Statistical Policy Working Paper 1. Report on statistics for allocation of funds
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Statistical Policy Working Paper 1. Report on statistics for allocation of funds

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      This report examines the formulas used in allocating Federal funds to States and local areas. To understand the behavior of these formulas, one must understand the various aspects of the data, such as definitions, methods of collection, and methods of analysis. The objective of the Subcommittee was to study from the statistical standpoint, possible principles or guidelines that could be used to insure that the intent of Congress is fulfilled in the allocation of Federal funds. For the purposes of this study it is assumed that whatever Congress specifies in the authorizing legislation for a grant-in-aid program on the manner of allocation of Federal funds is in principle an equitable distribution, although anomalous and unanticipated results may emerge in some instances. In connection with the guidelines, the Subcommittee was also to identify possible improvements in statistical data and allocation processes that might be made either by better selection of the data, changes in data collection or tabulation methods, or statistical adjustments to compensate for known errors. The report is organized as follows: Chapter I gives an overview and description of allocation techniques; Chapter II examines the consequences of using existing data in allocation formula techniques; Chapter III presents the findings; Chapter IV discusses ways to reduce allocation errors; and Chapter V presents the recommendations of the Subcommittee based on its study of the deficiencies of existing data and allocation formulas and of possible alternatives.
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