AID TO STATE AND LOCAL GOVERNMENTS
8. AID TO STATE AND LOCAL GOVERNMENTS1 State and local governments have a vital constitutional responsibility to provide government services. They have the major role in providing domestic public services, such as public education, law enforcement, roads, water supply, and sewage treatment. The Federal Government contributes to that role by promoting a healthy economy. It also provides grants, loans, and tax subsidies to State and local governments. Federal grants help State and local governments finance programs covering most areas of domestic public spending, including income support, infrastructure, education, and social services. Federal grant outlays were $406.3 billion in 2004 and are estimated to be $425.8 billion in 2005 and $435.7 billion in 2006. Grant outlays to State and local governments for individuals, such as Medicaid payments, are estimated to be 65 percent of total grants in 2006; grant outlays for physical capital investment, 15 percent; and grant outlays for all other purposes, largely education, training, and social services, 20 percent. Some tax expenditures also constitute Federal aid to State and local governments. Tax expenditures stem from special exclusions, exemptions, deductions, credits, deferrals, or tax rates in the Federal tax laws. The deductibility of State and local personal income and property taxes from gross income for Federal income tax purposes and the exclusion of interest on State and local public purpose bonds from Federal taxation comprise the two largest tax expenditures benefiting State and local governments. These provisions, on an outlay equivalent basis, are estimated to be $98.5 billion in 2006. Chapter 19, ‘‘Tax Expenditures,’’ of this volume provides a detailed discussion of the measurement and definition of tax expenditures and a complete list of the estimated costs of specific tax expenditures. As discussed in that chapter, there are generally interactions among tax expenditure provisions, so that the total cost estimates only approximate the aggregate effect of these provisions. Tax expenditures that especially aid State and local governments are displayed separately at the end of Table 19–5 in that chapter, and also at the ends of Tables 19–1 and 19–2. This chapter also includes information on the performance of selected grant programs based on the Program Assessment Rating Tool. An Appendix to this chapter includes State-by-State estimates of major grant programs. Table 8–1. FEDERAL GRANT OUTLAYS BY AGENCY (In billions of dollars) Agency 2004 Actual Estimate 2005 2006 Department of Agriculture .................................................. 23.7 25.5 25.7 Department of Commerce ................................................. 0.6 0.7 0.6 Department of Education ................................................... 35.6 39.7 40.1 Department of Energy .... 0.3 0.2 0.3 Department of Health and Human Services ..................... 236.6 251.0 256.6 Department of Homeland Security .................................... 5.9 8.4 9.1 Department of Housing and Urban Development ............ 32.7 33.5 34.8 Department of the Interior ................................................. 3.4 4.2 4.1 Department of Justice .... 4.7 3.1 3.8 Department of Labor ...... 8.4 7.7 7.1 Department of Transportation ............................................ 41.3 43.9 46.8 Department of the Treasury .............................................. 5.4 0.5 0.4 Department of Veterans Affairs ......................................... 0.5 0.5 0.3 Environmental Protection Agency ...................................... 4.0 3.7 3.8 Other agencies ............... 3.3 3.3 2.2 Total ........................... 406.3 425.8 435.7 Table 8–1 shows the distribution of grants by agency. Grant outlays by the Department of Health and Human Services are estimated to be $256.6 billion in 2006, almost 60 percent of total grant outlays. HIGHLIGHTS OF THE FEDERAL AID PROGRAM Several proposals in this budget affect Federal aid to State and local governments and the important relationships between the levels of government. Through the use of grants, the Federal Government shares with State and local governments the cost and, ultimately, the benefits of a better educated, healthier, and safer citizenry. The Administration intends to work with State and local governments to make the Federal system more efficient and effective and to improve the design, administration, and financial management of Federal grant programs. In programs where the Federal Government and State and local governments partner in the provision of services, State and local government involvement is critical to improving the performance of Federal programs. To date, the Administration has rated the effectiveness of about three fifths of all Federal programs using the Program Assessment Rating Tool (PART). On average, grant programs received lower ratings than other types of programs, which suggests the need for strengthening partnerships and accountability for achieving program outcomes. 124 ANALYTICAL PERSPECTIVES In support of the Administration’s initiative to identify and eliminate improper payments, managers of several programs jointly administered by the Federal Government and the States, including Medicaid and the School Lunch program, are developing methodologies to estimate the extent of improper payments, identify the causes and remedy them. The passage of the Improper Payments Information Act (IPIA) of 2002 codified the goals of the President’s initiative to enhance the accuracy and integrity of Federal payments. The IPIA, and subsequent OMB implementing guidance, establish a framework for agencies to (i) review every Federal program, activity, and dollar to assess risk of significant improper payments; (ii) develop a statistically- valid estimate to measure the extent of improper payments in risk susceptible Federal programs; (iii) initiate process and internal control improvements to enhance the accuracy and integrity of payments; and (iv) report and assess progress on an annual basis. In 2004, all agencies began to develop and implement plans to comply with these expanded reporting requirements. As these efforts continue in 2005 and beyond, the Federal government is strengthening its position to make significant strides in identifying and eliminating improper payments. In addition, under the auspices of the Federal Financial Assistance Management Improvement Act of 1999 (PL 106–107) and the Administration’s Line of Business Grant Management Initiative, Federal grant making agencies have continued to work individually and collectively to improve and streamline the efficiency of grant programs and to achieve the vision of a Governmentwide solution that supports end-to-end grants management activities. The goals are to promote grantee access, customer service, and agency financial and technical stewardship. Particularly, in 2004, the Federal Government has realized its objectives to: • Establish a simple, unified ‘‘storefront’’ for all customers to find and apply for grants (called FIND and APPLY). FIND posted more than 1,500 funding opportunities in 2004 and received more than 200,000 hits per day; • Establish a single location in the Code of Federal Regulations (Title 2 CFR) to place all the Government- wide and agency guidance regarding grant management; • Create a grants governance committee that will ensure the continued streamlining effort. Highlights of grants to State and local governments are presented below. For additional information on grants, see Table 8–4 in this chapter, and discussions in the main budget volume. Homeland Security This budget requests $5.6 billion in budget authority for 2006 for grants to State and local governments in the Department of Homeland Security (DHS). An effective response to a major terrorist incident or natural disaster depends on adequate preparation. The Federal response to the hurricanes of 2004 demonstrated the value of proactive and aggressive response measures. This Budget continues to build on these capabilities and supports critical preparedness, response, and recovery efforts at all levels of government. In 2004, the Federal Government developed the National Response Plan (NRP), a comprehensive approach to domestic management of emergencies. DHS also led the development of a National Incident Management System (NIMS). Released in July, 2004, NIMS establishes a standard framework for Federal, State, tribal, and local governments to respond to incidents and emergencies. The Budget requests $15 million to support the implementation of NIMS through the support of the NIMS Integration Center at the Department of Homeland Security. Education Grant outlays for elementary, secondary, and vocational education are estimated to be $36.9 billion in 2006. Leaving no child behind. At the center of the President’s commitment to education is his promise to ‘‘leave no child behind.’’ When President Bush launched his No Child Left Behind initiative, he said, ‘‘The Federal role in education is not to serve the system. It is to serve the children.’’ No Child Left Behind (NCLB) is making a difference for every child, in every public school. It is no longer acceptable for any child to slip through the cracks or fail to receive the challenging education he or she deserves. Schools are held accountable for ensuring that all children, including those who are disadvantaged or have a disability, become proficient in reading and math. Parents receive detailed information about the performance of their schools. Students who attend low-performing schools have the option to attend a better public school or, if their schools do not improve, to receive tutoring funded by the school district. The largest program that assists elementary and secondary education is Title I Grants to Local Educational Agencies. This Budget requests funding of $13.3 billion for this program in 2006. Strengthening performance and accountability: reforming special education. On December 3, 2004, the President signed into law the Individuals with Disabilities Education Improvement Act of 2004 (IDEA). The reauthorized IDEA makes several adjustments to align special education to NCLB’s accountability systems. Together, these landmark laws provide the framework for high hopes and expectations that all students, including the 6.9 million children with disabilities, can succeed in school. This law is fully consistent with the Administration’s principles for IDEA reauthorization, and with the 2002 recommendations of the President’s Commission on Excellence in Special Education. Over the next year, the Administration will provide guidance and technical assistance to States, schools, and parents so that they can be partners with the Department of Education in implementing the myriad reg125 8. AID TO STATE AND LOCAL GOVERNMENTS ulatory and paperwork changes required by the law, many of which will take effect in July 2005. The President’s 2006 Budget complements the law and provides program levels of $12.2 billion for all IDEA programs, including $83 million for special education research, studies, and evaluations funded under the Institute for Education Sciences, and $11.1 billion for IDEA Grants to States. These increases, along with the law’s local flexibility provisions, will improve the State and local special education systems, and produce real benefits for students served by IDEA. Training and Employment Training workers for the jobs of the 21st century. In April 2004 the President proposed significant reforms to the Department of Labor’s (DOL) job training programs to double the number of workers trained and give workers more choice about their training and career paths. This Budget builds on that proposal by: • Giving Governors more flexibility. The President’s proposal would merge the four major Department of Labor (DOL) Federal job training and employment grant programs into a single grant program. The 2006 Budget requests $3.9 billion in budget authority for this program. In addition, Governors would be able to supplement this consolidated grant with their State’s resources from a ‘‘menu’’ of several other Federal job training and employment programs. • Eliminating unnecessary overhead. In exchange for more flexibility, the proposal would place strict limits on overhead costs. This would free resources to allow more workers to be trained. • Giving workers more choice. The President’s proposal would give workers greater control over their training through the use of personal innovation training accounts. • Demanding greater accountability. The proposal would establish increasingly rigorous performance standards each year, leading to a goal in the tenth year that States place in employment 100 percent of the workers trained with grant resources. To ensure that individuals are placed in high-quality jobs, States would also be required to show improvements in earnings and job retention. States’ performance would be ranked and published each year. These reforms, along with the President’s $250 million Community College job training initiative, will train 400,000 workers annually—twice as many as are trained under the current system. Social Services Head Start. The Budget provides $6.9 billion in budget authority for Head Start in 2006, including $45 million to support State implementation of a demonstration authority to promote better coordination of existing programs, to improve services for families and children, and to achieve better results with the resources already being used. Independent living education and training vouchers. This Budget requests $60 million for the foster care independent living program to help older foster care youth transition to adulthood and self-sufficiency after leaving foster care. This program provides vouchers of up to $5,000 for education or vocational training to help youth leaving foster care to develop skills and lead independent and productive lives. Child welfare program option. This Budget seeks legislation to introduce an option for all States to choose an alternative system for foster care that will better meet the needs of the child welfare population. Flexible financing will allow States to design programs with a stronger emphasis on prevention and family support and increased flexibility in services provided and populations served. Income Support Food and nutrition assistance. As part of its diverse array of programs, the United States Department of Agriculture (USDA) delivers programs that help those in need. The Special Supplemental Nutrition Program for Women, Infants, and Children, more commonly known as the WIC program, serves the nutritional needs of low-income pregnant and post-partum women, infants, and children up to their fifth birthday. This Budget provides $5.5 billion in budget authority in 2006 for WIC services, full funding for all those estimated to be eligible and seeking services. On July 30, 2004, President Bush signed the Child Nutrition and WIC Reauthorization Act of 2004. This law makes many important improvements to the National School Lunch Program that affect the 29 million children participating in the program on an average school day. The Administration is implementing these changes, which will increase access to nutrition for vulnerable children, help States and schools fight childhood obesity and improve the integrity of the school meals programs. Grant outlays for child nutrition programs are estimated to be $12.3 billion in 2006. Housing assistance. Grant outlays for housing assistance are estimated to be $29.2 billion in 2006. Ending Chronic Homelessness. The Administration remains committed to the goal of ending chronic homelessness. Chronically homeless individuals who have disabling conditions and live on the streets and in shelters for long periods comprise less than 10 percent of the homeless population, yet they consume over half of emergency homeless services. Housing this population will free Federal, State, and local emergency resources for families and individuals who need shorterterm assistance. In 2004, the Federal Collaborative Initiative to End Chronic Homelessness, through the Department of Housing and Urban Development (HUD), the Department of Health and Human Services (HHS), and the Department of Veteran Affairs (VA), funded 11 grantees across the country. Building on the success of this ini126 ANALYTICAL PERSPECTIVES tiative, in 2006, the Samaritan Housing Initiative provides up to $200 million through HUD in new housing subsidies paired with case management and supportive services in outlays is the specifically targeted to this population. Across the country, 46 States and 170 localities, along with the private sector, have joined the Federal effort to move chronically homeless individuals from the streets to permanent supportive housing, and to prevent additional individuals from becoming chronically homeless. The Budget provides more resources than ever for permanent supportive housing for homeless individuals who have been on the streets or in shelters for long periods. The 2006 budget includes $1.4 billion for Homeless Assistance Grants, $200 million more than in 2005. Altogether, the Administration requests $4 billion in 2006 for Federal housing and social programs for the homeless, an 8.5 percent increase. Housing vouchers. The Housing Choice Voucher program provides two million low-income families with subsidies to help them afford a decent place to live. Participants contribute 30 percent of their income towards rent; the Government pays the rest. In the past, funds have been appropriated for a specific number of units each year. These funds were then given to public housing agencies (PHAs) based on the number of vouchers they were awarded. HUD is concerned that voucher costs have increased at a rate of more than double the average increase in the private rental market for the past several years. This rate of increase, combined with an extremely complex set of laws and rules that govern the program, has limited its effectiveness. The Administration proposes to simplify the program and give more flexibility to PHAs to administer the program to better address local needs. Building on changes in the 2005 Consolidated Appropriations Act, the Administration proposes expanding the ‘‘dollarbased’’ approach. PHAs would continue to receive a set dollar amount as in 2005, but they would have the freedom to adjust the program to the unique and changing needs of their community, including the ability to set their own subsidy levels based on local market conditions. These changes would provide a more efficient and effective program to help low-income families more easily obtain decent, safe, and affordable housing. Other income security. The Administration continues to pursue its plan to reauthorize the Temporary Assistance for Needy Families (TANF) program, which provides grants to States for programs that assist needy families with children. TANF grants also promote work and the formation of married-parent families in order to reduce dependence on government benefits. The Administration’s plan maintains funding, strengthens work requirements, supports healthy marriages and family formation, and increases State flexibility. Outlays for TANF are estimated to be $18.2 billion in 2006. Health Medicaid and State Children’s Health Insurance Program (SCHIP). Funding for Medicaid, a health care program for low-income individuals, is projected to be $338 billion ($193 billion in outlays is the Federal share) in 2006. Within that amount, Medicaid covers over 46 million children and adults. Long term care services for the disabled and elderly account for over 30 percent of Medicaid expenditures. SCHIP makes available approximately $40 billion over ten years for States to provide health care coverage to targeted low-income, uninsured children. Since the beginning of the Administration, enrollment in SCHIP has grown by over one million children to a total of approximately 5.8 million in 2003. The following proposals are intended to enhance coverage under both Medicaid and SCHIP: Cover the Kids. Despite the availability of health care coverage through Medicaid and SCHIP, millions of children eligible for these programs have not enrolled. The 2006 Budget proposes Cover the Kids, a national outreach campaign that will provide $1 billion in grants over two years. By combining the resources of the Federal government, States, schools, and community organizations, Cover the Kids aims to enroll as many Medicaid- and SCHIP-eligible children as possible. New Freedom Initiative. The Budget includes almost $3 billion in demonstrations and proposals that promote home- and community-based care options for people with disabilities. These policies are part of the President’s New Freedom Initiative, which is a nationwide effort to integrate people with disabilities more fully into society. Transitional Medical Assistance (TMA). TMA provides Medicaid coverage for former welfare recipients after they enter the workforce. This Budget proposes to extend TMA for one year with certain statutory modifications, including State options to eliminate TMA reporting requirements and provide 12 months of continuous eligibility regardless of changes in families’ financial status. In addition, this Budget proposes a waiver of the TMA requirement for States that currently provide health benefits for families at 185 percent of the Federal poverty level, which is the statutorily mandated income eligibility level. These changes will allow for consistent enrollment of TMA beneficiaries while easing the administrative burden on States. Medicare premium assistance. The Administration proposes to continue Medicare Part B premium assistance for Medicare beneficiaries between 120 and 135 percent of the Federal poverty level for one year. In 2005, these premiums will be $78.20 per month. States receive 100 percent Federal funding for these benefits. Vaccines for children (VFC). VFC provides all recommended childhood vaccines, free of charge, to four categories of eligible children: Medicaid beneficiaries, American Indians/Alaskan Natives, the uninsured, and the underinsured (those without coverage for a particular vaccine). The Administration proposes to improve vaccine access by allowing underinsured children 127 8. AID TO STATE AND LOCAL GOVERNMENTS to receive VFC-funded vaccines at State and local health clinics, rather than only at federally qualified health centers and rural health centers. Health Insurance Portability and Accountability Act (HIPAA). Since enacted in 1996, HIPAA has increased the continuity, portability, and accessibility of health insurance. To ensure that Medicaid and SCHIP beneficiaries receive the benefits of HIPAA coverage, the Administration proposes two legislative changes. Under this proposal, eligibility for a Medicaid/SCHIP Employer- Sponsored Insurance (ESI) Program would be a qualifying event, which would allow families to enroll in ESI immediately through special enrollment. This proposal also would require SCHIP programs to issue certificates of creditable coverage, which promote portable health coverage by verifying the period of time an individual was covered by a specific health insurance policy. State Purchasing Pools. To help low-income individuals purchase coverage with the health insurance tax credit, the Administration proposes providing $4.0 billion in grants to States to establish purchasing pools. By combining the purchasing power of individuals and families, these pools would offer tax-credit recipients an additional affordable health insurance option and would make it easier and faster to shop for coverage. Health Centers. Health Centers deliver high-quality, affordable primary and preventive health care to nearly 14 million patients, regardless of ability to pay at 3,740 sites across the United States annually. In 2006, Health Centers will serve an estimated 16 percent of the Nation’s population at or below 200 percent of Federal Poverty Line. The Budget will complete the President’s commitment to create 1,200 new or expanded health center sites to serve an additional 6.1 million people by 2006. Almost 2.4 million additional individuals will receive health care in 2006 through 570 new or expanded sites in rural areas and underserved urban neighborhoods. The President has established a new goal to create a health center in every poor county that lacks a health center and can support one. The Budget includes $26 million to fund 40 new health center sites in highpoverty counties. Faith-based and community programs will be encouraged to compete for these grants. Natural Resources and Environment The Clean Water State Revolving Fund (CWSRF) provides grants to States to capitalize their municipal wastewater State revolving funds. States provide matching funds and then make loans to communities at below-market rates for wastewater infrastructure projects such as sewer rehabilitation and treatment plant expansion. Loan repayments and interest are recycled back into the program. This Budget funds the CWSRF at $730 million. Due to significant additional funds provided by Congress in 2004 and 2005, at this funding level, the total capitalization provided between fiscal years 2004–2011 will remain the same as committed to in the 2004 Budget. This will ensure communities have access to capital to finance their wastewater infrastructure needs. Additionally, the program will meet its long-term revolving level target of $3.4 billion. The revolving level is the amount of loans available annually over the long term after Federal capitalization ends and an indicator of the CWSRF’s financial stability. The Environmental Protection Agency (EPA) has made the protection of drinking water a priority since enactment of the initial Safe Drinking Water Act (SDWA) in 1974, and continues to work to improve its drinking water programs. Statistics show that drinking water quality is improving, and the Centers for Disease Control and Prevention recently estimated that 31 drinking water-related waterborne disease outbreaks occurred in 2001–2002, down from 39 outbreaks in 1999–2000. The 1996 SDWA amendments created the Drinking Water State Revolving Fund (DWSRF) which, like the CWSRF, provides grants to States to help capitalize revolving loan funds. Communities use these funds to finance drinking water systems and infrastructure improvements, including compliance with regulatory drinking water requirements. This Budget provides $850 million to fund the DWSRF in 2006. Administration of Justice This Budget includes $2.8 billion in budget authority for State and local assistance programs, including Project Safe Neighborhoods, the DNA Initiative, USA Freedom Corps, State and Local Anti-Terrorism Training, and the Regional Information Sharing System (RISS). These and other programs funded within Department of Justice (DOJ) enhance the capability of State and local governments to reduce crime in our communities, as well as our vulnerability to terrorism. Today crime, including violent crime, is at a 30-year low. The Project Safe Neighborhoods (PSN) initiative, announced by the President and the Attorney General in 2001, is a comprehensive strategy that brings together Federal, State, and local agencies to continue the record reduction in the violent crime in our communities. Working with the DOJ, each community tailors the program to target problems associated with the criminal misuse of firearms and to build on local capacities. Since 2001, the Administration has dedicated $1.3 billion in Federal resources to PSN, including grants to State and local task forces through the Office of Justice Programs, increased Federal prosecutors within U.S. Attorneys Offices, and additional agent and training resources within the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). For 2006, this Budget requests $363 million for PSN, an increase of $138 million and 61 percent over the 2005 enacted level. The program increase will: • Provide $74 million in grant assistance for State and local prosecution of criminal misuse of firearms. • Increase funding for States to update criminal history records, which are needed to deter illegal fire128 ANALYTICAL PERSPECTIVES arms purchases, by $34 million, which is more than double the 2005 enacted level. • Augment Project ChildSafe, which distributes gun locks to prevent misuse of guns by children and youth, by $29 million over the 2005 enacted level. Transportation Grants support State and local programs for highways, mass transit, and airports. Grant outlays to State and local governments for transportation are estimated to be $46.8 billion in 2006. • To ease gridlock, this Budget proposes a funding level of $283.9 billion over six years. This marks a 35-percent increase over the Transportation Equity Act for the 21st Century (TEA–21) six-year spending totals. This figure reflects the emerging consensus in Congress that was developed in a conference committee in 2004, and the Administration looks forward to working with the Congress to complete action on legislation to improve the surface transportation system. • This Budget requests $231 million for the National Highway Traffic Safety Administration (NHTSA) safety operations and research programs and $465 million for grants to States for targeted highway safety programs for 2006, which is $23 million more than enacted for 2005. Funding increases are also directed toward improving the Fatalities Analysis Reporting System, Department of Transportation’s (DOT) database used to measure and analyze trends in vehicle fatalities. Community and Regional Development Enhancing economic development and trade. The President’s 2006 Budget proposes a new economic development program within the Department of Commerce, the Strengthening America’s Communities Grant Program. The President’s proposal replaces the current duplicative set of Federal community and economic development programs with a more consolidated approach that focuses resources on the creation of jobs and opportunities, encourages private sector investment, and includes rigorous accountability measures and incentives. The Strengthening America’s Communities Grant Program is a targeted, results-oriented approach that will encourage innovation and economic opportunity. By streamlining the delivery of Federal economic development programs, taxpayers will see administrative savings. The President’s Budget includes $3.7 billion in budget authority for 2006 for the Strengthening America’s Communities Grant Program to provide economically distressed communities with a source of funding for planning, infrastructure development, and business financing to achieve long-term economic stability and growth. Our changing economy presents challenges for certain communities where traditional industries, such as manufacturing, do not employ as many workers as they did a generation ago. The President has proposed a new Opportunity Zone Initiative that will help these local economies adapt and diversify by targeting Federal resources and encouraging new and existing businesses to invest in these areas. The Commerce Department will have the lead role in managing this initiative. These efforts, combined with the President’s tax relief packages and initiatives to increase homeownership and reduce regulatory burdens, will help more communities participate in our growing national prosperity. Other Functions Discussions of these and other Federal aid programs can be found in the main budget volume and elsewhere. As noted earlier, a detailed listing of budget authority and outlays for all grants to State and local governments is in Table 8–4 in this chapter. PERFORMANCE OF GRANTS TO STATE AND LOCAL GOVERNMENTS The Administration is committed to measuring and improving the performance of Government programs. The Congress mandated in the Government Performance and Results Act of 1993 that performance plans be developed and that the agencies report annual progress against these plans. In addition, this Administration began in the 2004 Budget to assess every Federal program over a five year period in an assessment strategy known as the Program Assessment Rating Tool, or PART. With this budget, the third year of using the PART, the Administration has evaluated about three-fifths of the programs of the Federal Government. The PART system assesses each program on four components (purpose, planning, management, and results/ accountability) and gives a score for each of the components. The scores for each component are then weighted—results/accountability carries the greatest weight—and the program is given an overall score. A program is rated effective if it receives an overall score of 85 percent or more, moderately effective if the score is 70 to 84 percent, adequate if the score is 50 to 69 percent, and inadequate if the score is 49 percent or lower. The program is given a rating ‘‘Results Not Demonstrated’’ if the program does not have a good performance measure or does not have data for that measure. Chapter 2 of this volume discusses the PART in more detail. As shown in Table 8–2, 159 of the programs that have been assessed are primarily grants to State and local governments. Of these 159, 72 programs, or 45 percent of all grant programs assessed, received a rating of ‘‘Results Not Demonstrated’’. This is higher than for all programs, in which 29 percent were given this rating. The higher percent of grants that have this rating might be explained in part because of the breadth of purpose of some grants, lack of agreement among grantees and Federal parties on the purpose 129 8. AID TO STATE AND LOCAL GOVERNMENTS and performance measures, and therefore lack of focused planning to achieve common goals. Table 8–2 also shows that the average weighted score for the 159 grant programs that have been rated by PART was 51 percent, which is a rating of ‘‘adequate’’. These programs had total spending of $154.2 billion in 2004. Of these 159 programs: • 3 were rated effective ($9.9 billion); • 25 were rated moderately effective ($67.4 billion); • 46 were rated adequate ($24.5 billion); and • 13 were rated ineffective ($9.8 billion). • 72 were rated ‘‘results not demonstrated’’ ($42.5 billion); If the 72 programs rated ‘‘Results Not Demonstrated’’ are excluded, the average score for the remaining 87 programs was 61 percent, higher than the rating for all 159 grants but still a rating of ‘‘adequate’’. Table 8–2. SUMMARY OF PART RATINGS AND SCORES FOR GRANTS TO STATE AND LOCAL GOVERNMENTS Components Average Scores All grant programs (159 programs) Programs excluding grants rated ‘‘results not demonstrated’’ (87 programs) Purpose .......................................... 83% 84% Planning .......................................... 59% 75% Management ................................... 71% 77% Results/Accountability .................... 29% 43% Weighted average 1 ........................ 51% 61% Average rating ................................ Adequate Adequate Rating 2 Number of grants programs 2004 Program Level (in millions) Effective .......................................... 3 $9.9 Moderately effective ....................... 25 67.4 Adequate ........................................ 46 24.5 Ineffective ....................................... 13 9.8 Results not demonstrated .............. 72 42.5 Total number of grant programs rated .............................................. 159 $154.2 1 Weighted as follows: Purpose (20%), Planning (10%), Management (20%), Results/Accountability (50%). 2 The rating of effective indicates a score of 85 percent or more; moderately effective, 70–84 percent; adequate, 50–69 percent; and ineffective, 49 percent or less. The ratings of the largest five of these 159 grant programs are summarized here. More complete summaries of these and other programs are in the enclosed Analytical Perspectives CD ROM. • Department of Transportation: Highway Infrastructure ($32.7 billion in 2004). Rating: Moderately Effective. This program provides financial and technical assistance to States to construct and maintain a national system of roads and bridges. The assessment found that the program has been generally successful in improving highway safety and maintaining mobility, but that it should also take steps to improve oversight of State management of Federal highway dollars. • Department of Housing and Urban Development (HUD): Housing Vouchers ($14.4 billion in 2004). Rating: Moderately Effective. This program provides assistance to extremely low-income households so they can afford to go out on their own and rent apartments in the private market. This program received a relatively high score in comparison with other HUD programs because it is a potentially cost-effective alternative to other forms of housing assistance. However, some of the Public Housing Authorities (PHAs) that administer the vouchers are poor managers. The Administration is proposing reforms to allow PHAs greater flexibility in the use of funds and to lessen administrative burdens • Department of Education: IDEA Grants to States ($10.1 billion in 2004). Rating: Results Not Demonstrated. The Individuals with Disabilities Education Act (IDEA) grants to States program provides funds for special education and related services to students aged 3–21 with disabilities. While IDEA funding grew from $6.3 billion in 2001 to $10.6 billion in 2004, there is no evidence that this funding has further improved educational outcomes for children with disabilities. • Department of Health and Human Services: Head Start ($6.8 billion in 2004). Rating: Results Not Demonstrated. This program provides grants to 130 ANALYTICAL PERSPECTIVES local public, non-profit, and for-profit programs to help low-income children prepare for school and improve their overall development. The current program design is flawed because it does not hold individual grantees responsible for effectively preparing children for school. • Department of Agriculture: National School Lunch ($6.6 billion for 2004). Rating: Results Not Demonstrated. This program provides funds to States for lunches served to children in schools. This program is generally well designed and has a clear purpose, however, a large proportion of children certified for free and reduced price meal benefits are from households with incomes above the program’s eligibility thresholds. While the assessment was based largely on existing measures, these measures do not adequately demonstrate results. USDA is taking steps to improve the program’s performance measures. Block Grants. One of the most common tools used by the Federal Government is the block grant, particularly in the social services area where States and localities are the service providers. Block grants are embraced for their flexibility to meet local needs and criticized because accountability for results can be difficult when funds are allocated based on formulas and population counts rather than achievements or needs. In addition, block grants pose performance measurement challenges precisely because they can be used for a wide range of activities. The obstacles to measuring and achieving results through block grants are reflected in PART scores: they receive the second lowest average score of the seven PART types, 8 percent of block grant programs assessed to date were rated ineffective, and 45 percent were rated ‘‘results not demonstrated.’’ Nonetheless, the PART shows that some Federal block grant programs are achieving results better than others, effectively combining the flexibility that localities need with the results that taxpayers deserve. In the coming year, the Administration will apply the lessons learned from the effective block grants to several of those performing inadequately. This project will identify the methods used to manage highly rated block grant programs and adapt and implement those practices in large, low-scoring programs. Each of the programs targeted for improvement will develop an action plan and implementation timeline that will be tracked quarterly. The targeted programs will be re-analyzed through the PART in one to two years to assess whether implementing the block grant ‘‘best practices’’ results in improved performance. HISTORICAL PERSPECTIVES In recent decades, Federal aid to State and local governments has become a major factor in the financing of certain government functions. The rudiments of the present system date back to the Civil War. The Morrill Act, passed in 1862, established the land grant colleges and instituted certain federally-required standards for States that received the grants, as is characteristic of the present grant programs. Federal aid was later initiated for agriculture, highways, vocational education and rehabilitation, forestry, and public health. In the depression years, Federal aid was extended to meet income security and other social welfare needs. However, Federal grants did not become a significant factor in Federal Government expenditures until after World War II. Table 8–3 displays trends in Federal grants to State and local governments since 1960. Section A shows Federal grants by function. Functions with a substantial amount of grants are shown separately. Grants for the national defense, energy, social security, and the veterans benefits and services functions are combined in the ‘‘other functions’’ line in the table. 131 8. AID TO STATE AND LOCAL GOVERNMENTS Table 8–3. TRENDS IN FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS (Outlays; in billions of dollars) Actual Estimate 1960 1965 1970 1975 1980 1985 1990 1995 2000 2004 2005 2006 A. Distribution of grants by function: Natural resources and environment .......................... 0.1 0.2 0.4 2.4 5.4 4.1 3.7 4.0 4.6 6.0 6.1 6.1 Agriculture .............. 0.2 0.5 0.6 0.4 0.6 2.4 1.3 0.8 0.7 1.0 1.0 0.7 Transportation ........ 3.0 4.1 4.6 5.9 13.0 17.0 19.2 25.8 32.2 41.5 43.9 46.8 Community and regional development ..................... 0.1 0.6 1.8 2.8 6.5 5.2 5.0 7.2 8.7 12.6 14.9 15.6 Education, training, employment, and social services ................................................. 0.5 1.1 6.4 12.1 21.9 17.1 21.8 30.9 36.7 54.2 58.0 57.6 Health ..................... 0.2 0.6 3.8 8.8 15.8 24.5 43.9 93.6 124.8 189.9 203.3 208.9 Income security ...... 2.6 3.5 5.8 9.4 18.5 27.9 36.8 58.4 68.7 86.0 89.3 91.3 Administration of Justice ........................................... ............ ............ 0.0 0.7 0.5 0.1 0.6 1.2 5.3 5.1 3.6 4.5 General government .................................................. 0.2 0.2 0.5 7.1 8.6 6.8 2.3 2.3 2.1 9.0 4.5 3.4 Other ...................... 0.0 0.1 0.1 0.2 0.7 0.8 0.8 0.8 0.9 1.1 1.2 1.0 Total ................... 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 406.3 425.8 435.7 B. Distribution of grants by BEA category: Discretionary .......... N/A 2.9 10.2 21.0 53.3 55.5 63.3 94.0 116.7 164.6 172.9 176.7 Mandatory .............. N/A 8.0 13.9 28.8 38.1 50.4 72.0 131.0 168.0 241.7 252.9 259.0 Total ................... 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 406.3 425.8 435.7 C. Composition: Current dollars: Payments for individuals 1 ..................................... 2.5 3.7 8.7 16.8 32.6 50.1 77.3 144.4 182.6 262.2 278.3 284.9 Physical capital 1 ................................................... 3.3 5.0 7.1 10.9 22.6 24.9 27.2 39.6 48.7 59.4 61.9 64.4 Other grants ...... 1.2 2.2 8.3 22.2 36.2 30.9 30.9 41.0 53.4 84.7 85.6 86.4 Total .............. 7.0 10.9 24.1 49.8 91.4 105.9 135.3 225.0 284.7 406.3 425.8 435.7 Percentage of total grants: Payments for individuals 1 ..................................... 35.3% 34.1% 36.2% 33.6% 35.7% 47.3% 57.1% 64.2% 64.1% 64.5% 65.4% 65.4% Physical capital 1 ................................................... 47.3% 45.7% 29.3% 21.9% 24.7% 23.5% 20.1% 17.6% 17.1% 14.6% 14.5% 14.8% Other grants ...... 17.4% 20.2% 34.5% 44.5% 39.6% 29.2% 22.8% 18.2% 18.8% 20.9% 20.1% 19.8% Total .............. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Constant (FY 2000) dollars: Payments for individuals 1 ..................................... 12.0 16.9 33.5 48.0 63.9 75.0 96.6 157.6 182.6 242.8 250.6 251.0 Physical capital 1 ................................................... 17.0 24.2 27.2 26.0 38.9 34.2 32.6 43.3 48.7 54.7 54.9 55.4 Other grants ...... 10.0 15.6 44.6 83.8 89.9 53.9 42.9 47.0 53.4 74.3 72.3 70.9 Total .............. 39.0 56.7 105.3 157.7 192.6 163.1 172.1 247.9 284.7 371.7 377.9 377.3 D. Total grants as a percent of: Federal outlays: Total ................... 7.6% 9.2% 12.3% 15.0% 15.5% 11.2% 10.8% 14.8% 15.9% 17.7% 17.2% 17.0% Domestic programs 2 ............................................. 18.0% 18.3% 23.2% 21.7% 22.2% 18.2% 17.1% 21.6% 22.0% 23.9% 22.8% 22.5% State and local expenditures .................................... 14.8% 15.5% 20.1% 24.0% 27.4% 22.0% 18.9% 22.8% 22.1% 25.0% N/A N/A Gross domestic product ............................................ 1.4% 1.6% 2.4% 3.2% 3.4% 2.6% 2.4% 3.1% 2.9% 3.5% 3.5% 3.4% E. As a share of total State and local gross investments: Federal capital grants ................................................ 24.6% 25.5% 25.4% 26.0% 35.4% 30.2% 21.9% 26.0% 21.9% 21.9% N/A N/A State and local own-source financing ....................... 75.4% 74.5% 74.6% 74.0% 64.6% 69.8% 78.1% 74.0% 78.1% 78.1% N/A N/A Total ................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% N/A N/A N/A: Not available. * 50 million or less. 1 Grants that are both payments for individuals and capital investment are shown under capital investment. 2 Excludes national defense, international affairs, net interest, and undistributed offsetting receipts Federal grants for transportation increased to $3.0 billion, or 43 percent of all Federal grants, in 1960 after initiation of aid to States to build the Interstate Highway System in the late 1950s. By 1970 there had been significant increases in the relative amounts for education, training, employment, social services, and health (largely Medicaid). In the early and mid-1970s, major new grants were created for natural resources and environment (construction of sewage treatment plants), community and regional development (community development block grants), and general government (general revenue sharing). Since the late 1970s changes in the relative amounts among functions reflect steady growth of grants for health (Medicaid) and income security. The functions with the largest amount of grants are health; income security; education, training, employment, and social 132 ANALYTICAL PERSPECTIVES 2 Certain housing grants are classified in the budget as both payments for individuals and physical capital spending. In the text and tables in this section, these grants are included in the category for physical capital spending. services; and transportation, with combined estimated grant outlays of $371.5 billion, or more than 90 percent of total grant outlays in 2004. The increase in total outlays for grants overall since 1990 has been driven by increases in grants for health, which have increased more than four-fold from $43.9 billion in 1990 to $189.8 billion in 2004. The income security; education, training, employment, and social services; and transportation functions also increased substantially, but at a slower rate than the increase for health. Section B of the Table shows the distribution of grants divided into mandatory and discretionary spending. Funding required for grant programs classified as mandatory is determined in authorizing legislation. Funding levels for mandatory programs can only be changed by changing eligibility criteria or benefit formulas established in law and are usually not limited by the annual appropriations process. Outlays for mandatory grant programs were $241.7 billion in 2004. The three largest mandatory grant programs are Medicaid, with outlays of $192.7 billion in 2006, Temporary Assistance for Needy Families, $18.2 billion, and child nutrition programs, $12.5 billion. The funding level for discretionary grant programs is determined annually through appropriations acts. Outlays for discretionary grant programs were $164.6 billion in 2004. Table 8–4 at the end of this chapter identifies discretionary and mandatory grant programs separately. For more information on the Budget Enforcement Act and these categories, see Chapter 26, ‘‘The Budget System and Concepts’’ in this volume. Section C of Table 8–3 shows the composition of grants divided into three major categories: payments for individuals, grants for physical capital, and other grants. 2 Grant outlays for payments for individuals, which are mainly entitlement programs in which the Federal Government and the States share the costs, have grown significantly as a percent of total grants. They increased from 57 percent of the total in 1990 to 65 percent of the total in 2004. These grants are distributed through State or local governments to provide cash or in-kind benefits that constitute income transfers to individuals or families. The major grant in this category is Medicaid. Temporary Assistance for Needy Families, Food Stamps administration, child nutrition programs, and housing assistance are also large grants in this category. Grants for physical capital assist States and localities with construction and other physical capital activities. The major capital grants are for highways, but there are also grants for airports, mass transit, sewage treatment plant construction, community development, and other facilities. Grants for physical capital were almost half of total grants in 1960, shortly after grants began for construction of the Interstate Highway System. The relative share of these outlays has declined, as payments for individuals have grown. In 2004, grants for physical capital were $59.4 billion, 15 percent of total grants. The other grants are primarily for education, training, employment, and social services. These grants were 20 percent of total grants in 2004. Section C of Table 8–3 also shows these three categories in constant dollars. In constant 2000 dollars, total grants increased from $172.1 billion in 1990 to an estimated $371.7 billion in 2004, an average increase of 5.7 percent per year. During this same period, grants for payments to individuals increased an average of 6.8 percent per year; grants for physical capital an average of 3.8 percent per year, and other grants an average of 4.0 percent per year. In contrast to these increases, outlays for total grants in constant 2000 dollars decreased during the 1980s, from $192.6 billion in 1980 to $172.1 billion in 1990. Section D of this table shows grants as a percentage of Federal outlays, State and local expenditures, and gross domestic product. Grants have increased as a percentage of total Federal outlays from 11 percent in 1990 to 18 percent in 2004. Grants as a percentage of domestic programs were 24 percent in 2004. As a percentage of total State and local expenditures, grants have increased from 19 percent in 1990 to 25 percent in 2004. Section E shows the relative contribution of physical capital grants in assisting States and localities with gross investment. Federal capital grants are estimated to be 22 percent of State and local gross investment in 2004. OTHER INFORMATION ON FEDERAL AID TO STATE AND LOCAL GOVERNMENTS Additional information regarding aid to State and local governments can be found elsewhere in this budget and in other documents. Major public physical capital investment programs providing Federal grants to State and local governments are identified in Chapter 6, ‘‘Federal Investment.’’ Data for summary and detailed grants to State and local governments can be found in many sections of a separate budget volume entitled Historical Tables. Section 12 of that document is devoted exclusively to grants to State and local governments. Additional information on grants can be found in Section 6 (Composition of Federal Government Outlays); Section 9 (Federal Government Outlays for Investment: Major Physical Capital, Research and Development, and Education and Training); Section 11 (Federal Government Payments 133 8. AID TO STATE AND LOCAL GOVERNMENTS for Individuals); and Section 15 (Total (Federal and State and Local) Government Finances). In addition to these sources, a number of other sources of information are available that use slightly different concepts of grants, provide State-by-State information, provide information on how to apply for Federal aid, or display information about audits. The Bureau of the Census in the Department of Commerce provides data on public finances, including Federal aid to State and local governments. The Survey of Current Business, published monthly by the Bureau of Economic Analysis in the Department of Commerce, provides data on the national income and product accounts (NIPA), a broad statistical concept encompassing the entire economy. These accounts include data on Federal grants to State and local governments. Data using the NIPA concepts appear in this volume in Chapter 14, ‘‘National Income and Product Accounts.’’ Federal Aid to States, a report prepared by the Bureau of the Census, shows Federal spending by State for grants for the most recently completed fiscal year. The Consolidated Federal Funds Report is an annual document that shows the distribution of Federal spending by State and county areas and by local governmental jurisdictions. It is prepared by the Bureau of the Census. The Federal Assistance Awards Data System (FAADS) provides computerized information about current grant funding. Data on all direct assistance awards are provided quarterly by the Bureau of the Census to the States and to the Congress. The Catalog of Federal Domestic Assistance is a primary reference source for communities wishing to apply for grants and other domestic assistance. The Catalog is prepared by the General Services Administration with data collected by the Office of Management and Budget. It contains a detailed listing of grant and other assistance programs; discussions of eligibility criteria, application procedures, and estimated obligations; and related information. The Catalog is available on the Internet at http://www.cfda.gov. The Federal Audit Clearinghouse maintains an online database (http://harvester.census.gov/sac) that provides access to summary information about audits conducted under OMB Circular A-133, ‘‘Audits to States, Local Governments, and Non-Profit Organizations.’’ Information is available for each audited entity, including the amount of Federal money expended by program and whether there were audit findings. DETAILED FEDERAL AID TABLE Table 8–4, ‘‘Federal Grants to State and Local Governments- Budget Authority and Outlays,’’ provides detailed budget authority and outlay data for grants, including proposed legislation. This table displays discretionary and mandatory grant programs separately. 134 ANALYTICAL PERSPECTIVES Table 8–4. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS (in millions of dollars) Function, Category, Agency and Program Budget Authority Outlays 2004 Actual 2005 Estimate 2006 Estimate 2004 Actual 2005 Estimate 2006 Estimate ENERGY Discretionary: Department of Energy: Energy Programs: Energy conservation ... 271 273 271 270 239 263 Mandatory: Tennessee Valley Authority: Tennessee Valley Authority fund ................................... 338 369 381 338 369 381 Total, energy ......... 609 642 652 608 608 644 NATURAL RESOURCES AND ENVIRONMENT Discretionary: Department of Agriculture: Natural Resources Conservation Service: Watershed rehabilitation program .................................. 9 9 5 .................... 9 7 Resource conservation and development ...................... .................... ...................... ...................... 1 1 1 Watershed and flood prevention operations .................. 70 96 ...................... 42 106 96 Forest Service: State and private forestry ............................................... 342 342 209 277 322 333 Management of national forest lands for subsistence uses ............................................. 6 6 5 6 6 5 Department of Commerce: National Oceanic and Atmospheric Administration: Operations, research, and facilities ................................ 106 108 90 62 57 43 Pacific coastal salmon recovery ..................................... 85 88 90 83 83 89 Procurement, acquisition and construction .................... 105 90 8 52 80 8 Department of the Interior: Office of Surface Mining Reclamation and Enforcement: Regulation and technology ............................................. 57 58 59 55 57 58 Abandoned mine reclamation fund ................................ 173 168 168 177 192 166 Bureau of Reclamation: Bureau of Reclamation loan subsidy ............................. .................... 21 ...................... 3 21 ...................... United States Fish and Wildlife Service: State and tribal wildlife grants ....................................... 69 69 74 38 61 68 Federal aid in wildlife restoration ................................... .................... ...................... ...................... 13 13 ...................... Cooperative endangered species conservation fund .... 82 80 80 69 89 90 Landowner incentive program ........................................ 30 22 40 4 32 34 National Park Service: Urban park and recreation fund ..................................... .................... ...................... ...................... 10 26 13 National recreation and preservation ............................. 60 61 37 64 60 45 Land acquisition and State assistance .......................... 94 92 2 95 114 107 Historic preservation fund ............................................... 74 72 66 70 72 71 Environmental Protection Agency: State and tribal assistance grants ................................. 3,877 3,575 2,961 3,905 3,592 3,723 Hazardous substance superfund .................................... 103 64 60 51 40 52 Leaking underground storage tank trust fund ............... 66 59 60 62 59 60 Total, discretionary ... 5,408 5,080 4,014 5,139 5,092 5,069 Mandatory: Department of the Interior: Bureau of Land Management: Miscellaneous permanent payment accounts ................ 279 428 369 278 421 372 Minerals Management Service: National forests fund, Payment to States ...................... 4 8 8 4 8 8 Leases of lands acquired for flood control, navigation, and allied purposes .................. 1 2 2 1 2 2 United States Fish and Wildlife Service: Federal aid in wildlife restoration ................................... 223 250 250 222 214 235 Cooperative endangered species conservation fund .... 35 36 37 35 36 37 Sport fish restoration .. 345 339 361 318 342 346 Departmental Management: Everglades watershed protection ................................... .................... ...................... ...................... 6 ...................... ...................... Everglades restoration account ...................................... .................... ...................... ...................... 1 1 1 135 8. AID TO STATE AND LOCAL GOVERNMENTS Table 8–4. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS—Continued (in millions of dollars) Function, Category, Agency and Program Budget Authority Outlays 2004 Actual 2005 Estimate 2006 Estimate 2004 Actual 2005 Estimate 2006 Estimate Department of the Treasury: Financial Management Service: Payment to terrestrial wildlife habitat restoration trust fund ............................................. 5 5 5 5 5 5 Total, mandatory ....... 892 1,068 1,032 870 1,029 1,006 Total, natural resources and environment ........... 6,300 6,148 5,046 6,009 6,121 6,075 AGRICULTURE Discretionary: Department of Agriculture: Cooperative State Research, Education, and Extension Service: Extension activities ..... 444 451 437 421 423 410 Outreach for socially disadvantaged farmers ................ 6 6 6 4 6 6 Research and education activities ................................. 241 242 139 242 241 183 Integrated activities ..... 23 24 8 22 23 27 Agricultural Marketing Service: Payments to States and possessions ........................... 3 10 1 1 7 8 Farm Service Agency: State mediation grants ................................................... 4 4 4 4 4 4 Total, discretionary ... 721 737 595 694 704 638 Mandatory: Department of Agriculture: Office of the Secretary: Fund for rural America ................................................... .................... ...................... ...................... 7 7 ...................... Farm Service Agency: Commodity Credit Corporation fund .............................. 294 250 84 294 250 84 Total, mandatory ....... 294 250 84 301 257 84 Total, agriculture .. 1,015 987 679 995 961 722 COMMERCE AND HOUSING CREDIT Mandatory: Department of Commerce: National Oceanic and Atmospheric Administration: Promote and develop fishery products and research pertaining to American fisheries .. 18 13 1 23 21 8 TRANSPORTATION Discretionary: Department of Homeland Security: Border and Transportation Security: Surface transportation security ....................................... 173 ...................... ...................... 173 ...................... ...................... Department of Transportation: Federal Aviation Administration: Grants-in-aid for airports ................................................ 2 ...................... ...................... .................... 1 1 Grants-in-aid for airports (Airport and airway trust fund) .................................................. .................... ...................... ...................... 2,958 3,041 3,263 Federal Highway Administration: State infrastructure banks .............................................. .................... ...................... ...................... 5 3 1 Appalachian development highway system ................... 124 79 ...................... 91 180 163 Appalachian development highway system (Highway trust fund) .................................... .................... ...................... ...................... 45 7 7 Federal-aid highways .. .................... ...................... ...................... 29,791 31,457 34,070 Miscellaneous appropriations ......................................... 3 –2 ...................... 134 260 195 Miscellaneous highway trust funds ................................ 50 34 ...................... 256 276 237 Federal Motor Carrier Safety Administration: National motor carrier safety program ........................... 172 172 ...................... .................... ...................... ...................... Motor carrier safety .... .................... 73 ...................... .................... 66 ...................... Motor Carrier Safety Grants ........................................... .................... ...................... 232 .................... ...................... 65 National Highway Traffic Safety Administration: Highway traffic safety grants .......................................... 213 211 448 194 227 322 Federal Railroad Administration: Alaska railroad rehabilitation .......................................... 25 25 ...................... 20 37 15 Federal Transit Administration: Job access and reverse commute grants ..................... 104 ...................... ...................... 81 113 82 136 ANALYTICAL PERSPECTIVES Table 8–4. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS—Continued (in millions of dollars) Function, Category, Agency and Program Budget Authority Outlays 2004 Actual 2005 Estimate 2006 Estimate 2004 Actual 2005 Estimate 2006 Estimate Interstate transfer grants-transit ..................................... .................... ...................... ...................... .................... 3 ...................... Washington Metropolitan Area Transit Authority ........... .................... ...................... ...................... 12 4 3 Formula grants ............ 4,740 ...................... ...................... 4,724 3,380 2,328 Capital investment grants ............................................... 3,189 ...................... ...................... 2,789 3,686 2,513 Transit planning and research ....................................... 17 ...................... ...................... 10 94 71 Major capital investments grants ................................... .................... 1,452 1,562 .................... 174 578 Discretionary grants (Highway trust fund, mass transit account) ..................................... .................... ...................... ...................... 161 96 103 Formula Grants and Research ....................................... .................... 7,056 7,077 .................... 733 2,701 Pipeline and Hazardous Materials Safety Administration: Pipeline safety ............ 19 19 19 15 19 19 Total, discretionary ... 8,831 9,119 9,338 41,459 43,857 46,737 Mandatory: Department of Transportation: Federal Aviation Administration: Grants-in-aid for airports (Airport and airway trust fund) .................................................. 3,647 3,697 2,531 .................... ...................... ...................... Federal Highway Administration: Federal-aid highways .. 34,239 34,150 33,763 .................... ...................... ...................... Pipeline and Hazardous Materials Safety Administration: Emergency preparedness grants ................................... 12 13 13 12 13 14 Total, mandatory ....... 37,898 37,860 36,307 12 13 14 Total, transportation ................................................ 46,729 46,979 45,645 41,471 43,870 46,751 COMMUNITY AND REGIONAL DEVELOPMENT Discretionary: Department of Agriculture: Rural Development: Rural community advancement program ....................... 716 664 452 797 792 741 Rural Utilities Service: Distance learning, telemedicine, and broadband program ............................................... 48 44 25 41 39 51 Rural Housing Service: Rural community grants ................................................. .................... ...................... –40 .................... ...................... –33 Department of Commerce: Economic Development Administration: Economic development assistance programs ............... 278 254 ...................... 337 361 325 Economic Development Challenge: Strengthening America’s communities grant program .. .................... ...................... 3,710 .................... ...................... 74 Department of Homeland Security: Departmental Management: State and local programs ............................................... 2,950 2,870 2,665 1,535 2,584 3,116 Firefighter assistance grants .......................................... 746 715 500 508 551 702 Emergency Preparedness and Response: Operating Expenses ... .................... ...................... ...................... 387 169 118 Mitigation grants ......... .................... ...................... ...................... 23 91 59 Disaster Relief ............ 3,411 7,261 1,819 3,037 4,534 4,523 Department of Housing and Urban Development: Community Planning and Development: Community development fund ........................................ 4,933 4,853 ...................... 5,388 5,373 5,351 Urban development action grants .................................. –30 ...................... ...................... 1 ...................... ...................... Community development loan guarantees subsidy ....... 7 7 ...................... 7 8 7 Brownfields redevelopment ............................................ 25 24 ...................... 10 13 14 Empowerment zones/enterprise communities ............... 15 10 ...................... 48 50 50 Office of Lead Hazard Control and Healthy Homes: Lead hazard reduction 174 167 119 113 134 139 Department of the Interior: Bureau of Indian Affairs: Operation of Indian programs ........................................ 146 148 148 245 126 152 Indian guaranteed loan subsidy ..................................... 8 9 6 5 7 7 Appalachian Regional Commission ........................................ 59 59 59 68 70 81 Delta Regional Authority ..... 5 4 4 12 13 11 Denali Commission .............. 58 66 3 16 24 32 137 8. AID TO STATE AND LOCAL GOVERNMENTS Table 8–4. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS—Continued (in millions of dollars) Function, Category, Agency and Program Budget Authority Outlays 2004 Actual 2005 Estimate 2006 Estimate 2004 Actual 2005 Estimate 2006 Estimate Total, discretionary ... 13,549 17,155 9,470 12,578 14,939 15,520 Mandatory: Department of Agriculture: Rural Housing Service: Rural community grants ................................................. .................... 30 10 .................... ...................... 33 Department of Housing and Urban Development: Community Planning and Development: Community development loan guarantees subsidy ....... 26 2 ...................... 26 2 ...................... Total, mandatory ....... 26 32 10 26 2 33 Total, community and regional development ....... 13,575 17,187 9,480 12,604 14,941 15,553 EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES Discretionary: Department of Commerce: National Telecommunications and Information Administration: Public telecommunications facilities, planning and construction ....................................... 19 20 ...................... 36 36 26 Information infrastructure grants .................................... 7 ...................... ...................... 20 26 14 Department of Education: Office of Elementary and Secondary Education: Reading excellence .... .................... ...................... ...................... 155 64 ...................... Impact aid ................... 1,222 1,236 1,233 1,228 1,321 1,249 Chicago litigation settlement .......................................... .................... ...................... ...................... 1 1 ...................... Education reform ........ .................... ...................... ...................... 51 103 ...................... Education for the disadvantaged ................................... 13,800 14,797 16,384 12,417 14,524 14,768 School improvement programs ...................................... 6,041 5,473 5,190 6,542 6,636 5,750 Office of Indian Education: Indian education ......... 116 115 116 111 123 115 Office of Innovation and Improvement: Innovation and improvement .......................................... 621 550 1,120 4 450 576 Office of Safe and Drug-Free Schools: Safe schools and citizenship education ........................ 815 820 270 13 462 746 Office of English Language Acquisition: English language acquisition .......................................... 610 617 635 536 759 573 Office of Special Education and Rehabilitative Services: Special education ....... 11,194 11,456 11,122 9,465 9,884 11,095 Rehabilitation services and disability research .............. 129 135 83 159 203 101 American Printing House for the Blind .......................... 17 17 17 18 21 17 Office of Vocational and Adult Education: Vocational and adult education ...................................... 2,060 1,974 992 1,909 1,963 1,886 Office of Postsecondary Education: Higher education ......... 427 414 ...................... 417 520 430 Federal Student Aid: Student financial assistance ........................................... 66 66 ...................... 65 69 52 Institute of Education Sciences: Institute of education sciences ....................................... .................... 25 57 43 38 28 Department of Health and Human Services: Administration for Children and Families: Promoting safe and stable families ............................... 400 399 407 420 393 401 Children and families services programs ...................... 8,420 8,653 8,031 8,326 8,519 8,285 Administration on Aging: Aging services programs ................................................ 1,354 1,370 1,351 1,320 1,345 1,360 Department of the Interior: Bureau of Indian Affairs: Operation of Indian programs ........................................ 119 129 116 110 91 85 Department of Labor: Employment and Training Administration: Training and employment services ................................ 3,476 3,509 4,232 3,883 3,372 3,655 Community service employment for older Americans ... 97 97 97 98 98 97 State unemployment insurance and employment service operations .............................. 142 141 68 163 143 78 Unemployment trust fund ............................................... 1,059 1,061 256 1,110 1,065 298 Corporation for National and Community Service: Domestic volunteer service programs, operating expenses ............................................. 150 150 120 82 82 96 National and community service programs, operating expenses ..................................... 280 276 301 207 255 220 138 ANALYTICAL PERSPECTIVES Table 8–4. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS—Continued (in millions of dollars) Function, Category, Agency and Program Budget Authority Outlays 2004 Actual 2005 Estimate 2006 Estimate 2004 Actual 2005 Estimate 2006 Estimate Corporation for Public Broadcasting: Corporation for Public Broadcasting .............................. 437 466 390 437 466 390 District of Columbia: District of Columbia General and Special Payments: Federal payment for resident tuition support ................ 17 26 33 17 26 33 Federal payment for school improvement ..................... 40 40 42 40 40 42 National Endowment for the Arts: National Endowment for the Arts: grants and administration ........................................... 40 41 41 37 39 41 Institute of Museum and Library Services: Office of Museum and Library Services: grants and administration ................................ 250 269 250 196 279 363 Total, discretionary ... 53,425 54,342 52,954 49,636 53,416 52,870 Mandatory: Department of Education: Office of Special Education and Rehabilitative Services: Rehabilitation services and disability research .............. 2,584 2,636 2,720 2,453 2,583 2,684 Department of Health and Human Services: Administration for Children and Families: Social services block grant ............................................ 1,700 1,700 1,700 1,752 1,764 1,762 Department of Labor: Employment and Training Administration: Welfare to work jobs .. .................... ...................... ...................... 181 6 ...................... Federal unemployment benefits and allowances .......... 259 259 259 179 245 257 Foreign labor certification processing ............................ .................... ...................... 3 .................... ...................... 3 Total, mandatory ....... 4,543 4,595 4,682 4,565 4,598 4,706 Total, education, training, employment, and social services ................................ 57,968 58,937 57,636 54,201 58,014 57,576 HEALTH Discretionary: Department of Agriculture: Food Safety and Inspection Service: Salaries and expenses ................................................... 43 44 45 43 44 45 Department of Health and Human Services: Food and Drug Administration: Salaries and expenses ................................................... .................... 1 1 .................... 1 1 Health Resources and Services Administration: Health resources and services ....................................... 3,300 3,222 3,132 2,807 2,741 2,599 Centers for Disease Control and Prevention: Disease control, research, and training ......................... 2,461 2,798 2,535 2,291 2,789 2,928 Substance Abuse and Mental Health Services Administration: Substance abuse and mental health services .............. 2,318 2,353 2,315 2,241 2,297 2,332 Departmental Management: General departmental management ............................... 1,621 1,760 1,589 1,497 1,232 1,177 Department of Labor: Occupational Safety and Health Administration: Salaries and expenses ................................................... 102 101 92 102 101 92 Mine Safety and Health Administration: Salaries and expenses ................................................... 8 8 8 8 8 8 Total, discretionary ... 9,853 10,287 9,717 8,989 9,213 9,182 Mandatory: Department of Health and Human Services: Health Resources and Services Administration: Health resources and services ....................................... 25 ...................... ...................... 8 ...................... ...................... Centers for Medicare and Medicaid Services: Grants to States for medicaid ........................................ 182,753 182,420 215,627 176,231 188,497 192,718 State children’s health insurance fund .......................... 3,175 4,082 4,082 4,607 5,343 6,233 State grants and demonstrations ................................... 142 393 1,294 48 200 799 Total, mandatory ....... 186,095 186,895 221,003 180,894 194,040 199,750 139 8. AID TO STATE AND LOCAL GOVERNMENTS Table 8–4. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS—Continued (in millions of dollars) Function, Category, Agency and Program Budget Authority Outlays 2004 Actual 2005 Estimate 2006 Estimate 2004 Actual 2005 Estimate 2006 Estimate Total, health .......... 195,948 197,182 230,720 189,883 203,253 208,932 INCOME SECURITY Discretionary: Department of Agriculture: Food and Nutrition Service: Food donations programs .............................................. .................... ...................... ...................... 3 ...................... ...................... Commodity assistance program ..................................... 164 193 193 170 186 194 Special supplemental nutrition program for women, infants, and children (WIC) ........... 4,712 5,235 5,510 4,860 5,087 5,465 Department of Health and Human Services: Administration for Children and Families: Low income home energy assistance ........................... 1,889 2,182 2,000 1,891 2,115 2,026 Refugee and entrant assistance .................................... 281 301 369 425 399 419 Payments to States for the child care and development block grant .............................. 2,080 2,076 2,076 2,131 2,092 2,076 Department of Homeland Security: Emergency Preparedness and Response: Emergency food and shelter .......................................... 152 153 153 152 153 153 Department of Housing and Urban Development: Public and Indian Housing Programs: Public housing operating fund ....................................... 3,579 2,438 3,407 3,434 3,600 3,403 Drug elimination grants for low-income housing ........... .................... –5 ...................... 46 17 ...................... Revitalization of severely distressed public housing (HOPE VI) ...................................... 149 143 –143 596 590 567 Native Hawaiian Housing Block Grant .......................... .................... ...................... 9 .................... ...................... 1 Tenant based rental assistance ..................................... .................... 10,600 15,845 .................... 10,600 15,845 Project-based rental assistance ..................................... .................... 346 388 .................... 208 464 Public housing capital fund ............................................ 2,696 2,579 2,327 3,414 3,502 3,507 Native American housing block grant ............................ 650 601 583 675 717 727 Housing certificate fund .................................................. 13,136 2,609 ...................... 14,667 4,230 87 Community Planning and Development: Homeless assistance grants .......................................... 1,260 1,241 1,440 1,232 1,300 1,431 Home investment partnership program .......................... 2,006 1,900 1,941 1,597 1,650 1,700 Housing opportunities for persons with AIDS ............... 295 282 268 254 261 262 Rural housing and economic development ................... 25 24 ...................... 23 25 25 Housing Programs: Homeownership and opportunity for people everywhere grants (HOPE grants) ............. .................... ...................... ...................... 2 2 2 Housing for persons with disabilities ............................. 249 238 120 2 255 258 Housing for the elderly ................................................... 773 741 741 1,096 875 875 Department of Labor: Employment and Training Administration: Unemployment trust fund ............................................... 2,619 2,674 2,633 2,650 2,666 2,639 Social Security Administration: Supplemental security income program ......................... 3 3 3 3 3 3 Total, discretionary ... 36,718 36,554 39,863 39,323 40,533 42,129 Mandatory: Department of Agriculture: Agricultural Marketing Service: Funds for strengthening markets, income, and supply (section 32) ................................ 1,123 722 1,122 846 1,129 822 Food and Nutrition Service: Food stamp program .. 4,277 4,438 4,519 4,204 4,410 4,506 Child nutrition programs ................................................. 11,250 11,632 12,283 11,035 11,990 12,303 Department of Health and Human Services: Administration for Children and Families: Payments to States for child support enforcement and family support programs .......... 4,413 4,074 3,272 3,815 3,934 4,031 Contingency fund ........ 1,958 2,000 ...................... .................... 30 45 Payments to States for foster care and adoption assistance .......................................... 6,814 6,806 6,580 6,340 6,474 6,561 Child care entitlement to States .................................... 2,732 2,717 2,717 2,695 2,718 2,718 Temporary assistance for needy families ...................... 17,209 17,649 17,148 17,725 18,099 18,164 Total, mandatory ....... 49,776 50,038 47,641 46,660 48,784 49,150 Total, income security ............................................. 86,494 86,592 87,504 85,983 89,317 91,279 140 ANALYTICAL PERSPECTIVES Table 8–4. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS—Continued (in millions of dollars) Function, Category, Agency and Program Budget Authority Outlays 2004 Actual 2005 Estimate 2006 Estimate 2004 Actual 2005 Estimate 2006 Estimate SOCIAL SECURITY Discretionary: Social Security Administration: Federal disability insurance trust fund ........................... 4 4 4 4 4 4 Mandatory: Social Security Administration: Federal disability insurance trust fund ........................... 3 30 52 3 17 41 Total, social security ............................................... 7 34 56 7 21 45 VETERANS BENEFITS AND SERVICES Discretionary: Department of Veterans Affairs: Medical Programs: Medical services ......... 439 488 264 439 488 264 Medical facilities .......... 101 114 12 15 17 2 Total, veterans benefits and services ................... 540 602 276 454 505 266 ADMINISTRATION OF JUSTICE Discretionary: Department of Health and Human Services: Administration for Children and Families: Violent crime reduction programs .................................. .................... ...................... ...................... 1 2 ...................... Department of Homeland Security: Departmental Management: State and local programs ............................................... 497 400 400 46 212 355 Department of Housing and Urban Development: Fair Housing and Equal Opportunity: Fair housing activities . 48 46 39 47 44 42 Department of Justice: Legal Activities and U.S. Marshals: Assets forfeiture fund . .................... 21 21 .................... 21 21 Office of Justice Programs: Justice assistance ....... 135 150 970 291 108 1,434 State and local law enforcement assistance ................. 1,282 1,151 ...................... 2,329 1,049 455 Juvenile justice programs ............................................... 297 331 ...................... 283 221 136 Community oriented policing services ........................... 742 499 22 947 575 489 Violence Against Women Office .................................... 366 372 352 39 263 353 Equal Employment Opportunity Commission: Salaries and expenses ................................................... 33 31 31 33 31 33 Federal Drug Control Programs: High-intensity drug trafficking areas program ................ 195 226 ...................... 191 222 136 State Justice Institute: State Justice Institute: salaries and expenses .............. 2 3 ...................... 2 ...................... ...................... Total, discretionary ... 3,597 3,230 1,835 4,209 2,748 3,454 Mandatory: Department of Justice: Legal Activities and U.S. Marshals: Assets forfeiture fund . 275 289 293 267 277 287 Office of Justice Programs: Crime victims fund ...... 621 540 614 533 541 643 Department of the Treasury: Departmental Offices: Treasury forfeiture fund .................................................. 75 75 75 75 75 75 Total, mandatory ....... 971 904 982 875 893 1,005 Total, administration of justice .............................. 4,568 4,134 2,817 5,084 3,641 4,459 141 8. AID TO STATE AND LOCAL GOVERNMENTS Table 8–4. FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS—BUDGET AUTHORITY AND OUTLAYS—Continued (in millions of dollars) Function, Category, Agency and Program Budget Authority Outlays 2004 Actual 2005 Estimate 2006 Estimate 2004 Actual 2005 Estimate 2006 Estimate GENERAL GOVERNMENT Discretionary: Department of Health and Human Services: Administration for Children and Families: Disabled voter services .................................................. .................... ...................... ...................... 3 8 4 Department of the Interior: United States Fish and Wildlife Service: National wildlife refuge fund ........................................... 14 14 14 14 14 14 Departmental Management: Payments in lieu of taxes .............................................. 225 227 200 225 227 200 Insular Affairs: Assistance to territories .................................................. 48 48 46 49 54 58 Trust Territory of the Pacific Islands ............................. .................... ...................... ...................... 4 3 2 District of Columbia: District of Columbia Courts: Federal payment to the District of Columbia courts ..... 167 189 222 136 186 217 Defender services in District of Columbia courts .......... 33 38 45 39 37 45 Federal payment for family court act ............................. .................... ...................... ...................... 12 ...................... ...................... District of Columbia General and Special Payments: Federal support for economic development and management reforms in the District ... 108 69 13 108 69 13 Election Assistance Commission: Election reform programs ............................................... 1,491 ...................... ...................... 1,283 1,038 ...................... Total, discretionary ... 2,086 585 540 1,873 1,636 553 Mandatory: Department of Agriculture: Forest Service: Forest Service permanent appropriations ...................... 410 413 410 397 413 410 Department of Energy: Energy Programs: Payments to States under Federal Power Act .............. 3 3 3 3 3 3 Department of Homeland Security: Border and Transportation Security: Refunds, transfers, and expenses of operation, Puerto Rico .......................................... 85 89 98 79 89 98 Department of the Interior: Bureau of Land Management: Miscellaneous permanent payment accounts ................ 5 5 ...................... 5 5 ...................... Minerals Management Service: Mineral leasing and associated payments .................... 1,164 1,817 1,788 1,164 1,817 1,788 United States Fish and Wildlife Service: National wildlife refuge fund ........................................... 7 6 7 7 7 7 Insular Affairs: Assistance to territories .................................................. 28 28 28 22 22 29 Payments to the United States territories, fiscal assistance ............................................ 114 115 115 113 115 115 Department of the Treasury: Financial Management Service: Temporary State fiscal assistance fund ........................ 5,000 ...................... ...................... 5,000 ...................... ...................... Alcohol and Tobacco Tax and Trade Bureau: Internal revenue collections for Puerto Rico ................. 336 404 359 336 404 359 Corps of Engineers-Civil Works: Permanent appropriations .............................................. 9 9 9 9 9 9 Total, mandatory ....... 7,161 2,889 2,817 7,135 2,884 2,818 Total, general government ...................................... 9,247 3,474 3,357 9,008 4,520 3,371 Total, Grants ..... 423,018 422,911 443,869 406,330 425,793 435,681 Discretionary .. 135,003 137,968 128,877 164,628 172,886 176,685 Mandatory ...... 288,015 284,943 314,992 241,702 252,907 258,996 142 ANALYTICAL PERSPECTIVES Table 8–5. Summary of Programs by Agency, Bureau, and Program (obligations in millions of dollars) Agency, Bureau, and Program FY 2004 (actual) Estimated FY 2005 obligations from: FY 2006 (estimated) Previous authority New authority Total Department of Agriculture, Food and Nutrition Service National School Lunch Program (10.555) .............. 6,633 126 6,841 6,967 7,314 Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) (10.557) ...................................... 5,038 5 5,237 5,241 5,576 Child and Adult Care Food Program (10.558) ...... 2,056 .................. 2,066 2,066 2,174 State Administrative Matching Grants for Food Stamp Program (10.561) ............... 2,310 .................. 2,402 2,402 2,481 Department of Education, Office of Elementary and Secondary Education Title I Grants to Local Educational Agencies (84.010) ............................................. 12,342 .................. 12,740 12,740 13,342 Improving Teacher Quality State Grants (84.336) . 2,930 .................. 2,917 2,917 2,917 Department of Education, Office of Special Education and Rehabilitative Services Special Education—Grants to States (84.027) ...... 10,068 .................. 10,590 10,590 11,098 Rehabilitation Services—Vocational Rehabilitation Grants to States (84.126) ......... 2,584 .................. 2,636 2,636 2,720 Department of Health and Human Services, Centers for Medicare and Medicaid Services State Children’s Health Insurance Program (93.767) ................................................ 3,175 .................. 4,082 4,082 4,082 Grants to States for Medicaid (93.778) ................. 184,382 .................. 188,535 188,535 215,571 Department of Health and Human Services, Administration for Children and Families Temporary Assistance for Needy Families (TANF)—Family Assistance Grants (93.558) ........................................... 17,183 .................. 17,100 17,100 17,100 Child Support Enforcement—Federal Share of State and Local Administrative Costs and Incentives (93.563) ....... 3,994 .................. 4,056 4,056 4,174 Child Care and Development Block Grant (93.575) .................................................. 2,087 .................. 2,083 2,083 2,083 Child Care and Development Fund—Mandatory (93.596a) ...................................... 1,235 .................. 1,235 1,235 1,235 Child Care and Development Fund—Matching (93.596b) ........................................ 1,496 .................. 1,482 1,482 1,482 Head Start (93.600) ............................................... 6,774 .................. 6,843 6,843 6,888 Foster Care—Title IV–E (93.658) .......................... 4,714 .................. 4,627 4,627 4,645 Department of Homeland Security, Departmental Management State Homeland Security Grant Program (97.067) ................................................... 2,207 .................. 1,664 1,664 1,240 Department of Housing and Urban Development, Public and Indian Housing Programs Public Housing Operating Fund (14.850) .............. 3,581 3 2,438 2,441 3,407 Section 8 Moderate Rehabilitation (14.856) .......... 135 2 225 227 205 Housing Choice Vouchers (14.871) ....................... 14,511 245 14,507 14,752 15,845 Public Housing Capital Fund (14.872) ................... 3,111 287 2,579 2,866 2,327 Department of Housing and Urban Development, Community Planning and Development HOME Investment Partnerships Program (14.239) ................................................... 2,006 .................. 1,900 1,900 1,941 Department of Transportation, Federal Aviation Administration Airport Improvement Program (20.106a) ............... 3,498 .................. 3,472 3,472 3,000 Airport Improvement Program—Emergency Response Fund (20.106b) .................. 1 * .................. * .................. Airport Improvement Program—Emergency Assistance to Airports (20.106c) ......... .................. .................. 25 25 .................. Department of Transportation, Federal Highway Administration Highway Planning and Construction (20.205) ....... 30,280 29,557 10,886 40,444 35,065 Department of Transportation, Federal Transit Administration Federal Transit Formula Grants and Research (Section 5307) (20.507) ................. 3,836 .................. 6,012 6,012 6,863 Total ....................... 332,169 30,225 319,181 349,406 374,776 * $500,000 or less 143 8. AID TO STATE AND LOCAL GOVERNMENTS Table 8–6. Summary of Programs by State (obligations in millions of dollars) State or Territory All programs FY 2004 (actual) Programs distributed FY 2006 Percentage of distributed total FY 2004 (actual) Estimated FY 2005 obligations from: FY 2006 (estimated) Previous authority New authority Total Alabama ............. 4,868 4,868 531 4,436 4,966 5,020 1.43 Alaska ................. 1,560 1,560 148 1,405 1,552 1,554 0.44 Arizona ............... 6,053 6,053 431 6,178 6,609 7,102 2.03 Arkansas ............. 3,497 3,497 366 3,408 3,774 4,070 1.16 California ............ 40,688 40,688 2,580 38,513 41,093 41,053 11.73 Colorado ............. 3,236 3,236 283 2,973 3,255 3,379 0.97 Connecticut ......... 3,877 3,877 320 3,593 3,913 4,054 1.16 Delaware ............ 869 869 120 760 880 911 0.26 District of Columbia ............................................... 1,679 1,679 142 1,475 1,617 1,664 0.48 Florida ................. 14,656 14,656 1,157 14,203 15,360 15,955 4.56 Georgia ............... 9,322 9,322 1,078 8,006 9,085 9,475 2.71 Hawaii ................. 1,386 1,386 229 1,160 1,389 1,391 0.40 Idaho ................... 1,369 1,369 193 1,233 1,425 1,497 0.43 Illinois .................. 12,166 12,166 952 10,712 11,664 12,239 3.50 Indiana ................ 5,633 5,633 503 5,614 6,117 6,476 1.85 Iowa .................... 2,761 2,761 294 2,565 2,859 2,972 0.85 Kansas ................ 2,458 2,458 317 2,243 2,560 2,650 0.76 Kentucky ............. 5,180 5,180 401 4,735 5,136 5,363 1.53 Louisiana ............ 6,119 6,119 583 5,479 6,062 6,383 1.82 Maine .................. 2,093 2,093 121 1,944 2,065 2,095 0.60 Maryland ............. 5,024 5,024 440 4,631 5,070 5,286 1.51 Massachusetts .... 8,222 8,222 1,078 7,769 8,846 9,014 2.58 Michigan ............. 9,731 9,731 787 9,104 9,891 10,167 2.90 Minnesota ........... 5,005 5,005 414 4,710 5,125 5,364 1.53 Mississippi .......... 4,261 4,261 334 4,142 4,476 4,649 1.33 Missouri .............. 6,550 6,550 517 6,437 6,954 7,437 2.12 Montana .............. 1,171 1,171 196 970 1,166 1,211 0.35 Nebraska ............ 1,790 1,790 188 1,638 1,826 1,920 0.55 Nevada ............... 1,521 1,521 196 1,427 1,624 1,651 0.47 New Hampshire . 1,228 1,228 135 1,101 1,237 1,252 0.36 New Jersey ........ 8,524 8,524 774 7,903 8,677 8,887 2.54 New Mexico ....... 3,053 3,053 245 2,798 3,043 3,122 0.89 New York ........... 36,463 36,463 1,526 37,341 38,868 40,154 11.47 North Carolina .... 9,111 9,111 633 8,866 9,500 10,213 2.92 North Dakota ...... 874 874 160 719 879 875 0.25 Ohio .................... 12,792 12,792 1,129 12,210 13,339 14,129 4.04 Oklahoma ........... 3,777 3,777 412 3,476 3,887 3,950 1.13 Oregon ................ 3,455 3,455 274 3,372 3,646 3,705 1.06 Pennsylvania ...... 14,617 14,617 1,538 14,439 15,977 16,465 4.70 Rhode Island ...... 1,686 1,686 143 1,545 1,688 1,750 0.50 South Carolina ... 4,766 4,766 392 4,302 4,694 4,786 1.37 South Dakota ..... 962 962 201 805 1,005 1,024 0.29 Tennessee .......... 7,763 7,763 744 7,023 7,767 7,966 2.28 Texas .................. 20,980 20,980 1,726 20,271 21,997 22,972 6.56 Utah .................... 1,975 1,975 231 1,848 2,080 2,169 0.62 Vermont .............. 1,002 1,002 142 841 983 992 0.28 Virginia ................ 5,073 5,073 713 4,695 5,408 5,590 1.60 Washington ......... 5,848 5,848 460 5,518 5,979 5,903 1.69 West Virginia ...... 2,682 2,682 371 2,353 2,724 2,750 0.79 Wisconsin ........... 5,103 5,103 507 4,550 5,057 5,059 1.45 Wyoming ............. 693 693 148 544 692 696 0.20 American Samoa ................................................... 55 55 1 49 51 46 0.01 Guam .................. 121 121 1 131 132 131 0.04 Northern Mariana Islands ...................................... 57 57 * 55 55 48 0.01 Puerto Rico ........ 2,313 2,313 27 2,376 2,403 2,500 0.71 Freely Associated States ....................................... ...................... .................... .................... 7 7 7 * Virgin Islands ..... 130 130 23 116 139 133 0.04 Indian Tribes ...... 683 683 * 701 701 720 0.21 Total, distributed by State .............................. 328,532 328,532 27,555 311,417 338,972 349,994 100.00 MEMORANDUM: Undistributed .. 3,637 3,637 2,669 7,764 10,433 24,782 N/A Total, including undistributed ............................ 332,169 332,169 30,225 319,181 349,406 374,776 N/A * $500,000 or less or 0.005 percent or less. 144 12–3539–0–1–605 Department of Agriculture, Food and Nutrition Service Table 8–7. National School Lunch Program (10.555) (obligations in thousands of dollars) State or Territory FY 2004 Actual Estimated FY 2005 obligations from: FY 2006 (estimated) FY 2006 Percentage of distributed total Previous authority New authority Total Alabama ....................................... 127,226 2,419 131,476 133,895 140,567 1.92 Alaska .......................................... 18,293 348 18,904 19,252 20,211 0.28 Arizona ......................................... 143,895 2,735 148,702 151,437 158,984 2.17 Arkansas ...................................... 74,373 1,414 76,857 78,271 82,172 1.12 California ...................................... 892,272 16,960 922,078 939,038 985,842 13.48 Colorado ...................................... 66,229 1,259 68,441 69,700 73,174 1.00 Connecticut .................................. 54,357 1,033 56,173 57,206 60,057 0.82 Delaware ...................................... 14,134 269 14,606 14,875 15,616 0.21 District of Columbia ..................... 14,397 274 14,878 15,152 15,907 0.22 Florida .......................................... 376,648 7,160 389,230 396,390 416,144 5.69 Georgia ........................................ 261,885 4,978 270,633 275,611 289,347 3.96 Hawaii .......................................... 28,001 532 28,936 29,468 30,937 0.42 Idaho ............................................ 30,546 581 31,566 32,147 33,749 0.46 Illinois ........................................... 255,714 4,861 264,256 269,117 282,529 3.86 Indiana ......................................... 118,015 2,243 121,957 124,200 130,390 1.78 Iowa ............................................. 55,782 1,060 57,645 58,705 61,631 0.84 Kansas ......................................... 56,285 1,070 58,165 59,235 62,187 0.85 Kentucky ...................................... 111,633 2,122 115,362 117,484 123,339 1.69 Louisiana ..................................... 156,763 2,980 162,000 164,980 173,202 2.37 Maine ........................................... 19,940 379 20,606 20,985 22,031 0.30 Maryland ...................................... 83,998 1,597 86,804 88,401 92,806 1.27 Massachusetts ............................. 91,712 1,743 94,776 96,519 101,329 1.39 Michigan ...................................... 167,524 3,185 173,120 176,305 185,091 2.53 Minnesota .................................... 83,472 1,587 86,260 87,847 92,225 1.26 Mississippi ................................... 113,322 2,154 117,108 119,262 125,205 1.71 Missouri ....................................... 121,694 2,313 125,759 128,072 134,455 1.84 Montana ....................................... 15,946 303 16,479 16,782 17,618 0.24 Nebraska ..................................... 35,914 683 37,114 37,797 39,680 0.54 Nevada ........................................ 38,065 724 39,337 40,061 42,057 0.57 New Hampshire ........................... 13,544 257 13,996 14,253 14,964 0.20 New Jersey .................................. 131,050 2,491 135,428 137,919 144,792 1.98 New Mexico ................................. 57,136 1,086 59,045 60,131 63,127 0.86 New York ..................................... 429,700 8,168 444,054 452,222 474,760 6.49 North Carolina ............................. 205,617 3,909 212,486 216,395 227,179 3.11 North Dakota ............................... 11,252 214 11,628 11,842 12,432 0.17 Ohio ............................................. 193,723 3,683 200,194 203,877 214,037 2.93 Oklahoma .................................... 93,504 1,777 96,628 98,405 103,309 1.41 Oregon ......................................... 63,794 1,213 65,925 67,138 70,484 0.96 Pennsylvania ............................... 198,589 3,775 205,223 208,998 219,414 3.00 Rhode Island ............................... 19,438 370 20,087 20,457 21,476 0.29 South Carolina ............................. 118,039 2,244 121,982 124,226 130,417 1.78 South Dakota ............................... 17,558 334 18,145 18,479 19,399 0.27 Tennessee ................................... 139,614 2,654 144,278 146,932 154,254 2.11 Texas ........................................... 741,731 14,100 766,509 780,609 819,511 11.20 Utah ............................................. 52,134 991 53,876 54,867 57,601 0.79 Vermont ....................................... 8,849 168 9,145 9,313 9,777 0.13 Virginia ......................................... 124,205 2,361 128,354 130,715 137,229 1.88 Washington .................................. 108,928 2,071 112,567 114,638 120,351 1.65 West Virginia ............................... 42,497 808 43,917 44,725 46,953 0.64 Wisconsin .................................... 87,785 1,669 90,717 92,386 96,990 1.33 Wyoming ...................................... 8,566 163 8,852 9,015 9,464 0.13 American Samoa ......................... ...................... ........................ ...................... ...................... ...................... .................... Guam ........................................... 4,340 83 4,485 4,568 4,795 0.07 Northern Mariana Islands ............ ...................... ........................ ...................... ...................... ...................... .................... Puerto Rico .................................. 111,077 2,112 114,788 116,900 122,725 1.68 Freely Associated States ............ ...................... ........................ ...................... ...................... ...................... .................... Virgin Islands ............................... 4,138 79 4,276 4,355 4,572 0.06 Indian Tribes ................................ ...................... ........................ ...................... ...................... ...................... .................... Undistributed ................................ 12,665 ........................ ...................... ...................... ...................... .................... DOD/AF/USMC/Navy .................. 5,328 101 5,506 5,607 5,887 0.08 Total ............................................ 6,632,836 125,847 6,841,319 6,967,166 7,314,381 1 100.00 1 Excludes undistributed obligations. 145 12–3510–0–1–605 Department of Agriculture, Food and Nutrition Service Table 8–8. Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) (10.557) (obligations in thousands of dollars) State or Territory FY 2004 Actual Estimated FY 2005 obligations from: FY 2006 (estimated) FY 2006 Percentage of distributed total Previous authority New authority Total Alabama ....................................... 79,648 15 83,337 83,352 88,716 1.60 Alaska .......................................... 21,718 4 22,724 22,728 24,191 0.44 Arizona ......................................... 100,030 19 104,662 104,681 111,419 2.01 Arkansas ...................................... 56,639 11 59,262 59,273 63,088 1.14 California ...................................... 860,358 167 900,203 900,370 958,308 17.29 Colorado ...................................... 50,301 10 52,630 52,640 56,028 1.01 Connecticut .................................. 34,712 7 36,320 36,327 38,664 0.70 Delaware ...................................... 10,469 2 10,954 10,956 11,661 0.21 District of Columbia ..................... 13,133 3 13,741 13,744 14,628 0.26 Florida .......................................... 235,383 45 246,284 246,329 262,182 4.73 Georgia ........................................ 154,950 30 162,126 162,156 172,592 3.11 Hawaii .......................................... 29,352 6 30,711 30,717 32,694 0.59 Idaho ............................................ 20,183 4 21,118 21,122 22,481 0.41 Illinois ........................................... 180,400 35 188,754 188,789 200,939 3.62 Indiana ......................................... 75,117 14 78,596 78,610 83,669 1.51 Iowa ............................................. 39,093 8 40,903 40,911 43,544 0.79 Kansas ......................................... 39,548 8 41,379 41,387 44,051 0.79 Kentucky ...................................... 72,697 14 76,064 76,078 80,974 1.46 Louisiana ..................................... 92,667 18 96,958 96,976 103,217 1.86 Maine ........................................... 12,265 2 12,833 12,835 13,661 0.25 Maryland ...................................... 63,049 12 65,969 65,981 70,227 1.27 Massachusetts ............................. 66,842 13 69,937 69,950 74,452 1.34 Michigan ...................................... 127,139 25 133,027 133,052 141,614 2.55 Minnesota .................................... 66,884 13 69,981 69,994 74,499 1.34 Mississippi ................................... 63,064 12 65,985 65,997 70,244 1.27 Missouri ....................................... 78,025 15 81,638 81,653 86,908 1.57 Montana ....................................... 14,068 3 14,719 14,722 15,670 0.28 Nebraska ..................................... 23,396 5 24,479 24,484 26,060 0.47 Nevada ........................................ 27,439 5 28,710 28,715 30,563 0.55 New Hampshire ........................... 10,123 2 10,592 10,594 11,276 0.20 New Jersey .................................. 91,066 18 95,283 95,301 101,434 1.83 New Mexico ................................. 37,619 7 39,361 39,368 41,902 0.76 New York ..................................... 332,847 64 348,261 348,325 370,743 6.69 North Carolina ............................. 136,662 26 142,991 143,017 152,221 2.75 North Dakota ............................... 9,078 2 9,498 9,500 10,112 0.18 Ohio ............................................. 153,669 30 160,785 160,815 171,165 3.09 Oklahoma .................................... 50,407 10 52,741 52,751 56,146 1.01 Oregon ......................................... 64,026 12 66,991 67,003 71,316 1.29 Pennsylvania ............................... 136,033 26 142,333 142,359 151,521 2.73 Rhode Island ............................... 14,345 3 15,009 15,012 15,978 0.29 South Carolina ............................. 63,067 12 65,988 66,000 70,247 1.27 South Dakota ............................... 12,796 2 13,389 13,391 14,253 0.26 Tennessee ................................... 100,127 19 104,764 104,783 111,527 2.01 Texas ........................................... 480,574 93 502,830 502,923 535,289 9.66 Utah ............................................. 35,125 7 36,752 36,759 39,124 0.71 Vermont ....................................... 11,401 2 11,929 11,931 12,699 0.23 Virginia ......................................... 77,826 15 81,430 81,445 86,687 1.56 Washington .................................. 106,230 20 111,150 111,170 118,325 2.13 West Virginia ............................... 32,094 6 33,580 33,586 35,748 0.64 Wisconsin .................................... 64,460 12 67,445 67,457 71,799 1.30 Wyoming ...................................... 6,627 1 6,934 6,935 7,382 0.13 American Samoa ......................... 6,145 1 6,430 6,431 6,845 0.12 Guam ........................................... 6,343 1 6,637 6,638 7,065 0.13 Northern Mariana Islands ............ ...................... ........................ ...................... ...................... ...................... .................... Puerto Rico .................................. 176,815 34 185,003 185,037 196,946 3.55 Freely Associated States ............ ...................... ........................ ...................... ...................... ...................... .................... Virgin Islands ............................... 5,565 1 5,823 5,824 6,199 0.11 Indian Tribes ................................ 47,426 9 49,622 49,631 52,826 0.95 Undistributed ................................ 32,585 ........................ 29,165 29,165 32,000 .................... Farmers’ Market Nutrition Program 1 .............................................. 27,952 3,684 ...................... 3,684 ...................... .................... Total ............................................ 5,037,602 4,644 5,236,720 5,241,364 5,575,719 2 100.00 1 The Farmers’ Market Nutrition Program is funded at $20 million in the Commodity Assistance Program account in FY 2005 and FY 2006. 2 Excludes undistributed obligations. 146 12–3539–0–1–605 Department of Agriculture, Food and Nutrition Service Table 8–9. Child and Adult Care Food Program (10.558) (obligations in thousands of dollars) State or Territory FY 2004 Actual Estimated FY 2005 obligations from: FY 2006 (estimated) FY 2006 Percentage of distributed total Previous authority New authority Total Alabama ....................................... 32,785 ........................ 34,702 34,702 36,517 1.68 Alaska .......................................... 6,876 ........................ 7,278 7,278 7,659 0.35 Arizona ......................................... 42,104 ........................ 44,566 44,566 46,897 2.16 Arkansas ...................................... 23,428 ........................ 24,798 24,798 26,095 1.20 California ...................................... 232,699 ........................ 246,301 246,301 259,186 11.92 Colorado ...................................... 19,602 ........................ 20,748 20,748 21,833 1.00 Connecticut .................................. 9,870 ........................ 10,447 10,447 10,994 0.51 Delaware ...................................... 8,525 ........................ 9,023 9,023 9,495 0.44 District of Columbia ..................... 3,121 ........................ 3,303 3,303 3,476 0.16 Florida .......................................... 99,946 ........................ 105,789 105,789 111,324 5.12 Georgia ........................................ 70,993 ........................ 75,143 75,143 79,075 3.64 Hawaii .......................................... 4,648 ........................ 4,920 4,920 5,177 0.24 Idaho ............................................ 4,395 ........................ 4,652 4,652 4,895 0.23 Illinois ........................................... 91,681 ........................ 97,041 97,041 102,118 4.70 Indiana ......................................... 28,532 ........................ 30,200 30,200 31,780 1.46 Iowa ............................................. 18,384 ........................ 19,459 19,459 20,477 0.94 Kansas ......................................... 28,900 ........................ 30,590 30,590 32,190 1.48 Kentucky ...................................... 23,675 ........................ 25,059 25,059 26,370 1.21 Louisiana ..................................... 51,246 ........................ 54,242 54,242 57,080 2.63 Maine ........................................... 9,457 ........................ 10,010 10,010 10,534 0.48 Maryland ...................................... 31,999 ........................ 33,870 33,870 35,642 1.64 Massachusetts ............................. 42,156 ........................ 44,621 44,621 46,955 2.16 Michigan ...................................... 48,595 ........................ 51,436 51,436 54,127 2.49 Minnesota .................................... 55,948 ........................ 59,219 59,219 62,317 2.87 Mississippi ................................... 25,598 ........................ 27,095 27,095 28,512 1.31 Missouri ....................................... 35,296 ........................ 37,359 37,359 39,314 1.81 Montana ....................................... 8,645 ........................ 9,150 9,150 9,629 0.44 Nebraska ..................................... 22,108 ........................ 23,400 23,400 24,625 1.13 Nevada ........................................ 4,015 ........................ 4,250 4,250 4,472 0.21 New Hampshire ........................... 2,634 ........................ 2,788 2,788 2,934 0.13 New Jersey .................................. 43,021 ........................ 45,536 45,536 47,918 2.20 New Mexico ................................. 34,094 ........................ 36,087 36,087 37,975 1.75 New York ..................................... 136,673 ........................ 144,663 144,663 152,232 7.00 North Carolina ............................. 73,019 ........................ 77,288 77,288 81,331 3.74 North Dakota ............................... 8,940 ........................ 9,463 9,463 9,958 0.46 Ohio ............................................. 57,444 ........................ 60,802 60,802 63,983 2.94 Oklahoma .................................... 46,242 ........................ 48,945 48,945 51,506 2.37 Oregon ......................................... 21,721 ........................ 22,991 22,991 24,194 1.11 Pennsylvania ............................... 49,741 ........................ 52,649 52,649 55,403 2.55 Rhode Island ............................... 6,409 ........................ 6,784 6,784 7,139 0.33 South Carolina ............................. 22,405 ........................ 23,715 23,715 24,956 1.15 South Dakota ............................... 6,086 ........................ 6,442 6,442 6,779 0.31 Tennessee ................................... 38,604 ........................ 40,861 40,861 42,999 1.98 Texas ........................................... 159,436 ........................ 168,757 168,757 177,586 8.17 Utah ............................................. 19,948 ........................ 21,114 21,114 22,219 1.02 Vermont ....................................... 3,861 ........................ 4,087 4,087 4,301 0.20 Virginia ......................................... 26,978 ........................ 28,555 28,555 30,049 1.38 Washington .................................. 36,864 ........................ 39,019 39,019 41,061 1.89 West Virginia ............................... 14,565 ........................ 15,417 15,417 16,223 0.75 Wisconsin .................................... 33,660 ........................ 35,628 35,628 37,492 1.72 Wyoming ...................................... 4,553 ........................ 4,819 4,819 5,071 0.23 American Samoa ......................... ...................... ........................ ...................... ...................... ...................... .................... Guam ........................................... 39 ........................ 41 41 43 * Northern Mariana Islands ............ ...................... ........................ ...................... ...................... ...................... .................... Puerto Rico .................................. 19,353 ........................ 20,484 20,484 21,556 0.99 Freely Associated States ............ ...................... ........................ ...................... ...................... ...................... .................... Virgin Islands ............................... 557 ........................ 590 590 620 0.03 Indian Tribes ................................ ...................... ........................ ...................... ...................... ...................... .................... Undistributed ................................ 103,622 ........................ ...................... ...................... ...................... .................... Total ............................................ 2,055,696 ........................ 2,066,196 2,066,196 2,174,293 1 100.00 * $500 or less or 0.005 percent or less. 1 Excludes undistributed obligations. 147 12–3505–0–1–605 Department of Agriculture, Food and Nutrition Service Table 8–10. State Administrative Matching Grants for Food Stamp Program (10.561) (obligations in thousands of dollars) State or Territory FY 2004 Actual Estimated FY 2005 obligations from: FY 2006 (estimated) FY 2006 Percentage of distributed total Previous authority New authority Total Alabama ....................................... 30,754 ........................ 31,522 31,522 32,559 1.31 Alaska .......................................... 7,665 ........................ 7,857 7,857 8,115 0.33 Arizona ......................................... 30,742 ........................ 31,510 31,510 32,546 1.31 Arkansas ...................................... 24,964 ........................ 25,588 25,588 26,429 1.07 California ...................................... 377,619 ........................ 387,048 387,048 399,784 16.11 Colorado ...................................... 24,359 ........................ 24,967 24,967 25,788 1.04 Connecticut .................................. 17,994 ........................ 18,444 18,444 19,050 0.77 Delaware ...................................... 6,825 ........................ 6,995 6,995 7,225 0.29 District of Columbia ..................... 1