Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Notices 71915 

Advisory Committee Act and if deemed 

appropriate, will redact such 

information. (4) All disclosures of 

information concerning third parties 

will be redacted. (5) If it comes to the 

attention of the DFO that an individual 

wishes to share information with the 

Board but objects to doing so in a public 

forum, the DFO will work with that 

individual, in accordance with the 

Federal Advisory Committee Act, to 

find a way that the Board can hear such 

comments. 

Contact Person for More Information: 

Dr. Lewis V. Wade, Executive Secretary, 

NIOSH, CDC, 4676 Columbia Parkway, 

Cincinnati, Ohio 45226, Phone 

513.533.6825, Fax 513.533.6826. 

The Director, Management Analysis 

and Services Office, has been delegated 

the authority to sign Federal Register 

notices pertaining to announcements of 

meetings and other committee 

management activities, for both CDC 

and the Agency for Toxic Substances 

and Disease Registry. 

Dated: December 12, 2007. 

Elaine L. Baker, 

Director, Management Analysis and Services 

Office,Centers for Disease Control and 

Prevention. 

[FR Doc. E7–24644 Filed 12–18–07; 8:45 am] 

BILLING CODE 4163–18–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Centers for Disease Control and 

Prevention 

Board of Scientific Counselors, 

National Center for Health Statistics 

(NCHS) 

In accordance with section 10(a)(2) of 

the Federal Advisory Committee Act 

(Pub. L. 92–463), the CDC announces 

the following meeting of the 

aforementioned committee: 

Times and Dates: 11 a.m.–5:30 p.m., 

January 23, 2008. 8:30 a.m.–2 p.m., 

January 24, 2008. 

Place: NCHS Headquarters, 3311 

Toledo Road, Hyattsville, Maryland 

20782. 

Status: This meeting is open to the 

public; however, visitors must be 

processed in accordance with 

established federal policies and 

procedures. For foreign nationals or 

non-US citizens, pre-approval is 

required (please contact Althelia Harris, 

301–458–4261, adw1@cdc.gov or 

Virginia Cain, vcain@cdc.gov at least 10 

days in advance for requirements). All 

visitors are required to present a valid 

form of picture identification issued by 

a state, federal or international 

government. As required by the Federal 

Property Management Regulations, Title 

41, Code of Federal Regulations, subpart 

101–20.301, all persons entering in or 

on Federal controlled property and their 

packages, briefcases, and other 

containers in their immediate 

possession are subject to being x-rayed 

and inspected. Federal law prohibits the 

knowing possession or the causing to be 

present of firearms, explosives and other 

dangerous weapons and illegal 

substances. The meeting room 

accommodates approximately 100 

people. 

Purpose: This committee is charged 

with providing advice and making 

recommendations to the Secretary, 

Department of Health and Human 

Services; the Director, CDC; and the 

Director, NCHS, regarding the scientific 

and technical program goals and 

objectives, strategies, and priorities of 

NCHS. 

Matters To Be Discussed: The agenda 

will include welcome remarks by the 

Director, NCHS; review of the State and 

Local Area Integrated Telephone Survey 

program; presentation of the National 

Health Interview Survey program; 

discussion of upcoming program 

reviews and an open session for 

comments from the public. 

Requests to make oral presentations 

should be submitted in writing to the 

contact person listed below. All requests 

must contain the name, address, 

telephone number, and organizational 

affiliation of the presenter. 

Written comments should not exceed 

five single-spaced typed pages in length 

and must be received by January 9, 

2008. 

The agenda items are subject to 

change as priorities dictate. 

Contact Person for More Information: 

Virginia S. Cain, Ph.D., Director of 

Extramural Research, NCHS/CDC, 3311 

Toledo Road, Room 7211, Hyattsville, 

Maryland 20782, telephone (301) 458–

4500, fax (301) 458–4020. 

The Director, Management Analysis 

and Services Office, has been delegated 

the authority to sign Federal Register 

notices pertaining to announcements of 

meetings and other committee 

management activities for both CDC and 

the Agency for Toxic Substances and 

Disease Registry. 

Dated: December 12, 2007. 

Elaine L. Baker, 

Director, Management Analysis and Services 

Office, Centers for Disease Control and 

Prevention. 

[FR Doc. E7–24642 Filed 12–18–07; 8:45 am] 

BILLING CODE 4163–18–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Centers for Medicare & Medicaid 

Services 

[CMS–2273–N] 

RIN 0938–AO99 

State Children’s Health Insurance 

Program (SCHIP); Additional 

Allotments To Eliminate FY 2007 

Funding Shortfalls 

AGENCY: Centers for Medicare & 

Medicaid Services (CMS), HHS. 

ACTION: Notice. 

SUMMARY: This notice describes the 

methodology and process we are using 

for determining the amounts of certain 

States’ remaining SCHIP funding 

shortfalls in Federal fiscal year (FY) 

2007, in accordance with the provisions 

of the U.S. Troop Readiness, Veteran’s 

Care, Katrina Recovery, and Iraq 

Accountability Appropriations Act, 

2007. This notice also contains the 

amounts of the additional allotments to 

be provided to such States to eliminate 

such FY 2007 funding shortfalls, 

determined in accordance with this 

methodology. 

FOR FURTHER INFORMATION CONTACT: 

Richard Strauss, (410) 786–2019. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Availability and Redistribution of 

SCHIP Fiscal Year Allotments 

Title XXI of the Social Security Act 

(the Act) sets forth the State Children’s 

Health Insurance Program (SCHIP) to 

enable States, the District of Columbia, 

and specified Commonwealths and 

Territories to initiate and expand health 

insurance coverage to uninsured, lowincome children. The 50 States, the 

District of Columbia, and the 

Commonwealths and Territories may 

implement the SCHIP through a 

separate child health program under 

title XXI of the Act, an expanded 

program under title XIX of the Act, or 

a combination of both. 

Section 2104(e) of the Act specifies 

that the SCHIP allotments for a Federal 

fiscal year are available for payment to 

States for their expenditures under an 

approved State child health plan for an 

initial 3-fiscal year period of 

availability, including the fiscal year for 

which the allotment was provided. 

Section 2104(f) of the Act specifies that 

the amounts of States’ allotments which 

are not expended during the initial 3- 

year period of availability are to be 

redistributed to those States that have 

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71916 Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Notices 

fully spent these fiscal year allotments 

during this period of availability in 

accordance with an appropriate 

procedure determined by the Secretary. 

Furthermore, section 2104(e) of the Act 

specifies that the amounts of the 

redistributed allotments continue to be 

available for expenditure by the States 

receiving these redistributions to the 

end of the fiscal year in which these 

funds are redistributed. 

B. Enactment of NIHRA, UTRA, and 

Special Rules for Addressing FY 2007 

SCHIP Funding Shortfalls 

In general, under section 2104(e) and 

(f) of the Act, any unexpended SCHIP 

allotments remaining following the end 

of the initial 3-year period of availability 

would otherwise be redistributed in 

accordance with an appropriate 

procedure determined by the Secretary. 

However, section 201(a) of the National 

Institutes of Health Reform Act of 2006 

(NIHRA) (Pub. L. 109–482, enacted on 

January 15, 2007) amended the SCHIP 

statute to add a new section 2104(h) of 

the Act. This new subsection provided 

for special rules to address States’ FY 

2007 SCHIP funding shortfalls. 

Specifically, in order to address States’

FY 2007 SCHIP funding shortfalls, 

section 2104(h)(1) of the Act provided 

for the redistribution in FY 2007 of the 

unexpended FY 2004 allotments 

remaining at the end of FY 2006. 

Furthermore, section 2104(h)(2) of the 

Act provided for the redistribution of 

certain amounts of unexpended FY 2005 

allotments which became available for 

redistribution in months after March 31, 

2007. On May 29, 2007, we published 

a notice in the Federal Register (72 FR 

29502) describing the implementation of 

section 201(a) of the NIHRA and 

containing the amounts of the States’

redistributed FY 2004 and FY 2005 

allotments, determined in accordance 

with the NIHRA. 

In accordance with the methodology 

established under NIHRA, the amounts 

of the States’ projected FY 2007 

shortfalls, and the associated FY 2004 

and FY 2005 redistributed allotments, 

were determined on a monthly basis to 

address the FY 2007 shortfalls. In that 

regard, and since the total amounts of 

the FY 2004 and FY 2005 allotments 

available for redistribution were limited 

(to about $146.9 million and $137.4 

million, respectively), the total FY 2007 

shortfalls for the 6 States receiving the 

redistributions were not addressed. That 

is, the total amounts of the FY 2004 and 

FY 2005 redistributed allotments that 

were provided to the 6 recipient States 

were only sufficient to address the 

States’ FY 2007 shortfalls experienced 

through May 2007; these amounts were 

not sufficient to cover the 6 States’

remaining FY 2007 shortfalls occurring 

in months after May 2007, nor were 

these amounts sufficient to address 

other States’ FY 2007 projected 

shortfalls occurring after May 2007. 

On May 29, 2007, the U.S. Troop 

Readiness, Veteran’s Care, Katrina 

Recovery, and Iraq Accountability 

Appropriations Act, 2007 (UTRA, Pub 

L. 110–28) was enacted; in particular, 

title VII of this law amended section 

2104(h) of the Act (as amended by 

NIHRA), to provide for additional 

allotment amounts to fund States’

remaining SCHIP funding shortfalls in 

FY 2007. 

Note, under paragraph 2104(h)(7) of 

the Act as amended by the NIHRA, the 

special rules for the redistribution of the 

unexpended FY 2004 and FY 2005 

allotments in FY 2007 to address FY 

2007 SCHIP funding shortfalls apply 

only to a State that receives an allotment 

for FY 2007 under subsection 2104(b) of 

the Act. In that regard, under subsection 

2104(b) of the Act, a State refers only to 

the 50 States and the District of 

Columbia. Therefore, subsection 2104(h) 

of the Act, as amended by NIHRA and 

as further amended by UTRA, does not 

apply to the Commonwealths and 

Territories, which received SCHIP 

allotments for FY 2007 under the 

authority of subsection 2104(c) of the 

Act. Accordingly, unless otherwise 

indicated in this notice, in referring to 

the redistribution of the FY 2004 and FY 

2005 allotments or the additional 

allotments for eliminating FY 2007 

shortfalls, the term ‘‘State’’ means only 

the 50 States and the District of 

Columbia, as applicable. 

II. Provisions of This Notice 

The purpose of this notice is to set 

forth the methodology and process we 

are using to implement the UTRA 

provision for eliminating States’ SCHIP 

funding Shortfalls in FY 2007. 

A. Methodology for Determining the 

Amounts of Additional Allotments To 

Eliminate States’ SCHIP Funding 

Shortfalls in FY 2007 

Section 2104(h)(1) and (2) of the Act, 

as amended by NIHRA contained the 

methodology for determining the 

amounts of States’ redistributions of the 

unexpended FY 2004 allotments 

remaining at the end of FY 2006 and 

certain amounts of unexpended FY 2005 

allotments, respectively. The 

methodology for determining these 

redistributed allotment amounts, and 

the actual amounts of the redistributed 

allotments determined in accordance 

with such methodology, was described 

in the Federal Register published on 

May 29, 2007. 

Subsequent to the enactment of 

NIHRA, section 7001(a) of UTRA 

amended section 2104(h)(4) of the Act 

(as amended by NIHRA) to provide for 

additional allotment amounts to 

eliminate the FY 2007 SCHIP funding 

shortfalls remaining after the 

redistributions of the unexpended FY 

2004 and FY 2005 allotments in FY 

2007, both for States that received the 

FY 2004 and FY 2005 redistributions, as 

well as for other States that did not 

receive such redistributions, but which 

also have projected FY 2007 shortfalls. 

Under the amended section 2104(h)(4) 

of the Act, a ‘‘remaining shortfall State’’

is defined as a State for which the 

Secretary estimates on the basis of the 

most recent data available to the 

Secretary as of the date of enactment (of 

UTRA) that the projected FY 2007 

Federal SCHIP expenditures will exceed 

the sum of: 

• The amounts of the State’s 

allotments for FY 2005 and FY 2006 that 

were not expended by the end of FY 

2006. 

• The amount of the State’s allotment 

for FY 2007. 

• The amounts, if any, of the FY 2004 

and FY 2005 allotments that were 

redistributed to the State in FY 2007, in 

accordance with section 2104(h)(1) and 

(2) of the Act, respectively. 

Section 2104(h)(7) of the Act as 

amended by the NIHRA indicates that 

the provisions of subsection 2104(h) of 

the Act apply only to the 50 States and 

the District of Columbia; that is, these 

provisions do not apply to the 

Commonwealths and Territories. 

Therefore, the FY 2004 and FY 2005 

shortfall redistributions, and the FY 

2007 shortfall allotments, are only 

available for the 50 States and the 

District of Columbia. Accordingly, 

unless otherwise indicated in this 

notice, the term ‘‘State’’ means only the 

50 States and the District of Columbia, 

as applicable. 

Before enactment of UTRA, section 

2104(h)(4) of the Act (as amended by 

NIHRA) required that the FY 2004 and 

FY 2005 redistributed allotments could 

only be used to make payments by 

States with respect to their expenditures 

for (1) providing child health assistance 

or other health benefits coverage for 

populations eligible under the State 

child health plan (including under a 

waiver of this plan) on October 1, 2006; 

and (2) providing child health 

assistance or other health benefits 

coverage to an individual who is not a 

child or a pregnant woman at the 

regular Federal medical assistance 

percentage (FMAP, referenced in section 

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Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Notices 71917 

1905(b) of the Act) only (not the 

enhanced FMAP, referenced in section 

2105(b) of the Act). Under the NIHRA, 

the FY 2004 and FY 2005 redistributed 

allotments were available for States’

expenditures for a child or a pregnant 

woman only, at the enhanced FMAP 

rate. However, the UTRA amended 

section 2104(h)(4) of the Act to remove 

both of these limitations. Under the 

revised section 2104(h)(4) of the Act, the 

Federal matching rate for expenditures 

related to all the populations indicated 

is the enhanced FMAP rate. 

As indicated above, under section 

2104(h)(4) of the Act, as amended by 

UTRA, the amount of a State’s 

remaining FY 2007 shortfall, if any, is 

determined by comparing each State’s 

allotment funds available in FY 2007 

(including FY 2004 and FY 2005 

redistributed allotments, if any) to its 

projected FY 2007 expenditures, based 

on the State’s most recent estimates 

available as of May 25, 2007, the date 

of enactment of UTRA. In this regard, 

we determined the amounts of States’

projected FY 2007 expenditures, by 

using their estimated expenditures as 

reported and certified by the State to 

CMS on their quarterly budget 

submissions of Forms CMS–37 and 

CMS–21B. By May 25, 2007, most States 

had submitted their certified estimates 

of their FY 2007 expenditures on their 

May 2007 Forms CMS–37 and CMS–

21B. However, there were 3 States that 

had not submitted and certified their 

May 2007 submissions of these reports 

by May 25, 2007; for those 3 States, we 

are using the projected FY 2007 

expenditures as provided in their 

February 2007 submissions of such 

reports, as those represented the most 

recent certified estimates of their FY 

2007 expenditures available as of May 

25, 2007. 

As described in the notice published 

in the Federal Register on May 29, 

2007, the amounts of the States’ FY 

2004 and FY 2005 redistributed 

allotments were determined in 

accordance with the provisions of 

section 2104(h)(1) and (2) of the Act 

respectively, based on the States’ other 

available allotments in FY 2007 (that is, 

the unexpended FY 2005 and FY 2006 

allotments carried into FY 2007 and the 

FY 2007 allotments) and the States’

projected FY 2007 allotments using the 

States’ February FY 2007 estimates. This 

determination did not include any 

additional FY 2007 shortfall allotments 

as provided under the recently enacted 

UTRA, since as provided in section 

2104(h)(2) of the Act, we used the 

information available as of March 31, 

2007, and UTRA was not enacted until 

May 25, 2007. 

In accordance with section 2104(h)(4) 

of the Act, as amended by UTRA, the 

amounts of the FY 2007 shortfall 

allotments were determined based on 

the amounts of each State’s other 

available allotments in FY 2007 (that is, 

the unexpended FY 2005 and FY 2006 

allotments carried into FY 2007 and the 

FY 2007 allotments), the previously 

determined FY 2004 and FY 2005 

redistributed allotments, and the States’

projected FY 2007 expenditures 

available as of the date of enactment of 

UTRA. Because the UTRA provided for 

an additional $650 million to address 

the shortfalls in FY 2007 remaining after 

the provision of such FY 2004 and FY 

2005 redistributed allotments, and 

furthermore, since such redistributed 

allotments were required to be based on 

the FY 2007 shortfalls determined with 

the data available at the times indicated 

above and in the May 29, 2007 Federal 

Register notice (that is, using the 

February 2007 estimates), we are not 

recalculating the amounts of the States’

FY 2004 and FY 2005 redistributed 

allotments in order to determine the 

amounts of the addition FY 2007 

shortfall allotments. Rather, since the 

$650 million is available and intended 

to cover the States’ full remaining FY 

2007 shortfalls, we determined the 

amounts of the FY 2007 shortfall 

allotments by subtracting each shortfall 

State’s allotments available in FY 2007 

(including the FY 2004 and FY 2005 

redistributed allotments, if any) from its 

projected FY 2007 expenditures; the 

difference (for the shortfall States with 

projected FY 2007 expenditures greater 

than their available allotments) 

represents the amount of the State’s FY 

2007 shortfall allotment. 

B. Retrospective Adjustment 

Section 2104(h)(5) of the Act provides 

that the Secretary may adjust the 

estimates and determinations of the 

amounts of the FY 2004 redistributed 

allotments (section 2104(h)(1) of the 

Act), the FY 2005 redistributed 

allotments (section 2104(h)(2) of the 

Act), the amounts available for the FY 

2005 redistribution (section 2104(h)(3) 

of the Act), and the additional FY 2007 

shortfall allotments (section 2104(h)(4) 

of the Act) on the basis of the amounts 

reported by States not later than 

November 30, 2007 on Forms CMS–64 

and CMS–21. However, in no case may 

the amounts of the FY 2005 allotments 

redistributed from States (as determined 

under section 2104(h)(3) of the Act) 

exceed the amounts that were 

determined based on the most recent 

data available as of March 31, 2007. As 

described in the May 29, 2007 Federal 

Register, these amounts were 

determined based on the States’

submissions of the February 2007 

quarterly estimate reports of their FY 

2007 expenditures, and using those 

estimates would not exceed the lesser of 

50 percent of the States’ available FY 

2005 allotments as were determined 

available as of March 31, 2007 or $20 

million. Furthermore, under section 

2104(h)(5)(B) of the Act, in providing for 

any additional FY 2005 redistributed 

allotments under any retrospective 

adjustment, only the actual unexpended 

FY 2005 allotments remaining at the 

end of FY 2007 (as determined 

following the submission of States’

fourth quarter FY 2007 expenditure 

reports submitted by November 30, 

2007) may be used. The additional 

funds made available under UTRA to 

eliminate FY 2007 shortfalls may be 

available for any retrospective 

adjustments. Finally, under section 

2104(h)(5)(C) of the Act, any 

retrospective adjustment may not 

provide for the reduction of any States’

FY 2006 or FY 2007 allotments. 

C. Ordering of Expenditures 

In applying State’s expenditures 

against their available SCHIP 

allotments, expenditures are ordered as 

provided under section 2105(a)(1)(A) 

through (D) and 2105(a)(2) of the Act as 

follows: 

• Title XIX SCHIP-related 

expenditures for which payment is 

made at the enhanced FMAP (section 

2105(a)(1)(A) of the Act); 

• Title XIX expenditures for medical 

assistance provided during a 

presumptive eligibility period under 

section 1920A of the Act (section 

2105(a)(1)(B) of the Act); 

• Child health assistance for targeted 

low-income children in the form of 

providing health benefits coverage that 

meets the requirements of section 2103 

(per section 2105(a)(1)(C) of the Act); 

• Expenditures listed in section 

2105(a)(1)(D)(i) through (iv) of the Act, 

respectively: Other child health 

assistance for targeted low-income 

children; health services initiatives 

under the plan for improving the health 

of children (including targeted lowincome children and other low-income 

children); expenditures for outreach 

activities; and administration 

expenditures. 

In accordance with the ordering of 

allotments and expenditures provisions 

described above, the expenditures of 

States will be applied against the FY 

2004 and FY 2005 redistributed 

allotments, the additional FY 2007 

shortfall allotments, and any other 

allotments available to the States in FY 

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71918 Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Notices 

2007 (that is, the FY 2005, FY 2006 and 

FY 2007 allotments). 

D. No Ordering Election for Amounts of 

States’ FY 2004 Redistributed 

Allotments, FY 2005 Redistributed 

Allotments, and FY 2007 Shortfall 

Allotments 

In the past, for purposes of applying 

States’ expenditures against the 

redistributed allotments, States 

receiving redistributed allotment 

amounts were given flexibility to decide 

the ordering of the redistributed 

allotments with respect to the States’

other available allotments. This allowed 

the redistribution States to optimize the 

use of these redistributed funds. 

However, because of the statutory 

provisions made by the NIHRA and 

UTRA on the identification of shortfall 

States and the determination of the 

amount of the funding shortfalls on a 

monthly basis, and the requirement that 

these redistributed allotments and 

additional allotments be available only 

after the States’ other SCHIP allotment 

funds have been exhausted, we believe 

that the FY 2004 and FY 2005 

redistributed allotments and the FY 

2007 shortfall allotments must be 

ordered after the States’ other available 

allotments are exhausted. Therefore, 

shortfall States must spend their 

available FY 2005, FY 2006, and FY 

2007 allotments first, before any 

amounts of redistributed FY 2004 

allotments, redistributed FY 2005 

allotments, and FY 2007 shortfall 

allotments. Furthermore, since the 

unexpended FY 2004 allotments must 

be redistributed before any 

redistribution of the FY 2005 

allotments, and the FY 2007 shortfall 

allotments are available for any 

remaining shortfalls, the amounts of any 

FY 2004 redistributed allotment must be 

ordered prior to any FY 2005 

redistributed allotments, and the FY 

2005 redistributed allotments must be 

ordered prior to any FY 2007 shortfall 

allotments. 

As specified in section 2104(h)(6) of 

the Act, as added by section 201(a) of 

the NIHRA, and as amended by UTRA, 

the amounts of the unexpended FY 2004 

and FY 2005 allotments redistributed to 

a State in FY 2007, and the amounts of 

the FY 2007 shortfall allotments, are 

only available for expenditure by the 

State through September 30, 2007; and 

any amounts of these redistributed 

allotments or additional allotments 

remaining at the end of FY 2007, shall 

not be subject to redistribution under 

section 2104(f) of the Act. This 

provision does not limit the authority of 

the Secretary to make any retrospective 

adjustments under section 2104(h)(5) of 

the Act, as discussed above. 

The amounts of the FY 2004 and FY 

2005 redistributed allotment amounts, 

the reduction of the FY 2005 allotments, 

and the amounts of the additional FY 

2007 shortfall allotments, will be 

incorporated into the Form CMS–21C 

(Allocation of Title XIX and Title XXI 

Expenditures to the SCHIP Fiscal Year 

Allotment). Form CMS–21C is used for 

tracking States’ expenditures against 

their available SCHIP allotments. The 

Medicaid and SCHIP expenditure 

system will then automatically apply 

expenditures reported on the quarterly 

expenditure reports for FY 2007 against 

the revised FY 2005 allotments, the 

other SCHIP allotments available in FY 

2007, the FY 2004 and FY 2005 

redistributed amounts, and the 

additional FY 2007 shortfall allotments 

available in FY 2007. 

E. Repeal of Special Rule for Coverage 

for Populations Eligible on October 1, 

2006 

Section 2104(h)(4)(A) of the Act, was 

added by the NIHRA and under which 

States could only use amounts of FY 

2004 allotments or FY 2005 allotments, 

redistributed under section 2104(h) of 

the Act, only for expenditures for 

providing child health assistance or 

other health benefits coverage for 

populations eligible for assistance or 

benefits under its approved State child 

health assistance plan (including a 

waiver of this plan) as in effect on 

October 1, 2006, has been repealed by 

UTRA. 

F. Table for Determination of the 

Additional FY 2007 Shortfall 

Allotments 

In the table included in this notice we 

set forth the determination of the 

additional FY 2007 shortfall allotments. 

In the Federal Register notice published 

on May 29, 2007, we provided the 

amounts of the States’ FY 2004 and FY 

2005 redistributed allotments; those 

amounts are incorporated into the 

calculation of the additional FY 2007 

shortfall allotments to eliminate States 

remaining FY 2007 shortfalls. 

The following describes the table for 

determining the FY 2007 shortfall 

allotments to eliminate the remaining 

FY 2007 shortfalls. Based on the States’

most recent estimates of their FY 2007 

expenditures available as of May 25, 

2007, the date of enactment for UTRA, 

there are 12 States with projected 

shortfalls in SCHIP funds in FY 2007. 

Key to Table—Additional FY 2007 

Allotments to Eliminate the Remaining 

FY 2007 Shortfalls 

This Table presents the determination 

of the amounts of the additional FY 

2007 shortfall allotments to eliminate 

the shortfalls remaining in FY 2007 for 

the 50 States and DC based on the most 

recent expenditure projections for FY 

2007, after the provision of the FY 2004 

and FY 2005 redistributed allotments. 

Column/Description 

Column A = State. Name of State, 

District of Columbia, the 

Commonwealth or Territory. 

Column B = FY 2007 Expends. MAY 

2007 Estimates. Column B contains the 

projected FY 2007 Federal expenditures 

based on the most recent data available 

submitted as of May 25, 2007, the date 

of enactment for UTRA. For most States 

this data was obtained from the certified 

May 2007 submissions of the Forms 

CMS–37 and CMS–21B. For 3 States, the 

certified May 2007 submission was not 

available as of May 25, 2007; for those 

States, the certified February 2007 

submission of these forms was used. 

Column C = Tot. Allotments in FY 

2007 NOT Including FY 04/05 Redists. 

Column C contains the total allotments 

available to each State in FY 2007, not 

including any FY 2004 or FY 2005 

redistributed allotments. These 

allotments include: the unexpended FY 

2005 allotments remaining at the end of 

FY 2006 and carried into FY 2007 (and 

further reduced, as applicable, by the 

provisions of section 2104(h)(3) of the 

Act, as amended by NIHRA); the 

unexpended FY 2006 allotments 

remaining at the end of FY 2006 and 

carried into FY 2007; and the FY 2007 

allotments. 

Column D = Tot. FY 07 SF Before 

Redist. or Addtl Allots. Column D 

contains the amounts of the States’ FY 

2007 shortfalls, if any, determined 

before the provision of any redistributed 

FY 2004 or FY 2005 allotments, and is 

equal to the difference between the 

amounts in Column B and Column C. 

For States whose available allotments in 

FY 2007 in Column C is greater than or 

equal to the projected FY 2007 

expenditures in Column B, the entry in 

Column D is $0. 

Column E = For SF States FY 2004 

Redistributions u/NIHRA. Column E 

contains the total FY 2004 redistributed 

allotments as published in the May 29, 

2007 Federal Register in Table 3 (72 FR 

29513). With respect to States for which 

there is no redistribution of FY 2004 

allotments, the entry in Column E is $0. 

Column F = For SF States FY 2005 

Redistributions u/NIHRA. Column F 

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contains the total FY 2005 redistributed 

allotments as published in the May 29, 

2007 Federal Register in Table 3 (72 FR 

29513). With respect to States for which 

there is no redistribution of FY 2005 

allotments, the entry in Column F is $0. 

Column G = Tot. FY 04/05 Redist. 

Amounts. Column G contains the total 

FY 2004 and FY 2005 redistributed 

allotments, if any, determined as the 

sum of the entries is Column E and 

Column F. 

Column H = Tot. FY 07 SF AFTER FY 

04/05 Redist. Column H contains the 

amount of the States’ FY 2007 shortfalls, 

if any, remaining after the provision of 

any FY 2004 or FY 2005 redistributed 

allotments, and is determined as the 

difference between the amounts in 

Column D and Column G. The amount 

in Column H represents the amount of 

the States’ additional FY 2007 shortfall 

allotment, provided to eliminate the 

States’ remaining projected FY 2007 

shortfall after the provision of the FY 

2004 and FY 2005 redistributed 

allotments. With respect to States for 

which there is no additional FY 2007 

shortfall allotment, the entry in Column 

H is $0. 

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BILLING CODE 4120–01–C 

III. Regulatory Impact Statement 

We have examined the impact of this 

rule as required by Executive Order 

12866 (September 1993, Regulatory 

Planning and Review), the Regulatory 

Flexibility Act (RFA) (September 19, 

1980 Pub. L. 96–354), section 1102(b) of 

the Social Security Act, the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4) and Executive Order 13132. 

Executive Order 12866 directs 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

if regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). A regulatory impact 

analysis (RIA) must be prepared for 

major rules with economically 

significant effects ($100 million or more 

in any one year). We have determined 

that with respect to the additional FY 

2007 shortfall allotments totaling about 

$606.9 million, this notice is 

economically significant. However, 

because this notice only announces the 

provision of additional allotment funds 

determined based on the formula 

specified in statute and does not put 

forward any administrative policies, we 

have not performed an analysis beyond 

that which is presented in section II. 

above. 

Because State participation in the 

SCHIP program 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. 

The RFA requires agencies to analyze 

options for regulatory relief of small 

businesses. For purposes of the RFA, 

small entities include small businesses, 

nonprofit organizations, and small 

governmental jurisdictions. Most 

hospitals and most other providers and 

suppliers are small entities, either by 

nonprofit status or by having revenues 

of $6 million to $29 million in any 1 

year. Individuals and States are not 

included in the definition of a small 

entity. We are not preparing an analysis 

for the RFA because we have 

determined that this notice will not 

have a significant economic impact on 

a substantial number of small entities. 

In addition, section 1102(b) of the Act 

requires us to prepare a regulatory 

impact analysis if a rule may have a 

significant impact on the operations of 

a substantial number of small rural 

hospitals. This analysis must conform to 

the provisions of section 604 of the 

RFA. For purposes of section 1102(b) of 

the Act, we define a small rural hospital 

as a hospital that is located outside of 

a Core-Based Statistical Area and has 

fewer than 100 beds. We are not 

preparing an analysis for section 1102(b) 

of the Act because we have determined 

that this notice will not have a 

significant impact on the operations of 

a substantial number of small rural 

hospitals. 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 also 

requires that agencies assess anticipated 

costs and benefits before issuing any 

rule whose mandates require spending 

in any 1 year of $100 million in 1995 

dollars, updated annually for inflation. 

That threshold level is currently 

approximately $120 million. This notice 

will not create an unfunded mandate on 

States, tribal, or local governments. 

Therefore, we are not required to 

perform an assessment of the costs and 

benefits of this notice. 

Executive Order 13132 establishes 

certain requirements that an agency 

must meet when it publishes a proposed 

rule (and subsequent final rule) that 

imposes substantial direct requirement 

costs on State and local governments, 

preempts State law, or otherwise has 

Federalism implications. We have 

reviewed this notice and have 

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 Commonwealths and 

Territories of the extent to which they 

are permitted to expend funds under 

their child health plans using the 

additional FY 2007 shortfall allotment 

amounts. 

In accordance with the provisions of 

Executive Order 12866, this notice was 

reviewed by the Office of Management 

and Budget. 

IV. Waiver of Notice of Proposed 

Rulemaking and Delay in Effective Date 

We ordinarily publish a proposed 

notice in the Federal Register to provide 

a period of public comment before the 

provisions of a notice, such as this, are 

effective in accordance with section 

553(b) of the Administrative Procedure 

Act (APA) (5 U.S.C. 553(b)). We also 

ordinarily provide a 30-day delay in the 

effective date of the provisions of a 

notice in accordance with section 553(d) 

of the APA (5 U.S.C. 553(d)). However, 

we can waive both the notice of 

proposed rulemaking and the 30-day 

delay in effective date if the Secretary 

finds, for good cause, that it is 

impracticable, unnecessary, or contrary 

to the public interest, and incorporates 

a statement of the finding and the 

reasons in the notice. 

We find there is good cause to waive 

notice of proposed rulemaking and the 

delay in the effective date of this 

issuance of the additional FY 2007 

allotments and the methodology for the 

additional allotments to eliminate the 

FY 2007 funding shortfalls in SCHIP 

because the delay required for a notice 

of proposed rulemaking and the delay in 

the effective date would be contrary to 

the public interest in light of the 

pressing financial needs faced by some 

States that could result in disruption of 

program operations. 

We determined the amounts of the 

additional FY 2007 allotments to 

eliminate the FY 2007 SCHIP funding 

shortfall as expeditiously as possible in 

order to make them available to the 

States as soon as possible. In 

determining the amounts of the 

additional FY 2007 allotments we used 

State FY 2007 projected Federal 

expenditures as contained in the most 

recent available States’ quarterly budget 

report submissions as certified by the 

States as of May 25, 2007, the date of 

enactment of UTRA . The additional FY 

2007 shortfall allotments make available 

Federal funds to the recipient shortfall 

States, which is especially important for 

those shortfall States that may need 

these funds. 

We are waiving notice of proposed 

rulemaking and the 30-day delay in 

effective date, and are publishing this 

issuance of the Federal Register as a 

notice. 

In accordance with the provisions of 

this notice, we have determined the 

amounts of the additional FY 2007 

shortfall allotments to eliminate the FY 

2007 shortfalls in SCHIP funding 

available to shortfall States are effective 

immediately upon publication of this 

notice. 

Authority: (Section 1102 of the Social 

Security Act (42 U.S.C. 1302) (Catalog of 

Federal Domestic Assistance Program No. 

93.767, State Children’s Health Insurance 

Program)) 

Dated: July 6, 2007. 

Leslie V. Norwalk, 

Acting Administrator, Centers for Medicare 

& Medicaid Services. 

Dated: July 12, 2007. 

Michael O. Leavitt, 

Secretary. 

(Editorial Note: This document was 

received at the Federal Register on December 

14, 2007.) 

[FR Doc. 07–6092 Filed 12–14–07; 12:13 pm] 

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