Block Grant Allocation Processes
Federal RegisterJun 17, 1996
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Substance Abuse and Mental Health Services Administration
Block Grant Allocation Processes
AGENCY: Substance Abuse and Mental Health Services Administration, HHS.
ACTION: Notice and opportunity for public comment.
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SUMMARY: The Substance Abuse and Mental Health Services Administration
(SAMHSA) allocates funding to States and territories for the Community
Mental Health Services (CMHS) Block Grant and the Substance Abuse
Prevention and Treatment (SAPT) Block Grant. This notice describes the
formulas which the law requires be used for distributing these funds
and the information used in making the calculations.
This notice has five parts. Section I provides background
information on the allocation process. Section II describes the
legislation and the formulas applicable to the Community Mental Health
Services Block Grant. Section III describes the legislation and the
formulas applicable to the Substance Abuse Prevention and Treatment
Block Grant. Section IV provides detailed information on the sources of
data used in the calculations. Section V contains technical information
important in making the actual calculations.
DATES: Written comments must be received by August 1, 1996. Any written
comments received will be taken into
[[Page 30626]]
consideration and will become a matter of public record.
ADDRESSES: Written comments should be addressed to Nancy Pearce, Office
of Applied Studies, Substance Abuse and Mental Health Services
Administration, Room 16-105, 5600 Fishers Lane, Rockville, MD 20857,
Fax (301) 443-9847.
FOR FURTHER INFORMATION CONTACT: Nancy Pearce, Office of Applied
Studies, Substance Abuse and Mental Health Services Administration,
Room 16-105, 5600 Fishers Lane, Rockville, MD 20857, Phone (301) 443-
7978, Fax (301) 443-9847.
I. Background
The Omnibus Reconciliation Act of 1981 established a single Block
Grant for supporting alcohol, drug abuse, and mental health services,
the Alcohol, Drug Abuse and Mental Health Services (ADMS) Block Grant.
On July 10, 1992, the ADAMHA Reorganization Act was signed into law,
Public Law 102-321. This Act amended the Public Health Service Act and,
among other things, established two separate Block Grants to replace
the ADMS Block Grant. The Community Mental Health Services (CMHS) Block
Grant supports community mental health services; the Substance Abuse
Prevention and Treatment (SAPT) Block Grant supports services for the
prevention and treatment of substance abuse. Public Law 102-321 also
contains eligibility criteria for receipt of funds under the Grants and
provides the formulas and methods for determining States and
territorial allotments of funds under each type of block Grant.
Under the legislation, the Secretary of the U.S. Department of
Health and Human Services (DHHS), acting through the Director of
SAMHSA's Center for Mental Health Services and through the Center for
Substance Abuse Treatment, determines the allotments for States and
territories for both Block Grants and disburses federal funds to
eligible States and territories.
In July, 1995, responsibility for calculating the amount of support
each State and territory receives in a given fiscal year was assigned
to the Office of Applied Studies in the Substance Abuse and Mental
Health Services Administration (SAMSHA). The Center for Substance Abuse
Treatment and the Center for Mental Health Services manage the grants.
SAMHSA is publishing this notice to inform the public about how
block grant allocations are calculated and provide an opportunity for
comment.
II. Legislative Requirements and Allocation Process for Community
Mental Health Services (CMHS) Block Grant
A. Legislative Requirements
Sections 1911 through 1920 of the Public Health Service (PHS) Act
establish the Community Mental Health Services (CMHS) Block Grant and
rules that must be followed in making these grants. Section 1920(a) of
the Act authorizes the appropriation of funds for the CMHS Block Grant;
the size of the appropriation is determined each year by the Congress.
Section 1920 of the Act also specifies that 5 percent of the amount
appropriated in a given year shall be used by the Department of Health
and Human Services (DHHS) to collect data on mental health services and
patients and conduct evaluations of programs to prevent and treat
mental health problems. The remaining 95 percent of any appropriation
for the CMHS Block Grant must be allocated to the States and
territories.
Section 1918 of the PHS Act provides formulas for making these
allocations. Of the 95 percent of the appropriation available for
distribution 98.5 percent must be given to the States and 1.5 percent
must be distributed to the territories.
B. State Allocations
The amount of an allotment for an individual State is determined by
three factors: the Population at Risk, the Cost of Services Index, and
the Fiscal Capacity Index. The Population at Risk represents the
relative risk of mental health problems in a State. The Cost of
Services Index represents the relative costs of providing mental health
services in a State. The Fiscal Capacity Index represents the relative
ability of a State to pay for mental health services. The product of
these three terms establishes the need for a given State.
Formulas for calculating Population at Risk and the Fiscal Capacity
Index are specified in Sections 1918(a)(5) and (6) of the PHS Act. The
Cost of Services Index formula is included by reference and derived
from a report entitled Adjusting the Alcohol, Drug Abuse and Mental
Health Services Block Grant Allocations for Poverty Populations and
Cost of Service, dated March 30, 1990, prepared by Health Economics
Research.
The law requires the estimate of the Population at Risk and the
Fiscal Capacity Index be revised each fiscal year. The Cost of Services
Index is revised every third fiscal year. Section 1918(a)(8) of the PHS
Act provides that the first determination of the Cost of Services Index
would be made on October 1, 1992. The same factor remained in effect
until FY 1995 when a new Index was developed. The Index will be
recalculated for FY 1998. DHHS is also directed by the legislation to
``periodically make such refinements in the methodology * * *'' for the
calculation of the Cost of Services Index as are consistent with the
purpose of this adjustment of the allotments. (See Technical Note B,
Section V.)
C. State Calculations for the Mental Health Block Grant
The allocation for each State is calculated using equations
described below. For the purposes of explanation, the subscript ``I''
is used to denote an individual State or the District of Columbia. The
symbol ``''is used to denote the summation over the 50 States
and the District of Columbia.
General Equation:
SALLOCi = 0.985*0.95*AMT*(Pi*Ci*Fi)/
((Pi*Ci*Fi)) (1)
where:
SALLOCi = State specific allotment of the block grant.
AMT = appropriation for mental health and related services.
Pi = State specific Population at Risk (calculated using
Equation 2).
Ci = State specific Cost of Services Index (calculated using
Equation 3).
Fi = State specific Fiscal Capacity Index (calculated using
Equation 8).
The coefficients 0.985 and 0.95 are specified in the legislation.
The first coefficient (0.985) represents the proportion of the total
allocable funds available for distribution to the States and the
District of Columbia. The second coefficient (0.95) represents the
proportion of the total appropriation available for allocation to all
recipients--the States, the District of Columbia, and the territories.
Equation for the State Population at Risk:
Pi = 0.107*P18-24i+0.166*P25-44i+0.099*P45-
64i+0.082*P65UPi (2)
where:
P18-24i = State specific population aged 18 to 24.
P25-44i = State specific population aged 25 to 44.
P45-64i = State specific population aged 45 to 64.
P65UPi = State specific population aged 65 and older.
The coefficients 0.107, 0.166, 0.099, and 0.082 are specified in
the legislation. The population of each State by age group is obtained
from the Bureau of the Census, ``Resident Population of States, by
Single Year of Age,'' using the most current data available as of
October 1 of each year.
Equation for the Cost of Services Index:
[[Page 30627]]
Ci = 0.9 if 0.75*Wi+0.15*Ri+0.10*Si i+0.15*Ri+0.10*Si > 1.1 Ci =
0.75*Wi+0.15*Ri+0.10*Si otherwise
where:
Wi = State specific wage subindex (calculated using Equation
4).
Ri = State specific rent subindex (calculated using Equation
5).
Si = State specific supplies subindex.
The coefficients 0.75, 0.15, and 0.10 are specified in the report
cited by the legislation, as is Si, which is equal to 1 for all
States and the District of Columbia. The boundary values of 0.9 and 1.1
are specified in the legislation.
Equation for State Specific Wage Subindex:
Wi = AVGSTHWi/AVGUSHW (4)
where:
AVGSTHWi = average State specific hourly manufacturing wage
including overtime.
AVGUSHW = average U.S. hourly manufacturing wage including overtime.
The State and national wage data are obtained from the Bureau of
Labor Statistics, Current Employment Statistics Survey, ``Employment,
Hours and Earnings,'' using the most current data available as of
October 1 of each year.
Equation for State Specific Rent Subindex:
Ri = AVGSTRTi/AVGUSRT (5)
where:
AVGSTRTi = weighted average State specific rent (calculated
using Equation 6).
AVGUSRT = weighted average U.S. rent (calculated using Equation 7).
Equation for Weighted Average State Specific Rent:
AVGSTRTi = (POPij*RENTij)/(POPij)
(6)
where:
POPij = population of jth subarea of the State.
RENTij = fair market rent of 4-bedroom dwelling in jth subarea
of the State.
Each State is subdivided into ``J'' mutually exclusive subareas
that cover the State. If the State is not a New England State,
population source data PSOURCEij (obtained at the State, county,
subdivision and place levels from the Bureau of the Census, ``Census of
Population and Housing''), and rent source data RTSOURCEij
(obtained at the State, county, and SMSA levels from the Department of
Housing and Urban Development, ``Fair Market Rents...'') are used to
calculate POPij and RENTij on a county-level basis (after
addition of population of ``independent cities'' for HI, MD, MO, MT,
and VA). If State I is a New England State, SMSA codes (obtained from
the Office of Management and Budget, ``Revised Statistical Definitions
of Metropolitan Areas (MAs) and Guidance on Uses of MA Definitions'')
are matched to county subdivisions; the non-SMSA balances of county
populations (using data obtained from the Bureau of the Census, ``Non-
metropolitan New England County Names and Codes'') are determined;
POPij and RENTij are calculated on a township-level basis by
assigning groups of FIPS codes (obtained from the Department of
Commerce, ``FIPS Publications'') to SMSAs; and POPij and
RENTij are matched and merged.
Equation for the Weighted Average of the U.S. Rent:
AVGUSRT = (POPij*RENTij)/
(POPij) (7)
Equation for State Specific Fiscal Capacity Index:
Fi = maximum of 0.4 and 1-(0.35*((AVGTTRi/Ci)/
(AVGTTRi/Ci))/(Pi/Pi)), if
specific State variable is a State, otherwise; 1-
(0.35*((AVGTPIi/Ci)/(AVGTPIi/Ci))/
(Pi/Pi)) if the State variable is DC (8)
where:
AVGTTRi = State specific 3-year average Total Taxable Resources
(calculated using Equation 9).
AVGTPIi = State specific 3-year average Total Personal Income
(calculated using Equation 10).
The boundary value of 0.4, constant of 1, and coefficient of 0.35
are specified in the legislation.
Equation for State Specific 3-Year Average Total Taxable Resources:
AVGTTRi = (TTR1i+TTR2i+TTR3i)/3 (9)
where:
TTR1i, TTR2i and TTR3i = State specific Total Taxable
Resources, 3 most recent years.
The total taxable resources by State data are obtained from the
Department of the Treasury, ``Total Taxable Resources by State, and are
updated annually for all three years used in the calculations.
Equation for State Specific 3-Year Average Total Personal Income:
AVGTPIi = (TPI1i+TPI2i+TPI3i)/3 (10)
where:
TPI1i, TPI2i and TPI3i = State specific Total
Personal Income, 3 most recent years.
The total personal income by State data are obtained from the
Department of Commerce, Survey of Current Business, and are updated
annually for all three years used in the calculations.
D. Territory Allocations
The amount of an allotment for an individual territory is
determined by multiplying the appropriation amount for allotment to all
territories by the ratio of civilian population for an individual
territory to the civilian population of all territories. (See Technical
Note C, Section V.) Section 1918 of the PHS Act states that no
territory shall receive less than a minimum allotment of $50,000 each
fiscal year.
E. Territory Calculations for Mental Health Block Grant
The allocation for each territory is calculated using the equation
described below. For the purposes of explanation, the subscript ``I''
is used to denote an individual territory, and the symbol ``''
is used to denote the summation over all territories.
TALLOCi=maximum of $50,000 and 0.015*0.95*AMT*PCCIVILi/
PCCIVILi (11)
where:
PCCIVILi=Civilian population per most recent decennial census
for Territory I.
The coefficients 0.015 and 0.95 are specified in the legislation.
They represent the proportion (0.015) of the total allocable funds to
be distributed among the territories and the proportion (0.95) of the
total appropriation to be allocated among the States, DC and the
territories. The appropriation amount is established by Congress. The
civilian population data is obtained from the Bureau of the Census,
``Estimates of Resident Population of States, by Age.'' If the
Secretary determines that recent data on the civilian population of a
territory are not available for a fiscal year, the law authorizes DHHS
to estimate the population for the territory by modifying the most
recent data to reflect the average extent of change occurring during
the period in the population of all territories for which recent data
do exist. (See Technical Note C, Section V.) The boundary of $50,000 is
specified in the legislation.
III. Legislative Requirements and Allocation Process for Substance
Abuse Prevention and Treatment (SAPT) Block Grant
A. Legislative Requirements
Sections 1921 through 1935 of the Public Health Service (PHS) Act
establish the SAPT Block Grant and the rules that must be followed in
making these grants. Section 1935(a) of the Act authorizes the
appropriation of funds for the substance abuse block grant. The size of
the appropriation is determined each year by the Congress. Section
1935(b) of the Act requires that 5 percent of the appropriated amount
in a given year shall be used by DHHS for data collection to determine
the incidence and prevalence of substance abuse and for technical
assistance and program evaluations relevant to substance abuse
treatment and prevention. The remaining 95 percent of the appropriation
must be allocated among the States and territories.
Section 1933 of the PHS Act provides a formula for this allocation.
The law
[[Page 30628]]
specifies that 98.5 percent of the total allocation available for
distribution must be given to the States. The remaining 1.5 percent of
the total must be distributed to the territories.
The law also provides for a direct federal allotment for Indian
tribes or tribal organizations that meet certain requirements. For any
tribe eligible to receive a direct allotment (See Technical Note E,
Section V.), the tribe's share of the relevant State's share is the
ratio of the tribe's FY 1991 allotment to that portion of the State
allotment actually spent on the authorized activities.
B. State Allocations
The amount of an allotment for a specific State is determined by
three factors: the Population at Risk, the Cost of Services Index, and
the Fiscal Capacity Index. The Population at Risk represents the
relative risk of substance abuse problems in a State. The Cost of
Services Index represents the relative costs of providing substance
abuse prevention and treatment services in a State. The Fiscal Capacity
Index represents the relative ability of the State to pay for substance
abuse related services. The product of these three terms establishes
the need for a given State.
Formulas for calculating Population at Risk and the Fiscal Capacity
Index are specified in legislation. The Cost-of-Services Index formula
is not contained in the legislation, but is defined as a factor
``determined according to the methodology presented in the report
entitled Adjusting the Alcohol, Drug Abuse and Mental Health Services
Block Grant Allocations for Poverty Populations and Cost of Service,''
dated March 30, 1990, prepared by Health Economics Research.
The law requires the estimates of the Population at Risk and the
Fiscal Capacity Index be revised each fiscal year. The Cost of Services
Index is revised every third fiscal year. Section 1918(a)(8) of the PHS
Act provides that the first determination of the Cost of Services Index
be made on October 1, 1992. The same factor remained in effect until FY
1995 when a new Index was developed. The Index will be recalculated for
FY 1998. DHHS is also directed by the legislation to ``* * *
periodically make such refinements in the methodology * * *'' for the
calculation of the Cost of Services Index as are consistent with the
purpose of this adjustment of the allotments. (See Technical Note B,
Section V.)
C. State Calculations for the Substance Abuse Block Grant
The allocation for each State is calculated using equations
described below. For the purposes of explanation, the subscript ``I''
is used to denote an individual State or the District of Columbia, and
the symbol ``'' is used to denote the summation over the 50
States and the District of Columbia.
General Equation:
SALLOCi=0.985*0.95*AMT*(Pi*Ci*Fi)/
((Pi*Ci*Fi)) (12)
where:
SALLOCi=State specific allotment of the block grant.
AMT=appropriation for substance abuse and related services.
Pi=State specific Population at Risk Index (calculated using
Equation 13).
Ci=State specific Cost of Services Index (calculated using
Equation 15).
Fi=State specific Fiscal Capacity Index (calculated using
Equation 20).
The coefficients 0.985 and 0.95 are specified in the law. The first
coefficient (0.985) represents the proportion of the total allocable
funds available for distribution to the States and the District of
Columbia. The second coefficient (0.95) represents the proportion of
the total appropriation available for allocation to all recipients--the
States, the District of Columbia, and the territories.
Equation for the State Population at Risk:
Pi=0.5*(P18-24i+UP18-24i)/((P18-
24i+UP18-24i))+0.5*(P25-64i/P25-64i)
(13)
where:
P18-24i=State specific population aged 18 to 24.
UP18-24i=State specific urban population aged 18 to 24
(calculated using Equation 14).
P25-64i=State specific population aged 25 to 64.
The coefficients 0.5 are specified in the legislation. The State
population by age group is obtained from the Bureau of the Census,
``Resident Population of States, by Single Year of Age,'' using the
most current data available as of October 1 of each year.
Equation for the State Specific Urban Population:
UP18-24i=P18-24i*UPC18-24i/PC18-24i (14)
where:
UPC18-24i=State specific urban population aged 18 to 24 (per
most recent decennial census).
PC18-24i=State specific population aged 18 to 24 (per most
recent decennial census).
Both sets of decennial census-based population data are obtained
from the Bureau of the Census, Census of Population and Housing, 1990:
Summary Tape File 1C. (See Technical Note D, Section V.)
Equation for the Cost of Services Index:
Ci=0.9 if 0.75*Wi+0.15*Ri+0.10*Sii+0.15*Ri+0.10*Si>1.1
Ci=0.75*Wi+0.15*Ri+0.10*Si otherwise.
where:
Wi=State specific wage subindex (calculated using Equation 16).
Ri=State specific rent subindex (calculated using Equation 17).
Si=State specific supplies subindex.
The coefficients 0.75, 0.15, and 0.10 are specified in the article
cited by the legislation, as is Si, which is equal to 1 for all
States and the District of Columbia. The boundary values of 0.9 and 1.1
are specified in the legislation.
Equation for State Specific Wage Subindex:
Wi=AVGSTHWi/AVGUSHW (16)
where:
AVGSTHWi=average State specific hourly manufacturing wage
including overtime.
AVGUSHW=average U.S. hourly manufacturing wage including overtime.
The State and national wage data are obtained from the Bureau of
Labor Statistics, Current Employment Statistics Survey, ``Employment,
Hours and Earnings,'' using the most current data available as of
October 1 of each year.
Equation for Weighted Average State Specific Rent Subindex:
Ri=AVGSTRTi/AVGUSRT (17)
where:
AVGSTRTi=weighted average State specific rent (calculated using
Equation 18).
AVGUSRT=weighted average U.S. rent (calculated using Equation 19).
Equation for Weighted Average State Specific Rent:
AVGSTRTi=(POPij*RENTij)/
(POPij) (18)
where:
POPij=population of jth subarea of State I.
RENTij=fair market rent of 4-bedroom dwelling in jth subarea of
State I.
Each State is subdivided into ``J'' mutually exclusive subareas
that cover the State. If State I is not a New England State, population
source data PSOURCEij (obtained at the State, county, subdivision
and place levels from the Bureau of the Census, ``Census of Population
and Housing''), and rent source data RTSOURCEij (obtained at the
State, county, and SMSA levels from the Department of Housing and Urban
Development, ``Fair Market Rents * * *'') are used to calculate
POPij and RENTij on a county-level basis (after addition of
population of ``independent cities'' for HI, MD, MO, MT, and VA). If
State I is a New England State, SMSA codes (obtained from the Office of
Management and Budget, ``Revised Statistical Definitions of
Metropolitan
[[Page 30629]]
Areas (MAs) and Guidance on Uses of MA Definitions'') are matched to
county subdivisions; the non-SMSA balances of county populations (using
data obtained from the Bureau of the Census, ``Non-metropolitan New
England County Names and Codes'') are determined; POPij and
RENTij are calculated on a township-level basis by assigning
groups of FIPS codes (obtained from the Department of Commerce, ``FIPS
Publications'') to SMSAs; and POPij and RENTij are matched
and merged.
Equation for Weighted Average of the U.S. Rent:
AVGUSRT=(POPij*RENTij)/
(POPij) (19)
Equation for State Specific Fiscal Capacity Index:
Fi=maximum of 0.4 and 1-(0.35*((AVGTTRi/Ci)/
(AVGTTRi/Ci))/(Pi/Pi)), if
specific State is a State, otherwise 1-(0.35*((AVGTPIi/
Ci)/(AVGTPIi/Ci))/(Pi/
Pi)) if the State variable is DC (20)
where:
AVGTTRi=State specific 3-year average Total Taxable Resources
(calculated using Equation 21).
AVGTPIi=State specific 3-year average Total Personal Income
(calculated using Equation 22).
The boundary value of 0.4, constant of 1, and coefficient of 0.35
are specified in the legislation.
Equation for State Specific 3-Year Average Total Taxable Resources:
AVGTTRi=(TTR1i+TTR2i+TTR3i)/3 (21)
where:
TTR1i, TTR2i and TTR3i=State specific Total Taxable
Resources, 3 most recent years.
The total taxable resources by State data are obtained from the
Department of the Treasury, ``Total Taxable Resource by State,'' and
are updated annually for all three years used in the calculations.
Equation for State Specific 3-Year Average Total Personal Income:
AVGTPIi=(TPI1i+TPI2i+TPI3i)/3 (22)
where:
TPI1i, TPI2i and TPI3i=State specific Total Personal
Income, 3 most recent years.
The total personal income by State data are obtained from the
Department of Commerce, ``Survey of Current Business,'' and are updated
annually for all three years used in the calculations.
D. Territory Allocations
The amount of an allotment for an individual territory is
determined by multiplying the appropriation amount for allotment to all
territories by the ratio of civilian population for an individual
territory to the civilian population of all territories. (See Technical
Note C, Section V.) Section 1933 of the PHS Act specifies that no
territory shall receive less than a minimum allotment of $50,000 each
fiscal year.
E. Territory Calculations for Substance Abuse Block Grant
The allocation for each territory is calculated using the equation
described below. For the purposes of explanation, the subscript ``I''
is used to denote an individual territory, and the symbol ``''
is used to denote the summation over all territories.
TALLOCi=maximum of $50,000 and
0.015*0.95*AMT*PCCIVILi/PCCIVILi (23)
where:
PCCIVILi=Civilian population per most recent decennial census
for Territory I.
The coefficients 0.015 and 0.95 are specified in the legislation.
The first coefficient (0.015) represents the proportion of the total
allocable funds to be distributed among the territories. The second
coefficient (0.95) represent the proportion of the total appropriation
to be allocated among the States, DC and the territories. The Congress
establishes the level of the appropriation each fiscal year. The
civilian population data is obtained from the Bureau of the Census,
``Estimates of Resident Population of States, by Age.'' If the
Secretary determines that recent data on the civilian population of a
territory are not available for a fiscal year, the law authorizes DHHS
to estimate the population for the territory by modifying the most
recent data to reflect the average extent of change occurring during
the period in the population of all territories for which recent data
do exist. (See Technical Note C, Section V.) The boundary of $50,000 is
specified in the legislation.
F. Allocations to Indian Tribes and Tribal Organizations
The Red Lake Band of the Chippewa Indians in Minnesota receives a
direct allocation, as provided under Section 1933(d) of the PHS Act.
(See Technical Note E, Section V.) Therefore, the substance abuse block
grant allocation for the State of Minnesota is apportioned between the
Red Lake Band of Chippewas and the remainder of the State as provided
in the law and described in the following equations.
Equation for Allotment of Funds to the Red Lake Indians:
RLIALLOC=SALLOCMN*0.0240535 (24)
where:
RLIALLOC=allotment for Red Lake Indians.
SALLOCMN=Minnesota State allotment (calculated using Equation
12).
The coefficient 0.0240535 reflects FY 1991 funding, as specified by
Section 1933(d) of the PHS Act.
Equation for the Allotment for the Remainder of Minnesota:
MNRALLOC=SALLOCMN-RLIALLOC (25)
where:
MNRALLOC=allotment for the remainder of Minnesota.
IV. Data Elements and Sources
The following table presents a list of data elements used in the
allocation formulas. It identifies the agency that develops the data,
the frequency with which that source agency updates the data, and
includes some technical notes about the data as they are used in the
allocation formulas. The table also shows the years of the data used in
the FY 1996 allocations.
------------------------------------------------------------------------
Data element and update
frequency by source agency Data source Notes
------------------------------------------------------------------------
Total Taxable Resources U.S. Department of 1. Calculations are
(TTR), by State--Annual. the Treasury, made specifically
Office of Economic for these block
Policy. Unpublished grants, and
data, dated August provided to SAMHSA
24, 1994. on diskette.
2. Annual estimates
include revision of
estimates for the
two prior years.
Therefore, all
three years of data
are replaced each
year.
3. The data used in
the calculations
consist of the
source data as
received truncated
to three
significant decimal
places
4. FY 1996
allocations use 3-
year average of
data for 1991,
1992, 1993.
5. Used in Fiscal
Capacity Index.
[[Page 30630]]
Total Personal Income (TPI), U.S. Department of 1. Final estimates
by State--Annual. Commerce, Bureau of are typically
Economic Analysis. published in
Survey of Current August, including
Business: Press revision of
release BEA 94-36 estimates for the
dated August 23, two prior years.
1994, Table 3-- Therefore, all
Total Personal three years of data
Income, by State are replaced each
and Region, 1989-93. year.
2. FY 1996
allocations use 3-
year average of
data for 1991,
1992, 1993.
3. Used in Fiscal
Capacity Index.
Estimates of Resident U.S. Department of 1. The only Bureau
Population of States, by Commerce, Bureau of of the Census
Age--Annual. the Census. release of
Unpublished population
estimates by the estimates by single
Population year of age (needed
Division, to create age
Population groupings for
Distribution Branch. population at risk
in each block
grant) is in early
March for July 1 of
the previous year.
Data for July 1,
1993 were only
released on
diskette by the
Population
Distribution
Branch, Population
Division, 301-457-
2385. Cost is $20.
Data for subsequent
years are available
on the Internet;
estimates on the
Internet are those
for the most recent
year available.
2. FY 1996
allocations use
estimates for July
1, 1993.
3. Used to determine
Population at Risk.
Population age 18-24 and 18- U.S. Department of 1. Urbanized
24 living in urbanized Commerce, Bureau of population is used
areas, by State--Decennial. the Census. Census only in the
of Population and substance abuse
Housing, 1990: block grant.
Summary Tape File
1C.
2. The Bureau of the
Census does not
make inter-censal
estimates of the
urbanized
population.
Therefore, data
from the 1990
census are used
until data from the
2000 census are
available.
3. Used to determine
Population at Risk.
Population by county-- U.S. Department of 1. County population
Decennial. Commerce, Bureau of is used in
the Census. Census conjunction with
of Population and Fair Market Rent in
Housing, 1990: the Cost of
Summary Tape File Services Index.
1C.
2. In order to have
population data for
the specific
geographic area
configurations used
in the FMR files,
it is necessary to
use data available
only from the
decennial census.
1990 data were used
for FY 1996
allocations.
3. Used in Cost of
Services Index
Civilian population of the U.S. Department of 1. Each press
U.S. territories--Varies. Commerce, Bureau of release also
the Census, included data for
Population 1980, except for
Division. 1990 data Puerto Rico. 1980
released in press data for Puerto
releases, as Rico are from
follows: American report PC 80-1-A53,
Samoa, CB 91-242 (7/ Table 2, page 53-10
24/91); Guam, CB 91- (12/84).
276 (9/13/91);
Northern Mariana
Islands, CB 91-243
(7/24/91); Palau,
CB 91-244 (7/24/
91); Puerto Rico CB
91-275 (9/13/91);
Virgin Islands CB
91-263 (8/23/91).
2. The Bureau of the
Census no longer
collects data for
the Federated
States of
Micronesia and the
Republic of the
Marshall Islands.
See Technical Note
C in Section V.
3. Inter-censal
estimates are made
only for Puerto
Rico.
Average hourly manufacturing U.S. Department of 1. Data include
wage, by State--Annual. Labor, Bureau of overtime.
Labor Statistics,
Current Employment
Statistics Survey,
``Employment and
Earnings,'' May
1994. Table 2, p.
162--(Annualized)
Average Hourly
Earnings, by State,
1993.
2. FY 1996
allocations use
1993 data.
3. Used in Cost of
Services Index.
U.S. average manufacturing U.S. Department of 1. Data include
wage--Annual. Labor, Bureau of overtime.
Labor Statistics.
Current Employment
Statistics Survey,
``Employment and
Earnings,'' May
1994. Table B-2, p.
52--National
(Annualized)
Average Hourly
Earnings for 1993.
2. FY 1996
allocation uses
data for 1993.
3. Used in Cost of
Services Index.
Four Bedroom Fair Market ``Section 8 Housing 1. HUD is required
Rent (FMR)--Annual. Assistance Payments by law to establish
Program; Fair FMRs annually and
Market Rent to publish proposed
Schedules for Use and final FMR's in
in the Rental the Federal
Certificate Register.
Program, Loan
Management and
Property
Disposition
Programs; Moderate
Rehabilitation
Program and Rental
Voucher Program (24
CFR Part 888)
issued by the
Department of
Housing and Urban
Development, Office
of the Secretary.
Federal Register,
September 28, 1994,
Part IV; Vol 59,
No. 187, pp. 49494-
49553..
[[Page 30631]]
2. The typical cycle
is a Notice of
Proposed Rule
Making published in
late April or early
May, with the Final
Rule published in
the last two weeks
of September for an
October 1 effective
date.
3. Used in Cost of
Services Index.
Metropolitan Area ``Section 8 Housing 1. The Federal
Definitions for FMR-- Assistance Payments Register notice
Annual, at a minimum. Program; Fair fully documents how
Market Rent ``housing market
Schedules for Use areas'' are defined
in the Rental and how
Certificate Metropolitan Area
Program, Loan definitions are
Management and used. For non-
Property metropolitan areas,
Disposition counties are used.
Programs; Moderate In New England,
Rehabilitation town definitions
Program and Rental are used.
Voucher Program (24
CFR Part 888)
issued by the
Department of
Housing and Urban
Development, Office
of the Secretary.
Federal Register,
April 6, 1994, Part
XII, Vol 59, No.
66, pp. 16408-16484.
2. Used in Cost of
Services Index
------------------------------------------------------------------------
V. Technical Notes
A. Establishment of Cutoff Date for ``Most Recent Data''
The legislation for both block grants refers to use of the most
recent available data in calculating the allotments for each State and
territory. Section 1918(a)(5)(B) states that ``With respect to data on
population that is necessary for purposes of making a determination
under subparagraph (A), the Secretary shall use the most recent data
that is available from the Secretary of Commerce pursuant to the
decennial census and pursuant to reasonable estimates by such Secretary
of changes occurring in the data in the ensuing period.'' Section
1918(a)(6)(B)(I) requires use of ``the most recent 3-year arithmetic
mean of the total taxable resources of the State, as determined by the
Secretary of the Treasury.'' Section 1918(a)(6)(D)(ii) requires ``the
most recent 3-year arithmetic mean of total personal income in such
District [the District of Columbia], as determined by the Secretary of
Commerce.''
When the legislation for the two block grants was first
implemented, SAMHSA staff tried to update population and other data
whenever new estimates of the block grant allotments were required.
This caused considerable confusion because projections of specific
State allotments under the two Block Grant programs were changing
constantly. Specific State allotment projections for various
appropriation levels must be provided to Congress early in the budget
consideration process; and changing estimates complicate the decision
making process.
Given the time constraints and the need for consistent estimates
for the budget process, SAMHSA now bases all calculations on the latest
data available by the beginning of each fiscal year (October 1). For
example, allotments for FY 1997, determined during FY 1996, employ
those data available as of October 1, 1995. This approach was adopted
for all allotment determinations beginning with those for FY 1996.
Congress was notified of the change in approach in February, 1995.
B. Wage Data Set for Cost of Services Index
The Cost of Services Index is discussed on page 13 of the report
cited in Section 1918(a)(8)(B) of the Act. According to that report ``*
* * the ideal cost-of-service measure would be data on the cost of
providing a standard set of substance abuse and mental health services
in each State.'' The report also notes such data are not available. The
report reviews several potential sources of wage data, and proposes the
use of non-manufacturing wage data from the decennial Census of
Population and Housing. At the time of the 1990 report, the only census
information available was 1980. Those data referred to earnings in
1979. A copy of the unpublished report is available on request from the
`Information Contact' listed at the beginning of this notice.
When SAMHSA began to assemble information to make the first block
grant allotment computations, the non-manufacturing wages data from the
1990 census were not yet available and the 1979 data were out-of-date.
After consultation with the Comptroller General, as required by the PHS
Act, SAMSHA decided to use manufacturing wage data collected annually
by the Bureau of Labor Statistics (BLS) through the Current Employment
Statistics Program for developing estimates for the Cost of Services
Index.
There are several advantages to using manufacturing wage data. (1)
Timeliness. The BLS data are collected continuously on a monthly basis.
In contrast, the most recent non-manufacturing data were collected in
1989 during the decennial census and are not subject to post-census
updates in the years between censuses. (2) Reliability. Hours and
earnings manufacturing data are based on the actual records of gross
payrolls and corresponding paid hours of employment maintained by
economic establishments for a variety of tax and accounting purposes.
Non-manufacturing decennial census data are based on individual self-
report. (3) Scope. Manufacturing wage data are collected on a monthly
basis from a large sample of manufacturing establishments from which
valid estimates of wages at the State level can be made. According to
the BLS ``Manual on Series Available and Estimating Methods, Current
Employment Statistics Program, March 1994,'' published in March 1995,
the sample contains over 61,000 manufacturing establishments. Non-
manufacturing data are collected from a 1-in-6 sample of households in
the decennial census, only a portion of which report non-manufacturing
wage data. (4) Suitability. Because the sampling point for the BLS
Current Employment Statistics Program is the economic establishment,
i.e., the point at which economic activity is generated, the resulting
manufacturing wage data are better suited to providing information on
the geographic distribution of employment and its impact on the demand
for labor as measured by wage rates.
BLS collects its data from a survey conducted in cooperation with
State Employment Security Agencies, which obtain the data from a sample
of employers who are able to report the actual weekly wage data from
their records of payments. By contrast, the household survey method
used in the decennial census to obtain non-manufacturing wage data
places primary emphasis on the employment status of individuals and
other demographic
[[Page 30632]]
characteristics of the labor force. To obtain its estimates, Census
divides the total annual income due to wages reported by households by
52 to derive a weekly figure. The data are then divided by the reported
number of hours worked during the census week to derive a wage value.
The resulting estimate is not precise. Therefore, the BLS manufacturing
wage data are used in computing the allotments under the block grants.
The appropriate Congressional committees were informed of this
approach.
C. Population Estimates for Territories
For both the mental health and the substance abuse block grants the
law provides that the Secretary shall estimate the civilian population
of a territory current if data on the civilian population of the
territory does not exist. These estimates are developed by modifying
the population estimates for the territories for which recent data do
not exist by the average increase or decrease in the population of all
territories for which there are recent data.
Data are available from the 1990 census for American Samoa, Guam,
the Northern Mariana Islands, Palau, Puerto Rico and the Virgin
Islands. For the Federated States of Micronesia and the Republic of the
Marshall Islands the latest data on population are from 1980. The
Census Bureau no longer has responsibility for collecting data from
these two territories, which signed Compacts of Free Association with
the United States in 1988. The 1990 population estimates for the
Federated States of Micronesia and the Republic of the Marshall Islands
were derived by applying the average percent change between 1980 and
1990 for the other territories to their 1980 populations. This
determination was made as follows:
Territory Populations for Which the Bureau of the Census--Collected Data
in 1980 and 1990 and Percent Change 1980-1990
------------------------------------------------------------------------
1980 1990 Percent
Territory Population Population change
------------------------------------------------------------------------
American Samoa................... 32,297 46,773 +44.8
Guam............................. 105,979 133,152 +25.6
Northern Mariana Islands......... 16,780 43,345 +158.3
Palau............................ 12,116 15,122 +24.8
Puerto Rico...................... 3,196,520 3,522,037 +10.2
Virgin Islands................... 96,569 101,809 +5.4
--------------
Average Increase........... ........... ........... +44.9
------------------------------------------------------------------------
1990 Estimated Populations of Territories for Which the Bureau of the Census No Longer Collects Data
----------------------------------------------------------------------------------------------------------------
1990 Estimated
population (using 44.9
1980 Population as percent average
Territory enumerated territory population
increase from above
table)
----------------------------------------------------------------------------------------------------------------
Federated States of Micronesia................................ 73,087 105,903
Republic of the Marshall Islands.............................. 30,873 44,735
----------------------------------------------------------------------------------------------------------------
The Bureau of the Census has made post-1990 decennial census
estimates only for Puerto Rico. With post-1990 estimates available only
for Puerto Rico, the only way to adjust the population estimates for
the other territories is to assume that the percentage change in the
population of each is similar to the percentage change in Puerto Rico.
Since the distribution of funding for each territory is proportional to
its contribution to the total population of the territories, any
adjustment based only on the change for Puerto Rico would not alter the
allocation of funds. Therefore, the territory population data and
estimates for 1990 continue to be used for allocation purposes.
D. Population in Urbanized Areas for Substance Abuse Block Grant
The formula for the SAPT block grant adjusts for the population at
risk for substance abuse using the State population between 18-24 years
of age living in urbanized areas and the total U.S. population between
18-24 years living in urbanized areas. The Bureau of the Census does
not make inter-censal estimates of the population living in urbanized
areas. Therefore, the estimates of this population group are derived
from the 1990 census.
E. Indian Tribes Receiving Direct Allotments Under the Substance Abuse
Block Grant
Section 1933(d) of the Act provides for separate grants for
substance abuse prevention and treatment to Indian tribes or tribal
organizations. Several categorical grant programs for which a number of
tribes had been direct recipients were folded into the former ADMS
block grant when it was established in 1981. The Red Lake Band of the
Chippewa Indians in Minnesota was the only tribe or tribal organization
still receiving ADMS block grant funds at the time the SAPT Block Grant
was established in 1992 and is therefore the only Indian tribe
currently eligible for direct receipt of funds. This group continues to
receive a direct allotment under the SAPT Block Grant. The funding
level for the Red Lake Indians, as determined by SAMSHA based on FY
1991 funding levels, is 0.0240535 of the total amount of the Minnesota
annual allocation.
Dated: June 7, 1996.
Richard Kopanda,
Executive Officer, SAMHSA.
[FR Doc. 96-15010 Filed 6-14-96; 8:45 am]
BILLING CODE 4162-20-P
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