Food Funding Formula

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WIC Funding and Caseload

• Wayne DeNyse
• Mary Lou Woelfel
• (mlw04_at_health.state.ny.us)
• NYS Department of Health
• Division of Nutrition
• Evaluation and Analysis Unit

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Funding Formulas

• Introduction
• NYS caseload a key factor in determining
  funds NYS receives from USDA

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Funding Formulas

• Purpose
• To show how NYS caseload relates to funding
  NY state receives from USDA
• This is about how USDA allocates money
  to states Not how NYS allocates funds to
  local WIC agencies.

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Funding Formulas

• Background
• Two formulas
• Food and
• Nutrition Services Administration (NSA)
• Food formula revised in 1994 and 1999 NSA
  formula revised in 1999

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Funding Formulas

• Reasons for 1999 revisions
• WIC growth plateaued
• Significant funding increases unlikely
• Some states receive more than their fair
  share of funds

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Funding Formulas

• Goal of revised formulas
• To ensure each states receives their fair
  share of WIC funds
• Fair share means each state has an
  equal chance to serve their eligibles

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Food Funding Formula

• 1999 food formula - three components
• Prior year food grant
• Inflation
• Fair share

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Food Funding Formula

• Prior year grant
• Given available funds, priority given to
  ensure each state receives prior year grant
• Inflation
• Given remaining funds, each state receives
  80 food inflation (20002.2)
• Fair share
• Any remaining funds go to under fair share
  states
• NYS over fair share so not eligible for more
  funds.

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Food Funding Formula

• How is fair share measured?
• States fair share of food funds equal to
  their proportional share of nations
  eligibles
• This means that the national average food
  package cost applied to each WIC eligible

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Food Funding Formula

• Food grant and caseload
• Failure to expend 97 of funds results in return
  of some funds and lowers future grant
• NYSs food grant, caseload and food costs used
  to determine NYs fair share of national funds
  for operating WIC. (Food grant divided by
  states average food package cost. Average food
  package cost is states food expenditures divided
  by states caseload). Result equals number of
  WIC eligibles USDA provides admin funds to serve.

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Food Funding Formula

• NYS concerns
• At least maintain caseload levels
• 80 inflation
• No adjustment for high food cost states
• Incentive for states to contain costs
• Inflation based on thrifty food package plan
  
• Use of uniform definition of poverty

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NSA Funding Formula

• NSA - three components
• Base grant
• Fair share
• Regional operating adj

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NSA Funding Formula

• Base grant
• Given available funding, priority given to
  prior years formula calculated grant. Full
  inflation included.
• Fair share
• Any remaining funds to states under fair share
• NYS over fair share
• Regional adjustment
• Once states share calculated, 10 removed for
  Regional pool for discretionary awards.

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NSA Funding Formula

• Measuring fair share
• 90 of NSA fair share on cost per person
  basis.
• Food grant divided by states average food
  package cost to get number of people state
  expected to serve.
• This number is multiplied by national average
  per person costs for operating WIC Program.
• Some adjustments for economies of scale
• 10 of NSA fair share based on salary
  differential

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NSA Funding Formula

• NSA formula and caseload
• Higher caseloads increase states chances of
  receiving additional funds
• Higher food package costs decrease states
  chances of receiving additional funds
• This prompts cost containment efforts