[Federal Register Volume 77, Number 210 (Tuesday, October 30, 2012)]
[Notices]
[Pages 65693-65694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26579]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration


Notice of Intent To Make Changes in the State Title V Maternal 
and Child Health Block Grant Allocations

AGENCY: Health Resources and Services Administration, HHS.

ACTION: Response to solicitation of comments.

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SUMMARY: The Health Resources and Services Administration's (HRSA) 
Maternal and Child Health Bureau (MCHB) plans to move forward in 
implementing annual changes to the State Title V MCH Block Grant 
allocations, beginning in Federal Fiscal Year (FY) 2013, using the U.S. 
Census Bureau's 3-year American Community Survey (ACS) poverty 
estimates. Title V MCH Block Grant funds are currently allocated to 
states based in part on a calculation of the number of children living 
in poverty (in an individual state) as compared to the total number of 
children living in poverty in the United States. Historically, data for 
the number of children in poverty in each state came from the Decennial 
Census. As the Census Bureau has replaced the Decennial Census long-
form sample questionnaire with the ACS, MCHB

[[Page 65694]]

plans to use the ACS as its source for this data. In order to maintain 
balance between precision and currency, annual changes to the State 
Title V MCH Block Grant allocations will be based on a rolling average 
of the 3-year ACS poverty estimates.
    Yearly changes in the MCH Block Grant allocations for individual 
states will be buffered by the use of shared data for two of the three 
data years in the rolling period estimate. According to the U.S. Census 
Bureau, the ACS is the best source of survey-based state-level income 
and poverty estimates. Moreover, ACS child poverty estimates are 
produced annually, and their use will allow the Block Grant allocation 
proportions to be updated more frequently than every 10 years.

FOR FURTHER INFORMATION CONTACT: Cassie Lauver, Director, Division of 
State and Community Health, Maternal and Child Health Bureau, Health 
Resources and Services Administration, 5600 Fishers Lane, Parklawn 
Building, Room 18-31, Rockville, Maryland 20857, or by telephone at 
(301) 443-2204.

DATES: Effective Date: October 30, 2012.

SUPPLEMENTARY INFORMATION: Beginning in FY 2013, HRSA will use the U.S. 
Census Bureau's ACS 3-year rolling average data to determine the annual 
poverty-based allocations to states under Section 502 of Title V of the 
Social Security Act (42 U.S.C. 702). The Census Bureau produces annual 
state-level poverty estimates based on the most recent 1, 3, and 5 
years of ACS data, as well as annual model-based Small Area Income and 
Poverty Estimates (SAIPE). Based on a thorough review, HRSA determined 
that the 3-year time frame strikes an appropriate balance between 
reliability (strength of 5-year estimates) and currency (strength of 1-
year estimates). The 3-year estimates provide necessary stability in 
annual poverty-based allocation changes for all states, regardless of 
size, while still allowing the allocations to be responsive to changes 
in the distribution of children in poverty across states. With the 3-
year estimates for FY 2013 already available, states have been informed 
of the proposed changes and need for adjustment from the existing 
allocation proportions based on the 2000 Census data. The ACS data are 
released annually by the U.S. Census Bureau in October which will allow 
states to be aware of the poverty-based allocation proportions close to 
a year in advance of each subsequent fiscal year.
    The proposed change in State Title V MCH Block Grant allocations 
was announced in the Federal Register at 77 FR 42749 on July 20, 2012. 
A comment period of 60 days was established to allow interested parties 
to submit comments. HRSA received three responses. The responses 
included two comments that specifically discussed the potential impacts 
of the proposed change in State MCH Block Grant formula allocations 
using the 3-year ACS child poverty estimates. Responses to these 
comments are provided below.
    The remaining comments did not specifically address the proposed 
changes in State Title V MCH Block Grant allocation, but instead 
expressed concern with the size of the federal government; accuracy of 
Census data, generally; and equity of the statutorily-mandated Title V 
funding formula. These issues were not addressed in greater detail 
because they are beyond the scope of this notice.

Comments and Responses

    Comment: Timing of the proposed change is inopportune in light of 
the potential for significant reductions in State MCH Block Grant 
allocations as a result of sequestration.
    Response: The timing of the proposed changes to the state formula 
allocations is consistent with the 10-year interval for updating 
formula allocations based on the U.S. Census Bureau's Decennial Census. 
Current formula allocations are based on 2000 U.S. Census child poverty 
data. Use of a 3-year rolling average of the ACS child poverty data 
will allow for annual updates to the State MCH Block Grant formula 
allocations and greater responsiveness to changes in the distribution 
of children in poverty across states.
    Comment: If the new methodology is implemented and will use the 
ACS, the 5-year rather than the 3-year estimate should be used.
    Response: Researchers in MCHB's Office of Epidemiology and Research 
evaluated the impact of using 1-year, 3-year, and 5-year ACS data, and 
the single-year SAIPE on annual poverty-based allocation changes as 
well as overall allocation changes. Consistent with the documentation 
and guidelines provided by the U.S. Census Bureau, the poverty data are 
the most current and least precise through the use of 1-year data and 
least current but most precise through the use of 5-year data. Using 
the 3-year ACS poverty data achieves a reasonable balance between 
reliability and currency.

    Dated: October 23, 2012.
Mary K. Wakefield,
Administrator.
[FR Doc. 2012-26579 Filed 10-29-12; 8:45 am]
BILLING CODE 4165-15-P