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Statistical Issues in Allocating Funds by Formula (2003) Committee on National Statistics (CNSTAT)

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. "Appendix B: A Review of Twelve Large Formula Allocation Programs." Statistical Issues in Allocating Funds by Formula. Washington, DC: The National Academies Press, 2003.

 Page 101

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Statistical Issues in Allocating Funds by Formula

Box B-1 Formula Allocation Program Description

CFDA number and name: 84.027 Special Education Grants to States

Subprogram (if applicable):

 Basis for allocation: [ ] Amounts or shares in legislation [ x ] Formula in legislation [ ] Formula in regulations Source of funds: [ x ] General revenues [ ] Special (describe) Recipients: [ x ] States [ ] Other (describe) Matching provisions: [ x ] No [ ] Yes (describe) Type of formula: [ ] Closed [ x ] Other (describe)

The basic formula is closed, but because of a variety of caps and hold-harmless provisions, an iterative process is required to determine the final allocations.

Formula:

The “permanent formula,” which first took effect in FY 2000, with FY 1999 as the base year, is:

Ai t = Ai 99 + (At - SiAi99) (0.85 P1 i / Si P1 i + 0.15 P2 i / Si P2 i)

Prior to FY 2000, allocations were based on state counts of children served in their programs.

Definition of left-hand element:

Ai t = amount allocated to state i in fiscal year t.

 Page 101
 Front Matter (R1-R14) Executive Summary (1-4) 1. Introduction (5-17) 2. Why Provide Aid and Use Aid Formula? (18-25) 3. Basic Features of Formula Allocation Program (26-34) 4. Components of Allocation Formula (35-39) 5. Special Features of Formula Allocations (40-49) 6. Data Sources for Estimating Formula Components (50-58) 7. A State View -- California (59-70) 8. International Perspective (71-78) 9. Conclusions and Recommendations (79-89) References (90-94) Appendix A: Background Papers (95-99) Appendix B: A Review of Twelve Large Formula Allocation Programs (100-128) Appendix C: Sources of Information (129-137) Appendix D: Handbook on Fund Allocation Formulas and Processes (138-141) Appendix E: Participation in Panel Workshop and Meetings (142-142) Appendix F: Biographical Sketches of Panel Members and Staff (143-147)