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Federal Formula Programs: Outdated Population Data Used to Allocate Most Funds

HRD-90-145 Published: Sep 27, 1990. Publicly Released: Oct 29, 1990.
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Highlights

Pursuant to a congressional request, GAO identified federal formula programs that used outdated population data to distribute funds to state and local governments, focusing on: (1) formula programs that used Census Bureau population data to distribute funds; (2) what population data and data sources federal agencies used and were required to use to distribute funds; and (3) whether the Census Bureau provided or could provide more current population data from the decennial census.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
In its deliberations on how best to distribute federal funds to the states, Congress may wish to consider directing: (1) affected program agencies to study the effects of using incorporated or metropolitan area data rather than urban data to allocate formula funds; and (2) the Census Bureau to study the feasibility of estimating the low-income population data on a more current basis. Depending on the outcome of those efforts, Congress could then consider whether it should amend authorizing statutes to remove requirements that federal agencies use urban and rural population or low-income data from the decennial census to allocate funds and instead require that the funds be distributed using some other basis and data.
Closed – Not Implemented
During the 103rd Congress, Senator Mack introduced five bills (S. 300, and S. 302 through S. 305) that would have amended authorizing grant program allocations to delete references to the decennial census and replace them with reference to most currently available estimates; and he introduced S. 306 that would require Census to produce annual estimates. No action was taken and no bills are expected to be introduced in the 104th Congress.

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Topics

Disadvantaged personsEligibility determinationsFederal aid to localitiesFederal aid to statesstate relationsFormula grantsGrant award proceduresPopulation statisticsProposed legislationCensus