In 2000, the federal government distributed over $260 billion of funding to state and local governments via 180 formula programs. These programs promote a wide spectrum of economic and social objectives, such as improving educational outcomes and increasing accessibility to medical care, and many are designed to compensate for differences in fiscal capacity that affect governments' abilities to address identified needs. Large amounts of state revenues are also distributed through formula allocation programs to counties, cities, and other jurisdictions. Statistical Issues in Allocating Funds by Formula identifies key issues concerning the design and use of these formulas and advances recommendations for improving the process. In addition to the more narrow issues relating to formula design and input data, the book discusses broader issues created by the interaction of the political process and the use of formulas to allocate funds. Statistical Issues in Allocating Funds by Formula is only up-to-date guide for policymakers who design fund allocation programs. Congress members who are crafting legislation for these programs and federal employees who are in charge of distributing the funds will find this book indispensable.

Excerpt from Statistical Issues in Allocating Federal Funds and Estimation of Local Government Finances: Papers Presented at the Conference on Small-Area Statistics, American Statistical Association, Boston, Mass., August 25-26, 1976 Ideally, application of the allocation rules should be based on available accurate information. In practice this is usually not the case. The classifications and quantities used in alloca tion formulas may be subject to measurement error, and appli cation of decision rules by different individuals, or even the same individual at different times, may have different results. This paper deals with two aspects of equity in allocation processes which are subject to error. Part I, discusses the effects of sampling error on procedures for allocation of funds to political subdivisions through formula grants. Particular atten tion is given to the issue of equity in the allocation, among political subdivisions, of a sample to be used to estimate values used in the allocation formula. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

The workshop was a direct outgrowth of a previous study by the CNSTAT Panel on Estimates of Poverty for Small Geographic Areas. That panel, established under a 1994 act of Congress, began its work with a very specific mission: to evaluate the suitability of the U.S. Census Bureau's small-area estimates of poor school-age children for use in the allocation of funds to counties and school districts under Title I of the Elementary and Secondary Education Act. In carrying out their assignment, panel members came to realize that the properties of data sources and statistical procedures used to produce formula estimates, interacting with formula features such as thresholds and hold-harmless provisions, can produce consequences that may not have been anticipated or intended. It also became evident that there is a trade-off between the goals of providing a reasonable amount of stability in funding from one year to the next and redirecting funds to different jurisdictions as true needs change. In one instance, for example, the annual appropriation included a 100 percent hold-harmless provision, ensuring that no recipient would receive less than the year before. However, there was no increase in the total appropriation, with the result that new estimates showing changes in the distribution of program needs across areas had no effect on the allocations. Choosing the Right Formula provides an account of the presentations and discussions at the workshop. The first three chapters cover the overview, case studies, and methodological sessions, respectively. Chapter 4 summarizes the issues discussed in the roundtable and concluding sessions, with emphasis on the identification of questions that might be addressed in a panel study.