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Simulating the Effects on Nonmetropolitan Planning and Service Areas of Changes in the Guidelines for Intrastate Funding Formulae: A Study of Two States

University of Florida

W. Bruce Vogel

University of Florida

R. Paul Duncan

University of Florida

Robert Uttaro

University of Florida

The 1992 reauthorization of the OlderAmericans Act (OAA) requires the Assistant Secretary on Aging to produce a set of guidelines to aid states in the development of their Intrastate Funding Formula (IFF). The purpose of this investigation was to examine, using two states as case studies, the effects of a preliminary set of guidelines on planning and service areas (PSAs) that vary in the degree to which older adults (60+) in their catchment area live in nonmetropolitan versus metropolitan settings. Dollar amounts allocated to four categories of PSAs were compared with simulations of allocations under three alternative funding strategies. The data from these simulations illustrate that changes in IFF regulations have the potential to cause significant shifts in the distribution of OAA funds. Indeed, given the magnitude of the changes that could occur, there is likely to be considerable controversy within some states as lawmakers and state officials attempt to bnng current IFFs into conformity with new federal regulations.

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