COUNCIL

Mayor and Aldermen October 21st, 1974 OCT 21 1974 :

Alderman J.J. Keryluk

Subject: "Overpayment on Welfare"

There has been considerable discussion on the above-noted, not only at
the U.B.C.M. in Vernon, but also in the news media generally.

The attached sheet” shows a breakdown of the estimated over-run as projected
for the balance of the fiscal year ending March 31st, 1975. It should be nored
that the figures do not represent money already spent but rather a projected
estimated.

The greater portion of the projected over~-run is due to commitments under
‘NEW programs such as Mincome, Pharmacare, Child Day Care, Special Services to
Children and Adult Care. These are excellent programs, serving people in need.
Not only was it not possible to predict the costs because there were no models

on which to estimate the number of people eligible but additional costs had to

be met due to the added costs of inflation. In the case of Secial Allowance,

a $20.00 increase came into effect July Ist whereas the estimates were announced

February 11th.

An over-run in the Department of Human Resources is not a new thing as the
attached statistics sheet shows. The previous administration experienced an
average of 22% over-run in the last four years in office with a record 36% in
1970/71.

In fairness, it must be said that the present 14.4% over-run is not
unreasonable during the introduction of new and innovative programs for the

people in British Columbia.

Note.

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