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!Erf01VOMICC OP!PORTIUN/1'Y A7tlANJtA IN CORPORATE. I!> IOI MARIETTA STREET 8L D G., ATLANTA, &£0R6IA 3<;:,303 TELEPHONE 525-4-2.62 May 21, 1968 TO: FROM: !_. ·- - - - - - - - · - - - - - - - - - - - - - - - - -

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Reference our conversation regarding reductions in the Atlanta Programs: SUMMER HEAD STARl' The 1967 Program provided for 3,050 participants and made available $540,409 in Federal Funds. The 1968 Program provides for 3,070 participants and made available $513,649 and within this reduced amount the grant imposes greatly increased medical and dental care and an obligation for child insurance without providing funds therefor. The reduction of 5% in funding with additional 20 participants and increases of medical dental and insurance costs has the effect of reducing needed support services or other categories of cost. FULL YEAR - DAY CARE CENTERS The 1967 Program provided for 725 participants with Fed eral funding of $700,000 . The 1968 Program provides for the same number of participants but reduces funding to $605,204 (reduction $94,796) included in the $605,204 is approx imately $58,000 which was collected as Day Care Fees in 1967 and which EOA had planned to program into the 1968 projects in addition to Federal Funds. So actually OEO reduced Federal Fmnds from $700 , 000 in 1967 to $547,204 in 1968, a reduction of $152,796 in Federal Funds . We were therefore unable to provi de Headquarters staff from Grant Funds for either Head Start or Day Care. This amounts to about $65 , 000 . Jim Par ham appar ently believes h e can get this request e d mone y later on , NEIGHBORHOOD YOUTH CORPS In th e Augus t~ 1966-August , 196 7 Cont r act we started wi t h 620 s lot s and $1,323, 910 . During mid 1967 the amoun t was re duced to $1 ,223, 910 , the s l ot s were r~duc ed t o 550 and we were r~ qui r ed t o r un the pr ogram f ourteen months ins tead of twelve wi t hin the r educed f unds. The s uc c e edi ng Contr ac t October, 1 96 7 - October, 1968 we wer e authoriz ed 44 0 s lots a nd $1 , 14 9 , 110. We are now fac ed with a reduct i on to 330 slots and a reduction in fund ing. �.1 Mr. Dan Sweat Page - 2 CAP FUNDS Our versatile funds for Program Direction and Neighborhood Service Centers, NSC Support and other Grant 306 Funds were reduced from around $2,900,000 in 1967 to $2,350,000 in 1968, a reduction of around $550,000. PSJ:rw �