programmatic initiatives in our FY 2002 request.

Child Care

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

Independent Living

We are also seeking a $60 million increase in funding for the Independent Living Program within the Foster Care and Adoption Assistance entitlement. This funding is intended to provide vouchers worth up to $5,000 for education and training to help young people who age out of foster care to develop skills to lead independent and productive lives.

Maternity Group Homes

The budget includes $33 million for community-based, adult supervised group homes for teenage mothers and their children. The homes would provide safe, stable, nurturing environments for teenage mothers and their children who cannot live with their own families because of abuse, neglect, or other extenuating circumstances.

Promoting Responsible Fatherhood

Helping young mothers is an important part of programs to assist America=s families, but it is also important that we recognize the critical role that fathers play in the lives of their families. A new $64 million program would be authorized to strengthen the role of fathers in families and marriage. The program would provide competitive grants to faith-based and community organizations, as well as fund projects of national significance that focus on public education and awareness, the use of mass media campaigns, the development of best practices, research and technical assistance.

Support for Charitable Organizations

The President has been a leader in recognizing the important role that charitable organizations play in delivering services to the public and our budget includes a newly proposed compassion capital fund. The fund would provide start-up capital and operating funds totaling $89 million in 2002 to support qualified charitable organizations that wish to expand or emulate model social programs. This funding would build on the efforts of charitable organizations by supporting the creation of public/private partnerships in addressing the needs of low-income families. In addition, these funds would be used to promote research on best practices among charitable organizations. Further, to encourage States to create State tax credits for contributions to designated charities, this budget proposes to allow States to use Federal Temporary Assistance for Needy Families funds to offset revenue losses, from such contributions.

Promoting Safe and Stable Families

Finally, our budget takes a number of steps to help protect our most vulnerable and at-risk children and to help them live safe and product lives. First, we are proposing a $200 million increase for the Promoting Safe and Stable Families program, which supports State and Tribal child welfare agencies in carrying out family preservation, family support, and adoption assistance services. These additional funds will be used to help serve the best interests of children by either keeping them with their biological families when it is safe and appropriate, or expediting adoptive placement when it is not. Second, we are proposing to create a new discretionary initiative that will provide $67 million within the Promoting Safe and Stable Families program to assist children of prisoners. This additional new funding would go to States to fund competitive grants to faith-based and community-based groups to mentor the children of prisoners and probationers.

Head Start

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

Federal Administration

The FY 2002 request for Federal Administration is $172 million, plus an additional $3 million for the Department=s Center for Faith-Based and Community Initiatives, for a total of $175 million, an increase of $11 million or 4.9 percent over the FY 2001 enacted level. This level is expected to fund 1,547 full-time equivalent staff (FTE). This request would provide sufficient funds for pay raises and additional support for on-going implementation of the child welfare monitoring initiative, as well as provide15 new FTE needed to support the Department=s Faith-Based Center established in accordance with the President's recent Executive Order.

Conclusion

In conclusion, I would like to emphasize that ACF is committed to results, to the measurement of results, and to joint work with our partners. Under the requirements of the Government Performance and Results Act, and within the framework of Departmental goals, ACF has developed strategic goals, performance standards, and measures. The priorities reflected in the 2002 budget are in support of the strategic goals contained in the ACF performance plan:

We look forward to working with Congress on achieving these goals.

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

NAME: Diann Dawson

POSITION: Acting Principal Deputy Assistant Secretary, Administration for Children and Families

EXPERIENCE:

Present: As the Acting Principal Deputy Assistant Secretary, for Children and Families (ACF), Diann is the senior official charged with managing ACF and its wide range of programs designed to promote the economic and social well-being of children, youth and families until an Assistant Secretary is confirmed.

1996-Present: Director of Regional Operations for ACF.

Diann also serves as the Director, Office of Regional Operations for ACF. In her current position, she provides leadership and direction to the field/regional operations for ACF programs. These programs, administered through ACF's five Hub Offices, include: Temporary Assistance for Needy Families, Child Care, Child Support Enforcement, Head Start, Community Services, Developmental Disabilities and Child Welfare Services, including Foster Care, Safe and Stable Families, Child Abuse, Neglect and Adoption Assistance and Runaway/Homeless Youth.

1990-1996 Deputy Director, Office of Family Assistance

Administration for Children and Families

1986-1991 Director, Division of Policy

Office of Family Assistance

1983-1987 Chief, Eligibility and Administration Policy, Office of Family Assistance

1981-1984 Compliance and Legal Assistance Specialist, Office of Family Assistance

1979-1982 Family Assistance Program Specialist

Prior to Diann's appointment at HHS, she was employed with the South Carolina Department of Social Services. In 1987, Diann received her J.D. from the Columbia School of Law at the Catholic University of America and is a member of the DC and MD bars. She was awarded an M.S.W. degree from the University of North Carolina in 1974 and a B.A. degree from Bennett College in 1972.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Assistant Secretary for Management and Budget

NAME: Dennis P. Williams

POSITION: Deputy Assistant Secretary, Budget

EXPERIENCE:

1984 - Present: Deputy Assistant Secretary, Budget, Department of Health and Human Services

In his current position, Dennis provides advice and assistance to the Assistant Secretary for Management and Budget and the Secretary, on program policy and management issues dealing with the Department=s budget. He is responsible for the formulation of the budget for HHS and its presentation to the Office of Management and Budget and to Congress.

1982 B 1984 Director, Division of Welfare Budget Analysis, Department of Health and Human Services

1980 B 1982 Chief, Health Care Financing Branch, Division of Health Budget Analysis

1977 B 1980 Program Analyst, Division of Health Budget Analysis

Prior to his appointment at HHS, Dennis served from 1968-1971 as a Program Specialist with the Office of Economic Opportunity and from 1965-1967 with the Peace Corps in Turkey. In 1976 he was awarded a doctorate in International Relations at the Johns Hopkins School of Advanced International Studies.