The Omnibus Budget Reconciliation Act of 1981 consolidated eight categorical programs into the material and child health services block grant and shifted primary administrative responsibility to states. States continued to support activities similar to those funded under the prior categorical programs through some changes were made to program priorities and services offered. States tended to assign higher priority and make fewer program changes in areas where they had considerable previous involvement. The availability of prior categorical grant funds in 1982 mitigated the impact of reduced maternal and child health block grant funding and enabled states to reserve block grant funds for the next year. As categorical funds diminished, however, state and other sources of funds began shouldering a greater share of program costs. In 1983 the emergency jobs bill legislation substantially increased the maternal and child health appropriation and should help promote relatively stable funding in 1984. States health agencies were carrying out block grant responsibilities and management improvements were reported in some states. Various methods were used to obtain public input, and the involvement of state elected officials and interest groups had increased. Most state officials rated the block grant more flexible and desirable, while about half the interest groups responding preferred the prior categorical approach. (Author).