1/ Distribution is based on the formula of multiplying the number of
handicapped children receiving special education in each State by 40
percent of the national average per pupil expenditure, and ratably reducing
this share based on the appropriation available for distribution. No
State may receive less than what it received in 1977. Allocations to the
Outlying Areas and the Bureau of Indian Affairs are determined by the
Secretary.

2/ Upon adoption of the Compact of Free Association, amounts allocated for the Trust Territories will no longer be available, except for the Republic of Palau.

1/ Distribution is based on the formula of multiplying the number of handicapped children aged three through five receiving special education in each State by the authorized amount of $300. Grants are ratably reduced based on the appropriation available for distribution.

THURSDAY, APRIL 25, 1985.

REHABILITATION SERVICES AND HANDICAPPED

RESEARCH

WITNESSES

MADELEINE C. WILL, ASSISTANT SECRETARY FOR SPECIAL EDUCATION AND REHABILITATIVE SERVICES

SALLY H. CHRISTENSEN, DIRECTOR, BUDGET SERVICE, OFFICE OF PLANNING, BUDGET AND EVALUATION

CAROL CICHOWSKI, DIRECTOR, SPECIAL EDUCATION, REHABILITATION AND RESEARCH ANALYSIS DIVISION, OFFICE OF PLANNING, BUDGET AND EVALUATION

Mr. NATCHER. At this time, we take up the request for Rehabilitation Services and Handicapped Research in the Department of Education.

We have before the committee Mrs. Madeleine C. Will, Assistant Secretary for Special Education and Rehabilitative Services. Mrs. Will, it is a pleasure to have you before the committee. You have there at the table with you the same two ladies that we had previously. We will be glad to hear from you.

Mrs. WILL. Thank you, Mr. Chairman, and members of the committee.

I appreciate this opportunity to discuss the fiscal year 1986 budget request for the Rehabilitation Services and Handicapped Research account, which includes activities of the Rehabilitation. Services Administration and the National Institute of Handicapped Research.

The total requested for this account is $1.2 billion, which is $16.9 million less than the 1985 appropriation. Our 1986 budget proposal freezes funding for most activities at the current level to help control the Federal deficit. The proposed savings result from reducing support for some discretionary programs and from terminating another.

STATE GRANTS

We propose to freeze Vocational Rehabilitation State Grants at the 1985 appropriation level of $1.1 billion. This level would enable States to maintain their ongoing programs of rehabilitation services to disabled persons and to continue giving priority to serving severely handicapped individuals.

CLIENT ASSISTANCE

We are requesting $6.3 billion for the Client Assistance program, which is the same as the 1985 appropriation level. These funds would enable States to continue advising clients of benefits avail