Welfare: Analysis of Proposals To Control Federal Welfare Administrative Costs

In response to a congressional request, GAO analyzed the President's Private Sector Survey on Cost Control's (Grace Commission) recommendations and the administration's fiscal years 1986, 1987, and 1988 budget requests concerning federal costs to administer the Aid to Families with Dependent Children (AFDC), Medicaid, and Food Stamp programs, focusing on: (1) growth in administrative costs; (2) existing state processes whereby administrative costs are separately accounted for and allocated among the three programs; (3) higher-than-normal federal cost-sharing rates for certain administrative activities; and (4) effects of federal program changes and uncontrollable economic conditions on administrative costs.