Improve the Delivery of Federal Domestic Grant Programs Background In the past 12 years, the trend toward federal categorical grantmaking has escalated dramatically-- to more than 600 federal grant programs that will spend an estimated $226.1 billion in fiscal year 1994. Some grants are distributed on a formula basis; many others on a competitive or discretionary basis; and still others as entitlements depending upon the enrollment of eligible participants. Federal grantmaking is not an end in itself. Funds are intended to promote federal policy objectives and contribute to the resolution of real problems affecting real people. Yet, state and local governments, and the clients and customers of the programs these federal funds support, face a maze of different and sometimes contradictory rules, regulations, administrative procedures, and program standards and requirements across this myriad of grants. Need For Change The current system of federal grantmaking fragments the ability of government at all levels to address people's needs in an integrated manner. By establishing discrete and often incompatible eligibility standards, and administrative rules and requirements, the proliferation of categorical grants has made government at all levels less effective. Block grants, intended to overcome some of the limitations of categorical programs, are not immune from red tape and unintended consequences. These problems have contributed to the frustration of individuals and families that depend on federal assistance, and have added to taxpayer and customer cynicism about government's ability to manage. For example, there are more than 140 federal programs directed toward assisting children and their families. These funds are administered by 10 different federal departments and two independent agencies. According to a Congressional Research Service report, over 15 percent of the programs are directly administered by the federal government, more than 40 percent are administered by state governments, and another 40 percent of the programs are directed through local private or public groups.[Endnote 1] The largest number of programs are aimed at providing educational and social service support. The largest amount of dollars, however, is designated for income support and nutritional programs. Each federal grant program has a distinct definition as to who it is intended to serve. For example, programs such as Aid to Families with Dependent Children (AFDC) and Food Stamps are aimed at children and their families that meet specific income criteria--although the definition of income and assets differs for the two programs. In other programs, such as the social services block grant, recipients may be children or children and families or certain unrelated adults. The Evolution of Fragmentation. Government programs are established as needs are identified. For example, a job training program is established to train the high school drop-out so that she or he can obtain a job and support the family. Another program is established to help someone recover from drug abuse, be rehabilitated from injuries in an accident, or recover from a crime. Yet another program is established to help a person obtain safe, decent, and sanitary housing that is affordable. All are worthwhile programs. But government service providers are hamstrung to integrate these programs if the customer happens to be the same person. Programs are operated by separate agencies (often in different geographic locations), by separate people with different expertise, and in accordance with rules and regulations developed and overseen by different federal agencies. In the past few years, there has been increasing recognition at all levels of government that individuals and families, subordinate governments, special districts, and businesses and corporations may simultaneously be the client of a wide variety of programs. The failure to see the intergovernmental system from the perspective of the citizen-customer not only perpetuates inefficiency and wasted time, effort, and money, but also leads to poor program design and a significantly reduced probability that the goals and outcomes desired will be achieved. Example of Fragmentation. One by one, block and categorical grants and their accompanying rules and regulations may make sense; but in combination they often defeat the very purpose for which they were established and undermine, rather than enhance, the ability of service providers and managers to be truly accountable for outcomes. For example, the Job Opportunity in Basic Skills (JOBS) program is funded through the U.S. Department of Health and Human Services (HHS) and is administered at the local level by social services departments. The JOBS goal is to help citizens become self-sufficient (get jobs) by providing education, work experience, job search training, and job placement. The Job Training Partnership Act (JTPA) is funded through the Department of Labor and is administered at the local level by community groups known as Private Industry Councils. The goal of this program is to help citizens become self-sufficient by providing training that leads directly to employment. Although these programs are intended to be compatible, they are seldom used together because: 1) they have different accounting requirements, 2) they have different evaluation procedures, 3) they have different eligibility requirements, and 4) funds from the two programs cannot be pooled. A person wishing to take advantage of both programs, therefore, must go to two sites and be qualified under each program's guidelines. Then they must attempt to arrange the training they need under the programs and coordinate them. On an administrative level, the programs require separate staff, separate offices, and other supporting costs. Consolidation of the programs would benefit the customer, the community, and the federal government. Or take, for example, a recent situation where local officials were working to restore a severely blighted but historic area of a city. Federal Community Development Block Grant funds were being used in conjunction with local public and private resources to create new and rehabilitated affordable housing for residents of the area. The city wanted to combine these housing and community redevelopment activities with federal job training funds to hire and train unemployed persons in the construction activity. However, this was not possible because of the conflicting regulations of the separate federal programs.[Endnote 2] Cross References to Other NPR Accompanying Reports Department of Health and Human Services, HHS01: Promote Effective, Integrated Service Delivery for Customers by Increasing Collaborative Efforts. Department of Education, ED02: Reduce the Number of Programs the Department of Education Administers. Endnotes 1. Library of Congress, Congressional Research Service, Federal Programs for Children and Their Families (Washington, D.C., December 15, 1992). 2. This problem actually happened in the Betts- Longworth area of Cincinnati, Ohio.
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