oversight

Formula Grants: Effects of Adjusted Population Counts on Federal Funding to States

Published by the Government Accountability Office on 1999-02-26.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                 United States General Accounting Office

GAO              Report to Congressional Requesters




February 1999
                 FORMULA GRANTS

                 Effects of Adjusted
                 Population Counts on
                 Federal Funding to
                 States




GAO/HEHS-99-69
      United States
GAO   General Accounting Office
      Washington, D.C. 20548                                                                               Leter




      Health, Education, and
      Human Services Division

      B-281364                                                                                        Letter

      February 26, 1999

      The Honorable Dan Miller
      Chairman
      Subcommittee on the Census
      Committee on Government Reform
      House of Representatives

      The Honorable Henry A. Waxman
      Ranking Minority Member
      Committee on Government Reform
      House of Representatives

      To estimate the extent to which the 1990 decennial census fully counted the
      U.S. population, the Bureau of the Census used a Post Enumeration Survey
      (PES). For the PES, the Bureau interviewed a sample of households several
      months after the 1990 census and compared the results to census
      questionnaires to determine if each sampled person was correctly counted,
      missed, or double counted in the census.1 The Bureau estimated that the
      net undercount (those missed less those double counted) came to 4.0
      million persons, for an adjusted U.S. population of 252.7 million people.

      In the interest of reducing costs and improving accuracy, the Census
      Bureau has proposed the use of statistical sampling techniques to estimate
      the actual population counts for the 2000 census. Although the Supreme
      Court ruled in a recent decision2 that the Census Act prohibits the use of
      sampling techniques for the purposes of reapportioning seats in the House
      of Representatives, the ruling did not address the use of adjusted counts for
      other purposes, including apportioning federal grant funding.

      Population counts, as derived from the decennial census, are frequently
      used to apportion federal grants to states and units of local government. 3
      Of the $185 billion in population-based grant funding for fiscal year 1998,
      formula grants composed 95 percent of the amount and discretionary


      1
       See 1990 Census Adjustment: Estimating Census Accuracy – A Complex Task (GAO/GGD-91-42, Mar.
      11, 1991) for more background on the methods and procedures used for the 1990 PES.

      2Dept.   of Commerce v. U.S. House of Representatives, No. 98-404 (Sup. Ct., Jan. 25, 1999).

      3
        Most formula grants apportion funding among states; however, several, such as Community
      Development Block Grants and Federal Mass Transit Grants, apportion funding to units of local
      government as well.




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grants accounted for the rest. Because of formula grant programs’ reliance
on population counts, adjusting these counts based on a PES could
potentially redistribute federal funding among states and localities.

This report responds to your request for information on the potential effect
of using adjusted population counts on the distribution of federal grant
funding, using information from the 1990 census and the PES. Specifically,
you asked that we review 25 large formula grant programs (see table 1) and
(1) identify those that rely, at least in part, on census data to apportion
funding and (2) for selected programs, analyze the extent to which funding
would shift among states if adjusted population counts were used to
apportion funds.

As agreed with your offices, we recalculated current formula grant funding
amounts assuming the same proportional net undercount for each state as
estimated from the 1990 PES. We selected for detailed analysis 15 programs
that represented $147 billion, or 79 percent, of population-based grant
programs, as reported by the Congressional Research Service.4 We did not
analyze formulas for the nine programs that used counts of people below
the poverty level to apportion funds because adjusted poverty counts from
the PES are not available. In addition, we did not analyze formula programs
that apportion funding directly to units of local government.



Table 1: Large Formula Grant Programs, Fiscal Year 1998 Obligations

Catalog of Federal                                                                          Estimated
Domestic Assistance                                                                        obligations
(CFDA) number                   Program                                                      (billions)
Selected for detailed
analysis
93.778                          Medicaid                                                         $104.0
20.205                          Highway Planning and Construction                                     19.7
93.658                          Foster Care                                                            3.7
84.027                          Special Education                                                      3.2
10.557                          Special Supplemental Nutrition Program for
                                Women, Infants, and Children (WIC) (Food)                           3.0
                                                                                            (continued)



4
  Congressional Research Service memorandum regarding federal programs using some aspect of
population as a qualifying or limiting factor to dispense program funds or services, April 9, 1998.




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Catalog of Federal                                                              Estimated
Domestic Assistance                                                            obligations
(CFDA) number                   Program                                          (billions)
93.667                          Social Services Block Grant                            2.4
84.126                          Rehabilitation Services: Basic Support                 2.2
17.246                          Employment and Training—Dislocated
                                Workers                                                1.4
93.959                          Prevention and Treatment of Substance Abuse            1.4
93.575                          Child Care and Development Block Grant                 1.0
93.568                          Low Income Home Energy Assistance                      1.0
84.048                          Vocational Education: Basic Grants                     1.0
10.557                          Special Supplemental Nutrition Program for
                                Women, Infants, and Children (WIC) (Admin.)            1.0
93.659                          Adoption Assistance                                    0.8
17.207                          Employment Services                                    0.8
Subtotal                                                                            $146.9
Excluded from detailed
analysis
84.010                          Title I Grants to Local Education Agencies             7.5
20.507                          Federal Mass Transit Grants                            3.1
14.218                          Community Development Block Grant                      3.0
14.239                          HOME Investment Partnerships Program                   1.3
14.228                          Community Development, State Program                   1.2
17.250a                         Job Training Partnership Act, Title II-A               1.1
17.250b                         Job Training Partnership Act, Title II-B               0.9
84.276                          Goals 2000-State and Local Education                   0.6
93.994                          Maternal and Child Health Services                     0.6
84.186                          Safe and Drug Free Schools and Communities             0.6
Subtotal                                                                             $19.9
Total                                                                              $166.8a
aTotal   may not add because of rounding.


We conducted our work between September 1998 and February 1999 in
accordance with generally accepted government auditing standards. See
appendix I for a more detailed description of our methods. Because we did
not evaluate the policies or operations of any federal agency to develop the
information presented in this report, we did not seek comments from any
agency.




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Results in Brief            Twenty-two of the 25 large formula grant programs rely, at least in part, on
                            data derived from the decennial census to apportion funding among states
                            and units of local government. Medicaid was the single largest program,
                            representing 63 percent of the $167 billion in fiscal year 1998 obligations
                            under the 25 programs we reviewed.

                            For the 15 programs included in our detailed analysis, using adjusted
                            population counts would reallocate a total of $449 million among the 50
                            states and the District of Columbia, 0.33 percent of the $138 billion in funds
                            apportioned by formula in our detailed analysis. Specifically, reallocating
                            funding would result in the following:

                            • California accounted for about 20 percent of the adjusted population
                              and would receive nearly half of the total reallocated, or $223 million.
                            • The four states that border Mexico (California, Arizona, New Mexico,
                              and Texas) accounted for over one-third of the adjusted population and
                              would receive nearly 75 percent of the total reallocated, or $336 million.
                            • The largest dollar reduction would occur in Pennsylvania ($110 million),
                              and the largest percentage reduction would occur in Rhode Island (1.8
                              percent).
                            • Medicaid accounted for 90 percent of all funds reallocated.
                            • Funding would generally shift from northeastern and midwestern states
                              to the southern and western states.


Most Formula Grant          We found that 22 of the 25 large programs use decennial census data, at
Programs Rely on Census     least in part, to apportion grant funding (see table 2). These 22 programs
                            represent 97 percent of fiscal year 1998 obligations for the largest 25
Data to Apportion Federal
                            programs included in our analysis. The remaining three programs
Funds                       accounted for $5.2 billion.



                            Table 2: Large Formula Grant Programs, by Use of Census Data

                                                                                         Estimated
                            CFDA                                                        obligations Percentage
                            number     Program                                            (billions)    of total
                            Formulas that use census data
                            93.778     Medicaid                                             $104.4           63
                            20.205     Highway Planning and Construction                      19.7            12
                                                                                                     (continued)




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                                                                                           Estimated
                       CFDA                                                               obligations Percentage
                       number          Program                                              (billions)    of total
                       84.010          Title I Grants to Local Education Agencies                 7.5           5
                       93.658          Foster Care                                                3.7           2
                       20.507          Federal Mass Transit Grants                                3.1           2
                       14.218          Community Development Block Grant                          3.0           2
                       10.557          WIC (Food)                                                 3.0           2
                       93.667          Social Services Block Grant                                2.4           1
                       84.126          Rehabilitation Services: Basic Support                     2.2           1
                       17.246          Employment and Training—Dislocated Workers                 1.4           1
                       93.959          Prevention and Treatment of Substance Abuse                1.4           1
                       14.239          HOME Investment Partnerships Program                       1.3           1
                       14.228          Community Development, State Program                       1.2           1
                       17.250          Job Training Partnership Act, Title II-A                   1.1           1
                       93.575          Child Care and Development Block Grant                     1.0           1
                       84.048          Vocational Education: Basic Grants                         1.0           1
                       17.250          Job Training Partnership Act, Title II-B                   0.9           1
                       93.659          Adoption Assistance                                        0.8           0
                       17.207          Employment Services                                        0.8           0
                       84.276          Goals 2000-State and Local Education                       0.6           0
                       93.994          Maternal and Child Health Services                         0.6           0
                       84.186          Safe and Drug Free Schools and Communities                 0.6           0
                       Subtotal                                                               $161.6           97
                       Formulas that do not use census data
                       84.027          Special Education                                          3.2           2
                       10.557          WIC (Admin.)                                               1.0           1
                       93.568          Low Income Home Energy Assistance                          1.0           1
                       Subtotal                                                                 $5.2            3
                       Total                                                                 $166.8a          100
                       a
                           Totals may not add because of rounding.




Adjusting Population   Using adjusted population counts based on the 1990 PES in the 15 formula
                       grant programs we analyzed would result in 23 states receiving less funding
Counts Would           and 27 states and the District of Columbia receiving more. The gaining
Redistribute a Small   states would receive an additional $449 million, or 0.33 percent of the $138
                       billion subject to apportionment by formula. About $390 million would be
Fraction of Formula    reallocated from states with undercounts below the national average, and
Grant Funding          the federal government would contribute an additional $60 million in the



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three entitlement programs: Medicaid, Foster Care, and Adoption
Assistance.

Based on our simulations of formula funding in the 15 programs analyzed,
two states would account for the largest adjusted population and
reallocation of funds. California had an estimated net undercount of about
838,000 and would gain $223 million in grant funding. Texas had an
estimated net undercount of about 486,000 and would gain $93 million. The
four states that border Mexico (California, Arizona, New Mexico, and
Texas) accounted for 1.5 million of the 4.0 million net undercount.
Combined, they would account for $336 million, or nearly 75 percent of the
total reallocated.

Rhode Island had the smallest estimated net undercount of about 1,400, or
0.1 percent of its official count. The PES added roughly another 35,000
people in Pennsylvania, or 0.3 percent of its official count, the second
smallest net undercount. As a consequence, Rhode Island formula funding
would decline the most in percentage terms (1.8 percent), and
Pennsylvania’s would decline the most in dollar terms ($110 million).




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Figure 1: Percentage Change in Grant Funding by State, When Population Counts Are Adjusted for Net Undercount




                                         The shift in funding that would result from the use of adjusted population
                                         counts in the 15 programs included in our detailed analysis is shown in



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                                         figure 1. The magnitude of the net undercount and the corresponding
                                         funding shifts for each state are shown in appendix II. Shifts in funding by
                                         state and by program are shown in appendix III, and appendixes V through
                                         XXIX provide detailed information on each of the 25 formula programs
                                         reviewed.


Medicaid Accounts for Most               Medicaid is the largest program, representing 68 percent of the formula
of the Reallocated Funding               funding we analyzed, and it accounted for 90 percent of the funding that
                                         would be reallocated. Using state population data adjusted for the
                                         undercount would reallocate $402.4 million, or 0.43 percent of the $93.8
                                         billion in total Medicaid funding (see table 3).



Table 3: Funding Shifts in 15 Formula Grant Programs

Dollars in millions
                                          Formula funding                      Change in formula funding
                                                        Percentage                        Percentage       Percentage
Formula grant programs                        Total        of total            Total      of program           of total
Medicaid                                   $93,789           67.89            $402.4             0.43            89.63
Other grant programs
 Rehab. Services                             2,166             1.57             12.7             0.59             2.82
 Foster Care                                 3,106             2.25             11.1             0.36             2.47
 Social Services                             2,286            1.65               8.5             0.37             1.90
 Substance Abuse                             1,483             1.07              6.0             0.40             1.34
 Child Care                                       949          0.69              5.5             0.58             1.22
 Adoption Assistance                              590          0.43              1.6             0.27             0.36
 Vocational Education                             994          0.72              1.2             0.12             0.27
 Employment Services                              742          0.54                0             0.00             0.00
 Employment Training                         1,031            0.75                 0             0.00             0.00
 Highways                                   22,517           16.30                 0             0.00             0.00
 Low Income Energy                                973          0.70                0             0.00             0.00
 Special Education                           3,690            2.67                 0             0.00             0.00
 WIC (Admin.)                                1,026             0.74                0             0.00             0.00
 WIC (Food)                                  2,799             2.03                0             0.00             0.00
Subtotal                                   $44,353           33.11             $46.5             0.10            10.37
Total                                     $138,142          100.00            $449.0             0.33           100.00




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Reallocation in Other   While the other 14 programs represented 32 percent of the funds analyzed,
Programs Was            they accounted for just 10 percent of those that would be reallocated.
                        About $47 million was redistributed, representing 0.10 percent of total
Comparatively Small
                        funding allocated by formula in these programs.

                        There were several reasons other programs would reallocate a smaller
                        fraction of funding. First, some programs do not use census data to
                        apportion funds. For example, Special Education uses the number of
                        children with disabilities as reported to the Department of Education by
                        the states, and administrative expenses for the Special Supplemental
                        Nutrition Program for Women, Infants, and Children are allocated on the
                        basis of the clients served.

                        Second, only a fraction of formula funding may be apportioned on the basis
                        of census data. For example, the largest nonentitlement program, Highway
                        Construction and Planning Grants, allocated $22.6 billion to states in fiscal
                        year 1998. However, only $1.7 billion, or 8 percent, was apportioned on the
                        basis of census data.5

                        Third, programs such as Employment Services and Employment Training,
                        which use formulas that rely on labor force statistics, already use adjusted
                        population counts to develop civilian labor force and unemployment
                        statistics that are used in several employment and training programs.
                        Consequently, programs whose formulas rely on these data are reported as
                        having no effect in our analysis.

                        Finally, many programs contain a so-called “hold-harmless” provision
                        whereby states are guaranteed they will receive at least as much as in some
                        previous year. As a consequence, formulas only apportion funding not
                        subject to the hold-harmless provisions. For example, under provisions
                        adopted in fiscal year 1999 for the Vocational Education Program, states
                        are guaranteed to receive no less than the amount received in fiscal year
                        1998. Because appropriations increased only 0.32 percent, the undercount
                        adjustment would reallocate just 0.12 percent of the available funding. In
                        contrast, the Social Services Block Grant program allocated all available
                        funding on the basis of population with no hold-harmless provision,
                        resulting in 0.37 percent of its funding being reallocated, or three times as
                        much.


                        5
                          However, because of other provisions of the law, the population data have no effect on the distribution
                        of highway funds.




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The Undercount Adjustment   The largest net undercounts based on the PES tended to occur in the
Would Shift Funding Among   southern and western sections of the country. Consequently, adjusting for
                            the undercount would tend to benefit states located in these regions. The
Regions
                            regional pattern in funding shifts is shown in figure 2.




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Figure 2: Change in Grant Funding Using Adjusted Population Counts Based on the 1990 Post Enumeration Survey




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Using adjusted population counts in the 15 programs whose formulas we
analyzed would result in $384 million being reallocated from states in the
Northeast and Midwest to states in the South and West.

As agreed with your offices, we will make no further distribution of this
report until 6 days after its issue date. At that time, we will send copies of
this report to appropriate congressional committees. We will also make
copies available to others on request.

If you have questions regarding this report, or if we can be of further
assistance, please call Jerry Fastrup, Assistant Director, at (202) 512-7211
or me at (202) 512-7114.




Kathryn G. Allen
Associate Director
Health Financing and
 Public Health Issues




Page 12                                    GAO/HEHS-99-69 Formula Grant Funding
Page 13   GAO/HEHS-99-69 Formula Grant Funding
Contents



Letter                                                                1


Appendix I                                                           22
Scope and
Methodology

Appendix II                                                          24
Adjusted Population
Count and Shifts in
Grant Funding in 15
Formula Grant
Programs

Appendix III                                                         28
Shifts in State Funding
in 15 Formula Grant
Programs

Appendix IV                                                          32
Guide to Formula
Grant Program Profiles

Appendix V                                                           33
Adoption Assistance




                          Page 14   GAO/HEHS-99-69 Formula Grant Funding
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Appendix VI                                                         36
Block Grants for
Prevention and
Treatment of
Substance Abuse

Appendix VII                                                        40
Child Care and
Development Block
Grant

Appendix VIII                                                       44
Community
Development Block
Grant (Entitlement
Grants)

Appendix IX                                                         46
Community
Development Block
Grant (State Program)

Appendix X                                                          48
Employment and
Training Assistance,
Dislocated Workers

Appendix XI                                                         51
Employment Services


                        Page 15    GAO/HEHS-99-69 Formula Grant Funding
                          Contents




Appendix XII                                                          54
Federal Transit Capital
and Operating
Assistance Formula

Appendix XIII                                                         57
Foster Care

Appendix XIV                                                          60
Goals 2000-State and
Local Education
Systemic Improvement
Program

Appendix XV                                                           62
Highway Planning and
Construction

Appendix XVI                                                          66
HOME Investment
Partnerships Program

Appendix XVII                                                         69
Job Training
Partnership Act,
Title II-A




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                          Contents




Appendix XVIII                                                        71
Job Training
Partnership Act, Title
II-B

Appendix XIX                                                          73
Low Income Home
Energy Assistance

Appendix XX                                                           76
Maternal and Child
Health Services Block
Grant

Appendix XXI                                                          77
Medicaid

Appendix XXII                                                         82
Rehabilitation Services

Appendix XXIII                                                        86
Safe and Drug Free
Schools and
Communities State
Grants

Appendix XXIV                                                         88
Social Services Block
Grant


                          Page 17    GAO/HEHS-99-69 Formula Grant Funding
                          Contents




Appendix XXV                                                                                      91
Special Education

Appendix XXVI                                                                                     94
Special Supplemental
Nutrition Program for
Women, Infants, and
Children (Food)

Appendix XXVII                                                                                    97
Special Supplemental
Nutrition Program for
Women, Infants, and
Children (Nutrition
Services and
Administration)

Appendix XXVIII                                                                                  100
Title I Grants to Local
Education Agencies

Appendix XXIX                                                                                    102
Vocational Education

Appendix XXX                                                                                     107
Major Contributors to
This Report

Tables                    Table 1: Large Formula Grant Programs, Fiscal Year 1998 Obligations      2
                          Table 2: Large Formula Grant Programs, by Use of Census Data             4



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Table 3: Funding Shifts in 15 Formula Grant Programs                     8
Table II.1: Comparison of “Official” Count With Undercount-Adjusted
  Population Count, by State                                            24
Table II.2: Comparison of Formula Grant Funding Using Population
  Counts Before and After Adjustment for the Undercount, by State       26
Table V.1: Comparison of Fiscal Year 1997 Adoption Assistance
  Allocations Based on Actual and Undercount-Adjusted Population
  Counts                                                                34
Table VI.1: Comparison of Fiscal Year 1999 Substance Abuse Allocations
  Based on Actual and Undercount-Adjusted Population Counts             38
Table VII.1: Comparison of Fiscal Year 1998 Child Care and
  Development Block Grant Allocations Based on Actual and
  Undercount-Adjusted Population Counts                                 41
Table X.1: JTPA Title III, Dislocated Worker Assistance Program, Fiscal
  Year 1998                                                             49
Table XI.1: Employment Service (Wagner-Peyser Act) Allotments for
  Program Year 1998                                                     52
Table XIII.1: Comparison of Fiscal Year 1997 Foster Care Allotments
  Based on Actual and Undercount-Adjusted Population                    58
Table XV.1: Highway Planning and Construction Allotments for
  FY 1998                                                               64
Table XIX.1: Allotments for Low Income Home Energy Assistance,
  FY 1998                                                               74
Table XXI.1: Comparison of Fiscal Year 1997 Federal Medical Assistance
  Percentages Based on Actual and Undercount-Adjusted Population 78
Table XXI.2: Comparison of Fiscal Year 1997 Medicaid Grant Amounts
  Based on Actual and Undercount-Adjusted Population                    80
Table XXII.1: Comparison of Fiscal Year 1998 Rehabilitation Services
  Allotments Based on Actual and Undercount-Adjusted Population
  Counts                                                                83
Table XXIV.1: Comparison of Fiscal Year 1998 Social Services Block
  Grant Allotments Based on Actual and Undercount-Adjusted Population
  Counts                                                                89
Table XXV.1: Allotments for Special Education in Fiscal Year 1998       92
Table XXVI.1: Special Supplemental Nutrition Program for Women, Infants,
  and Children (Food) Actual Allotments, Fiscal Year 1998               95
Table XXVII.1: Special Supplemental Nutrition Program for Women,
  Infants and Children (Nutrition Services and Administration),
  Fiscal Year 1998                                                      98
Table XXIX.1: Vocational and Technical Education Assistance to the
  States, Comparison of Actual Allocations to Simulated Allocations 103




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          Table XXIX.2: Percentage Change in Vocational Education Population
            Counts Unadjusted and Adjusted for the Undercount                105


Figures   Figure 1: Percentage Change in Grant Funding by State, When Population
            Counts Are Adjusted for Net Undercount                               7
          Figure 2: Change in Grant Funding Using Adjusted Population Counts
            Based on the 1990 Post Enumeration Survey                           11




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Abbreviations

APF        allotment proportion factor
CDBG       Community Development Block Grant
CFDA       Catalog of Federal Domestic Assistance
CLF        civilian labor force
FMAP       Federal Medical Assistance Percentage
PES        Post Enumeration Survey
WIC        Special Supplemental Nutrition Program for Women, Infants,
           and Children



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Appendix I

Scope and Methodology                                                                       AppIexndi




             As agreed with your offices, we reviewed 25 large federal formula grants
             identified by the Congressional Research Service as using population data
             as a qualifying or limiting factor to dispense program funds. We selected 15
             programs for detailed analysis to determine the extent to which formula
             funds would be reallocated among the states if adjusted population counts,
             based on the Post Enumeration Survey (PES), were used to apportion
             funds. We selected the 15 programs by taking into account whether
             estimates of the undercount were available for the population factors used
             in the apportionment formula, the complexity of the formula, and the
             availability of information necessary to simulate the formula.

             The 15 programs included in our detailed analysis represented $146.9
             billion in obligations in fiscal year 1998, approximately 79 percent of all
             population-based grant funding for states and units of local government
             (see table 1). Of the 10 programs not included in our analysis, 9 relied on
             counts of people below the poverty line for which estimates of the
             undercount from the 1990 census are not available. The remaining
             program, Federal Mass Transit Grants, was not included because it
             apportions funding directly to local transit authorities. This added
             complexity would have significantly extended the time required to
             complete the analysis and would not have significantly affected the overall
             results because its funding was small in relation to the total analyzed.

             To analyze the effect of using adjusted population counts, we spoke with
             agency officials about the procedure they used to calculate formula funding
             amounts. For those programs that rely on census data we obtained the data
             agencies used in their apportionment calculations. In most cases, we
             developed our own formula simulation programs and verified our
             calculations against those made by the responsible agency. We then
             adjusted the population data used in each formula, assuming the same
             proportional net undercount for each state, as determined by the Bureau of
             the Census for the 1990 census. To the extent that a PES for 2000 yields
             different proportionate net undercount estimates, the results reported
             would differ from what would result from using adjusted counts from the
             2000 census.

             Formula amounts were calculated using fiscal year 1998 data with the
             following exceptions. The three entitlement programs (Medicaid, Foster
             Care, and Adoption Assistance) all use the same matching formula. Since
             the most recently available data for Medicaid were for fiscal year 1997, we
             used fiscal year 1997 data for all three programs. We used fiscal year 1999
             data for Block Grants for the Prevention and Treatment of Substance



             Page 22                                  GAO/HEHS-99-69 Formula Grant Funding
Appendix I
Scope and Methodology




Abuse, the Child Care and Development Block Grant, and Vocational
Education so that new formulas adopted by the Congress for fiscal year
1999 would be reflected in our analysis.




Page 23                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix II

Adjusted Population Count and Shifts in Grant
Funding in 15 Formula Grant Programs                                                              ApIpexndi




               According to the Census Bureau the 1990 census net undercount came to 4
               million people. The following table shows the estimated net undercount for
               each state and the District of Columbia.



               Table II.1: Comparison of “Official” Count With Undercount-Adjusted
               Population Count, by State

                                                                           Difference
                                                                                           Percent
               States                      Official      Adjusted        Number         difference
               Alabama                   4,040,587      4,113,810         73,223              1.81
               Alaska                     550,043         561,276         11,233              2.04
               Arizona                   3,665,228      3,754,666         89,438              2.44
               Arkansas                  2,350,725      2,392,596         41,871              1.78
               California               29,760,021     30,597,578        837,557              2.81
               Colorado                  3,294,394      3,363,637         69,243              2.10
               Connecticut               3,287,116      3,308,343         21,227              0.65
               Delaware                   666,168         678,385         12,217              1.83
               District of Columbia       606,900         628,309         21,409              3.53
               Florida                  12,937,926     13,197,755        259,829              2.01
               Georgia                   6,478,216      6,620,641        142,425              2.20
               Hawaii                    1,108,229      1,129,170         20,941              1.89
               Idaho                     1,006,749      1,029,283         22,534              2.24
               Illinois                 11,430,602     11,544,319        113,717              0.99
               Indiana                   5,544,159      5,572,057         27,898              0.50
               Iowa                      2,776,755      2,788,332         11,577              0.42
               Kansas                    2,477,574      2,495,014         17,440              0.70
               Kentucky                  3,685,296      3,746,044         60,748              1.65
               Louisiana                 4,219,973      4,314,085         94,112              2.23
               Maine                     1,227,928      1,237,130           9,202             0.75
               Maryland                  4,781,468      4,882,452        100,984              2.11
               Massachusetts             6,016,425      6,045,224         28,799              0.48
               Michigan                  9,295,297      9,361,308         66,011              0.71
               Minnesota                 4,375,099      4,394,610         19,511              0.45
               Mississippi               2,573,216      2,629,548         56,332              2.19
               Missouri                  5,117,073      5,148,974         31,901              0.62
               Montana                    799,065         818,348         19,283              2.41
               Nebraska                  1,578,385      1,588,712         10,327               0.65
                                                                                        (continued)




               Page 24                                     GAO/HEHS-99-69 Formula Grant Funding
Appendix II
Adjusted Population Count and Shifts in
Grant Funding in 15 Formula Grant Programs




                                                                Difference
                                                                                Percent
States                        Official         Adjusted       Number         difference
Nevada                     1,201,833           1,230,709        28,876            2.40
New Hampshire              1,109,252           1,118,632         9,380            0.85
New Jersey                 7,730,188           7,774,461       44,273             0.57
New Mexico                 1,515,069           1,563,579        48,510            3.20
New York                  17,990,455          18,262,491      272,036             1.51
North Carolina             6,628,637           6,754,567      125,930             1.90
North Dakota                 638,800            643,033          4,233            0.66
Ohio                      10,847,115          10,921,741       74,626             0.69
Oklahoma                   3,145,585           3,202,963        57,378            1.82
Oregon                     2,842,321           2,896,472        54,151            1.91
Pennsylvania              11,881,643          11,916,783        35,140            0.30
Rhode Island               1,003,464           1,004,815         1,351            0.13
South Carolina             3,486,703           3,559,547       72,844             2.09
South Dakota                 696,004            702,864          6,860            0.99
Tennessee                  4,877,185           4,964,261       87,076             1.79
Texas                     16,986,510          17,472,538      486,028             2.86
Utah                       1,722,850           1,753,188        30,338            1.76
Vermont                      562,758            569,100          6,342            1.13
Virginia                   6,187,358           6,313,836      126,478             2.04
Washington                 4,866,692           4,958,320       91,628             1.88
West Virginia              1,793,477           1,819,363       25,886             1.44
Wisconsin                  4,891,769           4,921,871       30,102             0.62
Wyoming                      453,588            463,629        10,041             2.21
Total                    248,709,873         252,730,369     4,020,496            1.62

Formula grant funds would be reallocated if adjusted population counts
were used to apportion funding in formula grant programs. Table II.2 shows
the shift in funding for the 50 states and the District of Columbia for the 15
programs included in our detailed analysis.




Page 25                                          GAO/HEHS-99-69 Formula Grant Funding
Appendix II
Adjusted Population Count and Shifts in
Grant Funding in 15 Formula Grant Programs




Table II.2: Comparison of Formula Grant Funding Using Population Counts Before
and After Adjustment for the Undercount, by State

Dollars in thousands
                                                              Difference
State                     Unadjusted          Adjusted        Amount         Percent
Alabama                    $2,325,048        $2,327,455        $2,407            0.10
Alaska                        572,515          572,530             16            0.00
Arizona                      1,918,112        1,928,998        10,887            0.57
Arkansas                     1,521,832        1,522,898         1,066            0.07
California                 13,738,620        13,961,454       222,833            1.62
Colorado                     1,342,104        1,349,345         7,242            0.54
Connecticut                  2,011,927        2,011,043          -884           -0.04
Delaware                      376,549          376,571             21            0.01
District of Columbia          610,499          610,702            203            0.03
Florida                      5,662,500        5,685,147        22,647            0.40
Georgia                      3,557,627        3,573,747        16,119            0.45
Hawaii                        504,828          504,918             89            0.02
Idaho                         570,893          572,541          1,648            0.29
Illinois                     5,367,787        5,364,874         -2,912          -0.05
Indiana                      2,549,080        2,525,413       -23,667           -0.93
Iowa                         1,288,155        1,276,196       -11,959           -0.93
Kansas                       1,073,394        1,064,708         -8,686          -0.81
Kentucky                     2,535,605        2,535,044          -561           -0.02
Louisiana                    3,214,604        3,226,341        11,737            0.37
Maine                         933,583          926,366          -7,217          -0.77
Maryland                     2,176,714        2,177,329           616            0.03
Massachusetts                3,446,163        3,444,373         -1,790          -0.05
Michigan                     4,885,848        4,835,245       -50,602           -1.04
Minnesota                    2,234,073        2,202,148       -31,925           -1.43
Mississippi                  1,834,067        1,837,837         3,769            0.21
Missouri                     2,870,331        2,843,334       -26,997           -0.94
Montana                       577,660          579,536          1,876            0.32
Nebraska                      773,851          767,099          -6,752          -0.87
Nevada                        518,670          519,104            433            0.08
New Hampshire                 580,608          580,359           -249           -0.04
New Jersey                   3,988,732        3,985,779         -2,953           -0.07
                                                                           (continued)




Page 26                                       GAO/HEHS-99-69 Formula Grant Funding
Appendix II
Adjusted Population Count and Shifts in
Grant Funding in 15 Formula Grant Programs




                                                                Difference
States                         Official         Adjusted        Number       Percent
New Mexico                   1,100,329          1,108,883         8,554         0.78
New York                   15,581,117          15,579,854         -1,262       -0.01
North Carolina               4,034,963          4,041,793         6,830         0.17
North Dakota                  441,570            439,483          -2,087       -0.47
Ohio                         5,639,835          5,586,605       -53,230        -0.94
Oklahoma                     1,498,208          1,499,588         1,380         0.09
Oregon                       1,499,544          1,503,078         3,534         0.24
Pennsylvania                 6,557,921          6,447,525      -110,396        -1.68
Rhode Island                  723,138            710,126        -13,012        -1.80
South Carolina               2,187,328          2,193,238         5,910         0.27
South Dakota                  447,761            446,200          -1,561       -0.35
Tennessee                    3,300,273          3,304,297         4,024         0.12
Texas                        9,337,774          9,431,222        93,448         1.00
Utah                          824,047            824,390            343         0.04
Vermont                       402,683            401,151          -1,532       -0.38
Virginia                     2,248,870          2,257,883         9,013         0.40
Washington                   2,528,490          2,536,956         8,466         0.33
West Virginia                1,354,095          1,352,663         -1,432       -0.11
Wisconsin                    2,526,600          2,502,481       -24,119        -0.95
Wyoming                       335,333            336,367          1,034         0.31
Total                    $138,131,854        $138,192,215       $60,360         0.04




Page 27                                         GAO/HEHS-99-69 Formula Grant Funding
Appendix III

Shifts in State Funding in 15 Formula Grant
Programs                                                                                                                  AIpIexndi




Dollars in thousands
                                    Prevention and
                                      Treatment of        Child Care   Employment                                  Highway
                        Adoption        Substance                and   and Training   Employment      Foster   Planning and
                       Assistance           Abuse       Development     Assistance       Services      Care    Construction
State                    FY 1997          FY 1999           FY 1999        FY 1998       PY 1998    FY 1997        FY 1998
Alabama                       $1             -$319              $33              0              0         $4             0
Alaska                         0                   -3             -3             0              0          0             0
Arizona                       54              346               213              0              0       159              0
Arkansas                       3              -132               23              0              0         10             0
California                   995             3,632             1,883             0              0      9,353             0
Colorado                      35                   0             35              0              0         72             0
Connecticut                    0              -422               -84             0              0          0             0
Delaware                       0                   0              9              0              0          0             0
District of Columbia           0                   0             18              0              0          0             0
Florida                       96              194               431              0              0       174              0
Georgia                       32              -280              308              0              0       121              0
Hawaii                         0               17                 9              0              0          0             0
Idaho                          4                   0              2              0              0          5             0
Illinois                       0              -809              -471             0              0          0             0
Indiana                      -129                  0            -405             0              0       -445             0
Iowa                         -114                  0            -226             0              0       -168             0
Kansas                        -93                  0            -164             0              0       -136             0
Kentucky                       0              -235                2              0              0         -3             0
Louisiana                     20              -221               79              0              0       109              0
Maine                         -29                  0             -70             0              0       -211             0
Maryland                       0               -24              123              0              0          0             0
Massachusetts                  0                   0            -330             0              0          0             0
Michigan                     -640                  0            -482             0              0     -1,097             0
Minnesota                     -91                  0            -312             0              0       -487             0
Mississippi                    2              -165               47              0              0         14             0
Missouri                      -67             -653              -340             0              0       -366             0
Montana                        3                   0             11              0              0         29             0
Nebraska                      -30             -163              -114             0              0       -116             0
Nevada                         0              122                42              0              0          0             0
New Hampshire                  0                   0             -52             0              0          0             0
New Jersey                     0            -1,047              -204             0              0          0             0
New Mexico                    31              170                32              0              0         41             0




                                         Page 28                                       GAO/HEHS-99-69 Formula Grant Funding
                                   Appendix III
                                   Shifts in State Funding in 15 Formula Grant
                                   Programs




                                                                                 WIC
                                                                                      Nutrition
 Low Income              Rehabilitation        Social       Special                   Services        Vocational
Home Energy   Medicaid       Services        Services     Education      Food        and Admin.       Education
    FY 1998   FY 1997         FY 1998        FY 1998        FY 1998       FY 1998         FY 1998      FY 1999          Total
          0     $2,537             $84             $67              0            0                0           0       $2,407
          0         0                0              21              0            0                0           0            16
          0      9,304             466             290              0            0                0         $54       10,887
          0      1,091              40              33              0            0                0           0         1,066
          0    197,912           4,719           3,213              0            0                0       1,128      222,833
          0      6,730             220             150              0            0                0           0         7,242
          0         0             -101            -277              0            0                0           0          -884
          0         0                0              12              0            0                0           0            21
          0         0               95              90              0            0                0           0           203
          0     20,880             661             454              0            0                0        -243       22,647
          0     15,067             523             349              0            0                0           0       16,119
          0         0               37              26              0            0                0           0            89
          0      1,508              91              60              0            0                0          -22        1,648
          0         0             -986            -646              0            0                0           0        -2,912
          0    -21,220            -907            -561              0            0                0           0       -23,667
          0    -10,675            -479            -296              0            0                0           0       -11,959
          0     -7,682            -328            -204              0            0                0          80        -8,686
          0       -300             -13              -9              0            0                0           0          -561
          0     11,194             335             220              0            0                0           0       11,737
          0     -6,658            -155             -94              0            0                0           0        -7,217
          0         0              303            214               0            0                0           0           616
          0         0             -860            -600              0            0                0           0        -1,790
          0    -45,819           -1,183           -754              0            0                0        -626       -50,602
          0    -29,830            -732            -473              0            0                0           0       -31,925
          0      3,567             196             108              0            0                0           0         3,769
          0    -24,373            -739            -458              0            0                0           0       -26,997
          0      1,685              90              58              0            0                0           0         1,876
          0     -5,968            -224            -137              0            0                0           0        -6,752
          0         0              149            103               0            0                0          18           433
          0         0             -120             -77              0            0                0           0          -249
          0         0             -981            -721              0            0                0           0        -2,953
          0      7,683             368             226              0            0                0           1         8,554
                                                                                                                   (continued)



                                   Page 29                                           GAO/HEHS-99-69 Formula Grant Funding
                                  Appendix III
                                  Shifts in State Funding in 15 Formula Grant
                                  Programs




                              Prevention and
                                Treatment of  Child Care         Employment                                   Highway
                  Adoption        Substance          and         and Training       Employment     Foster Planning and
                 Assistance           Abuse Development           Assistance          Services      Care Construction
State              FY 1997          FY 1999        FY 1999            FY 1998          PY 1998   FY 1997       FY 1998
New York                 0             -392             -349                    0            0          0             0
North Carolina          15             -399              159                    0            0         68             0
North Dakota             -5                 0            -22                    0            0         -30            0
Ohio                   -304                 0           -596                    0            0      -1,029            0
Oklahoma                 8             -108               30                    0            0         19             0
Oregon                  22                  0             13                    0            0         45             0
Pennsylvania           -252                 0           -742                    0            0      -3,551            0
Rhode Island            -63                 0            -77                    0            0       -111             0
South Carolina          10             -214               57                    0            0         28             0
South Dakota             -4                 0            -38                    0            0          -9            0
Tennessee                7             -244               86                    0            0         31             0
Texas                  206            1,367            1,642                    0            0        690             0
Utah                     2                  60           -67                    0            0          5             0
Vermont                 -11                 0            -23                    0            0         -38            0
Virginia                30             -162              166                    0            0         70             0
Washington              24                  86            17                    0            0         32             0
West Virginia            -1                 0             -8                    0            0         -12            0
Wisconsin              -147                 0           -298                    0            0       -380             0
Wyoming                   1                  0            10                    0            0          9             0
Total                 -$380                 -0             0                    0            0     $2,899             0




                                  Page 30                                           GAO/HEHS-99-69 Formula Grant Funding
                                   Appendix III
                                   Shifts in State Funding in 15 Formula Grant
                                   Programs




                                                                                 WIC
                                                                                      Nutrition
 Low Income              Rehabilitation        Social       Special                   Services        Vocational
Home Energy   Medicaid       Services        Services     Education      Food        and Admin.       Education
    FY 1998   FY 1997         FY 1998        FY 1998        FY 1998       FY 1998         FY 1998      FY 1999        Total
          0         0             -332            -190              0            0                0           0      -1,262
          0      6,626             232             128              0            0                0           0      6,830
          0     -1,977               0             -53              0            0                0           0      -2,087
          0    -48,957           -1,442           -902              0            0                0           0     -53,230
          0      1,351              71              54              0            0                0          -45     1,380
          0      3,278             103              73              0            0                0           0      3,534
          0   -102,338           -2,121         -1,392              0            0                0           0    -110,396
          0    -12,441            -193            -127              0            0                0           0     -13,012
          0      5,666             214             147              0            0                0           0      5,910
          0     -1,468               -1            -40              0            0                0           0      -1,561
          0      3,995              82              69              0            0                0           0      4,024
          0     84,489           3,083           1,971              0            0                0           0     93,448
          0       443               25              21              0            0                0        -144        343
          0     -1,434               0             -25              0            0                0           0      -1,532
          0      8,365             329             216              0            0                0           0      9,013
          0      8,073             157             117              0            0                0          -41     8,446
          0     -1,320             -62             -30              0            0                0           0      -1,432
          0    -22,133            -715            -446              0            0                0           0     -24,119
          0        990                0             24              0            0                0           0      1,034
          0    $57,841               -0             -0              0            0                0           0    $60,360




                                   Page 31                                           GAO/HEHS-99-69 Formula Grant Funding
Appendix IV

Guide to Formula Grant Program Profiles                                                                                ApV
                                                                                                                         Ienxdi




              Appendixes V to XXIX contain profiles of the 25 large formula grant
              programs included in our analysis. Each profile identifies the program by
              its Catalog of Federal Domestic Assistance (CFDA) identification number
              and summarizes the following information:

              • the objective of the program,
              • the administering federal agency,
              • its fiscal year 1998 budget obligation (estimate),
              • a narrative describing the formula used to apportion funds,
              • a mathematical statement of the funding formula,1
              • definitions of the statistical factors used in the formula,
              • identification of the data sources for each of the statistical factors,
              • a description of minimum funding provisions that may limit the
                application of the funding formula,
              • the amount of formula funding that was reallocated by adjusting for the
                1990 undercount, and
              • comments on any unique characteristics or circumstances encountered
                in analyzing the formula.




              1
                In several instances, the mathematical statement of the formula algorithm has been simplified or
              expressed in mathematically equivalent forms in the interest of conveying the general effect of highly
              complex algorithms.




              Page 32                                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix V

Adoption Assistance                                                                          ApV
                                                                                               enxdi




              CFDA Number: 93.659

              Program Objectives: To provide assistance to states in promoting the
              adoption of children with special needs.

              Federal Agency: Department of Health and Human Services, Office of
              Human Development Services, Administration for Children, Youth, and
              Families.

              Fiscal Year 1998 Obligations (estimate): $0.8 billion.

              Formula Narrative: Eligible program expenditures are reimbursed using
              the Medicaid matching percentage, known as the Federal Medical
              Assistance Percentage (FMAP). The FMAP varies on a sliding scale with
              state per capita income and ranges from 50 to 83 percent of eligible
              expenditures. Administrative, training, and related expenses are
              reimbursed at a flat percentage rate.

              Mathematical Structure:

                                                      2
                                   PCIState 
              FMAP = 1.00 − 0.45           
                                   PCIUS 

              Where:

                                      PIState 
                        PCIState   =           
                                      Pop State 

              Formula Constraints: No state may receive a matching percentage below
              50 percent or in excess of 83 percent.

              Definitions:
              FMAP = Federal Medical Assistance Percentage.
              PCI = Per capita personal income.
              PI = Personal income.
              Pop = State population.




              Page 33                                     GAO/HEHS-99-69 Formula Grant Funding
Appendix V
Adoption Assistance




Data Sources:
PI: Department of Commerce, Bureau of Economic Analysis.
Pop: Department of Commerce, Bureau of Economic Analysis and the
Bureau of the Census.

Amount Reallocated: $1.601 million, 0.27 percent of total allocated.

Comment: See table XXI.1 under Medicaid for a comparison of FMAPs
based on actual and adjusted population data. The accompanying table
shows the total grant amount and the amount subject to the FMAP. The
differences between the two amounts are administrative and training
expenditures that are subject to uniform reimbursement percentages.



Table V.1: Comparison of Fiscal Year 1997 Adoption Assistance Allocations Based
on Actual and Undercount-Adjusted Population Counts

Dollars in thousands
                                       Grant amount determined by the FMAP
                                                                Difference
State                    Total grant     Actual    Adjusted   Amount      Percenta
Alabama                      $2,401        $621        $622        $1         0.04
Alaska                        1,995       1,869       1,869         0         0.00
Arizona                       8,374       6,504       6,558        54         0.64
Arkansas                      3,204       2,359       2,362         3         0.08
California                   60,429      43,333      44,327       995         1.65
Colorado                      5,392       4,061       4,096        35         0.65
Connecticut                   5,023       3,670       3,670         0         0.00
Delaware                        596         523         523         0         0.00
District of Columbia          2,350       1,218       1,218         0         0.00
Florida                      27,911      16,149      16,245        96         0.35
Georgia                       6,258       4,494       4,525        32         0.50
Hawaii                        1,172         912         912         0         0.00
Idaho                         1,055         639         642         4         0.33
Illinois                     24,652      19,626      19,626         0         0.00
Indiana                      10,128       9,164       9,035      -129         -1.27
Iowa                          9,116       8,007       7,893      -114         -1.26
Kansas                        7,736       7,238       7,146        -93        -1.20
Kentucky                      3,720       2,743       2,742         0          -0.01
                                                                         (continued)




Page 34                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix V
Adoption Assistance




                                         Grant amount determined by the FMAP
                                                                 Difference
State                      Total grant     Actual   Adjusted   Amount    Percenta
Louisiana                      12,772       4,366      4,386        20         0.16
Maine                           3,915       2,940      2,910       -29        -0.75
Maryland                        5,210       5,179      5,179         0         0.00
Massachusetts                  12,276      10,604     10,604         0         0.00
Michigan                       43,529      43,353     42,713      -640        -1.47
Minnesota                       6,668       4,379      4,289       -91        -1.36
Mississippi                       874         856        858         2         0.27
Missouri                        7,311       5,051      4,984       -67        -0.92
Montana                           892         493        497         3         0.37
Nebraska                        2,298       2,225      2,195       -30        -1.30
Nevada                          1,742         541        541         0         0.00
New Hampshire                     779         537        537         0         0.00
New Jersey                      8,981       6,379      6,379         0         0.00
New Mexico                      3,199       2,728      2,759        31         0.98
New York                      111,667     104,150    104,150         0         0.00
North Carolina                  6,684       6,374      6,389        15         0.22
North Dakota                      623         499        494        -5        -0.74
Ohio                           88,926      23,689     23,385      -304        -0.34
Oklahoma                        6,808       5,022      5,031         8         0.12
Oregon                          6,040       5,818      5,839        22         0.36
Pennsylvania                   17,084      10,458     10,207      -252        -1.47
Rhode Island                    2,838       2,486      2,422       -63        -2.23
South Carolina                  5,727       2,657      2,668        10         0.18
South Dakota                      762         600        596        -4        -0.57
Tennessee                       5,397       4,334      4,341         7         0.13
Texas                          16,987      14,366     14,572       206         1.21
Utah                            2,769       1,852      1,854         2         0.06
Vermont                         2,583       1,734      1,723       -11        -0.43
Virginia                        4,555       4,090      4,120        30         0.65
Washington                      5,060       4,812      4,836        24         0.48
West Virginia                     628         444        443        -1        -0.10
Wisconsin                      12,507      10,443     10,296      -147        -1.17
Wyoming                           137         118        119         1         0.69
Total                       $589,740     $426,704   $426,324     -$380        -0.06
a
    Percentage of total.




Page 35                                      GAO/HEHS-99-69 Formula Grant Funding
Appendix VI

Block Grants for Prevention and Treatment of
Substance Abuse                                                                             ApV
                                                                                              enxdiI




               CFDA Number: 93.959

               Program Objectives: To provide financial assistance for the development
               and implementation of prevention, treatment, and rehabilitation activities
               directed to the disease of alcohol and drug abuse.

               Federal Agency: Department of Health and Human Services, Substance
               Abuse and Mental Health Services Administration.

               Fiscal Year 1998 Obligations (estimate): $1.4 billion.

               Formula Narrative: Each state’s share of the available funding is based on
               a federal percentage share of its population in need (FP) adjusted for cross-
               state differences in the cost of services. The population in need is based on
               weighted shares of population aged 18 to 24 (50 percent) with urban
               residents 18 to 24 double counted, and population aged 25 to 64 (50
               percent). The cost-of-services factor is a weighted average of the cost of
               health care workers (75 percent); a proxy for the cost of capital facilities
               (15 percent); and other factors, which do not vary across states (10
               percent). The federal percentage varies on a sliding scale, with states’ total
               taxable resources per person in need adjusted for cross-state differences in
               the cost of services.

               Mathematical Structure:

                                    (Need Pop ∗ Cost ∗ FP)State 
               Federal Grant = Amt                                   
                                    (Need Pop ∗ Cost ∗ FP)All States 

               Where:

                                              Pop18-24State + UPop18-24State 
                         Need Pop = 0.50 *  Pop18-24                       +
                                                         US + UPop18-24US   
                                             Pop25-64State 
                                    0.50 *                
                                             Pop25-64US 

                         Cost = 0.10 + 0.75 ∗ WageState + 0.15 ∗ RentState

                                           Adj TTR State           ,and
                         FP = 1.0 - 0.35                    
                                           AdjTTR All States 




               Page 36                                   GAO/HEHS-99-69 Formula Grant Funding
Appendix VI
Block Grants for Prevention and Treatment
of Substance Abuse




                                                      
          Adj TTR State =                             
                                    TTR State
                          (Need Pop)      ∗ CostState 
                                    State             

Formula Constraints: The cost factor cannot exceed 110 percent of the
U.S. average or be below 90 percent of the average. The federal percentage
must be at least 40 percent. States were guaranteed a minimum increase
equal to 30.65 percent of the increase in appropriation from fiscal year
1998. In addition, no state may receive less than 0.375 percent of the
appropriation amount (small state minimum) except that the allotment of
such states may increase by no more than 3 times the increase in the
appropriation from fiscal year 1998.

Definitions:
Amt = Funds available for allocation to states.
Need Pop = Population in need of services.
Pop18-24 = Population aged 18 through 24.
UPop18-24 = Population in urbanized areas aged 18 through 24.
Pop25-64 = Population aged 25 through 64.
Cost = An index of the cost of services.
Wages = An index of wages paid to workers in the health care industry
(U.S. average = 1.0).
Rent = An index of the cost of 4-bedroom housing rental units (proxy for
office space costs) (U.S. average = 1.0).
FP = A state’s federal percentage.
TTR = A state’s Total Taxable Resources.
Adj TTR = A state’s TTR per person in need, adjusted for the cost of
services.

Data Sources:
Pop: Department of Commerce, Bureau of the Census.
Wages: Department of Commerce, Bureau of the Census.
Rent: Calculated by the Substance Abuse and Mental Health Services
Administration using data from the Department of Housing and Urban
Development.
TTR: Department of the Treasury.

Amount Reallocated: $6 million, 0.40 percent of formula funds.

Comments: None.



Page 37                                     GAO/HEHS-99-69 Formula Grant Funding
Appendix VI
Block Grants for Prevention and Treatment
of Substance Abuse




Table VI.1: Comparison of Fiscal Year 1999 Substance Abuse Allocations Based on
Actual and Undercount-Adjusted Population Counts

Dollars in thousands
                                   Allotment                    Difference
State                         Unadjusted       Adjusted        Amount        Percent
Alabama                           $21,667       $21,348          -$319         -1.47
Alaska                              3,441          3,437             -3        -0.09
Arizona                            27,127        27,473            346          1.28
Arkansas                           11,280         11,148          -132         -1.17
California                        216,995       220,628          3,632          1.67
Colorado                           20,297         20,297             0          0.00
Connecticut                        16,406         15,983          -422         -2.57
Delaware                            5,554          5,554             0          0.00
District of Columbia                4,953          4,953             0          0.00
Florida                            80,256        80,450            194          0.24
Georgia                            40,711        40,431           -280         -0.69
Hawaii                              6,810          6,827            17          0.25
Idaho                               5,944          5,944             0          0.00
Illinois                           61,138        60,329           -809         -1.32
Indiana                            32,509        32,509              0          0.00
Iowa                               12,542        12,542              0          0.00
Kansas                             10,996        10,996              0          0.00
Kentucky                           19,105        18,870           -235         -1.23
Louisiana                          24,828        24,607           -221         -0.89
Maine                               5,944          5,944             0          0.00
Maryland                           29,389        29,365            -24         -0.08
Massachusetts                      33,214         33,214             0          0.00
Michigan                           56,510        56,510              0          0.00
Minnesota                          21,392        21,392              0          0.00
Mississippi                        13,142         12,977          -165         -1.26
Missouri                           24,121        23,468           -653         -2.71
Montana                             5,584          5,584             0          0.00
Nebraska                            7,473          7,310          -163         -2.18
Nevada                              9,442          9,564           122          1.29
New Hampshire                       5,944          5,944             0          0.00
New Jersey                         45,116        44,068          -1,047        -2.32
New Mexico                          8,262          8,432           170           2.06
                                                                          (continued)




Page 38                                        GAO/HEHS-99-69 Formula Grant Funding
Appendix VI
Block Grants for Prevention and Treatment
of Substance Abuse




                                   Allotment                    Difference
State                         Unadjusted        Adjusted       Amount        Percent
New York                          104,711        104,319          -392         -0.37
North Carolina                     33,405         33,006          -399         -1.19
North Dakota                        3,817          3,817             0          0.00
Ohio                               65,062         65,062             0          0.00
Oklahoma                           16,186         16,077          -108         -0.67
Oregon                             15,115         15,115             0          0.00
Pennsylvania                       57,670         57,670             0          0.00
Rhode Island                        5,944          5,944             0          0.00
South Carolina                     18,527         18,314          -214         -1.15
South Dakota                        3,530          3,530             0          0.00
Tennessee                          25,625         25,381          -244         -0.95
Texas                             122,544        123,910         1,367          1.12
Utah                               13,730         13,789            60          0.43
Vermont                             3,774          3,774             0          0.00
Virginia                           39,245         39,083          -162         -0.41
Washington                         30,769         30,855            86          0.28
West Virginia                       8,435          8,435             0          0.00
Wisconsin                          24,530         24,530             0          0.00
Wyoming                             2,452          2,452             0          0.00
Total                          $1,483,164      $1,483,164           $0          0.00




Page 39                                        GAO/HEHS-99-69 Formula Grant Funding
Appendix VII

Child Care and Development Block Grant                                                        AppV
                                                                                                 enxdiI




               CFDA Number: 93.575

               Program Objectives: To make funds available to states to increase the
               availability, affordability, and quality of child care and to increase the
               availability of early childhood development before- and after-school
               programs.

               Federal Agency: Department of Health and Human Services,
               Administration for Children and Families.

               Fiscal Year 1998 Obligations (estimate): $1.0 billion.

               Formula Narrative: A state’s allocation is determined by a formula based
               on (1) the number of children under age 5, (2) the number of children
               receiving assistance through the school lunch program, and (3) the state’s
               3-year average per capita income. The per capita income is used to
               compute an allotment proportion factor (APF), defined as the ratio of the
               U.S. per capita income to the state’s per capita income.

               Mathematical Structure:


                                         (Pop % 5State /Pop % 5US )∗ APFState 
               Federal Grant = 0.5∗ Amt                                       
                                               Sum of Numerator               
                                           (SLPopState /SLPopUS )∗ APFState 
                               + 0.5∗ Amt                                       
                                                Sum of Numerator                

               Where:

               Where:                 PCIUS 
                         APFState =            , and
                                      PCIState 



                                      PIState     
                         PCIState =              
                                      Pop State    

               Formula Constraints: The APF may not exceed 1.20 or be less than 0.80.




               Page 40                                     GAO/HEHS-99-69 Formula Grant Funding
Appendix VII
Child Care and Development Block Grant




Definitions:
Amt = Funds available for allocation to states.
Pop<5 = Population count of those younger than age 5.
SLPop = Children receiving assistance through the school lunch program.
APF = A state’s allotment proportion factor.
PCI = Per capita income.
PI = Total personal income.
Pop = Population.

Data Sources:
SLPop: Department of Agriculture, Food and Consumer Service.
Pop<5: Department of Commerce, Bureau of the Census.
PI: Department of Commerce, Bureau of Economic Analysis and Census
Bureau.
Pop: Bureau of the Census.

Amount Reallocated: $5.5 million, 0.58 percent of formula funding.

Comments: None.



Table VII.1: Comparison of Fiscal Year 1998 Child Care and Development Block
Grant Allocations Based on Actual and Undercount-Adjusted Population Counts

Dollars in thousands
                           Allocations based on              Difference
State                           Actual     Adjusted        Amount           Percent
Alabama                        $20,599       $20,631           $33              0.16
Alaska                           2,102            2,099         -3             -0.12
Arizona                         20,527        20,740           213              1.04
Arkansas                        12,080        12,103            23              0.19
California                     121,428       123,311         1,883              1.55
Colorado                        10,754        10,789            35              0.33
Connecticut                      7,186            7,102        -84             -1.16
Delaware                         1,959            1,968          9              0.47
District of Columbia             1,891            1,909         18              0.95
Florida                         51,407        51,838           431              0.84
Georgia                         32,701        33,009           308              0.94
Hawaii                           3,939            3,948          9               0.22
                                                                          (continued)




Page 41                                      GAO/HEHS-99-69 Formula Grant Funding
Appendix VII
Child Care and Development Block Grant




                           Allocations based on              Difference
State                           Actual     Adjusted        Amount           Percent
Idaho                            5,263            5,265          2              0.05
Illinois                        37,509        37,038          -471             -1.26
Indiana                         18,175        17,769          -405             -2.23
Iowa                             9,246            9,020       -226             -2.44
Kansas                           8,914            8,751       -164             -1.83
Kentucky                        17,841        17,843             2              0.01
Louisiana                       25,648        25,727            79              0.31
Maine                            3,870            3,800        -70             -1.80
Maryland                        13,194        13,316           123              0.93
Massachusetts                   13,664        13,334          -330             -2.42
Michigan                        28,171        27,688          -482             -1.71
Minnesota                       13,103        12,791          -312             -2.38
Mississippi                     16,974        17,021            47              0.27
Missouri                        18,445        18,105          -340             -1.84
Montana                          3,156            3,166         11              0.35
Nebraska                         5,657            5,543       -114             -2.02
Nevada                           4,735            4,777         42              0.88
New Hampshire                    2,475            2,423        -52             -2.11
New Jersey                      18,725        18,522          -204             -1.09
New Mexico                       9,416            9,448         32              0.34
New York                        56,950        56,601          -349             -0.61
North Carolina                  28,292        28,450           159              0.56
North Dakota                     2,302            2,280        -22             -0.95
Ohio                            33,614        33,018          -596             -1.77
Oklahoma                        15,158        15,188            30              0.20
Oregon                          10,084        10,097            13              0.13
Pennsylvania                    32,299        31,557          -742             -2.30
Rhode Island                     2,600            2,523        -77             -2.95
South Carolina                  18,012        18,069            57              0.32
South Dakota                     3,163            3,124        -38             -1.21
Tennessee                       20,445        20,531            86              0.42
Texas                           94,368        96,010         1,642              1.74
Utah                             9,759            9,692        -67             -0.69
Vermont                          1,683            1,661        -23             -1.36
Virginia                        19,405        19,572           166              0.86
Washington                      16,423        16,440            17               0.10
                                                                          (continued)




Page 42                                      GAO/HEHS-99-69 Formula Grant Funding
Appendix VII
Child Care and Development Block Grant




                           Allocations based on              Difference
State                           Actual     Adjusted        Amount         Percent
West Virginia                    7,624            7,616         -8          -0.11
Wisconsin                       14,801        14,502          -298          -2.02
Wyoming                          1,667            1,677         10           0.57
Total                        $949,402      $949,402             $0           0.00




Page 43                                      GAO/HEHS-99-69 Formula Grant Funding
Appendix VIII

Community Development Block Grant
(Entitlement Grants)                                                                        AppV
                                                                                               exndIiI




                CFDA Number: 14.218

                Program Objectives: To develop viable urban communities by providing
                decent housing and a suitable living environment, and by expanding
                economic opportunities, principally for persons of low and moderate
                income.

                Federal Agency: Department of Housing and Urban Development,
                Community Planning and Development.

                Fiscal Year 1998 Obligations (estimate): $2.9 billion.

                Formula Narrative: Grant amounts are computed for units of local
                government meeting the eligibility criteria. Called “entitlement
                communities,” these include metropolitan cities and counties. A separate
                program (CFDA number 14.228) provides funding to states for
                nonentitlement communities.

                Entitlement communities receive the larger of the amount computed under
                two formulas. The first formula (formula A) uses population, poverty, and
                overcrowded housing units as formula factors with weights of 25, 50, and
                25 percent, respectively. The second formula (formula B) uses population
                growth lag, poverty, and aging housing units weighted 20 percent, 30
                percent, and 50 percent, respectively.

                Mathematical Structure:

                Mathematical Structure : of Formula A or Formula B 
                                 Larger
                Grant = Amt *                                                     
                                           Sum of the Numerator                   

                Where:              Pope             Pove              Ocrowde 
                Formula A = .25 *        + .50 *         + .25 *          
                                    PopM             Pov M             OcrowdM 




                                   GLage             Pove              Agee 
                Formula B = .2 *          + .3 *         + .50 *       
                                   GLagec            Pov M             AgeM 
                Formula Constraints: None.




                Page 44                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix VIII
Community Development Block Grant
(Entitlement Grants)




Definitions:
Subscripts:
e is the value for the jurisdiction.
M is the value for all Metropolitan Statistical Areas.
ec is the value for all entitlement cities.

Variables:
Amt = Funds available for allocation to entitlement communities.
Pop = Population.
Pov = Poverty.
Ocrowd = Number of overcrowded housing units defined as those with 1.01
or more persons per room.
GLag = A jurisdiction’s growth lag defined as the difference between its
projected population from 1960 to its current population (assuming it had
grown at the average growth rate of all entitlement jurisdictions) and its
actual population growth over that period. If the unit’s population growth
rate did not lag behind the average, this factor is set to zero.
Age = Number of year-round housing units built prior to 1940.

Data Sources:
Pop: Department of Commerce, Bureau of the Census.
Pov: Department of Commerce, Bureau of the Census.
Ocrowd: Department of Commerce, Bureau of the Census.
Age: Department of Commerce, Bureau of the Census.
Glag: Computed by the Department of Housing and Urban Development
from data supplied by Department of Commerce, Bureau of the Census.

Amount Reallocated: Not applicable.

Comment: This formula was not analyzed because undercount estimates
for the poverty population are not available.




Page 45                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix IX

Community Development Block Grant
(State Program)                                                                                       ApX
                                                                                                        Ienxdi




                        CFDA Number: 14.228

                        Program Objectives: To develop viable urban communities by providing
                        decent housing and suitable living environment, and by expanding
                        economic opportunities, principally for people of low and moderate
                        income.

                        Federal Agency: Department of Housing and Urban Development,
                        Community Planning and Development.

                        Fiscal Year 1998 Obligations (estimate): $1.2 billion.

                        Formula Narrative: Grant amounts are computed for states. More
                        precisely, funding is computed for the “balance of state” because both the
                        formula data factors and the localities that are eligible for the funds
                        exclude entitlement communities, which receive Community Development
                        Block Grant (CDBG) funding under the CDBG Entitlement Communities
                        program (CFDA number 14.218).

                        States receive the larger of the amount computed under two formulas. The
                        first formula (formula A) uses population, poverty, and overcrowded
                        housing units as formula factors with weights of 25, 50, and 25 percent,
                        respectively. The second formula (formula B) uses population, poverty,
                        and aging housing units weighted 20 percent, 30 percent, and 50 percent,
                        respectively.

                        Mathematical Structure:

                                           Larger of Formula A or Formula B 
                            Grant = Amt *                                   
                                                 Sum of the Numerator       

                        Where:

                                 Popn                                                        
              Formula A = .25 *              + .50 *  Pov n        + .25 *  Ocrowd n         
                                 ∑ Pop                ∑ Pov                 ∑ Ocrowd         
                                       n                    n                        n       

                                 Popn                                                   
              Formula B = .20 *              + .30 *  Pov n        + .50 *  Agen        
                                 ∑ Pop                ∑ Pov                 ∑ Age       
                                       n                    n                    n      



                        Page 46                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix IX
Community Development Block Grant (State
Program)




Formula Constraints: None.

Definitions:
Amt = Funds available for allocation to entitlement communities.
Pop = Population count of the nonentitlement part of the state.
Pov = Poverty count of the nonentitlement part of the state.
Ocrowd = Overcrowded housing units (defined as those with 1.01 or more
persons per room) in the nonentitlement part of the state.
Age = The number of year-round housing units built prior to 1940 in the
nonentitlement part of the state.

Data Sources:
Pop: Department of Commerce, Bureau of the Census.
Pov: Department of Commerce, Bureau of the Census.
Ocrowd: Department of Commerce, Bureau of the Census.
Age: Department of Commerce, Bureau of the Census.

Amount Reallocated: Not applicable.

Comments: This formula was not analyzed because adjusted estimates for
the poverty population are not available.




Page 47                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix X

Employment and Training Assistance,
Dislocated Workers                                                                        ApX
                                                                                            enxdi




              CFDA Number: 17.246

              Program Objectives: To assist dislocated workers to obtain unsubsidized
              employment through training and related employment services using a
              decentralized system of state and local programs.

              Federal Agency: Department of Labor, Employment and Training
              Administration.

              Fiscal Year 1998 Obligations (estimate): $1.4 billion.

              Formula Narrative: One-third of available funds are allotted to states in
              proportion to the number of unemployed, one-third in proportion to the
              number of unemployed in excess of 4.5 percent of the state’s labor force,
              and one-third in proportion to the number of people unemployed for 15
              weeks or more.

              Mathematical Structure:


                                         UN                     EXCState 
              Federal Grant = 1/3 ∗ Amt  State  + 1 / 3 ∗ Amt           +
                                         UN                      EXCUS 
                                              US 

                                           LT     
                               1/3 ∗ Amt  State 
                                           LTUS 

              Formula Constraints: None.

              Definitions:
              Amt = Funds available for allocation to states.
              UN = The number unemployed.
              EXC = The number unemployed in excess of 4.5 percent of the state labor
              force.
              LT = The number of people unemployed 15 weeks or longer.

              Data Sources:
              UN: Department of Labor, Bureau of Labor Statistics.
              EXC: Department of Labor, Bureau of Labor Statistics.
              LT: Department of Labor, Bureau of Labor Statistics.

              Amount Reallocated: $0.0.



              Page 48                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix X
Employment and Training Assistance,
Dislocated Workers




Comment: The Bureau of Labor Statistics has adjusted civilian labor force
statistics for the census undercount. Consequently, there is no effect on
state allocations.



Table X.1: JTPA Title III, Dislocated Worker Assistance Program, Fiscal Year 1998

Dollars in thousands
State                                                                     Allotment
Alabama                                                                     $10,405
Alaska                                                                        5,570
Arizona                                                                      13,481
Arkansas                                                                      9,331
California                                                                  228,452
Colorado                                                                      6,965
Connecticut                                                                  13,972
Delaware                                                                      1,963
District of Columbia                                                          5,711
Florida                                                                      43,088
Georgia                                                                      16,437
Hawaii                                                                        7,124
Idaho                                                                         4,218
Illinois                                                                     38,162
Indiana                                                                      10,888
Iowa                                                                          5,193
Kansas                                                                        5,047
Kentucky                                                                     16,465
Louisiana                                                                    24,468
Maine                                                                         3,812
Maryland                                                                     14,535
Massachusetts                                                                14,048
Michigan                                                                     20,754
Minnesota                                                                     8,656
Mississippi                                                                  11,852
Missouri                                                                     12,289
Montana                                                                       2,893
Nebraska                                                                      1,965
Nevada                                                                         4,649
                                                                         (continued)




Page 49                                      GAO/HEHS-99-69 Formula Grant Funding
Appendix X
Employment and Training Assistance,
Dislocated Workers




State                                                           Allotment
New Hampshire                                                        2,272
New Jersey                                                         43,262
New Mexico                                                         12,174
New York                                                          113,708
North Carolina                                                     13,314
North Dakota                                                          813
Ohio                                                               30,143
Oklahoma                                                             5,531
Oregon                                                             15,100
Pennsylvania                                                       45,003
Rhode Island                                                         3,589
South Carolina                                                     16,723
South Dakota                                                          891
Tennessee                                                          18,581
Texas                                                              81,010
Utah                                                                 2,447
Vermont                                                              1,298
Virginia                                                           14,527
Washington                                                         24,729
West Virginia                                                      13,036
Wisconsin                                                            9,028
Wyoming                                                              1,299
Total                                                           $1,030,874




Page 50                               GAO/HEHS-99-69 Formula Grant Funding
Appendix XI

Employment Services                                                                         ApX
                                                                                              enxdiI




              CFDA Number: 17.207

              Program Objectives: To place persons in jobs by providing a variety of
              placement-related services without charge to job seekers and to employers
              seeking qualified individuals to fill job openings.

              Federal Agency: Department of Labor, Employment and Training
              Administration.

              Fiscal Year 1998 Obligations (estimate): $0.8 billion.

              Formula Narrative: Allocations are made to each state program, two-
              thirds based on the state’s civilian labor count and one-third based on the
              state’s unemployment count.

              Mathematical Structure:


              Federal Grant =          2 * Amt  LFState  + 1 * Amt  UNState 
                                        3                   3               
                                                LFUS                UNUS 

              Formula Constraints: States are guaranteed at least 90 percent of the
              share of available funds received in the prior year (hold-harmless
              provision). No state may receive less than 0.28 percent of available funds
              (small state minimum).

              Definitions:
              Amt = Funds available for allocation to states.
              LF = The number of people in the labor force.
              UN = The number of people unemployed.

              Data Sources:
              LF: Department of Labor, Bureau of Labor Statistics.
              UN: Department of Labor, Bureau of Labor Statistics.

              Amount Reallocated: $0.0.

              Comment: The Bureau of Labor Statistics has adjusted civilian labor force
              statistics for the census undercount. Consequently, there is no effect on
              state allocations.




              Page 51                                   GAO/HEHS-99-69 Formula Grant Funding
Appendix XI
Employment Services




Table XI.1: Employment Service (Wagner-Peyser Act) Allotments for Program
Year 1998
Dollars in thousands
State                                                                 Allotment
Alabama                                                                 $10,905
Alaska                                                                       8,085
Arizona                                                                     11,229
Arkansas                                                                     6,227
California                                                                  88,905
Colorado                                                                     9,785
Connecticut                                                                  8,930
Delaware                                                                     2,077
District of Columbia                                                         3,643
Florida                                                                     35,300
Georgia                                                                     18,914
Hawaii                                                                       3,236
Idaho                                                                        6,736
Illinois                                                                    31,010
Indiana                                                                     14,696
Iowa                                                                         7,193
Kansas                                                                       6,432
Kentucky                                                                     9,884
Louisiana                                                                   10,954
Maine                                                                        4,006
Maryland                                                                    14,019
Massachusetts                                                               16,120
Michigan                                                                    24,466
Minnesota                                                                   11,944
Mississippi                                                                  6,665
Missouri                                                                    13,842
Montana                                                                      5,505
Nebraska                                                                     6,616
Nevada                                                                       5,351
New Hampshire                                                                3,027
New Jersey                                                                  21,660
New Mexico                                                                   6,177
New York                                                                 48,090
                                                                     (continued)




Page 52                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix XI
Employment Services




State                                           Allotment
North Carolina                                     17,828
North Dakota                                         5,605
Ohio                                               27,977
Oklahoma                                             8,582
Oregon                                               9,130
Pennsylvania                                       30,592
Rhode Island                                         2,694
South Carolina                                       9,573
South Dakota                                         5,181
Tennessee                                          13,880
Texas                                              50,590
Utah                                               10,971
Vermont                                              2,427
Virginia                                           16,405
Washington                                         15,355
West Virginia                                        5,930
Wisconsin                                          13,360
Wyoming                                              4,019
Total                                            $741,922




Page 53               GAO/HEHS-99-69 Formula Grant Funding
Appendix XII

Federal Transit Capital and Operating
Assistance Formula                                                                                                      AppX
                                                                                                                           enxdiI




               CFDA Number: 20.507

               Program Objectives: To assist in financing the acquisition, construction,
               cost-effective leasing, planning, and improvement of facilities and
               equipment for use in mass transportation service.

               Federal Agency: Department of Transportation, Federal Transit
               Administration.

               Fiscal Year 1998 Obligations (estimate): $3.1 billion.

               Formula Narrative: Approximately 5 percent of available funding is
               apportioned to states for nonurbanized areas. Approximately 9 percent is
               apportioned among states for small urbanized areas (those between 50,000
               and 200,000 population). The remaining 86 percent is apportioned directly
               to local transit authorities in large urbanized areas (those whose
               populations are 200,000 or more).

               Funding for nonurbanized areas is apportioned among the states based on
               state population living in nonurbanized areas.

               Funding for small urbanized areas is apportioned among states based on
               population (50 percent), and population weighted by population density
               (50 percent).

               Approximately one-third of funding for large urbanized areas is
               apportioned for fixed guideway transit modes 1 and two-thirds for bus
               transit. Approximately 4 percent of the funding for fixed guideway systems
               and approximately 9 percent of funding for bus transit is set aside for
               incentive grants. Remaining fixed guideway funding is apportioned to local
               transit authorities based on revenue vehicle miles traveled (60 percent) and
               route miles (40 percent).

               Remaining bus transit funding is divided between areas with populations
               above 1 million (73 percent) and populations below 1 million (27 percent).
               Bus transit funding is then apportioned to local transit authorities based on
               revenue vehicle miles traveled (50 percent), population (25 percent), and
               population weighted by population density (25 percent).


               1
                 Includes all fixed guideway modes, such as heavy rail, commuter rail, light rail, trolleybus, aerial
               tramway, inclined plane, cable car, automated transit, ferryboats, exclusive busways, and HOV lanes.




               Page 54                                                  GAO/HEHS-99-69 Formula Grant Funding
Appendix XII
Federal Transit Capital and Operating
Assistance Formula




Mathematical Structure:

(1) Nonurbanized Areas (approximately 5 percent):

                                 Nonurban PopState 
Federal Grant            = Amt                         
                                 Nonurban PopAll States 

(2) Small Urbanized Areas (approximately 9 percent):



                                      UPop Area 
Federal Grant             = 1/2 Amt                  +
                                      UPop All Areas 
                                        UPop Area ∗ Density Area 
                             1/2 Amt                             
                                        Sum of Numerator 
Where:


                              UPopArea    
          Density Area =                 
                           Land AreaAreas 

(3) Large Urbanized Areas (approximately 86 percent):

Fixed Guideway Transit (approximately 33 percent):

                                           RM Area 
Federal Grant             = 0.40 ∗ Amt ∗                +
                                           RM All Areas 
                                             VMTArea 
                            0.60 ∗ Amt ∗                  
                                             VMTAll Areas 

Bus Transit (approximately 67 percent subdivided into 73 percent for areas
above 1,000,000 and 27 percent for areas below 1,000,000):




Page 55                                     GAO/HEHS-99-69 Formula Grant Funding
Appendix XII
Federal Transit Capital and Operating
Assistance Formula




                          VMTArea 
Federal Grant = 1/2 Amt                +
                          VMTAll Areas 

                          UPop Area 
                1/4 Amt                  +
                          UPop All Areas 
                                   UPop Area ∗ Density Area 
                          1/4 Amt                           
                                   Sum of Numerator 


Formula Constraints: None.

Definitions:
Amt = Amount of funding available for apportionment of each formula
respectively.
Nonurban Pop = Population in nonurbanized areas of a state.
UPop = Population in an urbanized area.
Density = Population divided by land area.
RM = Fixed guideway route miles.
VMT = revenue miles traveled.

Data Sources:
Nonurban Pop: Department of Commerce, Bureau of the Census.
UPop: Department of Commerce, Bureau of the Census.
Pop: Department of Commerce, Bureau of the Census.
RM: Department of Transportation Administrative Records.
VMT: Department of Transportation Administrative Records.

Amount Reallocated: Not applicable.

Comments: Formulas were not analyzed because adjusted population
counts for urbanized areas were not readily available and most funding is
allocated to substate areas.




Page 56                                   GAO/HEHS-99-69 Formula Grant Funding
Appendix XIII

Foster Care                                                                                     AppX
                                                                                                   exndIiI




                CFDA Number: 93.658

                Program Objectives: To provide assistance on behalf of eligible children
                needing care away from families and who are in the care of the state agency
                administering the program.

                Federal Agency: Department of Health and Human Services,
                Administration for Children and Families.

                Fiscal Year 1998 Obligations (estimate): $3.7 billion.

                Formula Narrative: Eligible program expenditures are reimbursed using
                the Medicaid matching percentage, known as the Federal Medical
                Assistance Percentage (FMAP). The FMAP varies on a sliding scale with
                state per capita income and ranges from 50 to 83 percent of eligible
                expenditures. Administrative, training, and related expenses are
                reimbursed at a flat percentage rate.

                Mathematical Structure:

                                                         2
                                    PCIState 
                FMAP = 1.00 − 0.45          
                                    PCIUS 

                Where:

                                        PIState 
                          PCIState   =            
                                         Pop State 



                Formula Constraints: No state may receive a matching percentage
                below 50 percent or in excess of 83 percent.

                Definitions:
                FMAP = Federal Medical Assistance Percentage.
                PCI = Per capita personal income.
                PI = Personal income.
                Pop = State population.

                Data Sources:
                PI: Department of Commerce, Bureau of Economic Analysis.




                Page 57                                      GAO/HEHS-99-69 Formula Grant Funding
Appendix XIII
Foster Care




Pop: Department of Commerce, Bureau of Economic Analysis and the
Bureau of the Census.

Amount Reallocated: $11.1 million, 0.36 percent of total allocated.

Comments: See table XXI.1 under Medicaid for a comparison of FMAPs
based on actual and adjusted population data. Table XIII.1 shows the grant
amount and the amount subject to the FMAP. The differences between the
two amounts are administrative and training expenditures that are subject
to uniform reimbursement percentages.



Table XIII.1: Comparison of Fiscal Year 1997 Foster Care Allotments Based on
Actual and Undercount-Adjusted Population

Dollars in thousands
                                      Grant amount determined by the FMAP
                                                                 Difference
State                   Total grant      Actual     Adjusted    Amount Percenta
Alabama                     $7,909       $2,468       $2,472         $4         0.05
Alaska                       8,821        3,081        3,081          0         0.00
Arizona                     36,338       19,318       19,477        159         0.44
Arkansas                    27,163        9,036        9,046         10         0.04
California                 759,908      407,513      416,865      9,353         1.23
Colorado                    21,756        8,361        8,433         72         0.33
Connecticut                 69,336       20,238       20,238          0         0.00
Delaware                     6,118        1,314        1,314          0         0.00
District of Columbia        24,567       12,273       12,273          0         0.00
Florida                     83,677       29,119       29,293        174         0.21
Georgia                     28,623       17,169       17,290        121         0.42
Hawaii                      12,285        3,447        3,447          0         0.00
Idaho                        4,247          892          897          5         0.12
Illinois                   270,140      152,956      152,956          0         0.00
Indiana                     43,770       31,625       31,180       -445        -1.02
Iowa                        17,424       11,779       11,610       -168        -0.97
Kansas                      22,064       10,574       10,438       -136        -0.61
Kentucky                    34,205       20,245       20,241         -3        -0.01
Louisiana                   39,820       23,467       23,576        109          0.27
                                                                          (continued)




Page 58                                     GAO/HEHS-99-69 Formula Grant Funding
Appendix XIII
Foster Care




                                                  Grant amount determined by the FMAP
                                                                            Difference
State                              Total grant      Actual     Adjusted    Amount Percenta
Maine                                  23,268       21,204       20,993       -211       -0.91
Maryland                               85,464       37,780       37,780         0        0.00
Massachusetts                          77,315       33,934       33,934         0        0.00
Michigan                              116,721       74,297       73,199     -1,097       -0.94
Minnesota                              41,894       23,451       22,964       -487       -1.16
Mississippi                            11,428        5,007         5,021       14        0.12
Missouri                               50,762       27,577       27,211       -366       -0.72
Montana                                 5,859        4,354         4,383       29        0.50
Nebraska                               19,440        8,595        8,479       -116       -0.60
Nevada                                  6,774        3,157         3,157        0        0.00
New Hampshire                           8,859        3,640        3,640         0        0.00
New Jersey                             39,417       23,130       23,130         0        0.00
New Mexico                             11,533        3,563        3,604        41        0.36
New York                              328,060      189,576      189,576         0        0.00
North Carolina                         39,815       28,924       28,993        68        0.17
North Dakota                            9,971        3,267        3,237        -30       -0.30
Ohio                                  148,890       80,174       79,145     -1,029       -0.69
Oklahoma                               23,048       11,090       11,109        19        0.08
Oregon                                 21,615       12,131       12,176        45        0.21
Pennsylvania                          214,373      147,588      144,037     -3,551       -1.66
Rhode Island                            9,494        4,378        4,267       -111       -1.17
South Carolina                         14,818        7,232        7,261        28        0.19
South Dakota                            2,676        1,258        1,249         -9       -0.34
Tennessee                              34,543       18,477       18,508        31        0.09
Texas                                  64,884       48,213       48,903       690        1.06
Utah                                   16,401        4,962         4,966        5        0.03
Vermont                                 8,925        5,935        5,897        -38       -0.43
Virginia                               45,087        9,657        9,727        70        0.16
Washington                             13,167        6,268        6,299        32        0.24
West Virginia                          10,549        8,231        8,219        -12       -0.11
Wisconsin                              81,111       27,020       26,640       -380       -0.47
Wyoming                                 1,666        1,133         1,142        9        0.54
Total                              $3,106,000    $1,670,079   $1,672,977    $2,899       0.09
a
    Percentage of total funding.




Page 59                                                GAO/HEHS-99-69 Formula Grant Funding
Appendix XIV

Goals 2000-State and Local Education
Systemic Improvement Program                                                                 ApX
                                                                                               exndV
                                                                                                   Ii




               CFDA Number: 84.276

               Program Objectives: To support the implementation of comprehensive
               reform plans to improve the teaching of and learning by all children.

               Federal Agency: Department of Education, Office of Elementary and
               Secondary Education.

               Fiscal Year 1998 Obligations (estimate): $.6 billion.

               Formula Narrative: Fifty percent of the funds will be allocated to state
               education agencies in accordance with the amount each state receives
               under part A, title I, of the Elementary and Secondary Education Act, and
               50 percent will be allocated in accordance with the amount each state
               receives under part A, title VI, of the Elementary and Secondary Education
               Act.

               Mathematical Structure:

                                          Title I Allocation 
               Federal Grant = 0.5 ∗ Amt                        +
                                         
                                          ∑ Title I Allocation 
                                                                
                                                   Title VI Allocation 
                                        0.5 ∗ Amt                       
                                                  ∑
                                                                        
                                                     Title VI Allocation 

               Formula Constraints: None.

               Definitions:
               Amt = Funds available for allocation to states.
               Title I Allocation = State allotment under title I, part A.
               Title VI Allocation = State allotment under title VI, part A.

               Data Sources:
               Title I Allocation: Department of Education.
               Title VI Allocation: Department of Education.

               Amount Reallocated: Not applicable.




               Page 60                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix XIV
Goals 2000-State and Local Education
Systemic Improvement Program




Comments: The formula was not simulated because title I allocations
depend on poverty population counts, and undercount estimates for
poverty counts are not available.




Page 61                                GAO/HEHS-99-69 Formula Grant Funding
Appendix XV

Highway Planning and Construction                                                             ApX
                                                                                                pxendV
                                                                                                     i




              CFDA Number: 20.205

              Program Objectives: To assist state transportation agencies in the
              planning and development of an integrated, interconnected transportation
              system important to interstate commerce and travel by constructing and
              rehabilitating the National Highway System, including the Interstate
              System; and for transportation improvements to all public roads except
              those classified as local or rural minor collectors; to provide aid for the
              repair of federal-aid roads following disasters; to foster safe highway
              design; to replace or rehabilitate deficient or obsolete bridges; and to
              provide for other special purposes.

              Federal Agency: Department of Transportation, Federal Highway
              Administration.

              Fiscal Year 1998 Obligations (estimate): $19.7 billion.

              Formula Narrative: The state share of available funding is specified by
              law (section 105, title 23 U.S.C.). In addition, the law stipulates that no
              state’s share of available funding may be less than 90.5 percent of its share
              of payments into the Highway Trust Fund.

              The highway program includes 10 component programs. The following
              nine are apportioned by a formula:

              •   Interstate Maintenance,
              •   National Highway System,
              •   Surface Transportation Program,
              •   Highway Bridge Replacement and Rehabilitation Program,
              •   Congestion Mitigation and Air Quality,
              •   Appalachian Development Highway System,
              •   Recreational Trails,
              •   Metropolitan Planning, and
              •   Minimum Guarantee.

              The last component, High Priority Projects, is apportioned on a nonformula
              basis as specified in law.

              Eight formula components of the program are apportioned by their
              respective formulas, and funding for High Priority Projects is then included
              in the total. Additional funds, provided under the Minimum Guarantee
              component of the program, are then taken from the Highway Trust Fund.



              Page 62                                   GAO/HEHS-99-69 Formula Grant Funding
Appendix XV
Highway Planning and Construction




Minimum Guarantee funds are determined to ensure that each state
receives the share of available funding specified in law, taking into
consideration that no state share of available funding may be less than 90.5
percent of its share of payments into the Highway Trust Fund. Thus, the
formulas used for the other eight component formula programs have only
the effect of determining how much of a state’s apportionment must be
used for the purposes specified in each program category. They do not
affect any state’s share of available funding. 1

Mathematical Structure:

Federal Grant State = Amt ∗ State Share

Formula Constraints: No state share may be less than 90.5 percent of its
share of payments in the Highway Trust Fund.

Definitions:
Amt = Sum of amounts authorized for each of the eight formula
components and for High Priority Projects plus the amount necessary to
satisfy the Minimum Guarantee component.
State Share = A state’s specified percentage of available funding.

Data Sources:
Amt = Funds available for allocation to states.
State Share: Title 23 U.S.C., as amended, and Department of Transportation
calculations.
Highway Trust Fund Payments: Department of Transportation.

Amount Reallocated: $0.0.

Comments: Census population data are used to apportion funding
authorized for three of the eight formula-based components of the highway
program: the National Highway System, the Congestion Mitigation and Air
Quality Program, and the Metropolitan Planning Program. However,
because of the way the Minimum Guarantee component is designed, these
data have no effect on how funding is apportioned among the states.



1
  Under certain circumstances, increases in funding under the formulas for the eight formula
components could have an effect on the amount of funding required for the Minimum Guarantee
component. They would not, however, affect the distribution of funding among the states.




Page 63                                              GAO/HEHS-99-69 Formula Grant Funding
Appendix XV
Highway Planning and Construction




Table XV.1: Highway Planning and Construction Allotments for FY 1998

Dollars in thousands
State                                                                  Allotment
Alabama                                                                 $457,357
Alaska                                                                    267,884
Arizona                                                                   350,307
Arkansas                                                                  299,289
California                                                              2,070,435
Colorado                                                                  262,993
Connecticut                                                               341,426
Delaware                                                                   99,464
District of Columbia                                                       88,942
Florida                                                                 1,038,172
Georgia                                                                   789,241
Hawaii                                                                    116,394
Idaho                                                                     174,073
Illinois                                                                  760,350
Indiana                                                                   530,327
Iowa                                                                      270,245
Kansas                                                                    263,432
Kentucky                                                                  390,416
Louisiana                                                                 357,479
Maine                                                                     119,428
Maryland                                                                  339,200
Massachusetts                                                             421,787
Michigan                                                                  708,999
Minnesota                                                                 337,087
Mississippi                                                               273,977
Missouri                                                                  532,034
Montana                                                                   223,233
Nebraska                                                                  174,647
Nevada                                                                    162,956
New Hampshire                                                             114,186
New Jersey                                                                580,419
New Mexico                                                                222,221
New York                                                                1,160,749
North Carolina                                                            636,222
                                                                       (continued)




Page 64                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix XV
Highway Planning and Construction




State                                                         Allotment
North Dakota                                                    147,331
Ohio                                                            770,198
Oklahoma                                                        347,214
Oregon                                                          277,210
Pennsylvania                                                   1,132,606
Rhode Island                                                    134,503
South Carolina                                                  359,903
South Dakota                                                    163,345
Tennessee                                                       509,148
Texas                                                          1,623,366
Utah                                                            176,064
Vermont                                                         102,814
Virginia                                                        576,720
Washington                                                      401,882
West Virginia                                                   254,484
Wisconsin                                                       447,770
Wyoming                                                         156,829
Total                                                        $22,516,762




Page 65                             GAO/HEHS-99-69 Formula Grant Funding
Appendix XVI

HOME Investment Partnerships Program                                                        ApX
                                                                                              exndV
                                                                                                  iI




               CFDA Number: 14.239

               Program Objectives: To increase the number of families served with
               decent, safe, sanitary, and affordable housing and to expand the long-term
               supply of affordable housing.

               Federal Agency: Department of Housing and Urban Development,
               Community Planning and Development.

               Fiscal Year 1998 Obligations (estimate): $1.4 billion.

               Formula Narrative: Under the HOME Investment Partnership Act, funds
               are allocated to jurisdictions and states based on a formula that is the
               weighted sum of six factors:

               • 10 percent weight on vacancy-adjusted rental units where the household
                 head is at or below the poverty level.
               • 20 percent weight on occupied rental units with at least one of four
                 problems.
               • 20 percent weight on rental units built before 1950 occupied by poor
                 families.
               • 20 percent weight on occupied rental units with at least one of four
                 problems and adjusted for the cost of producing housing in a
                 jurisdiction relative to the national average.
               • 20 percent weight on the number of families at or below the poverty
                 level.
               • 10 percent weight on population adjusted by net per capita income in
                 relation to the U.S. net per capita income.

               Mathematical Structure:


                                            LVPR l                             
                                      0.1              + 0.2  SSR l  + 
                                             ∑ LVPR l 
                                                                   ∑ SSR        
                                                                           l 

                                                                                   
                                            LIFl              Costl 
               Federal Grant = Amt *  0.2           + 0.2                + 
                                             ∑ LIF             ∑ Cost 
                                                 l                    l        
                                                                                   
                                      0.2    Povl 
                                                           + 0.1 
                                                                   PopPCIl 
                                                                                  
                                            ∑ Pov               ∑ PopPCI 
                                                   l                        l 




               Page 66                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix XVI
HOME Investment Partnerships Program




Where:

                    VRR US 
          LVR l =          * RPOVl
                    VRRl             , and

                                 PCI3US - POV3US 
          PopPCIl =     Popl ∗                  
                                 PCI3l - POV3US 

Formula Constraints: In the computation process, communities with the
smallest allocation amounts are successively removed until the remaining
recipients all receive a minimum apportionment of $500,000.

Definitions:
Amt = The total amount to be distributed by formula among recipients.
LVR = Low-vacancy and poor renters factor.
VRR = The vacancy rate for rental units.
RPOV = Number of rental units occupied by the poor.
SSR = The number of rental housing units with at least one of four
problems: overcrowding, incomplete kitchen facilities, incomplete
plumbing, and/or high rent-to-income ratio.
LIF = The number of rental units that were built before 1950 that are
occupied by low-income families.
Cost = The rehabilitation cost for substandard rental units factor is defined
as the number of occupied substandard rental units (SSR) multiplied by an
index that measures the cost of producing housing.
Pov = The local unit’s number of families in poverty.
PopPCI = Population weighted by net per capita income.
Pop = Population.
PCI3 = Per capita income of a three-person family.
POV3 = National per capita income of a three-person family at the poverty
income threshold.

Data Sources:
Cost: Department of Housing and Urban Development.
Population, income, poverty, and housing unit characteristics are derived
from data supplied by Bureau of the Census.

Amount Reallocated: Not applicable.




Page 67                                   GAO/HEHS-99-69 Formula Grant Funding
Appendix XVI
HOME Investment Partnerships Program




Comment: The formula was not analyzed because undercount estimates
for the poverty population are not available.




Page 68                                GAO/HEHS-99-69 Formula Grant Funding
Appendix XVII

Job Training Partnership Act,
Title II-A                                                                                     ApX
                                                                                                 enxdiVI




                CFDA Number: 17.250

                Program Objectives: To establish programs to prepare adults facing
                serious barriers to employment for participation in the labor force by
                providing job training and other services that will result in increased
                employment and earnings, increased educational and occupational skills,
                and decreased welfare dependency.

                Federal Agency: Department of Labor, Employment and Training
                Administration.

                Fiscal Year 1998 Obligations (estimate): $1.1 billion.

                Formula Narrative: The formula is based on three equally weighted
                factors measuring unemployment in a state. The factors are (1) the relative
                number of unemployed individuals residing in Areas of Substantial
                Unemployment, (2) the relative excess number of unemployed individuals
                residing in each state, and (3) the relative number of economically
                disadvantaged adults within each state.

                Mathematical Structure:

                                          ASUState                    EUState 
                Federal Grant = 1/3 Amt                 + 1/3 Amt                 +
                                          ASU All State               EU All States 
                                              EDState 
                                    1/3 Amt                
                                              ED All States 


                Formula Constraints: States are guaranteed at least 90 percent of the
                share of available funds received in the prior fiscal year (hold-harmless
                provision). No state may receive less than ¼ of 1 percent of available funds
                (small state minimum).

                Definitions:
                Amt = Funds available to allocate to states.
                ASU = Number of unemployed individuals residing in Areas of Substantial
                Unemployment in each state. Such areas are contiguous areas within a
                state with populations of at least 10,000 and having unemployment rates
                equal to or greater than 6.5 percent. These areas are designated annually by
                the states.



                Page 69                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix XVII
Job Training Partnership Act, Title II-A




EU = The higher of the number of unemployed individuals in excess of 4.5
percent of the civilian labor force (CLF) in the state or the number of
unemployed individuals in excess of 4.5 percent of the CLF in areas of
substantial unemployment in the state. Excess unemployment is calculated
using average monthly CLF and unemployment data from the states and
from Bureau of Labor Statistics for the most recent 12 months ending June
30.
ED = The number of economically disadvantaged adults: individuals aged
22 through 72 who have, or who are members of families with, total family
income not in excess of the higher of the official Office of Management and
Budget poverty line or 70 percent of the lower living standard income level.

Data Sources:
ASU: Bureau of Labor Statistics.
EU: Bureau of Labor Statistics.
ED: Bureau of the Census, from the 1990 census data.

Amount Reallocated: Not applicable.

Comment: This formula was not analyzed because data on the population
adjusted for the undercount are not available for economically
disadvantaged individuals.




Page 70                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix XVIII

Job Training Partnership Act, Title II-B                                                        ApX
                                                                                                  enxdiV
                                                                                                       II




                 CFDA Number: 17.250

                 Program Objectives: To establish programs to prepare youths facing
                 serious barriers to summer employment for participation in the labor force
                 by providing job training and other services that will result in increased
                 employment and earnings, increased educational and occupational skills,
                 and decreased welfare dependency.

                 Federal Agency: Department of Labor, Employment and Training
                 Administration.

                 Fiscal Year 1998 Obligations (estimate): $.9 billion.

                 Formula Narrative: The formula is based on three equally weighted
                 factors measuring unemployment in a state. The factors are (1) the relative
                 number of unemployed individuals residing in Areas of Substantial
                 Unemployment, (2) the relative excess number of unemployed individuals
                 residing in each state, and (3) the relative number of economically
                 disadvantaged adults within each state.

                 Mathematical Structure:

                                           ASUState                      EUState 
                 Federal Grant = 1/3 Amt                   + 1/3 Amt                 +
                                           ASUAll State                  EU All States 
                                             EDState 
                                  1/3 Amt                  
                                             ED All States 


                 Formula Constraints: States are guaranteed at least 90 percent of the
                 share of available funds received in the prior fiscal year (hold-harmless
                 provision). No state may receive less than ¼ of 1 percent of available funds
                 (small state minimum).

                 Definitions:
                 Amt = Funds available to allocate to states.
                 ASU = Number of unemployed individuals residing in Areas of Substantial
                 Unemployment in each state. Such areas are contiguous areas within a
                 state with populations of at least 10,000 and having unemployment rates
                 equal to or greater than 6.5 percent. These areas are designated annually by
                 the states.



                 Page 71                                   GAO/HEHS-99-69 Formula Grant Funding
Appendix XVIII
Job Training Partnership Act, Title II-B




EU = The higher of the number of unemployed individuals in excess of 4.5
percent of the civilian labor force (CLF) in the state or the number of
unemployed individuals in excess of 4.5 percent of the CLF in areas of
substantial unemployment in the state. Excess unemployment is calculated
using average monthly CLF and unemployment data from the states and
from Bureau of Labor Statistics for the most recent 12 months ending June
30.
ED = The number of economically disadvantaged adults: individuals aged
22 through 72 who have, or who are members of families with, total family
income not in excess of the higher of the official Office of Management and
Budget poverty line or 70 percent of the lower living standard income level.

Data Sources:
ASU: Bureau of Labor Statistics.
EU: Bureau of Labor Statistics.
ED: Bureau of the Census, from the 1990 census data.

Amount Reallocated: Not applicable.

Comment: This formula was not analyzed because data on population
adjusted for the undercount are not available for economically
disadvantaged individuals.




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Appendix XIX

Low Income Home Energy Assistance                                                         ApX
                                                                                            exndX
                                                                                                Ii




               CFDA Number: 93.568

               Program Objectives: To make funds available to states to assist eligible
               low-income households to meet the cost of home energy.

               Federal Agency: Department of Health and Human Services,
               Administration for Children and Families.

               Fiscal Year 1998 Obligations (estimate): $1.0 billion.

               Formula Narrative: The allocations of available funds are based on the
               statutory percentage factors used in fiscal year 1984.

               Mathematical Structure:

               Federal Grant = Amt * Statutory Percentages

               Formula Constraints: None.

               Definitions:
               Amt = Total grant funding available to the states.
               Statutory Percentages = Percentages established in law.

               Data Sources:
               Amt: Department of Health and Human Services, Administration for
               Children and Families.
               Statutory Percentages: Department of Health and Human Services,
               Administration for Children and Families.

               Amount Reallocated: $0.0.

               Comments: If appropriations ever exceed $1.975 billion, an alternative
               formula described in law would apply. States would then be guaranteed no
               less than they would have received in fiscal year 1984 if appropriations
               were set at $1.975 billion.




               Page 73                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix XIX
Low Income Home Energy Assistance




Table XIX.1: Allotments for Low Income Home Energy Assistance, FY 1998

Dollars in thousands
State                                                                Allotment
Alabama                                                                   $8,372
Alaska                                                                     5,344
Arizona                                                                    4,049
Arkansas                                                                   6,388
California                                                                44,913
Colorado                                                                  15,660
Connecticut                                                               20,429
Delaware                                                                   2,712
District of Columbia                                                       3,173
Florida                                                                   13,247
Georgia                                                                   10,474
Hawaii                                                                     1,055
Idaho                                                                      6,108
Illinois                                                                  56,543
Indiana                                                                   25,601
Iowa                                                                      18,144
Kansas                                                                     8,332
Kentucky                                                                  13,323
Louisiana                                                                  8,559
Maine                                                                     13,235
Maryland                                                                  15,642
Massachusetts                                                             40,864
Michigan                                                                  53,683
Minnesota                                                                 38,675
Mississippi                                                                7,178
Missouri                                                                  22,586
Montana                                                                    7,165
Nebraska                                                                   8,973
Nevada                                                                     1,902
New Hampshire                                                              7,735
New Jersey                                                                37,936
New Mexico                                                                 5,069
New York                                                                 123,867
North Carolina                                                           18,460
                                                                     (continued)




Page 74                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix XIX
Low Income Home Energy Assistance




State                                                         Allotment
North Dakota                                                       7,783
Ohio                                                             50,021
Oklahoma                                                           7,696
Oregon                                                           12,137
Pennsylvania                                                     66,535
Rhode Island                                                       6,726
South Carolina                                                     6,649
South Dakota                                                       6,321
Tennessee                                                        13,496
Texas                                                            22,038
Utah                                                               7,277
Vermont                                                            5,797
Virginia                                                         19,054
Washington                                                       19,964
West Virginia                                                      8,817
Wisconsin                                                        34,813
Wyoming                                                            2,914
Total                                                          $973,430




Page 75                             GAO/HEHS-99-69 Formula Grant Funding
Appendix XX

Maternal and Child Health Services Block
Grant                                                                                        ApX
                                                                                               pxendX
                                                                                                    i




               CFDA Number: 93.994

               Program Objectives: To enable states to maintain and strengthen their
               leadership in planning, promoting, coordinating, and evaluating health care
               for pregnant women, mothers, infants, and children and children with
               special health care needs by providing health services for mothers and
               children who do not have access to adequate health care.

               Federal Agency: Department of Health and Human Services, Health
               Resources and Services Administration.

               Fiscal Year 1998 Obligations (estimate): $0.6 billion.

               Formula Narrative: States first receive their fiscal year 1983 grant as a
               base funding amount. Remaining funds are then apportioned among the
               states based on their respective shares of children in poverty.

               Mathematical Description:

                                                              PovState 
               Federal Grant = Grant83 + Amt                                
                                                              Pov All States 

               Formula Constraints: None.

               Definitions:
               Grant83 = Amount allocated to the states in fiscal year 1983.
               Amt = Funds remaining in excess of fiscal year 1983 amount.
               Pov = Number of children under age 18 living below the official poverty
               line.

               Data Sources:
               Pov: Department of Commerce, Bureau of the Census.

               Amount Reallocated: Not applicable.

               Comment: We did not analyze this formula because undercount estimates
               are not available for children in poverty.




               Page 76                                  GAO/HEHS-99-69 Formula Grant Funding
Appendix XXI

Medicaid                                                                                    ApX
                                                                                              exndX
                                                                                                  iI




               CFDA Number: 93.778

               Program Objectives: To provide financial assistance to states for
               payment of medical care on behalf of cash assistance recipients, children,
               pregnant women, and the aged who meet income and resource
               requirements and other categorically eligible groups.

               Federal Agency: Department of Health and Human Services, Health Care
               Financing Administration.

               Fiscal Year 1998 Obligations (estimate): $104 billion.

               Formula Narrative: Eligible medical expenses are reimbursed on a
               sliding scale based on the per capita income of the state. The federal
               reimbursement rate, known as the Federal Medical Assistance Percentage
               (FMAP), ranges from a minimum of 50 percent to a maximum of 83
               percent. Most administrative expenses are reimbursed at a flat rate of 50
               percent but may be as high as 100 percent as is the case with immigration
               status verification.

               Mathematical Structure:

                                                    2
                                   PCIState 
               FMAP = 1.00 − 0.45          
                                    PCI US 



               Where:

                                   PIState 
                     PCIState   =           
                                   Pop State 

               Formula Constraints: No state may receive a matching percentage below
               50 percent or in excess of 83 percent.

               Definitions:
               FMAP = Federal Medical Assistance Percentage.
               PCI = Per capita personal income.
               PI = Personal income.
               Pop = State population.




               Page 77                                  GAO/HEHS-99-69 Formula Grant Funding
Appendix XXI
Medicaid




Data Sources:
PI: Department of Commerce, Bureau of Economic Analysis.
Pop: Department of Commerce, Bureau of Economic Analysis and the
Bureau of the Census.

Amount Reallocated: $402.4 million, 0.43 percent of the total allocated.

Comments: Allotment amounts were calculated for fiscal year 1997, the
latest year for which data were available. Total federal allotment includes
some amounts for Family Planning and Indian Health Services that are not
subject to the FMAP. Allotments for the two programs were not available
from the Health Care Financing Administration for fiscal year 1997. We
adjusted the total federal allotment by subtracting the fiscal year 1996
amounts for Family Planning and Indian Health Services from the 1997
total federal allotment.



Table XXI.1: Comparison of Fiscal Year 1997 Federal Medical Assistance
Percentages Based on Actual and Undercount-Adjusted Population

                                                  FMAP
                                      Actual          Adjusted
State                               (Percent)         (Percent)          Difference
Alabama                                69.54              69.66                0.12
Alaska                                 50.00              50.00                0.00
Arizona                                65.53              66.07                0.54
Arkansas                               73.29              73.37                0.08
California                             50.23              51.38                1.15
Colorado                               52.32              52.77                0.45
Connecticut                            50.00              50.00                0.00
Delaware                               50.00              50.00                0.00
District of Columbia                   50.00              50.00                0.00
Florida                                55.79              56.12                0.33
Georgia                                61.52              61.95                0.43
Hawaii                                 50.00              50.00                0.00
Idaho                                  67.97              68.34                0.37
Illinois                               50.00              50.00                0.00
Indiana                                61.58              60.71               -0.86
Iowa                                   62.94              62.04                -0.90
                                                                         (continued)




Page 78                                     GAO/HEHS-99-69 Formula Grant Funding
Appendix XXI
Medicaid




                               FMAP
                   Actual         Adjusted
State            (Percent)        (Percent)        Difference
Kansas              58.87             58.11             -0.76
Kentucky            70.09             70.08             -0.01
Louisiana           71.36             71.69              0.33
Maine               63.72             63.09             -0.64
Maryland            50.00             50.00              0.00
Massachusetts       50.00             50.00              0.00
Michigan            55.20             54.38             -0.82
Minnesota           53.60             52.49             -1.11
Mississippi         77.22             77.43              0.21
Missouri            60.04             59.24             -0.80
Montana             69.01             69.48              0.47
Nebraska            59.13             58.33             -0.80
Nevada              50.00             50.00              0.00
New Hampshire       50.00             50.00              0.00
New Jersey          50.00             50.00              0.00
New Mexico          72.66             73.50              0.84
New York            50.00             50.00              0.00
North Carolina      63.89             64.04              0.15
North Dakota        67.73             67.11             -0.62
Ohio                59.28             58.52             -0.76
Oklahoma            70.01             70.13              0.12
Oregon              60.52             60.75              0.22
Pennsylvania        52.85             51.58             -1.27
Rhode Island        53.90             52.53             -1.38
South Carolina      70.43             70.71              0.27
South Dakota        64.89             64.42             -0.47
Tennessee           64.58             64.69              0.11
Texas               62.56             63.45              0.89
Utah                72.33             72.40              0.07
Vermont             61.05             60.66             -0.40
Virginia            51.45             51.82              0.37
Washington          50.52             50.78              0.26
West Virginia       72.60             72.50             -0.10
Wisconsin           59.00             58.17             -0.83
Wyoming             59.88             60.36              0.48




Page 79                  GAO/HEHS-99-69 Formula Grant Funding
Appendix XXI
Medicaid




Table XXI.2: Comparison of Fiscal Year 1997 Medicaid Grant Amounts Based on
Actual and Undercount-Adjusted Population

Dollars in thousands
                                          Allotments subject to FMAP
                                                                Difference
                             Total
States                  allotment       Actual     Adjusted    Amount Percenta
Alabama                $1,555,179    $1,521,873   $1,524,410    $2,537        0.16
Alaska                   223,234       166,528      166,528            0      0.00
Arizona                 1,238,187     1,119,270    1,128,573     9,304        0.75
Arkansas                1,002,155      960,736      961,826      1,091        0.11
California              8,480,765     8,624,367    8,822,279   197,912        2.33
Colorado                 829,265       789,232      795,962      6,730        0.81
Connecticut             1,391,632     1,352,982    1,352,982           0      0.00
Delaware                 219,935       203,397      203,397            0      0.00
District of Columbia     440,684       419,100      419,100            0      0.00
Florida                 3,615,568     3,494,419    3,515,299    20,880        0.58
Georgia                 2,250,117     2,142,366    2,157,433    15,067        0.67
Hawaii                   290,868       279,351      279,351            0      0.00
Idaho                    302,524       274,802      276,309      1,508        0.50
Illinois                3,546,780     3,286,678    3,286,678           0      0.00
Indiana                 1,579,160     1,517,185    1,495,965   -21,220       -1.34
Iowa                     798,420       743,363      732,688    -10,675       -1.34
Kansas                   623,254       596,381      588,699     -7,682       -1.23
Kentucky                1,818,784     1,785,765    1,785,465      -300       -0.02
Louisiana               2,465,575     2,400,090    2,411,284    11,194        0.45
Maine                    694,045       667,694      661,036     -6,658       -0.96
Maryland                1,451,377     1,344,632    1,344,632           0      0.00
Massachusetts           2,547,305     2,465,863    2,465,863           0      0.00
Michigan                3,397,271     3,093,964    3,048,145   -45,819       -1.35
Minnesota               1,547,365     1,434,601    1,404,771   -29,830       -1.93
Mississippi             1,324,471     1,296,220    1,299,787     3,567        0.27
Missouri                1,922,779     1,840,145    1,815,772   -24,373       -1.27
Montana                  276,909       247,382      249,067      1,685        0.61
Nebraska                 465,459       442,216      436,248     -5,968       -1.28
Nevada                   253,552       237,073      237,073            0      0.00
New Hampshire            385,138       363,248      363,248            0       0.00
                                                                        (continued)




Page 80                                    GAO/HEHS-99-69 Formula Grant Funding
Appendix XXI
Medicaid




                                                      Allotments subject to FMAP
                                                                            Difference
                                        Total
States                             allotment        Actual     Adjusted    Amount Percenta
New Jersey                         2,853,312      2,714,268    2,714,268           0     0.00
New Mexico                          722,174        665,489      673,172      7,683       1.06
New York                          12,666,611     12,310,085   12,310,085           0     0.00
North Carolina                     2,884,565      2,784,269    2,790,896     6,626       0.23
North Dakota                        228,915        215,369      213,392      -1,977      -0.86
Ohio                               3,921,778      3,815,948    3,766,990    -48,957      -1.25
Oklahoma                            896,973        818,975      820,326      1,351       0.15
Oregon                              977,099        894,043      897,321      3,278       0.34
Pennsylvania                       4,439,581      4,266,244    4,163,906   -102,338      -2.31
Rhode Island                        504,982        487,532      475,091     -12,441      -2.46
South Carolina                     1,530,198      1,458,451    1,464,118     5,666       0.37
South Dakota                        223,333        202,825      201,357      -1,468      -0.66
Tennessee                          2,378,511      2,318,131    2,322,125     3,995       0.17
Texas                              6,225,546      5,907,424    5,991,913    84,489       1.36
Utah                                471,894        442,829      443,272        443       0.09
Vermont                             239,744        221,579      220,145      -1,434      -0.60
Virginia                           1,215,252      1,154,912    1,163,277     8,365       0.69
Washington                         1,744,384      1,594,707    1,602,781     8,073       0.46
West Virginia                       941,195        915,214      913,894      -1,320      -0.14
Wisconsin                          1,651,196      1,579,076    1,556,943    -22,133      -1.34
Wyoming                             134,284        124,410      125,401        990       0.74
Total                        $93,789,286        $90,002,703 $90,060,544    $57,841       0.06
aPercentage   of total funding.




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Appendix XXII

Rehabilitation Services                                                                      ApX
                                                                                               enxdiXI




                CFDA Number: 84.126

                Program Objectives: To provide vocational rehabilitation services to
                people with disabilities so they may prepare for and engage in competitive
                employment.

                Federal Agency: Department of Education, Office of the Assistant
                Secretary for Special Education and Rehabilitation Services.

                Fiscal Year 1998 Obligations (estimate): $2.2 billion.

                Formula Narrative: Initially, states receive the amount they received in
                fiscal year 1978. Half of the remaining funds are apportioned to states in
                proportion to population adjusted by an allotment percentage and half in
                proportion to population adjusted by the square of the allotment
                percentage. The allotment percentage varies on a sliding scale with state
                per capita income.

                Mathematical Structure:



                                                     PopState ∗ APState 
                Federal Grant = Grant78 + 1/2 Amt                        +
                                                     Sum of Numerator 
                                          PopState ∗ APState
                                                         2
                                                              
                                 1/2 Amt                     
                                          Sum of Numerator 
                                                             

                Where:

                                        PCIState 
                      AP = 1.00 − 0.50          
                                        PCIUS  , and

                                    PIState 
                      PCIState   =           
                                    Pop State 


                Formula Constraints: The allotment percentage (AP) has a value of 50
                percent for the state with average per capita income and may not exceed 75




                Page 82                                  GAO/HEHS-99-69 Formula Grant Funding
Appendix XXII
Rehabilitation Services




percent or be less than 33 percent. In addition, states are guaranteed an
allotment equal to at least one-third of 1 percent of the appropriation (small
state minimum).

Definitions:
Amt = Funds remaining in excess of fiscal year 1978 amounts.
Pop = Population.
PCI = Per capita personal income.
AP = A state’s allotment percentage.
PI = Personal income.

Data Sources:
Pop: Department of Commerce, Bureau of the Census.
PCI: Department of Commerce, Bureau of Economic Analysis.

Amount Reallocated: $12.674 million, 0.59 percent of total allocated.

Comments: None.



Table XXII.1: Comparison of Fiscal Year 1998 Rehabilitation Services
Allotments Based on Actual and Undercount-Adjusted Population Counts
Dollars in thousands
                                Allotment                    Difference
State                          Actual       Adjusted        Amount        Percent
Alabama                       $46,996        $47,080            $84          0.18
Alaska                          7,438          7,438              -0         0.00
Arizona                        36,184         36,650            466          1.29
Arkansas                       28,683         28,723             40          0.14
California                    215,833        220,552          4,719          2.19
Colorado                       27,612         27,831            220          0.80
Connecticut                    16,665         16,563           -101         -0.61
Delaware                        7,438          7,438              -0         0.00
District of Columbia           10,790         10,885             95          0.88
Florida                       105,301        105,962            661          0.63
Georgia                        64,234         64,756            523          0.81
Hawaii                          7,607          7,644             37          0.49
Idaho                          11,140         11,232             91           0.82
                                                                       (continued)




Page 83                                     GAO/HEHS-99-69 Formula Grant Funding
Appendix XXII
Rehabilitation Services




                            Allotment                    Difference
State                      Actual       Adjusted        Amount        Percent
Illinois                   82,411         81,425           -986         -1.20
Indiana                    53,269         52,362           -907         -1.70
Iowa                       26,158         25,679           -479         -1.83
Kansas                     21,712         21,384           -328         -1.51
Kentucky                   42,479         42,466             -13        -0.03
Louisiana                  47,977         48,313            335          0.70
Maine                      12,569         12,414           -155         -1.24
Maryland                   32,789         33,092            303          0.92
Massachusetts              42,311         41,452           -860         -2.03
Michigan                   76,487         75,304          -1,183        -1.55
Minnesota                  37,404         36,672           -732         -1.96
Mississippi                34,327         34,524            196          0.57
Missouri                   48,941         48,202           -739         -1.51
Montana                     8,820          8,909             90          1.02
Nebraska                   14,404         14,180           -224         -1.55
Nevada                      9,318          9,467            149          1.60
New Hampshire               8,634          8,515           -120         -1.38
New Jersey                 44,717         43,735           -981         -2.19
New Mexico                 17,809         18,177            368          2.07
New York                  119,020        118,688           -332         -0.28
North Carolina             69,078         69,310            232          0.34
North Dakota                7,438          7,438              -0         0.00
Ohio                       99,399         97,958          -1,442        -1.45
Oklahoma                   34,318         34,388             71          0.21
Oregon                     26,484         26,587            103          0.39
Pennsylvania              101,574         99,453          -2,121        -2.09
Rhode Island                8,361          8,168           -193         -2.31
South Carolina             39,142         39,356            214          0.55
South Dakota                7,439          7,438              -1        -0.01
Tennessee                  52,095         52,177             82          0.16
Texas                     162,149        165,232          3,083          1.90
Utah                       19,660         19,684             25          0.13
Vermont                     7,438          7,438              -0         0.00
Virginia                   50,878         51,207            329          0.65
Washington                 38,588         38,745            157          0.41
West Virginia              21,526         21,464             -62         -0.29
                                                                   (continued)




Page 84                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix XXII
Rehabilitation Services




                               Allotment                     Difference
State                        Actual         Adjusted        Amount        Percent
Wisconsin                    45,835           45,120           -715         -1.56
Wyoming                       7,438             7,438             -0         0.00
Total                     $2,166,318       $2,166,318             0          0.00




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Appendix XXIII

Safe and Drug Free Schools and Communities
State Grants                                                                                  ApX
                                                                                                enxdiX
                                                                                                     II




                 CFDA Number: 84.186

                 Program Objectives: To establish state and local programs of drug and
                 violence prevention coordinated with related community efforts and
                 resources.

                 Federal Agency: Department of Education, Office of Elementary and
                 Secondary Education.

                 Fiscal Year 1998 Obligations: $0.6 billion.

                 Formula Narrative: Allocations are made to each state based equally
                 upon the state’s school-age population and its relative share of Title I
                 allocations.

                 Mathematical Structure:

                                           Pop5-17State 
                 Federal Grant = 0.5 * Amt               +
                                            Pop5-17US 
                                            Title I AllocationState 
                                 0.5 * Amt                          
                                            Title I AllocationUS 

                 Formula Constraints: No state may receive less than 0.5 percent of the
                 amount appropriated.

                 Definitions:
                 Amt = Funds available for allocation to states.
                 Pop5-17 = Population aged 5 to 17.
                 Title I Allocation = Amount allocated under part A of title I for the
                 preceding year (see app. XXVIII).

                 Data Sources:
                 Pop5-17: Department of Commerce, Bureau of the Census.
                 Title I Allocation: Department of Education, Office of Elementary and
                 Secondary Education.

                 Amount Reallocated: $0.0.




                 Page 86                                   GAO/HEHS-99-69 Formula Grant Funding
Appendix XXIII
Safe and Drug Free Schools and Communities
State Grants




Comment: This formula was not analyzed because title I grants depend
upon counts of children in poverty for which adjusted counts are not
available.




Page 87                                      GAO/HEHS-99-69 Formula Grant Funding
Appendix XXIV

Social Services Block Grant                                                                    AppX
                                                                                                  enxdiXV
                                                                                                        I




                CFDA Number: 93.667

                Program Objectives: To enable states to provide social services directed
                toward the following goals: (1) reducing dependency; (2) promoting self-
                sufficiency; (3) preventing neglect, abuse, or exploitation of children and
                adults; (4) preventing or reducing inappropriate institutional care; and (5)
                securing admission or referral for institutional care when other forms of
                care are not appropriate.

                Federal Agency: Department of Health and Human Services,
                Administration for Children and Families.

                Fiscal Year 1998 Obligations (estimate): $2.4 billion.

                Formula Narrative: State funding is allocated in proportion to each
                state’s share of the national population.

                Mathematical Structure:

                                      PopState 
                Federal Grant = Amt                
                                      PopAll States 

                Formula Constraints: None.

                Definitions:
                Amt = Funds available for allocation to states.
                Pop = A state’s population count.

                Data Sources:
                Amt: Department of Health and Human Services, Administration for
                Children and Families.
                Pop: Department of Commerce, Bureau of the Census.

                Amount Reallocated: $8.5 million, 0.37 percent of total allocated.

                Comment: None.




                Page 88                                   GAO/HEHS-99-69 Formula Grant Funding
Appendix XXIV
Social Services Block Grant




Table XXIV.1: Comparison of Fiscal Year 1998 Social Services Block Grant
Allotments Based on Actual and Undercount-Adjusted Population Counts
Dollars in thousands
                                                               Difference
States                            Actual       Adjusted       Amount        Percent
Alabama                         $37,004         $37,071           $67          0.18
Alaska                             5,255           5,276           21          0.40
Arizona                           36,700         36,990           290          0.79
Arkansas                          21,613         21,645            33          0.15
California                      274,846         278,059         3,213          1.17
Colorado                          32,602         32,751           150          0.46
Connecticut                       28,495          28,218         -277         -0.97
Delaware                           6,238           6,251           12          0.20
District of Columbia               4,820           4,910           90          1.86
Florida                         123,254         123,708           454          0.37
Georgia                           62,654         63,003           349          0.56
Hawaii                            10,328         10,354            26          0.25
Idaho                             10,119         10,179            60          0.60
Illinois                        102,929         102,283          -646         -0.63
Indiana                           50,490         49,929          -561         -1.11
Iowa                              24,727         24,431          -296         -1.20
Kansas                            22,317         22,113          -204         -0.91
Kentucky                          33,585         33,575             -9        -0.03
Louisiana                         37,778         37,999           220          0.58
Maine                             10,798         10,704            -94        -0.87
Maryland                          43,878          44,091          214          0.49
Massachusetts                     52,848         52,248          -600         -1.14
Michigan                          83,083         82,329          -754         -0.91
Minnesota                         40,110         39,637          -473         -1.18
Mississippi                       23,466          23,574          108          0.46
Missouri                          46,322         45,864          -458         -0.99
Montana                            7,570           7,628           58          0.77
Nebraska                          14,243         14,106          -137         -0.96
Nevada                            13,312         13,415           103          0.77
New Hampshire                      9,988           9,911           -77         -0.77
New Jersey                        69,127          68,406         -721         -1.04
New Mexico                        14,661         14,887           226           1.54
                                                                         (continued)




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Appendix XXIV
Social Services Block Grant




                                                             Difference
States                           Actual      Adjusted       Amount        Percent
New York                        157,796        157,606         -190         -0.12
North Carolina                   62,601         62,730          128          0.21
North Dakota                       5,577         5,524          -53         -0.95
Ohio                             97,021         96,120         -902         -0.93
Oklahoma                         28,521         28,575           54          0.19
Oregon                           27,329         27,402           73          0.27
Pennsylvania                    105,035        103,643        -1,392        -1.33
Rhode Island                       8,614         8,487         -127         -1.47
South Carolina                   31,958         32,105          147          0.46
South Dakota                       6,343         6,302          -40         -0.64
Tennessee                        45,731         45,799           69          0.15
Texas                           162,912        164,883        1,971          1.21
Utah                             16,975         16,996           21          0.13
Vermont                            5,090         5,065          -25         -0.50
Virginia                         57,581         57,797          216          0.38
Washington                       47,253         47,370          117          0.25
West Virginia                    15,905         15,875          -30         -0.19
Wisconsin                        44,574         44,127         -446         -1.00
Wyoming                            4,176         4,200           24          0.57
Total                         $2,286,151    $2,286,151            0          0.00




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Appendix XXV

Special Education                                                                            AppX
                                                                                                exndiXV




               CFDA Number: 84.027

               Program Objectives: To provide grants to states to assist them in
               providing a free appropriate public education to all children with
               disabilities.

               Federal Agency: Department of Education, Office of Special Education
               and Rehabilitative Services.

               Fiscal Year 1998 Obligations (estimate): $3.2 billion.

               Formula Narrative: Funds are allotted on the basis of a certified count of
               the number of children with disabilities aged 3 to 21 years receiving special
               education and related services. The formula contains a maximum state
               grant. The entitlement is equal to the number of children with disabilities
               aged 3 to 21 in the state who are receiving special education and related
               services, multiplied by 40 percent of the average per-pupil expenditure in
               public elementary and secondary schools in the United States.

               Mathematical Structure:

                                    DPopstate * 0.40 * ExpUS 
               Federal Grant = Amt                           
                                    Sum of Numerator         

               Formula Constraints: The number of children with disabilities aged 3 to
               17 cannot exceed 12 percent of a state’s population aged 3 to 17. There are
               additional constraints written in the law that had no effect on fiscal year
               1998 allotments.

               Definitions:
               Amt = Funds available for allocation to states.
               DPop = State’s count of children with disabilities.
               Exp = U.S. average elementary and secondary education
               expenditure per pupil.

               Data Sources:
               DPop: Department of Education.
               Exp: Department of Education.
               Pop3-17: Department of Commerce, Bureau of the Census.




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Appendix XXV
Special Education




Comments: The number of children with disabilities exceeds 12 percent of
the population ages 3 to 17 in four states (Maine, Massachusetts, Rhode
Island, and West Virginia). Using the adjusted census counts, these four
states would have their allocations raised slightly, and the remaining 47
states and the District of Columbia would have theirs lowered by very small
amounts. Since the amounts reallocated would be very small, we have not
simulated the effect of the adjusted population on program allotments.



Table XXV.1: Allotments for Special Education in Fiscal Year 1998
Dollars in thousands
State                                                                  Allotment
Alabama                                                                   $62,010
Alaska                                                                     11,152
Arizona                                                                    52,380
Arkansas                                                                   35,772
California                                                                377,999
Colorado                                                                   45,775
Connecticut                                                                50,294
Delaware                                                                   10,111
District of Columbia                                                        4,797
Florida                                                                   209,303
Georgia                                                                    92,295
Hawaii                                                                     11,556
Idaho                                                                      16,395
Illinois                                                                  173,370
Indiana                                                                    89,258
Iowa                                                                       43,578
Kansas                                                                     35,409
Kentucky                                                                   53,898
Louisiana                                                                  58,900
Maine                                                                      20,366
Maryland                                                                   68,175
Massachusetts                                                             100,626
Michigan                                                                  125,280
Minnesota                                                                  65,046
Mississippi                                                                39,744
Missouri                                                                   80,669
                                                                       (continued)




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Special Education




State                                         Allotment
Montana                                          11,710
Nebraska                                         25,817
Nevada                                           19,849
New Hampshire                                    16,829
New Jersey                                      128,848
New Mexico                                       31,431
New York                                        264,134
North Carolina                                   99,750
North Dakota                                       8,063
Ohio                                            142,257
Oklahoma                                         48,361
Oregon                                           42,068
Pennsylvania                                    139,852
Rhode Island                                     15,711
South Carolina                                   59,469
South Dakota                                       9,633
Tennessee                                        80,819
Texas                                           298,576
Utah                                             34,157
Vermont                                            7,650
Virginia                                         94,262
Washington                                       69,083
West Virginia                                    28,402
Wisconsin                                        71,081
Wyoming                                            8,173
Total                                         $3,690,144




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Appendix XXVI

Special Supplemental Nutrition Program for
Women, Infants, and Children (Food)                                                                AppX
                                                                                                      enxdiXVI




                CFDA Number: 10.557

                Program Objectives: The objective of this program is to provide, at no
                cost, supplemental nutritious foods, nutrition education, and referrals to
                health care services for low-income pregnant, breast-feeding, and
                postpartum women, and infants and children to age 5 determined to be at
                nutritional risk.

                Federal Agency: Department of Agriculture, Food and Consumer Service.

                Fiscal Year 1998 Obligations (estimate): $3.0 billion.

                Formula Narrative: States are guaranteed the funding they received in
                the previous year adjusted for inflation, called a “stability” allotment. If
                total funding is not sufficient to provide stability amounts for each state,
                the initial allotments are reduced on a pro rata basis. If additional funding
                is available, it is allocated in proportion to each state’s share of children
                below 185 percent of the official poverty level. If states do not use their
                entire allotment, it is returned to the Department of Agriculture and
                reallocated to other eligible states under the formula.

                Mathematical Structure:


                                  Stability          ChildState 
                Federal Grant =             + Amt             
                                  Allotment          Child US 

                Formula Constraints: None (see Comments).

                Definitions:
                Amt = Remaining funds after stability allotments.
                Child = Count of children in families below 185 percent of the poverty level.

                Data Sources:
                Child: Department of Commerce, Bureau of the Census.

                Comments: Since the appropriation for this grant was not sufficient to
                fund the stability allotment for fiscal year 1998, initial state allotments were
                based on the prior year’s allotment after being adjusted for inflation.
                Subsequently, some states returned portions of the formula allotment.
                After being able to fund stability allotments for the remaining states, $43.5




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Appendix XXVI
Special Supplemental Nutrition Program for
Women, Infants, and Children (Food)




million, or 1.5 percent of the total, was allocated based on census poverty
data. We did not simulate this formula because undercount estimates for
poverty populations are not available. However, we included this program
among those we analyzed because the amount of funds that would be
shifted due to the undercount for any individual state would be small
enough that it would not significantly affect the overall results.



Table XXVI.1: Special Supplemental Nutrition Program for Women, Infants, and
Children (Food) Actual Allotments, Fiscal Year 1998
Dollars in thousands
State                                                                  Allotment
Alabama                                                                   $48,013
Alaska                                                                     11,939
Arizona                                                                    47,217
Arkansas                                                                   34,640
California                                                                513,840
Colorado                                                                   28,413
Connecticut                                                                24,563
Delaware                                                                       5,819
District of Columbia                                                           6,964
Florida                                                                   142,070
Georgia                                                                    84,345
Hawaii                                                                     20,079
Idaho                                                                      10,976
Illinois                                                                  105,800
Indiana                                                                    48,543
Iowa                                                                       24,885
Kansas                                                                     19,744
Kentucky                                                                   47,284
Louisiana                                                                  60,304
Maine                                                                          9,150
Maryland                                                                   35,998
Massachusetts                                                              40,007
Michigan                                                                   85,074
Minnesota                                                                  34,814
Mississippi                                                                39,845
Missouri                                                                   52,108
                                                                       (continued)




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Special Supplemental Nutrition Program for
Women, Infants, and Children (Food)




State                                                                  Allotment
Montana                                                                     9,189
Nebraska                                                                  14,161
Nevada                                                                    13,853
New Hampshire                                                               6,267
New Jersey                                                                55,430
New Mexico                                                                19,995
New York                                                                 207,892
North Carolina                                                            69,613
North Dakota                                                                6,507
Ohio                                                                      84,827
Oklahoma                                                                  32,417
Oregon                                                                    33,778
Pennsylvania                                                              99,769
Rhode Island                                                                8,436
South Carolina                                                            42,902
South Dakota                                                                6,843
Tennessee                                                                 60,722
Texas                                                                    236,670
Utah                                                                      21,233
Vermont                                                                     6,662
Virginia                                                                  53,651
Washington                                                                60,700
West Virginia                                                             19,985
Wisconsin                                                                 40,880
Wyoming                                                                     3,822
Total                                                                  $2,798,640




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Appendix XXVII

Special Supplemental Nutrition Program for
Women, Infants, and Children
(Nutrition Services and Administration)                                                           AppeX
                                                                                                      nxdiXV
                                                                                                           II




                 CFDA Number: 10.557

                 Program Objectives: To provide, at no cost, supplemental nutritious
                 foods, nutrition education, and referrals to health care to low-income
                 pregnant, breast-feeding, and postpartum women, and infants, and children
                 to age 5 determined to be at nutritional risk.

                 Federal Agency: Department of Agriculture, Food and Consumer Service.

                 Fiscal Year 1998 Obligations (estimate): $1.0 billion.

                 Formula Narrative: States receive a fixed amount per adjusted program
                 participant for administrative expenses and other nutrition services. The
                 number of program participants in a state are adjusted to take account of
                 the higher cost of small participation levels, differential salary levels, and
                 differences in service to priority 1 participants.

                 Mathematical Structure:

                 Federal Grant = Rateus ∗ Participan tsState

                 Formula Constraints: No state may receive less than it received in the
                 previous fiscal year.

                 Definitions:
                 Rate = Amount per participant.
                 Participants = Number of program participants adjusted to account for
                 differences in (1) the higher cost of small participation levels, (2) salary
                 levels, and (3) service to priority 1 participants.

                 Data Sources:
                 Rate: Department of Agriculture, Food and Consumer Service.
                 Participants: Department of Agriculture, Food and Consumer Service.

                 Amount Reallocated: None.

                 Comment: The allocations for Nutrition Services and Administration do
                 not depend on census data; consequently, there is no effect from the
                 undercount of the population.




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Appendix XXVII
Special Supplemental Nutrition Program for
Women, Infants, and Children (Nutrition
Services and Administration)




Table XXVII.1: Special Supplemental Nutrition Program for Women, Infants and
Children (Nutrition Services and Administration), Fiscal Year 1998
Dollars in thousands
State                                                                  Allotment
Alabama                                                                   $17,056
Alaska                                                                         6,039
Arizona                                                                    17,672
Arkansas                                                                   12,602
California                                                                174,760
Colorado                                                                   11,436
Connecticut                                                                    9,216
Delaware                                                                       2,349
District of Columbia                                                           2,999
Florida                                                                    47,016
Georgia                                                                    31,063
Hawaii                                                                         7,311
Idaho                                                                          6,029
Illinois                                                                   38,057
Indiana                                                                    18,577
Iowa                                                                           9,321
Kansas                                                                         7,678
Kentucky                                                                   16,710
Louisiana                                                                  18,501
Maine                                                                          4,112
Maryland                                                                   13,032
Massachusetts                                                              16,453
Michigan                                                                   30,177
Minnesota                                                                  13,231
Mississippi                                                                16,762
Missouri                                                                   17,180
Montana                                                                        4,217
Nebraska                                                                       5,881
Nevada                                                                         5,993
New Hampshire                                                                  3,409
New Jersey                                                                 20,751
New Mexico                                                                     8,127
New York                                                                   66,501
                                                                       (continued)




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Special Supplemental Nutrition Program for
Women, Infants, and Children (Nutrition
Services and Administration)




State                                                                  Allotment
North Carolina                                                            26,555
North Dakota                                                                2,609
Ohio                                                                      36,969
Oklahoma                                                                  12,258
Oregon                                                                    13,948
Pennsylvania                                                              35,225
Rhode Island                                                                3,581
South Carolina                                                            17,091
South Dakota                                                                4,086
Tennessee                                                                 19,822
Texas                                                                     95,449
Utah                                                                        8,950
Vermont                                                                     2,581
Virginia                                                                  19,000
Washington                                                                21,507
West Virginia                                                               9,150
Wisconsin                                                                 14,872
Wyoming                                                                     2,240
Total                                                                  $1,026,111




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Appendix XXVIII

Title I Grants to Local Education Agencies                                                       ApX
                                                                                                   xendiXV
                                                                                                         II




                  CFDA Number: 84.010

                  Program Objectives: To help local education agencies and schools
                  improve the teaching of and learning by children failing, or most at risk of
                  failing, to meet challenging state academic standards.

                  Fiscal Year 1998 Obligations (estimate): $7.5 billion.

                  Formula Narrative: Funding is allocated to local education agencies
                  under three separate formulas: Basic Grants, Concentration Grants, and
                  Targeted Grants. Basic and Concentration Grants are funded at their fiscal
                  year 1995 appropriations amounts and the excess is allocated under the
                  Targeted Grant formula.

                  The Basic Grant formula allocates funding in proportion to the number of
                  children in poverty times 40 percent of the state per-pupil expenditure.
                  Concentration Grants are limited to counties whose counts of children in
                  poverty either exceed 6,500 or whose poverty rates exceed 15 percent.
                  Concentration Grants are allocated in proportion to Basic Grant funding
                  amounts. Targeted Grants use the Basic Grant formula, except weighted
                  counts of children in poverty are used to target a larger share of available
                  funds to counties with larger numbers or higher percentages of poor
                  children.

                  Mathematical Structure:

                                              Pov County ∗ 0.40 ∗ ExpState           
                  Basic Grants = Amt95 Basic                                        
                                                                                      
                                              Sum of Numerator                       

                  and
                                                   PovCounty ∗ GBasicCounty 
                  Concentration Grants = Amt95Con                           
                                                   Sum of Numerator 

                                              WPov County ∗ 0.40 ∗ ExpState 
                  Targeted Grants = AmtTarg                                
                                                Sum     of  Numerator        


                  Formula Constraints: State per-pupil expenditures cannot exceed the
                  national average per-pupil expenditure by more than 20 percent or be


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Appendix XXVIII
Title I Grants to Local Education Agencies




below 80 percent of the average. Hold-harmless provisions apply to Basic
Grants and Targeted Grants but not to Concentration Grants. Counties are
guaranteed to receive at least 95 percent of their previous year’s allotment
if their child poverty rate exceeds 30 percent, 90 percent if the county
poverty rate is between 15 and 30 percent, and 85 percent if the county
poverty rate is below 15 percent. For Basic Grants, no state area can
receive less than the smaller of (1) ¼ of 1 percent of the funding allocated
among states or (2) an average of ¼ of 1 percent of the amount
appropriated and 150 percent of the national average per-pupil grant times
the number of children counted in the Basic Grant formula.

Definitions:
Amt95 = Funds available for allocation among local education agencies in
fiscal year 1995.
Amt = Funds in excess of fiscal year 1995 available for allocation among
local education agencies.
Pov = Number of children aged 5 to 17 living in poverty and children above
poverty in families receiving Aid to Families With Dependent Children,
foster homes, and institutions for delinquents (“formula children”).
Exp = Elementary and secondary school expenditures per pupil.
GBasic = Grant amount per pupil under the Basic Grant formula.
WPov = Weighted counts of school-aged children in poverty.

Data Sources:
Pov: Bureau of the Census.
Exp: Department of Education.
Gbasic: Department of Education.
WPov: Weights specified in law, counts derived from poverty counts from
the Department of Commerce, Bureau of the Census.

Amount Reallocated: Not applicable.

Comments: This formula was not analyzed because poverty counts
adjusted for the undercount are not available.




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Appendix XXIX

Vocational Education                                                                          AppX
                                                                                                 enxdiXX
                                                                                                       I




                CFDA Number: 84.048

                Program Objectives: To assist states to expand and improve their
                programs of vocational education and provide equal access in vocational
                education to special needs populations. The populations assisted by the
                grants range from secondary students in prevocational courses to adults
                who need retraining to adapt to changing technological and labor market
                conditions.

                Federal Agency: Department of Education, Office of the Assistant
                Secretary for Vocational and Adult Education.

                Fiscal Year 1998 Obligations (estimate): $1.0 billion.

                Formula Narrative: Fifty-five percent of available funds are allocated to
                states in proportion to the population aged 15 to 19, adjusted by a per
                capita income factor (called an allotment percentage). Twenty-five percent
                of available funds are allocated in proportion to the population aged 20 to
                24, adjusted by the allotment percentage, and 20 percent in proportion to
                the population aged 25 to 65, adjusted by the allotment percentage.

                Mathematical Structure:



                                             Pop15-19State ∗ APState 
                Federal Grant = 0.55 ∗ Amt                            +
                                             Sum of Numerator 
                                            Pop20-24State ∗ APState 
                                0.25 ∗ Amt                          +
                                            Sum of Numerator 
                                                      Pop25-65State ∗ APState 
                                          0.20 ∗ Amt                          
                                                      Sum of Numerator 
                Where:
                                              PCIState 
                           AP = 1.00 − 0.50 
                                              PCIUS  , and
                                        PIState 
                       PCIState     =            
                                        Pop State 




                Page 102                                 GAO/HEHS-99-69 Formula Grant Funding
Appendix XXIX
Vocational Education




Formula Constraints: The allotment percentage cannot exceed 60
percent or be less than 40 percent. Formula allocations for each state
cannot fall below the fiscal year 1998 allocation. No state may receive less
than 0.5 percent of the total funds distributed (small state minimum).

Definitions:
Amt = Funds available for allocation to states.
Pop15-19 = Population count between ages 15 and 19.
Pop20-24 = Population count between ages 20 and 24.
Pop25-65 = Population count between ages 25 and 65
AP = Allotment percentage.
PI = State’s personal income.
Pop = State population.

Data Sources:
Pop: Department of Commerce, Bureau of the Census.
PI: Department of Commerce, Bureau of Economic Analysis.

Amount Reallocated: $1.202 million, 0.12 percent of total funding.

Comments: The formula as written in law contains four terms. The three
shown above have weights of .50, .20, and .15, respectively. The fourth term
is the sum of these three terms and also receives a .15 weight. This is
equivalent to adding .05 to each weight as shown in the above
mathematical statement of the formula. The formula constraint restricts
the changes in allotment. We show the percentage in populations for the
formula and the resulting change in state allotment in table XXIX.2. Most
states have no change in allocation from the undercount adjustment.



Table XXIX.1: Vocational and Technical Education Assistance to the States,
Comparison of Actual Allocations to Simulated Allocations

Dollars in thousands
                                                                Difference
State                         Unadjusted         Adjusted      Amount        Percent
Alabama                           $19,175      $19,175.06             0         0.00
Alaska                               4,215          4,215             0         0.00
Arizona                            18,342          18,396           $54         0.29
Arkansas                           11,404          11,404             0          0.00
                                                                          (continued)




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Appendix XXIX
Vocational Education




                                                      Difference
State                  Unadjusted      Adjusted      Amount        Percent
California                109,111        110,238        1,128         1.03
Colorado                   13,400         13,400            0         0.00
Connecticut                 8,355          8,355            0         0.00
Delaware                    4,215          4,215            0         0.00
District of Columbia        4,215          4,215            0         0.00
Florida                    46,929         46,686         -243         -0.52
Georgia                    29,560         29,560            0         0.00
Hawaii                      5,066          5,066            0         0.00
Idaho                       6,066          6,044          -22         -0.37
Illinois                   38,934         38,934            0         0.00
Indiana                    23,688         23,688            0         0.00
Iowa                       11,964         11,964            0         0.00
Kansas                     10,326         10,245          -80         -0.78
Kentucky                   17,906         17,906            0         0.00
Louisiana                  21,042         21,042            0         0.00
Maine                       5,066          5,066            0         0.00
Maryland                   14,812         14,812            0         0.00
Massachusetts              17,324         17,324            0         0.00
Michigan                   35,641         35,015         -626         -1.76
Minnesota                  16,685         16,685            0         0.00
Mississippi                13,364         13,364            0         0.00
Missouri                   20,940         20,940            0         0.00
Montana                     4,959          4,959            0         0.00
Nebraska                    6,817          6,817            0         0.00
Nevada                      5,243          5,261           18         0.35
New Hampshire               5,066          5,066            0         0.00
New Jersey                 21,030         21,030            0         0.00
New Mexico                  8,079          8,080            1         0.02
New York                   51,362         51,362            0         0.00
North Carolina             28,781         28,781            0         0.00
North Dakota                4,215          4,215            0         0.00
Ohio                       42,750         42,750            0         0.00
Oklahoma                   15,139         15,094          -45         -0.29
Oregon                     12,410         12,410            0         0.00
Pennsylvania               40,723         40,723            0         0.00
Rhode Island                5,066          5,066            0          0.00
                                                                (continued)




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Vocational Education




                                                                  Difference
State                        Unadjusted         Adjusted         Amount         Percent
South Carolina                    16,635              16,635             0          0.00
South Dakota                       4,215               4,215             0          0.00
Tennessee                         21,457              21,457             0          0.00
Texas                             80,684              80,684             0          0.00
Utah                              11,760              11,616          -144         -1.23
Vermont                            4,215               4,215             0          0.00
Virginia                          23,247              23,247             0          0.00
Washington                        19,625              19,584           -41         -0.21
West Virginia                      8,429               8,429             0          0.00
Wisconsin                         20,242              20,242             0          0.00
Wyoming                            4,215               4,215             0          0.00
Total                           $994,103        $994,103                 0          0.00




Table XXIX.2: Percentage Change in Vocational Education Population Counts
Unadjusted and Adjusted for the Undercount
                       Percentage change in population by age
                                                                      Percent change
State                       15 to 19       20 to 24        25 to 65      in allocation
Alabama                         2.95          2.24             1.08                 0.00
Alaska                          2.98          3.89             1.36                 0.00
Arizona                         4.38          5.60             1.61                 0.29
Arkansas                        2.97          2.76             1.06                 0.00
California                      4.59          5.63             2.06                 1.03
Colorado                        3.76          5.06             1.32                 0.00
Connecticut                     1.38          1.66             0.46                 0.00
Delaware                        3.65          3.57             1.00                 0.00
District of Columbia            5.98          5.78             2.72                 0.00
Florida                         4.00          4.40             1.35                -0.52
Georgia                         3.40          3.11             1.36                 0.00
Hawaii                          3.28          4.49             1.26                 0.00
Idaho                           3.78          5.18             1.21                -0.37
Illinois                        1.83          2.07             0.58                 0.00
Indiana                         0.98          1.20             0.16                 0.00
Iowa                            0.87          2.04             0.16                 0.00
Kansas                          1.34          2.20             0.34                 -0.78
                                                                             (continued)




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Vocational Education




                       Percentage change in population by age
                                                                  Percent change
State                       15 to 19     20 to 24      25 to 65      in allocation
Kentucky                       2.82          2.78         0.93               0.00
Louisiana                      3.47          2.90         1.28               0.00
Maine                          0.76          1.05         0.58               0.00
Maryland                       3.76          3.93         1.30               0.00
Massachusetts                  1.36          1.95         0.30               0.00
Michigan                       1.30          1.31         0.32               -1.76
Minnesota                      0.87          1.51         0.16               0.00
Mississippi                    3.37          2.18         1.33               0.00
Missouri                       1.26          1.61         0.28               0.00
Montana                        4.29          5.38         1.36               0.00
Nebraska                       1.21          2.42         0.34               0.00
Nevada                         4.03          5.57         1.72               0.35
New Hampshire                  0.90          1.33         0.71               0.00
New Jersey                     1.73          1.95         0.37               0.00
New Mexico                     4.62          5.86         2.41               0.02
New York                       2.78          3.40         1.35               0.00
North Carolina                 2.95          2.46         1.25               0.00
North Dakota                   1.57          2.20         0.26               0.00
Ohio                           1.29          1.57         0.30               0.00
Oklahoma                       3.32          3.62         0.93               -0.29
Oregon                         3.61          5.09         1.14               0.00
Pennsylvania                   1.26          1.41         -0.04              0.00
Rhode Island                   1.28          1.91         -0.06              0.00
South Carolina                 3.15          2.41         1.32               0.00
South Dakota                   2.10          2.72         0.46               0.00
Tennessee                      3.26          3.08         1.00               0.00
Texas                          4.22          5.19         1.94               0.00
Utah                           3.10          5.04         0.77               -1.23
Vermont                        1.50          2.19         0.85               0.00
Virginia                       3.47          3.63         1.21               0.00
Washington                     3.42          4.87         1.09               -0.21
West Virginia                  2.55          2.46         0.89               0.00
Wisconsin                      1.15          1.68         0.26               0.00
Wyoming                        3.75          5.44         1.23               0.00
Total                          2.82          3.31         1.05               0.00




Page 106                                  GAO/HEHS-99-69 Formula Grant Funding
Appendix XXX

Major Contributors to This Report                                                               AppX
                                                                                                   exndiXX




                       Jerry C. Fastrup, Assistant Director, (202) 512-7211
                       Greg Dybalski, Senior Economist and Evaluator-in-Charge
                       Robert Dinkelmeyer, Senior Economist
                       Richard Horte, Evaluator
                       Teresa Renner, Evaluator




(101777)       eL
                rtet   Page 107                              GAO/HEHS-99-69 Formula Grant Funding
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