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HRD-85-99 1 (1985-08-30)

handle is hein.gao/gaobabnth0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 HUMAN RESOURCES DIVISION BIISO 134 AUG 3 0 1985 B-220 134 The Honorable John J. Niehenke Acting Assistant Secretary (Domestic Finance) Department of the Treasury 127851 Washington, DC 20220 Dear Mr. Niehenke: Subject: Data on the Largest Federal Grant Programs Used to Distribute Funds to State and Local Governments by Formula in Fiscal Year 1984 (GAO/HRD-85-99) In discussions with Deputy Assistant Secretary Robert Rafuse and his staff, we have agreed to provide information on the largest state and local formula grant programs for your use in responding to the fiscal studies provision in the Local Govern- ment Fiscal Assistance Amendments of 1983 (Public Law 98-185). This provision requires the Treasury to undertake a series of studies on a variety of intergovernmental finance issues, includ- ing the mathematical forms and data used in formula grants. En- closed is information on the 23 largest formula grant programs to states and localities, as identified in the Catalog of Federal Domestic Assistance (CFDA). For fiscal year 1984, these programs allocated $73.5 billion, or 75 percent of all grants to states and localities that year. We identified 38 separate and distinct formulas that were used to allocate funds to state and local governments under these 23 grant programs. We then sent our initial interpretation of the algebraic forms for these formulas to the responsible agency officials. They were asked to revise them and provide a written narrative description of the formulas. The enclosed information is based on their responses and our subsequent analyses of these responses. Enclosure I details our scope and methodology and En- closure II is a glossary of abbreviations used in the study. Enclosure III lists the 38 formula programs and Enclosure IV describes the formulas. The formula descriptions include the statutory citations of the allocation and matching provisions for (118801)

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