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 Feds
Shortchange California
January 26, 2004
By
James Klein, Larta VOX Editor
A new report
by the Public Policy Institute of California looks at the formulas
used to determine the distribution of federal funds to state and
local governments, and reveals how California receives disproportionately
less homeland security funding than other states.
The report,
titled Federal Formula Grants and California: Homeland Security,
reviews most of the primary formula and discretionary grant programs
that deliver federal financial assistance for homeland security
activities to state and local governments and other entities during
fiscal year 2003. The report provides detailed information on grants
to California and other states during that year and estimates how
grant amounts might have changed if the administering agency had
employed alternative formula scenarios. It then discusses preliminary
prospects for future-year funding and also notes current legislative
activity and possible formula changes.
In
two years, federal funding for homeland security has increased tenfold.
For fiscal years 2003 and 2004, Congress appropriated more than
$5 billion per year to help state and local first responders prepare
for and respond to acts of terrorism. However, politically-crafted
formulas distribute most
of those dollars, sending disproportionately large amounts to states
and localities that are less populated and are home to fewer potential
terror targets (ports, economic focal points, and national icons)
than states like California. For example, in 2004, California will
receive $5 per capita (the least of any state) from the largest
grant, whereas Wyoming will receive $38 per capita.
Federal Formula
Grants and California: Homeland Security outlines the federal programs
that distribute grants to the nation's first responders, examines
the mechanics of formulas that determine funding levels for California
and other states, and discusses legislative proposals to change
these formulas. The report finds that California wins a larger share
of grants to enhance security in urban areas, but those grants do
not compensate for the state's formula funding shortfall. Responding
to criticism, Congress is considering legislation to base grants
on estimates of assets, population, and threat. Considering the
state's current share, most proposed changes would increase funding
for California.
This report
is the seventh in an ongoing series reviewing California's share
of federal formula grant programs. Upcoming reports will examine
funding for transit programs and child care. The series was developed
at the request of the bipartisan leadership of California's congressional
delegation and is produced by PPIC in collaboration with the California
Institute for Federal Policy Research.
The Public Policy
Institute of California is a private, nonprofit organization dedicated
to improving public policy in California through independent, objective,
nonpartisan research on major economic, social, and political issues.
The institute was established in 1994 with an endowment from William
R. Hewlett. PPIC does not take or support positions on any ballot
measure or on any local, state, or federal legislation, nor does
it endorse, support, or oppose any political parties or candidates
for public
office. This and other formula grant reports are available on the
PPIC website at http://www.ppic.org.
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full text of report
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