33638 Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices

III. Impact Statement

HCFA has examined the impact of

this notice as required by Executive

Order 12866. Executive Order 12866

directs agencies to assess all costs and

benefits of available regulatory

alternatives and, when rules are

necessary, to select regulatory

approaches that maximize net benefits

(including potential economic

environments, public health and safety,

other advantages, distributive impacts,

and equity). We believe that this notice

is consistent with the regulatory

philosophy and principles identified in

the Executive Order. The formula for the

allotments is specified in the statute.

Since the formula is specified in the

statute, we have no discretion in

determining the allotments.

The Unfunded Mandates Reform Act

of 1995 requires that agencies prepare

an assessment of anticipated costs and

benefits before publishing any notice

that may result in an expenditure in any

year by State, local, and tribal

governments, in the aggregate, or by the

private sector, of $100,000,000 or more

(adjusted each year for inflation).

Because participation in the SCHIP

program on the part of States is

voluntary, any payments and

expenditures States make or incur on

behalf of the program that are not

reimbursed by the federal government

are made voluntarily. This notice will

not create unfunded mandate on States,

tribal or local governments. Therefore,

we are not required to perform an

assessment of the costs and benefits of

these regulations.

Under Executive Order 12612,

Federalism, we have reviewed this

notice and determined that it does not

significantly affect States’ rights, roles,

and responsibilities. Low-income

children will benefit from payments

under this program through increased

opportunities for health insurance

coverage.

We believe this notice has an overall

positive impact by informing States,

Commonwealths, and Territories of the

extent to which they are permitted to

expend funds under their State child

health plans using their FYs 1998 and

1999 allotments.

In accordance with the provisions of

Executive Order 12866, this notice was

reviewed by the Office of Management

and Budget.

(Section 1102 of the Social Security Act (42

U.S.C. 1302)

(Catalog of Federal Domestic Assistance

Program No. 00.000, State Children’s Health

Insurance Program)

Dated: March 22, 2000.

Nancy-Ann Min DeParle,

Administrator, Health Care Financing,

Administration.

Dated: March 27, 2000.

Donna E. Shalala,

Secretary.

[FR Doc. 00–12880 Filed 5–23–00; 8:45 am]

BILLING CODE 4120–01–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Health Care Financing Administration

[HCFA–2067–N]

RIN 0938–AJ94

State Children’s Health Insurance

Program; Final Allotments to States,

the District of Columbia, and U.S.

Territories and Commonwealths for

Fiscal Year 2000

AGENCY: Health Care Financing

Administration (HCFA), HHS.

ACTION: Notice.

SUMMARY: This notice sets forth the final

allotments of Federal funding available

to each State, the District of Columbia,

and each U.S. Territory and

Commonwealth for fiscal year (FY) 2000

under title XXI of the Social Security

Act (the Act).

Established by section 4901 of the

Balanced Budget Act (BBA) of 1997

(Public Law 105–33), title XXI of the Act

authorizes payment of Federal matching

funds to States, the District of Columbia,

and U.S. Territories and

Commonwealths to initiate and expand

health insurance coverage to uninsured,

low-income children under a new State

Children’s Health Insurance Program

(SCHIP). States may implement SCHIP

through a separate State program under

title XXI, an expansion of a State

Medicaid program under title XIX, or a

combination of both. Recent legislation,

the Medicare, Medicaid and SCHIP

Balanced Budget Refinement Act

(BBRA) of 1999 (Public Law 106–113,

enacted November 29, 1999), amended

title XXI of the Act in part by modifying

the SCHIP allotment formula effective

with the FY 2000 allotments. The FY

2000 allotments contained in this notice

were determined under the new SCHIP

allotment formula.

ADDRESSES: Copies: To order copies of

the Federal Register containing this

document, send your request to: New

Orders, Superintendent of Documents,

P.O. Box 37194, Pittsburgh, PA 15250–

7954. Specify the date of the issue

requested and enclose a check or money

order payable to the Superintendent of

Documents, or enclose your Visa or

Master Card number and expiration

date. Credit card orders can also be

placed by calling the order desk at (202)

512–1800 or by faxing to (202) 512–

2250. The cost for each copy is $8.00.

As an alternative, you can view and

photocopy the Federal Register

document at most libraries designated

as Federal Depository Libraries and at

many other public and academic

libraries throughout the country that

receive the Federal Register.

This Federal Register document is

also available from the Federal Register

online database through GPO Access, a

service of the U.S. Government Printing

Office. Free public access is available on

a Wide Area Information Server (WAIS)

through the Internet and via

asynchronous dial-in. Internet users can

access the database by using the World

Wide Web; the Superintendent of

Documents home page address is http:/

/www.access.gpo.gov/su_docs/, by

using local WAIS client software, or by

telnet to swais.access.gpo.gov, then

login as guest (no password required).

Dial-in users should use

communications software and modem

to call (202) 512–1661; type swais, then

login as guest (no password required).

FOR FURTHER INFORMATION CONTACT:

Richard Strauss, (410) 786–2019.

SUPPLEMENTARY INFORMATION:

I. Purpose of This Notice

This notice sets forth the allotments

available to each State, the District of

Columbia, and each U.S. Territory and

Commonwealth for FY 2000 under title

XXI of the Social Security Act (the Act).

In prior years, we published ‘‘reserved’’

allotments at the beginning of the fiscal

year and then ‘‘final’’ allotments at some

later time, because it was not certain at

the beginning of the fiscal year that

every State, the District of Columbia,

and every U.S. Territory and

Commonwealth would qualify for an

allotment. As we explain below, each

State, the District of Columbia, and each

U.S. Territory and Commonwealth has

now qualified for an allotment by

having an approved State child health

plan for the fiscal year. Therefore,

publication of ‘‘reserved’’ allotments is

not necessary.

Final allotments for a fiscal year are

available to match expenditures under

an approved State child health plan for

three fiscal years, including the year for

which the final allotment was provided.

Federal funds appropriated for title XXI

are limited, and the law specifies a

formula to divide the total annual

appropriation into individual allotments

Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices 33639

available for each State, the District of

Columbia, and each U.S. Territory and

Commonwealth with an approved child

health plan. The allotment formula

outlined in title XXI has been modified

with the enactment of Public Law 106–

113 on November 29, 1999, as described

under section II of this notice.

Section 2104(b) of the Act indicates

that ‘‘the Secretary shall allot to each

State * * * with a State child health

plan approved under this title.’’ This

language requires States, the District of

Columbia, and U.S. Territories and

Commonwealths to have an approved

child health plan for the fiscal year in

order for the Secretary to provide an

allotment for that fiscal year. All States,

the District of Columbia, and U.S.

Territories and Commonwealths had

approved plans prior to the end of FY

1999.

II. Methodology for Determining Final

Allotments for States, the District of

Columbia, and U.S. Territories and

Commonwealths

This notice specifies in the Table

under section III, the final FY 2000

allotments available to individual

States, the District of Columbia, and

U.S. Territories and Commonwealths for

child health assistance expenditures

under approved State child health

plans. As discussed below, the FY 2000

final allotments have been calculated to

reflect the way title XXI, as amended by

the new Public Law 106–113, prescribes

the process for determining an allotment

amount for each State, the District of

Columbia, and each U.S. Territory and

Commonwealth. As a result of the

recent changes to the allotment formula,

the calculation of the allotments for FY

2000 and subsequent fiscal years differs

from the way the FY 1998 and FY 1999

allotments were calculated for the first

two years of the program.

We have applied the statutory formula

specified in section 2104(b) of the Act,

as modified by section 701 of the BBRA

of 1999, to calculate the final allotments

for FY 2000, as discussed below. The

recent legislative changes will reduce

the variability of individual State

allotments from year to year and over a

number of years. The new formula

results in more stable federal allotments,

which may permit States to more

effectively plan and budget their State

programs.

Section 2104(a) of title XXI provides

that, for purposes of providing

allotments to the 50 States and the

District of Columbia, the following

amounts are appropriated: $4.295

billion for FY 1998; $4.275 billion for

each fiscal year FY 1999 through FY

2001; $3.150 billion for each FY 2002

through 2004; $4.050 billion for each FY

2005 through 2006 and $5 billion for FY

2007. However, under section 2104(c) of

the Act, 0.25 percent of the total amount

appropriated each year is available for

allotment to the U.S. Territories and

Commonwealths of Puerto Rico, Guam,

the Virgin Islands, American Samoa,

and the Northern Mariana Islands. The

total amounts are allotted to the U.S.

Territories and Commonwealths

according to the following percentages:

Puerto Rico, 91.6 percent; Guam, 3.5

percent; the Virgin Islands, 2.6 percent;

American Samoa, 1.2 percent; and the

Northern Mariana Islands, 1.1 percent.

Section 702 of the BBRA of 1999,

provides for additional funds available

for allotment only to the U.S. Territories

and Commonwealths for fiscal years

2000 to 2007. Under this new provision,

an additional $34.2 million is made

available for allotment to the U.S.

Territories and Commonwealths in

fiscal years 2000 and 2001; $25.2

million in fiscal years 2002 through

2004; $32.4 million for fiscal years 2005

and 2006; and $40 million for fiscal year

2007. Therefore, the total amount

available for allotment to the U.S.

Territories and Commonwealths in FY

2000 is $44,887,500 (that is, $34,200,000

plus $10,687,500 (.25 percent of the FY

2000 appropriation of $4,275,000,000)).

Furthermore, under sections 4921 and

4922 of Public Law 105–33, the total

amount available for allotment to the 50

States and the District of Columbia is

reduced by an additional total of

$60,000,000; $30,000,000 to Public

Health Service for a special diabetes

research program for children with Type

I diabetes, and $30 million for special

diabetes programs for Indians. The

diabetes programs are funded from FYs

1998 through 2002 only.

Therefore, the total amount available

nationally for allotment for the 50 States

and the District of Columbia for FY 2000

was determined in accordance with the

following formula:

AT=S2104(a)—T 2104(c)—D4921—D4922

AT=Total amount available for

allotment to the 50 States and the

District of Columbia for the fiscal

year.

S2104(a)=Total appropriation for the

fiscal year indicated in section

2104(a) of the Act. For FY 2000, this

is $4,275,000,000.

T2104(c)=Total amount available for

allotment for the U.S. Territories

and Commonwealths; determined

under section 2104(c) of the Act as

0.25 percent of the total

appropriation for the 50 States and

the District of Columbia. For FY

2000, this is: .0025 x

$4,275,000,000=$10,687,500

D4921=Amount of grant for research

regarding Type I Diabetes under

section 4921 of the Balanced Budget

Act of 1997. This is $30,000,000 for

each of the fiscal years 1998

through 2002.

D4922=Amount of grant for diabetes

programs for Indians under section

4922 of the BBA. This is

$30,000,000 for each of the fiscal

years 1998 through 2002. Therefore,

for FY 2000 the total amount

available for allotment to the 50

States and the District of Columbia

is $4,204,312,500. This was

determined as follows:

AT($4,204,312,500) = S2104(a)

($4,275,000,000)—T2104(c)

($10,687,500)—D4921

($30,000,000)—4922($30,000,000)

For purposes of the following

discussion, the term ‘‘State,’’ as defined

in section 2104(b)(1)(D)(ii) of the Act,

‘‘means one of the 50 States or the

District of Columbia.’’

Public Law 106–113 amended title

XXI such that, beginning with FY 2000,

the determination of the Number of

Children for a fiscal year is based on the

three most recent March supplements to

the Current Population Survey (CPS) of

the Bureau of the Census before the

beginning of the calendar year in which

the fiscal year begins. Similarly, the

determination of the State Cost Factor is

based on the Annual Average Wages Per

Employee in the health services

industry, which is determined by the

most recent three years of such wage

data reported by the Bureau of Labor

Statistics of the Department of Labor

prior to the beginning of the calendar

year in which the fiscal year begins.

Therefore, for FY 2000 and

subsequent fiscal years, we will use the

most recent official data from the

Bureau of the Census and Bureau of

Labor Statistics, respectively, available

prior to January 1 of the calendar year

in which the fiscal year begins.

Specifically, in determining the FY 2000

allotments in this notice, we utilized the

most recent data available from the

Bureau of the Census and the Bureau of

Labor Statistics prior to January 1, 1999,

because FY 2000 begins on October 1,

1999 in calendar year 1999. This is a

change from the first two years of the

program, in which the Number of

Children and the State Cost Factor were

based on the most recent data available

before the beginning of the fiscal year.

Number of Children

Section 701(a)(1) of the BBRA of 1999

accelerated the phase-in of the blend of

the numbers of uninsured low-income

children and low-income children

33640 Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices

specified in the statute, which are used

in determining the Number of Children

factor. Prior to this legislative change,

the Number of Children for FYs 1998

through 2000 would have been based on

the total number of low-income

uninsured children in the State. As a

result of the legislative change, the total

number of uninsured low-income

children in the State is only used for

determining the Number of Children

factor for FYs 1998 and 1999. Under the

legislation, for FY 2000 the Number of

Children is now calculated as the sum

of 75 percent of the number of lowincome, uninsured children in the State,

and 25 percent of the number of lowincome children in the State. For FY

2001 and succeeding years through FY

2007, the Number of Children is

calculated as the sum of 50 percent of

the number of low-income, uninsured

children in the State, and 50 percent of

the number of low-income children in

the State.

The Number of Children factor for

each State is developed by the Bureau

of the Census based on the standard

methodology used to determine official

poverty status and uninsured status in

the annual CPS on these topics. As part

of a continuing formal process between

HCFA and the Bureau of the Census,

each fiscal year HCFA obtains the

Number of Children data officially from

the Bureau of the Census.

Under section 2104(b)(2)(B) of the

Act, as amended by section 701(a)(3) of

the BBRA of 1999, in determining the

FY 2000 final allotments, the Number of

Children for each State (provided in

thousands) was determined and

provided by the Bureau of the Census

based on the arithmetic average of the

number of low-income children and

low-income children with no health

insurance as calculated from the three

most recent March supplements to the

CPS officially available from the Bureau

of the Census before the beginning of

the 1999 calendar year. In particular,

through December 31, 1998, the most

recent official data available from the

Bureau of the Census on the numbers of

children were data from the three March

CPSs conducted in March 1996, 1997,

and 1998.

State Cost Factor

The State Cost Factor is based on

annual average wages in the health

services industry in the State. The State

Cost Factor for a State is equal to the

sum of: .15, and .85 multiplied by the

ratio of the annual average wages in the

health industry per employee for the

State to the annual wages per employee

in the health industry for the 50 States

and the District of Columbia. Under

section 2104(b)(3)(B) of the Act, as

amended by section 701(a)(4) of the

BBRA of 1999, the State Cost Factor for

each State for a fiscal year is calculated

based on the average of the annual

wages for employees in the health

industry for each State as reported,

determined, available as final, and

provided to HCFA by the Bureau of

Labor Statistics (BLS) in the Department

of Labor for each of the most recent

three years available before the

beginning of the calendar year in which

the fiscal year begins. For example, FY

2000 begins on October 1, 1999, that is,

FY 2000 begins during calendar year

1999. Therefore, the State cost factor for

FY 2000 would be based on the most

recent three years of BLS data available

as final before January 1, 1999 (the

beginning of the calendar year in which

FY 2000 begins), that is, it would be

based on the BLS data available as final

through December 31, 1998. In

accordance with these requirements, we

used the final State Cost Factor data

available from BLS for 1994, 1995, and

1996 in calculating the FY 2000 final

allotments.

The State Cost Factor is determined

based on the calculation of the ratio of

each State’s average annual wages in the

health industry to the National average

annual wages in the health care

industry. In order for the National

average to appropriately reflect the

State-specific suppressed data, HCFA

calculated the National average wages

directly from the State-specific data

provided by BLS. This was necessary

because, due to the Privacy Act, BLS is

required to suppress certain Statespecific data in providing HCFA with

the State-specific average wages per

health services industry employee. As

part of a continuing formal process

between HCFA and the BLS, each fiscal

year HCFA obtains these wage data

officially from the BLS.

Under section 2104(b)(4) of the Act, as

amended by section 701(a)(2) of the

BBRA of 1999, each State and the

District of Columbia is allotted a

‘‘proportion’’ of the total amount

available nationally for allotment to the

States. The term ‘‘proportion’’ is defined

in section 2104(b)(4)(D)(i) of the Act and

refers to a State’s share of the total

amount available for allotment. In order

for the entire total amount available to

be allotted to the States, the sum of the

proportions for all States must exactly

equal one. Under the statutory

definition, a State’s proportion for a

fiscal year is equal to the State’s

allotment for the fiscal year divided by

the total amount available nationally for

allotment. In general, a State’s allotment

for a fiscal year is calculated by

multiplying the State’s proportion for

the fiscal year by the national total

amount available for allotment for that

fiscal year in accordance with the

following formula:

SAi = Pi x AT

SAi = Allotment for a State or District

of Columbia for a fiscal year.

Pi = Proportion for a State or District

of Columbia for a fiscal year.

AT = Total amount available for

allotment to the 50 States and the

District of Columbia for the fiscal

year. For FY 2000, this is

$4,204,312,500.

In accordance with the statutory

formula for determining allotments, the

State proportions are determined under

two steps, which are described below in

further detail.

Under the first step, each State’s

proportion is calculated by multiplying

the State’s Number of Children and the

State Cost Factor to determine a

‘‘product’’ for each State. The products

for all States are then summed. Finally,

the product for a State is divided by the

sum of the products for all States,

thereby yielding the State’s preadjusted

proportion.

Application of Floors and Ceilings

Under the second step, which was

added by section 701(a)(2) of the BBRA

of 1999, the preadjusted proportions are

subject to the application of proportion

floors, ceilings and a reconciliation

process, as appropriate. The amended

SCHIP statute specifies three proportion

floors, or minimum proportions, that

apply in determining States’ allotments.

The first proportion floor is equal to

$2,000,000 divided by the total of the

amount available nationally for the

fiscal year. For FY 2000, no State’s

preadjusted proportion is below this

floor. The second proportion floor is

equal to 90 percent of the allotment

proportion for the State for the previous

fiscal year; that is, a State’s proportion

for a fiscal year must not be lower than

10 percent below the previous fiscal

year’s proportion. The third proportion

floor is equal to 70 percent of the

allotment proportion for the State for FY

1999; that is, the proportion for a fiscal

year must not be lower than 30 percent

below the FY 1999 proportion.

Each State’s allotment proportion for

a fiscal year is limited by a maximum

ceiling amount, equal to 145 percent of

the State’s proportion for FY 1999; that

is, a State’s proportion for a fiscal year

must be no higher than 45 percent above

the State’s proportion for FY 1999. The

floors and ceilings are intended to

minimize the fluctuation of State

allotments from year to year and over

Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices 33641

the life of the program. Note, the floors

and ceilings on proportions are not

applicable in determining the

allotments of the U.S. Territories and

Commonwealths; they receive a fixed

percentage specified in the statute of the

total allotment available to the U.S.

Territories and Commonwealths.

As determined under the first step,

which is applied prior to the application

of any floors or ceilings, the sum of the

proportions for all the States and the

District of Columbia will be equal to

exactly one. However, the application of

the floors and ceilings under the second

step may change the proportions for

certain States; that is, some States’

proportions may need to be raised to the

floors, while other States’ proportions

may need to be lowered to the

maximum ceiling. If this occurs, the

sum of the proportions for all States and

the District of Columbia may not exactly

equal one. In that case, the statute

requires that the proportions will need

to be adjusted, under a method that is

determined by whether the sum of the

proportions is greater or less than one.

The sum of the proportions would be

greater than one if the application of the

floors and ceilings resulted in raising

the proportions of some States (due to

the floor) to a greater degree than the

proportions of other States were

lowered (due to the ceiling). If, after

application of the floors and ceiling, the

sum of the proportions is greater than

one, the new statute requires the

Secretary to determine a maximum

percentage increase limit, which, when

applied to the State proportions, would

result in the sum of the proportions

being exactly one.

If, after the application of the floors

and ceiling, the sum of the proportions

is less than one, the States’ proportions

must be increased in a ‘‘pro rata’’

manner so that the sum of the

proportions again equals one. It is also

possible, although unlikely, that the

sum of the proportions (after the

applications of the floors and ceilings)

will be exactly one, and therefore, the

proportions would require no further

adjustment.

Determination of Preadjusted

Proportions

Following is an explanation of how

HCFA applied the two State-related

factors specified in the statute to

determine the States’ preadjusted

proportions for FY 2000. The term

‘‘preadjusted,’’ as used here, refers to

the States’ proportions prior to the

application of the floors and ceiling and

adjustments, as specified in the BBRA of

1999. The determination of each State

and the District of Columbia’s

preadjusted proportion for FY 2000 and

subsequent fiscal years is in accordance

with the following formula:

PPi = (CixSCFi)/Σ(CixSCFi)

PPi = Preadjusted proportion for a

State or District of Columbia for a

fiscal year.

Ci = Number of children in a State

(Section 2104(b)(1)(A)(I)) for a fiscal

year. This number is based on the

number of low-income children for

a State for a fiscal year and the

number of low-income uninsured

children for a State for a fiscal year

coverage for the fiscal year

determined on the basis of the

arithmetic average of the number of

such children as reported and

defined in the three most recent

March supplements to the Current

Population Survey of the Bureau of

the Census, and for FY 2000 and

subsequent fiscal years, officially

available before the beginning of the

calendar year in which the fiscal

year begins. (Section 2104(b)(2)(B)

of the Act).

For fiscal year 2000, the number of

children is equal to the sum of 75

percent of the number of low-income

uninsured children in the State for the

fiscal year and 25 percent of the number

of low-income children in the State for

the fiscal year. For fiscal years 2001 and

thereafter, the number of children is

equal to the sum of 50 percent of the

number of low-income uninsured

children in the State for the fiscal year

and 50 percent of the number of lowincome children in the State for the

fiscal year. (Section 2104(b)(2)(A) of the

Act).

SCFi=State cost factor for a State

(Section 2104(b)(1)(A)(ii)of the Act). For

a fiscal year, this is equal to:

.15+.85 x (Wi/WN)

Wi=The annual average wages per

employee for a State for such year

(Section 2104(b)(3)(A)(ii)(I) of the

Act).

WN = The annual average wages per

employee for the 50 States and the

District of Columbia (Section

2104(b)(3)(A)(ii)(II) of the Act).

The annual average wages per

employee for a State or for all States and

the District of Columbia for a fiscal year

is equal to the average of such wages for

employees in the health services

industry (SIC 80), as reported by the

Bureau of Labor Statistics of the

Department of Labor for each of the

most recent three years, and for FY 2000

and subsequent fiscal years, finally

available before the beginning of the

calendar year in which the fiscal year

begins. (Section 2104(b)(3)(B) of the

Act).

Σ(CixSCFi) =The sum of the products of

(Ci x SCFi) for each State (Section

2104(b)(1)(B) of the Act).

The resulting proportions would then

be subject to the application of the

floors and ceilings specified in Public

Law 106–113 and reconciled, as

necessary, to eliminate any deficit or

surplus of the allotments because the

sum of the proportions was either

greater than or less than one.

Section 2104(e) of the Act requires

that the amount of a State’s allotment

for a fiscal year be available to the State

for a total of three years, the fiscal year

for which the State child health plan is

approved and two years following.

Section 2104(f) of the Act requires the

Secretary to establish a process for

redistribution of the amounts of States’

allotments that are not expended during

the three-year period to States that have

fully expended their allotments.

III. Table of State Children’s Health

Insurance Program Final Allotments for

FY 2000

Key to Table

Column/Description

Column A = Name of State,

Commonwealth, or Territory.

Column B = Number of Children. The

Number of Children for each State

(provided in thousands) was determined

and provided by the Bureau of the

Census based on the arithmetic average

of the number of low-income children

and low-income uninsured children,

and is based on the three most recent

March supplements to the Current

population survey of the Bureau of the

Census officially available before the

beginning of the calendar year in which

the fiscal year begins. The FY 2000

allotments were based on the 1996,

1997, and 1998 March supplements to

the Current Population Survey. These

data represent the number of people in

each State under 19 years of age whose

family income is at or below 200

percent of the poverty threshold

appropriate for that family, and who are

reported to be not covered by health

insurance. The Number of Children for

each State was developed by the Bureau

of the Census based on the standard

methodology used to determine official

poverty status and uninsured status in

their annual March Current Population

Surveys on these topics.

For FY 2000, the Number of Children

is equal to the sum of 75 percent of the

number of low-income uninsured

children in the State and 25 percent of

the number of low-income children in

the State. For FY 2001 and succeeding

years, the Number of Children is equal

to the sum of 50 percent of the number

33642 Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices

of low-income uninsured children in

the State and 50 percent of the number

of low-income children in the State.

Column C=State Cost Factor. The

State Cost Factor for a State is equal to

the sum of: .15, and .85 multiplied by

the ratio of the annual average wages in

the health industry per employee for the

State to the annual wages per employee

in the health industry for the 50 States

and the District of Columbia. The State

Cost Factor for each State was

calculated based on such final wage

data for each State as reported,

determined, and provided to HCFA by

the BLS in the Department of Labor for

each of the most recent three years

before the beginning of the calendar

year in which the fiscal year begins. The

FY 2000 allotments were based on final

BLS wage data for 1994, 1995, and 1996.

Column D=Product. The Product for

each State was calculated by

multiplying the Number of Children in

Column B by the State Cost Factor in

Column C. The sum of the Products for

all 50 States and the District of

Columbia is below the Products for each

State in Column D. The Product for each

State and the sum of the Products for all

States provides the basis for allotment to

States and the District of Columbia.

Column E=Proportion of Total. This is

the calculated percentage share for each

State of the total allotment available to

the 50 States and the District of

Columbia. The Percent Share of Total is

calculated as the ratio of the Product for

each State in Column D to the sum of

the products for all 50 States and the

District of Columbia below the Products

for each State in Column D.

Column F=Adjusted Proportion of

Total. This is the calculated percentage

share for each State of the total

allotment available after the application

of the floors and ceilings and after any

further reconciliation needed to ensure

that the sum of the State proportions is

equal to one. The three floors specified

in the amended statute are: (1) A floor

of $2,000,000 divided by the total of the

amount available; (2) an annual floor of

90 percent of (or 10 percent below) the

preceding fiscal year’s allotment

proportion; and (3) a cumulative floor of

70 percent of (or 30 percent below) the

FY 1999 allotment proportion. There is

also a cumulative ceiling of 145 percent

of (or 45 percent above) the FY 1999

allotment proportion.

Column G=Allotment. This is the

State Children’s Health Insurance

Program allotment for each State,

Commonwealth, or Territory for the

fiscal year. For each of the 50 States and

the District of Columbia, this is

determined as the Adjusted Proportion

of Total in Column F for the State

multiplied by the total amount available

for allotment for the 50 States and the

District of Columbia for the fiscal year.

For each of the U.S. Territory and

Commonwealth, the allotment is

determined as the Proportion of Total in

Column E multiplied by the total

amount available for allotment to the

U.S. Territories and Commonwealths.

For the U.S. Territories and

Commonwealths, the Proportion of

Total in Column E is specified in

section 2104(c) of the Act. The total

amount is then allotted to the U.S.

Territories and Commonwealths

according to the percentages specified

in section 2104 of the Act. There is no

adjustment made to the allotments of

the U.S. Territories and

Commonwealths as they are not subject

to the application of the floors and

ceiling. As a result, Column F in the

table, the Adjusted Proportion of Total,

is empty for the U.S. Territories and

Commonwealths.

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BILLING CODE 4120–01–C

IV. Impact Statement

HCFA has examined the impact of

this notice as required by Executive

Order 12866. Executive Order 12866

directs agencies to assess all costs and

benefits of available regulatory

alternatives and, when rules are

necessary, to select regulatory

approaches that maximize net benefits

(including potential economic

environments, public health and safety,

33644 Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices

other advantages, distributive impacts,

and equity). We believe that this notice

is consistent with the regulatory

philosophy and principles identified in

the Executive Order. The formula for the

allotments is specified in the statute.

Since the formula is specified in the

statute, we have no discretion in

determining the allotments.

The Unfunded Mandates Reform Act

of 1995 requires that agencies prepare

an assessment of anticipated costs and

benefits before publishing any notice

that may result in an expenditure in any

year by State, local, and tribal

governments, in the aggregate, or by the

private sector, of $100,000,000 or more

(adjusted each year for inflation).

Because participation in the SCHIP

program on the part of States is

voluntary, any payments and

expenditures States make or incur on

behalf of the program that are not

reimbursed by the federal government

are made voluntarily. This notice will

not create unfunded mandate on States,

tribal or local governments. Therefore,

we are not required to perform an

assessment of the costs and benefits of

these regulations.

Under Executive Order 12612,

Federalism, we have reviewed this

notice and determined that it does not

significantly affect States’ rights, roles,

and responsibilities. Low-income

children will benefit from payments

under this program through increased

opportunities for health insurance

coverage.

We believe this notice will have an

overall positive impact by informing

States, the District of Columbia, and

U.S. Territories and Commonwealths of

the extent to which they are permitted

to expend funds under their child

health plans using their FY 2000

allotments.

In accordance with the provisions of

Executive Order 12866, this notice was

reviewed by the Office of Management

and Budget.

(Section 1102 of the Social Security Act (42

U.S.C. 1302))

(Catalog of Federal Domestic Assistance

Program No. 00.000, State Children’s Health

Insurance Program)

Dated: February 7, 2000.

Nancy-Ann Min DeParle,

Administrator, Health Care Financing,

Administration.

Dated: March 20, 2000.

Donna E. Shalala,

Secretary.

[FR Doc. 00–12881 Filed 5–23–00; 8:45 am]

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