DEPARTNIENT OF HEALTI-1, EDUC,6@TION, AND WELFARE PUBLIC I;EALTH SE@RVICE ODOO ROCKVILLE F'li'C BETHESDA.tylo. 20014 Health Senrices E, @.lental 'r,realt'fi Administration REFEP 70. 'January 27, 1969 xxx ('ace page 3 for list of Addressees) xxx xxx Dear You may have seen licivs rep.orts of a "freeze" impose-,I oii-Rr-@c-ional @'.c@d 4 CELJ Procrai,-, funds, This letter is sent to acqtiai nt you 1,@ith the cLiri:--n+,-- situation i@ith respect to al'@llards for support of R:@IP activities, The Con.aress appybpriated @,"56 million for the sLipnort of grants for FY 111-69 to which i..as added $36 million in car@, -over funds fro.-.,i last year, FY l@168. Thus, a total of S92 million is ,)O*L-ential.1-y qviilable sucject a i,.-ays to release of funds by the Adi-ii:Lnisti-atioii. 'rfte a!:-,OLuit recoid,-,-ne@,@d for @' 19/'O in the ProsiJcn-@'s Budact, subritt-eLi to. oTi J,,@-ILi@iry 15,is $@j6 mil- lion for @raiit zvll;ards. @.is is $24 million lecs t'iiiii the authorized in the legislation e,@tciiclin- Ro.@,'lonal il-iedic-,l Pro(,rT,-.is but it represents a $40 million increase oi7-or the f-tinJs aT),)roi)r-la+,ec.1 in 1969. r A criestioi,, raised by the De@-)artm--ni-- qs to Lu-nds b@ ai@orded in vY 1969 by the Division of Rec,lioiial @!--C"ical ProcraTs on rcco.@L;.,L-3n(-Iation of the National AcL-vi.sorl Council, i,;ol-ilcl raise the spending by the Rcgio.-is to a level that i@bul-d create scvcrc hard-5!i;@-r) in FY 1970 if the Coi-La,,ess did not increas-- its approp-.ci.ation by the $40 million requested in the A@.-,i",.nistration's bLid(,Ct. Ilie follo,,,ii-iic., intonation i@as s,,ro lied to tlie Depart7T,,cnt to indicate the lp continuation ftindi-ii- reqijii-eiri,-nts coirune-odation of Council at 4.@,s iN'c)vcp,,,'oo-r rcet@Lnc,, and anticipated rccoq--,@i,.eiidetions at the, Februq-t-y Tpe--tiii-@. Continuation requirements for balance of year: $.Ig Operational Projcc's ASS9)000 L Core Activities 18312S7,000 %-over.:b--r Co@incil DI--corlr,.cndati-ori 149020)@,Q/ Aritic-i.pa'LcA- Fc'Di-@try 23)0002000 2 The priorities established by the Divisio of Regional ',%i--dcal Pr n I ocrariis for f-undin- Re-ions arc as follo,,,is: C> C> -or all Regions ivlicther in the 1. Support of core activities f planning or operational pliase; 2. Support of continuation costs for Regions already operational; 3. Support of ai,;ards to Recriofis nei@ly dp@roved for op---ratioilal activities; a-,id 4. Support for supplemental ai,,,ards to Reuions already operational. C> Careful revici,,, of the fundiiic, requirements for each Reaion sucoests that 0 C> C>C> a -rigid application of these priorities may not aliiay@ be in the best interest of tne national pro,(,,raii. LyCep-Lion--, made for specific reasons do not hoi,!ever invalidate the general order of priorities listed. Because decisions rel,-,tin-Y to'tli-- possible restriction of funds have sucli an important ir@ipli@catioii for the Coordinators, the Stee-i-inc, Co,,,@inittee chaired by Dr. i@l. J. @,lusser, met for a- special meetina on January 10, 1969 in Bethesda. It revici..7ed the funding situation and recoiiiii,ended stroaiclv that the D--Parti-q-nt release funds to ri,@a'N-e ai@,,,:irds in FY 1969 up to the full amount available for Council reco-7,d,-,ended ai@ards. It.indica-Lecl its judgment that the pro,-rai-,nls ability to obtain con(-,@2-ession,'Ll appropriations C> would be seriously dar@,aaed if the AJniinistratioii carried over -.ry currently 0 available funis into the next fiscal yeir at a tir,,-- @,@acn the Division had received requests substantially in excess of available funds for support -of high quality projects. ihe National kdvisory Coixicil also met in special-session to -evieii tne fundiii(, situation. Like the Steeriii,7 Corti,-iittee, it stroncly recofldrended the ai@--rdina of arants up to the' full amount available to supnort programs Vnich have been revie@@ied and recommended for support. The Department has reviewed our submissions and has authorized the fundinc, of Cotuicil -recommended aiiards on the E-olloi@,,in(.7 basis: 1. 100 percent of core support for Recioiis another in ie plannin- -or operational phase; 2. 90 percent of tiie amounts reco,-,L-,Pendcd for continuing support- of projects; 3. 75 percent of t'.,ie amounts reco@,-,@til-ndecl for pro-ects for Reaioiis initiating operational ,c'ivities; 4. Selected support for ap.,-jroved supplemental projects. Each TZepion can determine for itself the ir.,il,)Iications of this policy.in C. Jie each of the categories except the last. l@o sliall be in touch with t. Regions vilio have Council ap roved supplementary a@@ards to clarify this T aspect of the f-undina, policy. Your unclerstandin- and cooperation are needed to insure that the allocation of limited funds is made to serve both tiio local and national interest. 5incerely yours, Stanley 11. Olson, i@,I.D. Director Division of Rcaioiipl is lical Pro-raj-,is Identical letter sent to: Benjamin B. Wells, M.D. Reginald H. Fitz, M.D. Nathaniel H. Cooper, M.D. Frank M. Woolsey, Jr., @I.D. Dermont W. Melick, i@I.D. Marc J. Musser, M.D. Rooer B. Bost, M.D. Willard A. Wright, M.D. William Stoneman, III, @I.D. Barry Decker, M.D. John E. Wennberc,, @I.D. Mr. Paul D. l,ta-cd C> Ricbard.H. Lyons, M.D. Winston 1\1. Miller, M.D. Howard W. Doan, M.D. Ci Robert Tittle, Jr., M.D. Henry T. Clarkj Jr., M.D. Neil C. Andrews, M.D. William 11. McBeath, M.D. -Granville W. Lariniore, M.D. J. Gordon Barrow, M.D. Dale Groom, M.D. George R. Clarmer, M.D. Edward L. Goldblatt, M.D. klasato 'i%l. Hasegawa, M.D. Adan Niga-li@oni, M.D. Wright Adams, M.D. Ralph C. Parker, Jr., M.D. Robert B. Stonehill, M.D. @Cliarles P. Sum-nerall, III, II.D. C. Hilmon Castle, M.D. Mr. Richard B. @IcKenzie Willard A. Krehl, iNI.D. Ph.D. Robert 14. Metcalfe, M.D. Charles E.. Lewis, 'L%I.D. Charles A. LeMAter, M.D. Joseph A. 8abatier, Jr., M.D. Leona Baumcartner, M.D. Manu Chatterjee, M.D. Eugene R. Perez, M.D. William S. Spicer, Jr., M.D. Donal R. Spar'"-man, M.D. James W.,Culbertson, M.D. Mr. Charles Holland Arthur E. Wentz, M.D. John R. F. Ingall, M.D. Albert E. Heustis, @I.D. Robert R. Carpenter, @I.D. Guy D. Car,-lpbell, @I.D. John S. Hirschboeck, @I.D. Arthur E. Rikli, @I.D., M.P.H. Alfred M. Popma, tNI.D. Edmund D. Pellegrino, '.,I. D. Harold iNfor-an, ',[,D. 0 '@ 1, Alvin A. Flrrin @I.D. .1. 9 1,