FY 1986 Budget Sequestration:

Agency Approaches To Implementing Reductions Under Formula Grants

HRD-86-130FS: Published: Aug 8, 1986. Publicly Released: Sep 8, 1986.

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Pursuant to a congressional request, GAO provided information on the implementation of the 4.3-percent budget reduction resulting from deficit reductions in 48 formula grant programs, specifically the number of major formula grant programs that distributed cuts disproportionately, rather than reducing each state's allocation by 4.3 percent.

GAO found that: (1) 12 of the programs distributed budget reductions disproportionately among states using the programs' formulas; (2) 3 of the 12 programs had percentage reductions that were substantially different from what they would have been if the reductions had been proportional; and (3) the remaining 14 programs distributed reductions proportionally among the states.

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