**Subject**:Use of Intrastate Funding Formula for Distributing Title VII Funds

**Inquiry Source**:AoA Regional Offices, Numerous States

**Stat. & Reg.**

**Basis**:OAA Sections 304(d)(1)(D), 705 and 762; 138 CONG.REC., S125, 13503 (daily ed. September 15, 1992) (Joint Explanatory Statement of the Committees of Jurisdiction, Older Americans Act Amendments of 1992)

**Key Words**:Intrastate Funding Formula, Title VII

**ADDRIS Code**:

**Question**:If a State decides to distribute Title VII funds to area agencies on aging, must it distribute them using the intrastate funding formula?

**Response**:No.  The intrastate funding formula applies only to Title III funds under Section 304(d)(1)(D) and does not apply to Title VII.

**Discussion**:The purpose of Title VII is to focus attention on advocacy programs which the States, not the area agencies, have the responsibility to establish and operate.  States may designate funding under the various chapters of Title VII for area agency or other substate activities which correlate with the purpose of the funding under a particular chapter, but this should be done for targeted and approved activities, not by the established Title III formula.  The Joint Explanatory Statement of the Committees of Jurisdiction, Older Americans Act Amendments of 1992 states:

...the current Title III requirements governing the allocation of funds within states are not applicable to funds made available under any part of Title VII nor are area agencies the only entities eligible to receive grants from states under any part of Title VII.  In addition, states may use funds available under Title VII to directly carry out vulnerable elder rights protection activities. (See above citation and

attached page from the Congressional Record,

September 15, 1992.)

Section 762 of the Act makes it clear that a State may carry out Title VII activities either directly or through contracts or agreements with public or nonprofit private agencies or organizations, including but not limited to area agencies.  The intent is that States direct the use of Title VII money for activities within the State which are planned and coordinated by the State Agency on Aging.  Section 705(a)(1) and (2) make clear that States are to consult with area agencies and others in identifying and prioritizing statewide activities conducted under Title VII.

In fact, the nature of the intrastate funding formula is such that it is not applicable to the Title VII chapters.  For example, in distributing funds under Chapter 2, it would be reasonable for States to provide funding to stimulate development of new local ombudsman programs and take into account the location and size of long term care facilities, which are the major influence on workload for local ombudsmen and volunteers.  The distribution of nursing and board and care homes might be different from the distribution of older people in the State and the other factors which affect the intrastate funding formula.

The lack of applicability of the formula to Title VII is also demonstrated by the requirements of Section 705(a)(7)(A), which details a specific set of priorities to use if funds are distributed to area agencies on aging under Chapter 5, Outreach, Counseling, and Assistance Program.  (See PCR 94- )

Fernando M. Torres-GilDate

Assistant Secretary for Aging

Attachment