Block Grants: Characteristics, Experience, and Lessons Learned (Letter
Report, 02/09/95, GAO/HEHS-95-74).

The 15 block grant programs in effect today, with funding of $32
billion, constitute a small portion of the overall federal aid to
states, which totaled $206 billion for 593 programs in fiscal year 1993.
In 1981, as part of the Omnibus Reconciliation Act, nine block grants
were created from about 50 of the 534 categorical programs in effect at
that time.  In general, the transition from categorical programs to
block grants was smooth.  Experience with the 1981 block grants teaches
three lessons.  First, accountability for results is clearly needed, and
the Government Performance and Results Act may provide the appropriate
framework.  Second, funding allocations based on distributions under
prior categorical programs may be inequitable because they do not
reflect need, ability to pay, and variations in the cost of providing
services.  Finally, the transition to block grants may be more
challenging today than in 1981 because the programs being considered for
inclusion in block grants are much larger and, in some cases, are
fundamentally different from programs included in the 1981 block grants.
GAO summarized this report in testimony before Congress; see: Block
Grants: Lessons Learned, by Linda G. Morra, Director of Education and
Employment Issues, before the House Committee on Economic and
Educational Opportunities, House Subcommittee on Oversight and
Investigations.  GAO/T-HEHS-95-80, Feb. 9, 1995 (11 pages).

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-95-74
     TITLE:  Block Grants: Characteristics, Experience, and Lessons 
             Learned
      DATE:  02/09/95
   SUBJECT:  Block grants
             Formula grants
             Federal aid to states
             Federal/state relations
             State-administered programs
             Reporting requirements
             Budget cuts
             Grant administration
             Accountability
             Intergovernmental fiscal relations
IDENTIFIER:  Low-Income Home Energy Assistance Block Grant
             Aid to Families with Dependent Children Program
             AFDC
             DOT Surface Transportation Program
             Health Incentives Grant for Comprehensive Public Health
             Preventive Health and Health Services Block Grant
             Title XX Social Services Grant
             Community Development Block Grant
             Primary Care Block Grant
             Education Block Grant
             Alcohol, Drug Abuse, and Mental Health Block Grant
             Job Training Partnership Act Block Grant
             Maternal and Child Health Block Grant
             
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