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B-164031(1).128 1 (1977-10-04)

handle is hein.gao/gaobadsaa0001 and id is 1 raw text is: 3 I 1 3 October 1 1977 The Honorable Ike Andrews, Chairman subcommittee on Economic Opportunity Committee on Education and Labor iHouse of Representatives Dear Mr. Chairman: your letter of September 28, 1977, asked for our opinion as to whether the allocation of funds by the Department of Health, Education, and Welfare (HEW) for Project Headstart for fiscal years 1976 and 1977, and HEW's proposed allocation for fiscal year 1978, have been and are consistent with the statutory distribution formula. You enclosed a recent report by the Congressional Research Service (CRS), Library of Congress, which con- cludes that the HEW allocations violated the statutory formula. In view of the urgency indicated in your request, we were not able to formally solicit agency comments, nor have we attempted to independently verify any of the computations or other factual data contained in the CRS report. Our review is thus essentially limited to the pertinent statutory provision and the CR3 report. Based on this limited review, we concur generally with the CRS conclusion as to how the formula should be applied. The statutory distribution formula is found in secion 513(a) of the Community Services Act of 1974, 42 U.S.C. § 2928bf(Supp. V, 1975), added by Pub. L. No. 93-644 (January 4, 1975), S 8(a), 88 Stat. 2291, 2301. Section 513(a) provides as follows: Of the sums appropriated pursuant to section 512 for any fiscal year beginning after June 30, 1975, the Secretary shall allot not more than 2 per centum among Guam, American Sz:moa, the Trust Territory of the Pacific Islands, and the Virgin Islands, accord- ing to their respective needs. Ln addition, the Secre- tary shall reserve not more than 20 per centum of the sums so appropriated for use in accordance with such criteria and procedures as he may prescribe. The remainder shall be allotted among the States, in ac- cordance with the latest satisfactory available data, so that equa. proportions are distributed on the basis of (1) the relative number of public assistance recip- ients in each State as compared to all States, and (2) the relative number of related children living with families with incomes below the poverty line in each

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