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1 [i] (1980)

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Supplemental  Security Income: The  New   Federal Program  for the
Aged, Blind, and Disabled, by  Paul L. Grimaldi, evaluates the first
three years of  the Supplemental  Security Income  (SSI) program,
1974-1977.  Its initial effect was to raise welfare payments and to
reduce the number of aged, blind, and disabled persons with incomes
below the poverty line. In the longer term, the SSI program has made
the minimum   social security benefit no longer necessary as an anti-
poverty measure.
     SSI replaced the myriad state-operated welfare programs with a
uniform  nationwide  program  administered by  the Social Security
Administration. In a majority of cases, the federally financed benefits
replaced state welfare payments, providing state governments  with
fiscal relief from mushrooming welfare costs. In twelve states, how-
ever, including some of the largest, state welfare expenditures for the
aged, blind, and disabled were  larger after the SSI program  was
implemented  than before. And  contrary to expectations, federal ad-
ministration of the program has resulted in a payment error rate com-
parable to that of the earlier state-administered programs-affecting
approximately one-fourth of all SSI claims.
     Paul L. Grimaldi  is associate professor of economics  at the
W.  Paul Stillman School of Business, Seton Hall University, South
Orange, New  Jersey.



















        American Enterprise Institute for Public Policy Research
        1150 Seventeenth Street, N.W., Washington, D.C. 20036

                                         ISBN 978-0-8447-3356-2



                                         |1|| |I1         90000>
                                         780844  733562     I  I

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