[Federal Register Volume 66, Number 208 (Friday, October 26, 2001)]
[Notices]
[Pages 54246-54251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26037]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

[CMS-2133-N]
RIN 0938-ZA17


State Children's Health Insurance Program; Final Allotments to 
States, the District of Columbia, and U.S. Territories and 
Commonwealths for Fiscal Year 2002

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Notice.

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SUMMARY: Title XXI of the Social Security Act (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 the State 
Children's Health Insurance Program (SCHIP). 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 2002. States may implement SCHIP through a separate State 
program under title XXI of the Act, an expansion of a State Medicaid 
program under title XIX of the Act, or a combination of both.

EFFECTIVE DATE: This notice is effective on November 26, 2001. Final 
allotments are available for expenditures after October 1, 2001.

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 
fiscal year (FY) 2002 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. 
That is, the FY 2002 allotments will be available to States for FY 
2002, and unexpended amounts may be carried over to FYs 2003 and 2004. 
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.

[[Page 54247]]

    Section 2104(b) of the Act 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 have approved plans 
for FY 2002. Therefore, the FY 2002 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 
2002 allotments available to individual States, the District of 
Columbia, and U.S. Territories and Commonwealths for either child 
health assistance expenditures under approved State child health plans 
or for claiming an enhanced Federal medical assistance percentage rate 
for certain SCHIP-related Medicaid expenditures. As discussed below, 
the FY 2002 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) (Public 
Law 106-113), enacted on November 29, 1999.
    Section 2104(a) of the Act 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 FY 2004; $4,050,000,000 for each FY 2005 through FY 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.
    Section 2104(c)(4)(B) of the Act, as amended by the BBRA, provides 
for additional amounts for allotment to the Territories and 
Commonwealths: $34,200,000 for each FY 2000 through FY 2001; 
$25,200,000 for each FY 2002 through FY 2004; $32,400,000 for each FY 
2005 through FY 2006; and $40,000,000 for FY 2007. Therefore, for FY 
2002, title XXI of the Act provides an additional $25,200,000 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 2002 is $33,075,000 (that is, $25,200,000 plus 
$7,875,000 (0.25 percent of the FY 2002 appropriation of 
$3,150,000,000)).
    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 is allocated to the Public Health Service for a special 
diabetes research program for children with Type I diabetes, and 
$30,000,000 for special diabetes 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 2002 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 2002, this is $3,150,000,000.
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 2002, this is:.0025  x  $3,150,000,000 
= $7,875,000.
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 2002, the total 
amount available for allotment to the 50 States and the District of 
Columbia is $3,082,125,000. This was determined as follows:
AT ($)3,082,125,000 = S2104(a)($3,150,000,000) - 
T2104(c)($7,875,000) - 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 applied in determining the 
SCHIP allotment for a particular 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 using the most recent 
3 years of such wage data as reported and determined as final by the 
Bureau of Labor Statistics (BLS) of the Department of Labor to be 
officially available prior to the beginning of the calendar year in 
which the fiscal year begins. Because FY 2002 begins on October 1, 
2001, (that is, in calendar year 2001,) in determining the FY 2002 
SCHIP allotments, we are using the most recent official data from the 
Bureau of the Census and the BLS, respectively, available before 
January 1 of calendar year 2001.

Number of Children

    For FY 2002, 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 from data provided 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 the 
Centers for Medicare & Medicaid Services (CMS, formerly known as HCFA) 
and the Bureau of the Census, each fiscal year we obtain 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

[[Page 54248]]

before the beginning of the 2001 calendar year. In particular, through 
December 31, 2000, 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 1998, 1999, and 2000 (representing 
data for years 1997 through 1999).

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 using data for each of the most recent 3 years as 
reported and determined as final by the BLS in the Department of Labor 
and available before the beginning of the calendar year in which the 
fiscal year begins. Therefore, the State cost factor for FY 2002 is 
based on the most recent 3 years of BLS data officially available as 
final before January 1, 2001 (the beginning of the calendar year in 
which FY 2002 begins); that is, it is based on the BLS data available 
as final through December 31, 2000. In accordance with these 
requirements, we used the final State Cost Factor data available from 
BLS for 1996, 1997, and 1998 in calculating the FY 2002 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 us 
with the State-specific average wages per health services industry 
employee due to the Privacy Act, we calculated the national average 
wages directly from the State-specific data provided by BLS. As part of 
a continuing formal process between CMS and the BLS, each fiscal year 
CMS 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 fiscal 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 for the fiscal year. 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 year. For FY 2002, this is 
$3,082,125,000.

    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 Ceiling

    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 2002, 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 as 
compared to FY 1999. 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 for determining the States' 
preadjusted proportions, which is applied before 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 statute requires the States' 
proportions to 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.

[[Page 54249]]

Determination of Preadjusted Proportion

    The following is an explanation of how we applied the two State-
related factors specified in the statute to determine the States' 
preadjusted proportions for FY 2002. 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 2002 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 2002, 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.)

SCFi = 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 and determined as final 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.

III. Table of State Children's Health Insurance Program Final 
Allotments for FY 2002

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 2002 allotments were based on 
the 1998, 1999, and 2000 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 without health 
insurance coverage. 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 its annual 
March CPS on these topics.
    For FY 2002, 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 wage data for each State as reported 
and determined as final by the BLS in the Department of Labor for each 
of the most recent 3 years and available before the beginning of the 
calendar year in which the fiscal year begins. The FY 2002 allotments 
were based on final BLS wage data for 1996, 1997, and 1998.
    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.

[[Page 54250]]

    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 Allotments for Federal Fiscal Year
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            A                                    B               C               D               E               F               G
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                             Adjusted
                                                             Number of      State cost                     Proportion of   proportion of
                          State                           children (000)      factor          Product        total \3\       total \3\     Allotment \1\
                                                                                                             (percent)       (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
ALABAMA.................................................             303          0.9688        293.0755          1.5729          1.5764     $48,585,422
ALASKA..................................................              41          1.0379         42.0330          0.2256          0.2261       6,968,138
ARIZONA.................................................             501          1.0495        525.8013          2.8220          2.8281      87,166,211
ARKANSAS................................................             244          0.8972        218.9183          1.1749          1.1775      36,291,812
CALIFORNIA..............................................           2,885          1.1051      3,187.6789         17.1082         17.1455     528,466,560
COLORADO................................................             205          1.0083        206.7040          1.1094          1.1118      34,266,951
CONNECTICUT.............................................             141          1.1072        156.1201          0.8379          0.8434      25,993,944
DELAWARE................................................              49          1.1164         54.1443          0.2906          0.2764       8,520,205
DISTRICT OF COLUMBIA....................................              38          1.2626         47.3485          0.2541          0.2547       7,849,329
FLORIDA.................................................             964          1.0272        990.2267          5.3145          5.3261     164,157,649
GEORGIA.................................................             635          0.9981        633.2945          3.3989          3.4063     104,986,194
HAWAII..................................................              71          1.1617         81.8966          0.4395          0.3071       9,463,732
IDAHO...................................................             117          0.8931        104.4926          0.5608          0.5451      16,800,022
ILLINOIS................................................             767          1.0005        767.4131          4.1187          4.1277     127,220,093
INDIANA.................................................             306          0.9286        283.6953          1.5226          1.5259      47,030,390
IOWA....................................................             158          0.8556        135.1884          0.7256          0.7271      22,411,236
KANSAS..................................................             152          0.8751        132.5787          0.7115          0.7131      21,978,619
KENTUCKY................................................             250          0.9293        231.8518          1.2443          1.2471      38,435,891
LOUISIANA...............................................             393          0.8866        348.0072          1.8677          1.8718      57,691,885
MAINE...................................................              66          0.9134         60.2861          0.3236          0.3243       9,994,099
MARYLAND................................................             195          1.0422        202.6996          1.0879          1.1008      33,927,307
MASSACHUSETTS...........................................             294          1.0530        309.0552          1.6587          1.4704      45,318,822
MICHIGAN................................................             580          1.0078        584.5496          3.1373          3.1437      96,893,382
MINNESOTA...............................................             236          0.9919        233.5856          1.2537          0.9747      30,041,680
MISSISSIPPI.............................................             256          0.8934        288.7227          1.2276          1.2302      37,917,154
MISSOURI................................................             300          0.9248        276.9879          1.4866          1.4898      45,918,455
MONTANA.................................................              78          0.8509         65.9479          0.3539          0.3547      10,932,695
NEBRASKA................................................              99          0.8673         85.4243          0.4585          0.4595      14,161,451
NEVADA..................................................             141          1.1856        166.5704          0.8940          0.8959      27,613,689
NEW HAMPSHIRE...........................................              56          0.9881         54.8419          0.2943          0.2950       9,091,578
NEW JERSEY..............................................             374          1.1206        419.1061          2.2493          2.2542      69,478,513
NEW MEXICO..............................................             213          0.9300        197.6156          1.0606          1.0867      33,494,942
NEW YORK................................................           1,312          1.0758      1,411.4867          7.5754          7.5919     233,993,235
NORTH CAROLINA..........................................             495          0.9897        489.3856          2.6265          2.6323      81,129,294
NORTH DAKOTA............................................              49          0.8723         42.7421          0.2294          0.1730       5,332,879
OHIO....................................................             675          0.9663        652.2300          3.5005          3.5081     108,125,285
OKLAHOMA................................................             224          0.8519        190.3994          1.0219          1.4789      45,583,004
OREGON..................................................             225          1.0102        226.7945          1.2172          1.2199      37,597,497
PENNSYLVANIA............................................             616          0.9950        612.8914          3.2894          3.2966     101,603,820
RHODE ISLAND............................................              46          0.9908         45.0812          0.2420          0.2425       7,473,463
SOUTH CAROLINA..........................................             283          1.0101        285.3444          1.5314          1.5348      47,303,777
SOUTH DAKOTA............................................              41          0.8742         35.8415          0.1924          0.1928       5,941,727
TENNESSEE...............................................             373          1.0021        373.7781          2.0061          2.0104      61,964,136
TEXAS...................................................           1,957          0.9306      1,820.7473          9.7719          9.7932     301,839,575
UTAH....................................................             152          0.9135        138.8483          0.7452          0.7468      23,017,975
VERMONT.................................................              29          0.8730         25.3169          0.1359          0.1214       3,740,343
VIRGINIA................................................             335          0.9858        329.7350          1.7697          1.7735      54,662,752
WASHINGTON..............................................             269          0.9518        256.0424          1.3742          1.3772      42,446,166
WEST VIRGINIA...........................................             112          0.9008        100.4372          0.5390          0.5402      16,650,270
WISCONSIN...............................................             249          0.9539        237.5144          1.2747          1.2775      39,374,631
WYOMING.................................................              36          0.8876         31.9531          0.1715          0.1719       5,297,121
                                                         -----------------------------------------------------------------------------------------------
      TOTAL STATES ONLY.................................  ..............  ..............     18,632.4311        100.0000        100.0000   3,082,125,000
                                                         -----------------------------------------------------------------------------------------------
                                                    ALLOTMENTS FOR COMMONWEALTHS AND TERRITORIES \2\
--------------------------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO.............................................  ..............  ..............  ..............         91.6     ..............      30,296,700
GUAM....................................................  ..............  ..............  ..............          3.5     ..............       1,157,625

[[Page 54251]]

 
VIRGIN ISLANDS..........................................  ..............  ..............  ..............          2.6     ..............         859,950
AMERICAN SAMOA..........................................  ..............  ..............  ..............          1.2     ..............         396,900
N. MARIANA ISLANDS......................................  ..............  ..............  ..............          1.1     ..............         363,825
                                                         -----------------------------------------------------------------------------------------------
      TOTAL COMMONWEALTHS AND TERRITORIES ONLY..........  ..............  ..............  ..............        100.0     ..............      33,075,000
                                                         -----------------------------------------------------------------------------------------------
      TOTAL STATES AND COMMONWEALTHS AND TERRITORIES....  ..............  ..............  ..............  ..............  ..............   3,115,200,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
FOOTNOTES
The numbers in Columns B-F are rounded for presentation purposes, the actual numbers used in the allotment calculations are not rounded.
\1\ Total amount available for allotment to the 50 States and the District of Columbia is $3,082,125,000; determined as the fiscal year appropriation
  ($3,150,000,000) reduced by the total amount available for allotment to the Commonwealths and Territories under section 2104(c) of the Act
  ($7,875,000) and amounts for Special Diabetes Grants under sections 4921 ($30,000,000) and 4922 ($30,000,000) of BBA.
\2\ Total amount available for allotment to the Commonwealths and Territories is $7,875,000 (determined as 25 percent of $3,150,000,000, the fiscal year
  appropriation) plus $25,200,000, as specified in section 2104(c)(4)(B) of the Act.
\3\ Percent share of total amount available for allotment to the Commonwealths and Territories is as specified in section 2104(c) of the 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. This 
notice merely announces the results of our application of this formula, 
and therefore does not reach the economic significance threshold of 
$100 million in any one year.
    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 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 
because it merely notifies states of their SCHIP allotment for FY 2002. 
Therefore, we are not required to perform an assessment of the costs 
and benefits of this notice.
    Low-income children will benefit from payments under SCHIP 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 2002 allotments.
    Under Executive Order 13132, we are required to adhere to certain 
criteria regarding Federalism. We have reviewed this notice and 
determined that it does not significantly affect States' rights, roles, 
and responsibilities because it does not set forth any new policies.
    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. 93.767, State 
Children's Health Insurance Program)
    Dated: August 2, 2001.
Thomas A. Scully,
Administrator, Centers for Medicare & Medicaid Services.
    Dated: August 31, 2001.
Tommy G. Thompson,
Secretary.
[FR Doc. 01-26037 Filed 10-25-01; 8:45 am]
BILLING CODE 4120-01-P