Statistical Issues in Allocating Funds by Formula (2003) / Chapter Skim
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3. Basic Features of Formula Allocation Program
3. Basic Features of Formula Allocation Program
Pages 26-34
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From page 26... ...
For formula allocation programs, typically most of the appropriated funds are distributed by the program agency to the 50 states, the District of Columbia, and in some instances, to American Indian tribes and U.S. territories, based on formulas and procedures included in the authorizing legislation or developed by the program agency based on general objectives specified in the legislation.
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From page 27... ...
for their use in programs designed to develop viable urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for people with low and moderate incomes. FURTHER DISTRIBUTION OF FUNDS BY INITIAL RECIPIENTS For many formula allocation programs, the ultimate beneficiaries are eligible individuals or family units who receive cash or in-kind benefits or services.
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From page 28... ...
For some programs, federal funds are used to make loans to local governments for specific purposes. Under the Environmental Protection Agency's state capitalization grants program, allotments to states, along with matching state funds, are used to establish state revolving funds from which loans are made to water districts for specific waste water treatment and water pollution control projects.
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From page 29... ...
Some examples are: · For Medicaid, which is an open-ended matching grant program, payments to the states are quarterly, based on statements of eligible expenses submitted by each of the state programs. · Matching grants under the foster care program, which is also openended, are handled in the same way as Medicaid grants.
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From page 30... ...
State education agencies have the authority to reallocate unused funds. · In the Unemployment Insurance Program, which provides federal funds for the administration of state-financed unemployment insurance programs, the amounts required for a fiscal year depend in part on the levels of insured unemployment in each state, which are difficult to predict.
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From page 31... ...
The foster care program, which provides matching grants, at rates that vary by state, for direct assistance, also provides matching funds, but at uniform rates, for selected overhead costs: 75 percent for training staff and foster parents and 50 percent for administrative data collection. The SCHIP program permits states to devote up to 10 percent of their total expenditures to nonbenefit activities, such as administration, outreach, health services initiatives, and other child health assistance.
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From page 34... ...
The regulations include a section (210.10) on nutrition standards and three lengthy appendices with detailed provisions on the use of meat protein substitutes, a listing of foods of minimum nutritional value, and a description of food labeling procedures.
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