[Federal Register Volume 66, Number 2 (Wednesday, January 3, 2001)]
[Notices]
[Pages 376-381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-69]


-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration

[HCFA-2089-N]
RIN 0938-AK33


State Children's Health Insurance Program; Final Allotments to 
States, the District of Columbia, and U.S. Territories and 
Commonwealths for Fiscal Year 2001

AGENCY: Health Care Financing Administration (HCFA), HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice sets forth the final allotments of Federal funding 
available to each State, the District of Columbia, and each U.S. 
Territory and Commonwealth for fiscal year (FY) 2001 under title XXI of 
the Social Security Act (the Act).
    Established by section 4901 of the Balanced Budget Act of 1997, and 
amended by the Medicare, Medicaid and SCHIP Balanced Budget Refinement 
Act of 1999, title XXI of the Act authorizes payment of Federal 
matching funds to States, the District of Columbia, and U.S. 
Territories and Commonwealths to initiate and expand health insurance 
coverage to uninsured, low-income children under a new State Children's 
Health Insurance Program (SCHIP). States may implement SCHIP through a 
separate State program under title XXI, an expansion of a State 
Medicaid program under title XIX, or a combination of both.
    Copies: To order copies of the Federal Register containing this 
document, send your request to: New Orders, Superintendent of 
Documents, P.O. Box 37194, Pittsburgh, PA 15250-7954. Specify the date 
of the issue requested and enclose a check or money order payable to 
the Superintendent of Documents, or enclose your Visa or Master Card 
number and expiration date. Credit card orders can also be placed by 
calling the order desk at (202) 512-1800 or by faxing to (202) 512-
2250. The cost for each copy is $8.00. As an alternative, you can view 
and photocopy the Federal Register document at most libraries 
designated as Federal Depository Libraries and at many other public and 
academic libraries throughout the country that receive the Federal 
Register.
    This Federal Register document is also available from the Federal 
Register online database through GPO Access, a service of the U.S. 
Government Printing Office. The Website address is: http://www.access.gpo.gov/nara/index.html.

FOR FURTHER INFORMATION CONTACT: Richard Strauss, (410) 786-2019.

SUPPLEMENTARY INFORMATION:

I. Purpose of This Notice

    This notice sets forth the allotments available to each State, the 
District of Columbia, and each U.S. Territory and Commonwealth for FY 
2001 under title XXI of the Social Security Act (the Act).
    Final allotments for a fiscal year are available to match 
expenditures under an approved State child health plan for 3 fiscal 
years, including the year for which the final allotment was provided. 
Federal funds appropriated for title XXI are limited, and the law 
specifies a formula to divide the total annual appropriation into 
individual allotments available for each State, the District of 
Columbia, and each U.S. Territory and Commonwealth with an approved 
child health plan.
    Section 2104(b) of the Act indicates that ``the Secretary shall 
allot to each State * * * with a State child health plan approved under 
this title.'' This language requires States, the District of Columbia, 
and U.S. Territories and Commonwealths to have an approved child health 
plan for the fiscal year in order for the Secretary to provide an 
allotment for that fiscal year. All States, the District of Columbia, 
and U.S. Territories and Commonwealths had approved plans at the 
beginning of FY 2001. Therefore, the FY 2001 allotments contained in 
this notice pertain to all States, the District of Columbia, and U.S. 
Territories and Commonwealths.

II. Methodology for Determining Final Allotments for States, the 
District of Columbia, and U.S. Territories and Commonwealths

    This notice specifies in the Table under section III, the final FY 
2001 allotments available to individual States, the District of 
Columbia, and U.S. Territories and Commonwealths for child health 
assistance expenditures under approved State child health plans. As 
discussed below, the FY 2001 final allotments have been calculated to 
reflect the methodology for determining an allotment amount for each 
State, the District of Columbia, and each U.S. Territory and 
Commonwealth as prescribed by the Balanced Budget Refinement Act of 
1999 (BBRA) (Pub. L. 106-113), enacted on November 29, 1999.
    Section 2104(a) of title XXI provides that, for purposes of 
providing allotments to the 50 States and the District of Columbia, the 
following amounts are appropriated: $4,295,000,000 for FY 1998; 
$4,275,000,000 for each FY 1999 through FY 2001; $3,150,000,000 for 
each FY 2002 through 2004; $4,050,000,000 for each FY 2005 through 
2006; and $5,000,000,000 for FY 2007. However, under section 2104(c) of 
the Act, 0.25 percent of the total amount appropriated each year is 
available for allotment to the U.S. Territories and Commonwealths of 
Puerto Rico, Guam, the Virgin Islands, American Samoa, and the Northern 
Mariana Islands. The total amounts are allotted to the U.S. Territories 
and Commonwealths according to the following percentages: Puerto Rico, 
91.6 percent; Guam, 3.5 percent; the Virgin Islands, 2.6 percent; 
American Samoa, 1.2 percent; and the Northern Mariana Islands, 1.1 
percent.
    For FY 2001, title XXI, as amended by the BBRA, provides an 
additional $34,200,000 for allotment to the U.S. Territories and 
Commonwealths. Therefore, the total amount available for allotment to 
the U.S. Territories and Commonwealths in FY 2001 is $44,887,500 (that 
is, $34,200,000 plus $10,687,500 (0.25 percent of the FY 2001 
appropriation of $4,275,000,000)).
    Furthermore, under sections 4921 and 4922 of the Balanced Budget 
Act of 1997 (BBA) (Public Law 105-33), enacted on August 5, 1997, the 
total amount available for allotment to the 50 States and the District 
of Columbia is reduced by an additional total of $60,000,000; 
$30,000,000 to the Public Health Service for a special diabetes 
research program for children with Type I diabetes, and $30,000,000 for 
special diabetes

[[Page 377]]

programs for Indians. The diabetes programs are funded from FYs 1998 
through 2002 only.
    Therefore, the total amount available nationally for allotment for 
the 50 States and the District of Columbia for FY 2001 was determined 
in accordance with the following formula:

AT = S2104(a) - T 2104(c) - 
D4921 - D4922
AT =Total amount available for allotment to the 50 States 
and the District of Columbia for the fiscal year.
S2104(a) = Total appropriation for the fiscal year indicated 
in section 2104(a) of the Act. For FY 2001, this is $4,275,000,000.
T2104(c) = Total amount available for allotment for the U.S. 
Territories and Commonwealths; determined under section 2104(c) of the 
Act as 0.25 percent of the total appropriation for the 50 States and 
the District of Columbia. For FY 2001, this is: .0025  x  
$4,275,000,000 = $10,687,500.
D4921 = Amount of grant for research regarding Type I 
Diabetes under section 4921 of the BBA. This is $30,000,000 for each of 
the fiscal years 1998 through 2002.
D4922 = Amount of grant for diabetes programs for Indians 
under section 4922 of the BBA. This is $30,000,000 for each of the 
fiscal years 1998 through 2002.

    Therefore, for FY 2001, the total amount available for allotment to 
the 50 States and the District of Columbia is $4,204,312,500. This was 
determined as follows:

AT ($4,204,312,500) = S2104(a)($4,275,000,000) - 
T2104(c)($10,687,500) - D4921($30,000,000) - 
D4922($30,000,000)
    For purposes of the following discussion, the term ``State,'' as 
defined in section 2104(b)(1)(D)(ii) of the Act, ``means one of the 50 
States or the District of Columbia.''
    Under section 2104(b) of the Act, as amended by BBRA, the 
determination of the Number of Children for a fiscal year is based on 
the three most recent March supplements to the Current Population 
Survey (CPS) of the Bureau of the Census officially available before 
the beginning of the calendar year in which the fiscal year begins. The 
determination of the State Cost Factor is based on the Annual Average 
Wages Per Employee in the health services industry, which is determined 
by the most recent 3 years of such wage data reported by the Bureau of 
Labor Statistics (BLS) of the Department of Labor officially available 
prior to the beginning of the calendar year in which the fiscal year 
begins. Therefore, for FY 2001 we are using the most recent official 
data from the Bureau of the Census and the BLS, respectively, available 
prior to January 1 of calendar year 2000 because FY 2001 begins on 
October 1, 2000; that is, in calendar year 2000.

Number of Children

    For FY 2001, as specified by section 2104(b)(2)(A)(iii) of the Act, 
the Number of Children is calculated as the sum of 50 percent of the 
number of low-income, uninsured children in the State, and 50 percent 
of the number of low-income children in the State. The Number of 
Children factor for each State is developed by the Bureau of the Census 
based on the standard methodology used to determine official poverty 
status and uninsured status in the annual CPS on these topics. As part 
of a continuing formal process between HCFA and the Bureau of the 
Census, each fiscal year HCFA obtains the Number of Children data 
officially from the Bureau of the Census.
    Under section 2104(b)(2)(B) of the Act, the Number of Children for 
each State (provided in thousands) was determined and provided by the 
Bureau of the Census based on the arithmetic average of the number of 
low-income children and low-income children with no health insurance as 
calculated from the three most recent March supplements to the CPS 
officially available from the Bureau of the Census before the beginning 
of the 2000 calendar year. In particular, through December 31, 1999, 
the most recent official data available from the Bureau of the Census 
on the numbers of children were data from the three March CPSs 
conducted in March 1997, 1998, and 1999 (representing data for years 
1996 through 1998).

State Cost Factor

    The State Cost Factor is based on annual average wages in the 
health services industry in the State. The State Cost Factor for a 
State is equal to the sum of: 0.15, and 0.85 multiplied by the ratio of 
the annual average wages in the health industry per employee for the 
State to the annual wages per employee in the health industry for the 
50 States and the District of Columbia.
    Under section 2104(b)(3)(B) of the Act, as amended by the BBRA, the 
State Cost Factor for each State for a fiscal year is calculated based 
on the average of the annual wages for employees in the health industry 
for each State as reported, determined, available as final, and 
provided to HCFA by the BLS in the Department of Labor for each of the 
most recent 3 years available before the beginning of the calendar year 
in which the fiscal year begins. For example, FY 2001 begins on October 
1, 2000; that is, FY 2001 begins during calendar year 2000. Therefore, 
the State cost factor for FY 2001 is based on the most recent 3 years 
of BLS data officially available as final before January 1, 2000 (the 
beginning of the calendar year in which FY 2001 begins); that is, it 
would be based on the BLS data available as final through December 31, 
1999. In accordance with these requirements, we used the final State 
Cost Factor data available from BLS for 1995, 1996, and 1997 in 
calculating the FY 2001 final allotments.
    The State Cost Factor is determined based on the calculation of the 
ratio of each State's average annual wages in the health industry to 
the national average annual wages in the health care industry. Because 
BLS is required to suppress certain State-specific data in providing 
HCFA with the State-specific average wages per health services industry 
employee due to the Privacy Act, HCFA calculated the national average 
wages directly from the State-specific data provided by BLS. As part of 
a continuing formal process between HCFA and the BLS, each fiscal year 
HCFA obtains these wage data officially from the BLS.
    Under section 2104(b)(4) of the Act, as amended by the BBRA, each 
State and the District of Columbia is allotted a ``proportion'' of the 
total amount available nationally for allotment to the States. The term 
``proportion'' is defined in section 2104(b)(4)(D)(i) of the Act and 
refers to a State's share of the total amount available for allotment 
for any given year. In order for the entire total amount available to 
be allotted to the States, the sum of the proportions for all States 
must exactly equal one. Under the statutory definition, a State's 
proportion for a fiscal year is equal to the State's allotment for the 
fiscal year divided by the total amount available nationally for 
allotment. In general, a State's allotment for a fiscal year is 
calculated by multiplying the State's proportion for the fiscal year by 
the national total amount available for allotment for that fiscal year 
in accordance with the following formula:

SAi = Pi  x  AT
SAi = Allotment for a State or District of Columbia for a 
fiscal year.
Pi = Proportion for a State or District of Columbia for a 
fiscal year.
AT = Total amount available for allotment to the 50 States 
and the District of Columbia for the fiscal

[[Page 378]]

year. For FY 2001, this is $4,204,312,500.

    In accordance with the amended statutory formula for determining 
allotments, the State proportions are determined under two steps, which 
are described below in further detail.
    Under the first step, each State's proportion is calculated by 
multiplying the State's Number of Children and the State Cost Factor to 
determine a ``product'' for each State. The products for all States are 
then summed. Finally, the product for a State is divided by the sum of 
the products for all States, thereby yielding the State's preadjusted 
proportion.

Application of Floors and Ceilings

    Under the second step, the preadjusted proportions are subject to 
the application of proportion floors, ceilings, and a reconciliation 
process, as appropriate. The amended SCHIP statute specifies three 
proportion floors, or minimum proportions, that apply in determining 
States' allotments. The first proportion floor is equal to $2,000,000 
divided by the total of the amount available nationally for the fiscal 
year. This proportion ensures that a State's minimum allotment would be 
$2,000,000. For FY 2001, no State's preadjusted proportion is below 
this floor. The second proportion floor is equal to 90 percent of the 
allotment proportion for the State for the previous fiscal year; that 
is, a State's proportion for a fiscal year must not be lower than 10 
percent below the previous fiscal year's proportion. The third 
proportion floor is equal to 70 percent of the allotment proportion for 
the State for FY 1999; that is, the proportion for a fiscal year must 
not be lower than 30 percent below the FY 1999 proportion.
    Each State's allotment proportion for a fiscal year is limited by a 
maximum ceiling amount, equal to 145 percent of the State's proportion 
for FY 1999; that is, a State's proportion for a fiscal year must be no 
higher than 45 percent above the State's proportion for FY 1999. The 
floors and ceilings are intended to minimize the fluctuation of State 
allotments from year to year and over the life of the program. The 
floors and ceilings on proportions are not applicable in determining 
the allotments of the U.S. Territories and Commonwealths; they receive 
a fixed percentage specified in the statute of the total allotment 
available to the U.S. Territories and Commonwealths.
    As determined under the first step, which is applied prior to the 
application of any floors or ceilings, the sum of the proportions for 
all the States and the District of Columbia will be equal to exactly 
one. However, the application of the floors and ceilings under the 
second step may change the proportions for certain States; that is, 
some States' proportions may need to be raised to the floors, while 
other States' proportions may need to be lowered to the maximum 
ceiling. If this occurs, the sum of the proportions for all States and 
the District of Columbia may not exactly equal one. In that case, the 
statute requires that the proportions will need to be adjusted, under a 
method that is determined by whether the sum of the proportions is 
greater or less than one.
    The sum of the proportions would be greater than one if the 
application of the floors and ceilings resulted in raising the 
proportions of some States (due to the floors) to a greater degree than 
the proportions of other States were lowered (due to the ceiling). If, 
after application of the floors and ceiling, the sum of the proportions 
is greater than one, the amended statute requires the Secretary to 
determine a maximum percentage increase limit, which, when applied to 
the State proportions, would result in the sum of the proportions being 
exactly one.
    If, after the application of the floors and ceiling, the sum of the 
proportions is less than one, the States' proportions must be increased 
in a ``pro rata'' manner so that the sum of the proportions again 
equals one. It is also possible, although unlikely, that the sum of the 
proportions (after the application of the floors and ceiling) will be 
exactly one, and therefore, the proportions would require no further 
adjustment.

Determination of Preadjusted Proportions

    The following is an explanation of how HCFA applied the two State-
related factors specified in the statute to determine the States' 
preadjusted proportions for FY 2001. The term ``preadjusted,'' as used 
here, refers to the States'' proportions prior to the application of 
the floors and ceiling and adjustments, as specified in the amended 
SCHIP statute. The determination of each State and the District of 
Columbia's preadjusted proportion for FY 2001 is in accordance with the 
following formula:

PPi=(Ci x SCFi)/ 
(Ci x SCFi)

PPi=Preadjusted proportion for a State or District of 
Columbia for a fiscal year.
Ci=Number of children in a State (section 2104(b)(1)(A)(i) 
of the Act) for a fiscal year. This number is based on the number of 
low-income children for a State for a fiscal year and the number of 
low-income uninsured children for a State for a fiscal year determined 
on the basis of the arithmetic average of the number of such children 
as reported and defined in the three most recent March supplements to 
the CPS of the Bureau of the Census, officially available before the 
beginning of the calendar year in which the fiscal year begins. (See 
section 2104(b)(2)(B) of the Act.)

    For fiscal year 2001, the number of children is equal to the sum of 
50 percent of the number of low-income uninsured children in the State 
for the fiscal year and 50 percent of the number of low-income children 
in the State for the fiscal year. (See section 2104(b)(2)(A)(iii) of 
the Act.)

SCFin=State cost factor for a State (section 
2104(b)(1)(A)(ii) of the Act). For a fiscal year, this is equal to:

0.15+0.85 x (Wi/WN)

Wi=The annual average wages per employee for a State for 
such year (section 2104(b)(3)(A)(ii)(I) of the Act).
WN=The annual average wages per employee for the 50 States 
and the District of Columbia (section 2104(b)(3)(A)(ii)(II) of the 
Act).

    The annual average wages per employee for a State or for all States 
and the District of Columbia for a fiscal year is equal to the average 
of such wages for employees in the health services industry (SIC 80), 
as reported by the BLS of the Department of Labor for each of the most 
recent three years officially available before the beginning of the 
calendar year in which the fiscal year begins. (See section 
2104(b)(3)(B) of the Act).

(Ci x SCFi)=The sum of the products of 
(Ci x SCFi) for each State (section 2104(b)(1)(B) 
of the Act).
    The resulting proportions would then be subject to the application 
of the floors and ceilings specified in the amended SCHIP statute and 
reconciled, as necessary, to eliminate any deficit or surplus of the 
allotments because the sum of the proportions was either greater than 
or less than one.
    Section 2104(e) of the Act requires that the amount of a State's 
allotment for a fiscal year be available to the State for a total of 3 
years; the fiscal year for which the State child health plan is 
approved and the 2 following fiscal years. Section 2104(f) of the Act 
requires the Secretary to establish a process for redistribution of the 
amounts of States' allotments that are not expended during the 3-year 
period to States that have fully expended their allotments.

[[Page 379]]

III. Table of State Children's Health Insurance Program Final 
Allotments for FY 2001

Key to Table

Column/Description

    Column A=Name of State, District of Columbia, U.S. Commonwealth or 
Territory.
    Column B=Number of Children. The Number of Children for each State 
(provided in thousands) was determined and provided by the Bureau of 
the Census based on the arithmetic average of the number of low-income 
children and low-income uninsured children, and is based on the three 
most recent March supplements to the CPS of the Bureau of the Census 
officially available before the beginning of the calendar year in which 
the fiscal year begins. The FY 2001 allotments were based on the 1997, 
1998, and 1999 March supplements to the CPS. These data represent the 
number of people in each State under 19 years of age whose family 
income is at or below 200 percent of the poverty threshold appropriate 
for that family, and who are reported to be not covered by health 
insurance. The Number of Children for each State was developed by the 
Bureau of the Census based on the standard methodology used to 
determine official poverty status and uninsured status in their annual 
March CPSs on these topics.
    For FY 2001, the Number of Children is equal to the sum of 50 
percent of the number of low-income uninsured children in the State and 
50 percent of the number of low-income children in the State.
    Column C=State Cost Factor. The State Cost Factor for a State is 
equal to the sum of: 0.15, and 0.85 multiplied by the ratio of the 
annual average wages in the health industry per employee for the State 
to the annual wages per employee in the health industry for the 50 
States and the District of Columbia. The State Cost Factor for each 
State was calculated based on such final wage data for each State as 
reported, determined, and officially available to HCFA by the BLS in 
the Department of Labor for each of the most recent 3 years before the 
beginning of the calendar year in which the fiscal year begins. The FY 
2001 allotments were based on final BLS wage data for 1995, 1996, and 
1997.
    Column D=Product. The Product for each State was calculated by 
multiplying the Number of Children in Column B by the State Cost Factor 
in Column C. The sum of the Products for all 50 States and the District 
of Columbia is below the Products for each State in Column D. The 
Product for each State and the sum of the Products for all States 
provides the basis for allotment to States and the District of 
Columbia.
    Column E=Proportion of Total. This is the calculated percentage 
share for each State of the total allotment available to the 50 States 
and the District of Columbia. The Percent Share of Total is calculated 
as the ratio of the Product for each State in Column D to the sum of 
the products for all 50 States and the District of Columbia below the 
Products for each State in Column D.
    Column F=Adjusted Proportion of Total. This is the calculated 
percentage share for each State of the total allotment available after 
the application of the floors and ceilings and after any further 
reconciliation needed to ensure that the sum of the State proportions 
is equal to one. The three floors specified in the amended statute are: 
(1) a floor of $2,000,000 divided by the total of the amount available 
for all allotments for the fiscal year; (2) an annual floor of 90 
percent of (that is, 10 percent below) the preceding fiscal year's 
allotment proportion; and (3) a cumulative floor of 70 percent of (that 
is, 30 percent below) the FY 1999 allotment proportion. There is also a 
cumulative ceiling of 145 percent of (that is, 45 percent above) the FY 
1999 allotment proportion.
    Column G=Allotment. This is the SCHIP allotment for each State, 
Commonwealth, or Territory for the fiscal year. For each of the 50 
States and the District of Columbia, this is determined as the Adjusted 
Proportion of Total in Column F for the State multiplied by the total 
amount available for allotment for the 50 States and the District of 
Columbia for the fiscal year.
    For each of the U.S. Territory and Commonwealths, the allotment is 
determined as the Proportion of Total in Column E multiplied by the 
total amount available for allotment to the U.S. Territories and 
Commonwealths. For the U.S. Territories and Commonwealths, the 
Proportion of Total in Column E is specified in section 2104(c) of the 
Act. The total amount is then allotted to the U.S. Territories and 
Commonwealths according to the percentages specified in section 2104 of 
the Act. There is no adjustment made to the allotments of the U.S. 
Territories and Commonwealths as they are not subject to the 
application of the floors and ceiling. As a result, Column F in the 
table, the Adjusted Proportion of Total, is empty for the U.S. 
Territories and Commonwealths.

                                    State Children's Health Insurance Program
----------------------------------------------------------------------------------------------------------------
                               B  Number                                  E       F  Adjusted
          A  State            of children    C  State    D  Product   Proportion   proportion   G  Allotment \1\
                                 (000)     cost factor                 of total     of total
-------------------------------------------------------------------------\3\----------\3\-----------------------
Allotments for Federal
 Fiscal Year: 2001
    Alabama.................          302       0.9659       291.71         1.52         1.83        $77,012,259
    Alaska..................           41       1.0392        42.61         0.22         0.18          7,760,462
    Arizona.................          542       1.0514       569.88         2.96         2.96        124,519,004
    Arkansas................          277       0.8931       246.94         1.28         1.28         53,957,231
    California..............        2,905       1.1108     3,226.23        16.77        18.21        765,547,705
    Colorado................          204       1.0017       204.34         1.06         1.06         44,648,559
    Connecticut.............          162       1.1165       180.31         0.94         0.94         39,379,724
    Delaware................           51       1.0889        54.99         0.29         0.22          9,071,840
    Districe of Columbia....           42       1.2960        53.78         0.28         0.28         11,751,544
    Florida.................          978       1.0305     1,007.86         5.24         5.76        224,044,718
    Georgia.................          621       0.9953       618.09         3.21         3.21        135,053,332
    Hawaii..................           74       1.1690        85.92         0.45         0.24         10,076,456
    Idaho...................          110       0.8893        97.83         0.51         0.43         17,887,730
    Illinois................          787       0.9966       783.85         4.07         3.28        138,022,569
    Indiana.................          298       0.9234       274.71         1.43         1.50         63,161,480
    Iowa....................          178       0.8469       150.76         0.78         0.78         32,940,215
    Kansas..................          154       0.8719       134.27         0.70         0.70         29,337,719

[[Page 380]]

 
    Kentucky................          276       0.9276       256.02         1.33         1.33         55,939,972
    Louisiana...............          396       0.8876       351.06         1.82         2.17         91,130,730
    Maine...................           68       0.9049        61.53         0.32         0.32         13,444,691
    Maryland................          225       1.0460       235.34         1.22         1.31         55,202,678
    Massachusetts...........          292       1.0495       305.92         1.59         1.15         48,252,963
    Michigan................          573       1.0074       576.71         3.00         2.45        103,166,689
    Minnesota...............          255       0.9824       250.02         1.30         0.76         31,986,711
    Mississippi.............          289       0.8882       256.24         1.33         1.33         55,987,988
    Missouri................          326       0.9204       299.59         1.56         1.38         58,207,299
    Montana.................           83       0.8415        69.42         0.36         0.31         13,224,992
    Nebraska................          102       0.8563        87.34         0.45         0.40         16,742,374
    Nevada..................          120       1.1954       143.45         0.75         0.75         31,344,200
    New Hampshire...........           58       0.9826        56.99         0.30         0.30         12,452,305
    New Jersey..............          403       1.1237       452.28         2.35         2.35         98,823,044
    New Mexico..............          219       0.9225       201.56         1.05         1.34         56,407,772
    New York................        1,360       1.0841     1,473.80         7.66         6.85        287,950,908
    North Carolina..........          501       0.9899       495.95         2.58         2.13         89,562,475
    North Dakota............           48       0.8697        41.31         0.21         0.14          5,678,153
    Ohio....................          675       0.9650       650.87         3.38         3.10        130,369,218
    Oklahoma................          262       0.8523       222.88         1.16         1.83         76,764,895
    Oregon..................          228       1.0063       229.45         1.19         1.05         44,068,679
    Pennsylvania............          638       0.9969       636.01         3.31         3.15        132,309,145
    Rhode Island............           44       0.9785        42.57         0.22         0.23          9,570,566
    South Carolina..........          294       1.0055       295.61         1.54         1.54         64,591,234
    South Dakota............           43       0.0873        37.42         0.19         0.19          8,177,039
    Tennessee...............          446       0.9991       445.11         2.31         1.77         74,518,279
    Texas...................        2,028       0.9277     1,880.82         9.77        11.96        502,812,459
    Utah....................          153       0.9059       138.14         0.72         0.65         27,306,505
    Vermont.................           29       0.8696        25.22         0.13         0.09          3,982,509
    Virginia................          350       0.9885       345.50         1.80         1.80         75,491,290
    Washington..............          314       0.9467       296.78         1.54         1.25         52,561,622
    West Virginia...........          108       0.8961        96.77         0.50         0.50         21,145,730
    Wisconsin...............          241       0.9438       226.99         1.18         1.09         45,771,172
    Wyoming.................           38       0.8779        32.92         0.17         0.17          7,193,664
                             -----------------------------------------------------------------------------------
      Total States only.....                              19,241.72       100.00       100.00      4,204,312,500
                             ===================================================================================
Allotments for commonwealths
 and territories \2\
    Puerto Rico.............                                               91.60                      41,116,950
    Guam....................                                                3.50                       1,571,063
    Virgin Islands..........                                                2.60                       1,167,075
    American Samoa..........                                                1.20                         538,650
    N. Mariana Islands......                                                1.10                         493,763
                             -----------------------------------------------------------------------------------
      Total Commonwealths                                                 100.00                      44,887,500
       and Territories only.
                             ===================================================================================
      Total States and                                                                            4,249,200,000
       Commonwealths and
       Territories..........
----------------------------------------------------------------------------------------------------------------
\1\ Total amount available for allotment to the 50 States and the District of Columbia is $4,204,312,500;
  determined as the fiscal year appropriation ($4,275,000,000) reduced by the total amount available for
  allotment to the Commonwealths and Territories under section 2104(c) of the Act ($10,687,500) and amounts for
  Special Diabetes Grants ($60,000,000) under sections 4921 and 4922 of BBA.
\2\ Total amount available for allotment to the Commonwealths and Territories is $10,687,500 (determined as .25
  percent of $4,275,000,000, the fiscal year appropriation) plus $34,200,000 as specified in section
  2104(c)(4)(B) of the Act.
\3\ Percent share of the total amount available for allotment to the Commonwealths and Territories is a
  specified in section 2104(c) of the Social Security Act.

IV. Impact Statement

    We have examined the impact of this notice as required by Executive 
Order 12866. Executive Order 12866 directs agencies to assess all costs 
and benefits of available regulatory alternatives and, when rules are 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic environments, public health and safety, 
other advantages, distributive impacts, and equity). We believe that 
this notice is consistent with the regulatory philosophy and principles 
identified in the Executive Order. The formula for the allotments is 
specified in the statute. Since the formula is specified in the 
statute, we have no discretion in determining the allotments.
    The Unfunded Mandates Reform Act of 1995 requires that agencies 
prepare an assessment of anticipated costs and benefits before 
publishing any notice that may result in an annual expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted each year for 
inflation) in any one year. Because participation in the SCHIP program 
on the part of States is

[[Page 381]]

voluntary, any payments and expenditures States make or incur on behalf 
of the program that are not reimbursed by the Federal government are 
made voluntarily. This notice will not create an unfunded mandate on 
States, tribal, or local governments. Therefore, we are not required to 
perform an assessment of the costs and benefits of these regulations.
    Under Executive Order 12612, Federalism, we have reviewed this 
notice and determined that it does not significantly affect States' 
rights, roles, and responsibilities.
    Low-income children will benefit from payments under this program 
through increased opportunities for health insurance coverage.
    We believe this notice will have an overall positive impact by 
informing States, the District of Columbia, and U.S. Territories and 
Commonwealths of the extent to which they are permitted to expend funds 
under their child health plans using their FY 2001 allotments.
    In accordance with the provisions of Executive Order 12866, this 
notice was reviewed by the Office of Management and Budget.

(Section 1102 of the Social Security Act (42 U.S.C. 1302))

(Catalog of Federal Domestic Assistance Program No. 00.000, State 
Children's Health Insurance Program)

    Dated: October 10, 2000.
Michael M. Hash,
Acting Administrator, Health Care Financing Administration.
    Dated: October 25, 2000.
Donna E. Shalala,
Secretary.
[FR Doc. 01-69 Filed 1-2-01; 8:45 am]
BILLING CODE 4120-01-P