Box 3, Folder 12, Document 18

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ECONOMIC OPPORTUNITY ATLANTA

INCORPORATED
/Ol MARIETTA STREET BLOG. , ATLANTA, GEORGIA 320303 TELEPHONE S25-4262



May 21, 1968

TO: Dan Sweat

FROM: Pete Jones

————<—Ssse eee ——<s“esss| 8 |= = S S= e SSS S S e S e e SR R R R R e e R e e e e e e e e e e e e e e e e e

Reference our conversation regarding reductions in the Atlanta
Programs:

SUMMER HEAD START

The 1967 Program provided for 3,050 participants and made avail-
able $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 Federal 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 approximately $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 Funds from $700,000 in 1967
to $547,204 in 1968, a reduction of $152,796 in Federal Funds.

We were therefore unable to provide Headquarters staff from Grant
Funds for either Head Start or Day Care. This amounts to about $65,000.
Jim Parham apparently believes he can get this requested money later on.

NEIGHBORHOOD YOUTH CORPS

In the August, 1966-August, 1967 Contract we started with 620 slots
and $1,323,910. During mid 1967 the amount was reduced to $1,223,910, the
slots were reduced to 550 and we were required to run the program fourteen
months instead of twelve within the reduced funds.

The succeeding Contract October, 1967 - October, 1968 we were
authorized 440 slots and $1,149,110. We are now faced with a reduction
to 330 slots and a reduction in funding.








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




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