Choosing the Right Formula Initial Report (2001) / Chapter Skim
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5. Themes and Issues
5. Themes and Issues
Pages 53-60
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From page 53... ...
The work of the panel will include analyses of allocations with a variety of program provisions and estimators for programs that cover a range of areas, such as education, community development, public health, and others. Formulas play a central role in cost of living escalator clauses, labor contracts, child support rules, income tax collection, and congressional apportionment.
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From page 54... ...
54 CHOOSING THE RIGHT FORMULA: INITIAL REPORT In this initial report, the panel summarizes themes identified in the workshop and in its first three meetings, highlights the principal issues it intends to address, and outlines anticipated activities. Themes and issues are presented in Chapter 5 and anticipated activities are described in Chapter 6.
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From page 55... ...
There are three models for the way that Congress interacts with Executive Branch agencies in designing programs to allocate federal funds: (1) Congress can legislate the exact amount to be received by each state or other political subdivision; (2)
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From page 56... ...
In the evaluation of programs and allocations, technical statistical issues are important, but so are many other administrative and political aspects of a program. If a program fails to attain its stated goals, the fault may lie in requirements dictated by the legislation, in the data inputs to the allocation formula, in the allocation process, or in the program services.
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From page 57... ...
In those instances when it is left to an Executive Branch agency to determine the formula or other process for allocation, the agency will need similar capacity to implement and evaluate formulas and to work through the public comment process. State agencies have similar needs, both in developing their own allocation formulas and in understanding how the federal formula allocation programs work.
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From page 58... ...
DATA SOURCES A few key data sources such as the decennial census, the Current Population Survey, and Internal Revenue Service records are widely used to support formula allocation programs. In addition to these data sources currently in use, new information sources have the potential to improve formula inputs.
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From page 59... ...
In fact, many funds allocation programs currently allow flexibility in stateprovided information, especially for distributing federally allocated funds within the state. If similar flexibility is allowed in providing inputs to the formula for allocating funds among states, inputs should be as immune as possible from manipulation of definitions or data sources.
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From page 60... ...
. A recent court decision by a New York State judge declared the state's method of financing public schools illegal and set a September 2001 deadline for the state to revise its formula (Goodnough, 20011.
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