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GGD-78-55 1 (1978-03-30)

handle is hein.gao/gaobaawyb0001 and id is 1 raw text is: DOCUMENT RESUME 05424 - (B09458521 W i IC-TE 0 Rfeview of the Bureau of the Census Methodology To Develop Per Capita Income Estimates. GGD-78-55; B-146285. March 30, 1978. Released April 7, 1978. 6 pp. + 3 enclosures (9 pp.). Report to Rep. Virginia Smith; Rep. Charles E. Grassley; by Victor L. Love, Directcr, General Government Div. Issue Area: Data Collected from Non-Federal Sources: Reliability and Accuracy of Information (3101); Intergovernmeiital Relations aad Revenue Sharing: Administration of the Assistance System (401). Contact: General Government Div. Budget Function: Revenue Sharing and General Purpose Fiscal Assistance: General Revenue Sharing (851). Organization Concerned: Depart-nt of the Treasury; Department of Commerce; Bureau of th( -ensus. Congressional Relevance: Rep. Virginia Smith; Rep. Charles E. Grassley. Authority: State and Local Fiscal Assistance Act of 1972 (P.L. 92-512). P.L. 94-488. The methods used by the Bureau of the Census to calculate the per capita income estimates for small communities were examined. These estimates are a major factor in determining the aumcunt of Federal general revenue sharing funds a community receives. The reliability of the per capitd income estimates for small communities is questionable, and such communities may not be receiving their proper share of revenue sharing funds. The data used to develop the estimates for small communities are inadequate which could result in misallocations cf revenue .naring funds. Hisallocations are generally confined to small communities within a county because total funding for counties and States is controlled by other data which economists and statisticians consider more reliable. Althcugh the Congress has pzovided alternatives for distributing the funds, the alternatives have not been used. In addition, there are no adequate checks or controls on the Bureau's methods for developing the astimates; some quality controls should be built into the process to provide greater assurance of the validity of the estimates. An explanation of the Bureau's calculations of estimates for Aredale, Iowa, and Minden, Nebraska, is included. (RRS)

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