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GGD-82-65 1 (1982-03-26)

handle is hein.gao/gaobabdbr0001 and id is 1 raw text is: #4 COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 205M MAR 2 6 1982 B-206864 The Honorable Stephen J. Solarz The Honorable Leon E. Panetta 117967 House of Representatives Subject: Allocation of Funds for Block Grants with Optional Transition Periods (GGD-82-6t) In your November 20, 1981, letter, you requested that we moni- tor the allocation of funds for those block grants created by the Omnibus Budget Reconciliation Act of 1981 which have optional transition periods during fiscal year 1982. You asked us to deter- mine if States which opted to begin administering the grants were treated differently than those which elected to let the Federal Government continue to manage the predecessor categorical programs. You expressed particular concern about the Community Services and the Maternal and Child Health programs, and you noted that dif- ferences may have occurred in other optional block grants. As of March 23, 1982, the other two optional block grants in operation were the Preventive Health and Health Services and the Alcohol, Drug Abuse, and Mental Health grants. All four optional grants are administered by the Department of Health and Human Services (HHS). This report describes how the Department made allotments 1/ to the States for the optional block grants during the first half of fiscal year 1982 under the first, second, and third continuing resolutions. For the first continuing resolution, allotments for States which opted to begin administering the block grants were calcu- lated on a different basis. than allotments made available for grantees within the nonblock grant States. During the resolution period, which was in effect from October 1, 1981, through Novem- ber 20,.1981, States accepting the block grants were allotted 25 percent of their annual amount while only 14 percent of the annual allotment for grantees within nonblock grant States was made available for award. Additionally, for the three health block grants, the base for computing the 14 percent allotment for grantees within States not administering the block grants was lower than that used for block grant State allotments. This HHS policy, however, was revised after enactment of the second continuing resolution, and cumulative nonblock grant States allotments were increased to put the nonblock grant States 1/Budget terms used in this report--allotments and apportion- ments--are defined in the glossary contained in enclosure I. (018965)

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