[Federal Register Volume 72, Number 205 (Wednesday, October 24, 2007)]
[Notices]
[Pages 60312-60314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20963]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Emergency Food Assistance Program; Allocation Formula

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This notice invites State and local agencies involved in the 
administration of The Emergency Food Assistance Program (TEFAP) and the 
general public to comment on the intent of the Department to modify the 
data sources used to calculate the formula for allocating TEFAP 
commodities and administrative funds among State agencies. Data sources 
currently used to allocate these resources have been used for a number 
of years. However, more accurate, reliable, and up-to-date data sources 
for gauging poverty and unemployment and, ultimately, each

[[Page 60313]]

State's need for TEFAP commodities and administrative funds, are now 
available. Therefore, unless comments reveal a significant disadvantage 
to implementing these changes, the Department intends to allocate TEFAP 
commodities and administrative funds for fiscal year 2008 using these 
new data sources.

DATES: To be assured of consideration, comments must be received on or 
before November 23, 2007.

ADDRESSES: The Food and Nutrition Service (FNS) invites interested 
persons to submit comments on this Notice. You may submit comments by 
any of the following methods:
     Fax: Submit comments by facsimile transmission to (703) 
305-2420.
     Disk or CD-ROM: Submit comments on disk to Lillie F. 
Ragan, Assistant Branch Chief, Policy Branch, Food Distribution 
Division, Food and Nutrition Service, U.S. Department of Agriculture, 
3101 Park Center Drive, Room 506, Alexandria, Virginia 22302-1594.
     Mail: Send comment to Lillie F. Ragan at the above 
address.
     Hand Delivery or Courier: Deliver comments to the above 
address.
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.

Comments submitted in response to this Notice will be included in the 
record and will be made available to the public. Please be advised that 
the substance of the comments and the identity of the individuals or 
entities submitting the comments will be subject to public disclosure. 
All written submissions will be available for public inspection at the 
address above during regular business hours (8:30 a.m. to 5:30 p.m.), 
Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Lillie Ragan at (703) 305-2662.

SUPPLEMENTARY INFORMATION: The purpose of TEFAP is to provide nutrition 
assistance to those with the greatest and most immediate need. To 
accomplish this purpose, the Emergency Food Assistance Act of 1983 (7 
U.S.C. 7501, et seq. (the Act)) requires that TEFAP commodities and 
administrative funds be allocated among States according to a formula 
that accounts for poverty and unemployment levels within each State. 
Section 214(a)(1) of the Act (7 U.S.C. 7515(a)(1)) requires that 60 
percent of each State's allocation be equal to the percentage of the 
nation's persons in poverty within that State; and Section 214(a)(2) (7 
U.S.C. 7515(a)(2)) requires that the remaining 40 percent be equal to 
the percentage of the nation's unemployed persons within that State.
    The Act also requires that data from the Census Bureau be used to 
determine the poverty line (7 U.S.C. 7501(7) citing 42 U.S.C. 9902(2)); 
data from the Bureau of Labor Statistics (BLS) be used to determine the 
number of unemployed persons; that the number of unemployed persons be 
calculated as a monthly average; and that the data used to calculate 
that average originate from the most recent fiscal year for which 
information is available (7 U.S.C. 7501(2)). Aside from these 
requirements, the Act places no restrictions on the data sources or 
methodology used to calculate the formula.
    The Department intends to use data sources that are more accurate, 
reliable, and up-to-date than our current sources to calculate the 
TEFAP allocation formula. This will provide a more accurate gauge of 
poverty and unemployment levels within the States, thus targeting 
program resources to those States most in need.
    The poverty portion of the formula is currently updated annually, 
using data from the Annual Social and Economic Supplement to the 
Current Population Survey (CPS), an annual survey administered by the 
Census Bureau to approximately 100,000 households. This data is 
provided as a 3-year rolling average, and is comprised of data 
collected during the three calendar years preceding a given fiscal 
year. Thus, the poverty portion of the formula is actually calculated 
from data obtained from 300,000 households over a period of three 
years. The unemployment portion of the formula is updated annually, 
using data provided to the Bureau of Labor Statistics (BLS) by the 
States. Currently, a 3-month average based on the number of unemployed 
persons in each State during May, June, and July is used.
    These data sources are deficient because they are not the most 
accurate, timely, and reliable sources available, and therefore limit 
the Department's ability to fulfill the purpose of the Act.
    The poverty portion of the formula is deficient because it is 
calculated using a 3-year rolling average. This means that 60% of each 
State's annual TEFAP allocation is based primarily on data that is two 
or three years old, which provides an untimely and potentially 
inaccurate reflection of current poverty levels within each State. For 
example, if State A has historically had a small number of people in 
poverty, but suffers a disaster--such as a flood or hurricane--that 
casts a large number of people into poverty during a given calendar 
year, continued use of the 3-year rolling poverty average would require 
the Department to use two- and three-year old data, which would not 
adequately recognize the current need for nutrition assistance in the 
State, to calculate the poverty portion of State A's TEFAP allocation.
    The 3-month unemployment average is deficient because each month 
represents one-third of the data used to calculate the unemployment 
portion of its annual TEFAP allocation. Thus, a 3-month average is 
highly susceptible to variations caused by reporting errors or 
anomalous economic conditions which may occur in any given month, but 
which are not necessarily representative of employment conditions 
within a State. For example, State B has historically had high levels 
of unemployment, but reports unusually low unemployment levels for May, 
perhaps due to a reporting error, a failure of many persons to report 
their unemployment status for extraneous reasons (such as a natural 
disaster), or a one-time employment increase (such as hosting a major 
convention or sporting event). As a result, one-third of the data used 
to calculate the unemployment portion of State B's TEFAP allocation 
would be based on data that does not reflect actual employment 
conditions in that State during most of the year.
    To redress these deficiencies, the Department intends, consistent 
with the Act, to use data from the Census Bureau's American Community 
Survey (ACS) rather than CPS data to calculate the poverty portion of 
the formula, and a 10-month average rather than a 3-month average to 
calculate the unemployment portion.
    ACS, which became fully operational in calendar year 2005, produces 
data that is superior to CPS data in several respects. Among these is 
the fact that ACS has a much larger sample size. While ACS is 
administered to approximately 2.5 percent of American households, or 
(currently) 3,000,000 households, per year, CPS is administered to only 
100,000 households per year. ACS poverty statistics are also timelier. 
Unlike CPS statistics, which are based on data collected during the 
three calendar years preceding a given fiscal year, ACS statistics are 
based on data collected during the single calendar year preceding a 
given fiscal year. Lastly, unlike participation in CPS, participation 
in ACS is mandatory, which will result in higher response rates. 
Individuals over the age of 18 who

[[Page 60314]]

decline to participate are subject to penalties.
    As to the unemployment portion of the formula, a 10-month 
unemployment average is more accurate than a 3-month average because it 
dampens the effect that atypical employment conditions and reporting 
errors in any month can have on a State's average. While a 12-month 
average would be the most ideal, BLS' reporting schedule is such that 
only 10 months of data are available at the time that TEFAP allocations 
would have to be calculated.
    Because ACS poverty-data is single year data, the poverty portion 
of a State's allocation index may be more likely to vary from year-to-
year. However, because the intent of TEFAP is to address the most 
immediate and current need, such variations actually serve the purpose 
of the program. Moreover, it is worth noting that year-to-year 
allocations have also varied widely using the current data sources. For 
example, of the 55 States and territories (i.e., States) operating 
TEFAP in fiscal year 2006, 5 had increases in their allocations of 10 
percent or greater, 22 had increases of 0 to 9.9 percent, 27 had 
decreases of 0 to 9.9 percent, and 1 had a decrease greater than 10 
percent from fiscal year 2005 to 2006. In fiscal year 2007, 5 States 
had increases of 10 percent or greater, 25 States had increases of 0 to 
9.9 percent, 23 States had decreases of 0 to 9.9 percent, and 2 States 
had decreases greater than 10 percent. In contrast, if the proposed 
changes had been implemented prior to allocating 2007 resources, the 
number and size of increases and decreases that would have resulted are 
very similar to those that actually occurred. Specifically, 8 States 
would have received increases of 10 percent or greater, 18 States would 
have received increases of 0 to 9.9 percent, 27 States would have 
decreases of 0 to 9.9 percent, and 2 States would have had decreases 
greater than 10 percent. Therefore, unless comments reveal a 
significant disadvantage to implementing these changes, the Department 
intends to allocate TEFAP commodities and administrative funds for 
fiscal year 2008 using these new data sources without further 
notification.

    Dated: October 18, 2007.
Gloria Gutierrez,
Acting Administrator.
[FR Doc. E7-20963 Filed 10-23-07; 8:45 am]
BILLING CODE 3410-30-P