Summary: Pursuant to a congressional request, GAO identified federal formula programs that used outdated population data to distribute funds to state and local governments, focusing on: (1) formula programs that used Census Bureau population data to distribute funds; (2) what population data and data sources federal agencies used and were required to use to distribute funds; and (3) whether the Census Bureau provided or could provide more current population data from the decennial census.
GAO found that: (1) in fiscal year 1989, 93 federal formula programs used Census Bureau population data to determine eligibility for or distribute $27.5 billion in funds to state and local governments; (2) of those 93 programs, 48 programs used current population estimates to distribute $10.1 billion, and 45 programs used 1980 decennial census population data to distribute $17.4 billion; (3) 33 programs used the most currently available decennial population data to distribute $16.7 billion, primarily involving urban and rural area populations and populations below the poverty level; (4) 12 programs used state population data from the decennial census to distribute $641.6 million, even though the Census Bureau had more current state population data; (5) the Census Bureau believed that it could develop and provide intercensal poverty data by using statistical modelling procedures, but could not provide intercensal data on urban and rural area populations; and (6) proposed legislation would require agencies to use the most recent population data for distributing federal formula funds, but this legislation would only affect six programs, since the remaining programs already used the latest available data or were required by statute to use the decennial census.
