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GGD-84-88 1 (1984-06-21)

handle is hein.gao/gaobabnkg0001 and id is 1 raw text is: 
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                UNITED STATES GENERAL ACCOUNTING OFFICE
                        WASHINGTON, D.C. 20548

                                           JUNE 21, 1984

DIVIUIOE

  B-214417

  The Honorable Lloyd M. Bentsen
  United States Senate

  The Honorable William Proxmire
  United States Senate

  The Honorable Orrin G. Hatch
  United States Senate

  The Honorable John G. Tower
  United States Senate

      Subject: Improvements in the Alcohol, Drug Abuse and
                Mental Health Block Grant Distribution Formula
                Can Be Made Both Now and in the Future
                (GAO/GGD-84-88)

      Your letter dated May 3, 1984, requested our assistance in
 evaluating the funding formula for the Alcohol, Drug Abuse and
 Mental Health (ADAMH) block grant program established by Public
 Law 97-35, the Omnibus Budget Reconciliation Act of 1981. You
 listed three formula factors for our consideration.

       1. Factors related to state need.

       2. Factors related to states' contributions to these
         programs.

      3. The cost effectiveness of programs operated by states
         and localities.

      In discussions with your representatives we agreed to pro-
 vide an initial response based on our existing work to date.
 Our office has issued several reports relating to the issues
 raised in your letter, including a recently issued evaluation of
 the ADAMH block grant program (GAO/HRD-84-52, June 6, 1984). In
 addition, we have been working with the Subcommittee on Health
 and the Environment, House Committee on Energy and Commerce, to
 develop a new allocation formula for this program. The result
 of this work is embodied in the formula provisions of H.R. 5603,
 which was passed by the House of Representatives on June 11,
 1984.





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