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HEHS-96-137R 1 (1996-04-24)

handle is hein.gao/gaobacldn0001 and id is 1 raw text is: A United States General Accounting Office Washington, D.C. 20548 Health, Education and Human Services Division B-271837 April 24, 1996 The Honorable Dan Coats United States Senate Dear Senator Coats: This letter responds to your request that we analyze the effects of your proposed changes to the funding formula for title III of the Older Americans Act. The Older Americans Act was passed in 1965 to help elderly Americans live independently in their own communities by removing barriers to independent living and providing a continuum of care. The current funding formula for the act allocates funds to states on the basis of the number of individuals over age 60 residing in each state. A recent GAO report questioned this policy because it does not take into consideration the fact that barriers to independent living increase with age and are more prevalent among low-income individuals.' Using our prior report as the basis for the analysis here, we have concluded that the changes you have proposed would improve funding equity. Your proposal would change the current funding formula by giving greater weight to the number of elderly in the oldest age groups and by targeting more aid to low-income states. Your proposal would not affect certain small states that, under current law, are guaranteed at least 1/2 percent of the funds made available for distribution to the states. Our analysis indicates that these changes would improve funding equity in that they would make federal funding per person-in-need more equal across states. Under current law for example, Indiana's annual funding per person-in-need is $65.54.2 Under the change you propose Indiana's grant would increase to $68.26 per person-in- 'Older Americans Act: Funding Formula Could Better Reflect State Needs (GAO/HEHS-94-41, May 12, 1994). 2In making these comparisons, we have adjusted for cross- state differences in the cost of care using an index of private sector labor costs. GAO/HEHS-96-137R Older Americans Act Funding Formula

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