Intertitle Transfers--A Way for States To Increase Federal Funding for Social Services

HRD-81-116: Published: Jul 10, 1981. Publicly Released: Jul 10, 1981.

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GAO initiated a review of the extent and magnitude of transfers of social services costs from title XX of the Social Security Act to other funding sources. These intertitle transfers are the costs of social services historically charged to social services programs which, subsequent to the ceiling on social services, are now being charged to other Federal funding sources. Federal social services cost reimbursements under title XX are subject to a statutory ceiling. States at their ceiling are faced with reducing or eliminating services, using more State and local funds, and/or utilizing alternative sources of Federal funding to help finance their social services programs. States may transfer program elements from title XX to other Federal titles which have no maximum allocation and for which States are reimbursed a percentage of their costs.

Most states used, or anticipated using, intertitle transfers of social services program costs to increase Federal funding of their social services programs. State transfers of family planning services costs were most frequent, followed by child day care costs. Titles XIX and IV-A of the Social Security Act were the most frequently used alternative funding sources. Assuming that the costs trasferred were valid program costs under both title XX and the alternative funding source, the intertitle transfers were legal.

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