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opment phase, to review and comment on all as-
pects of the plan,
(C) participate in the public hearings to
help assure that public comments are addressed
to the extent practicable,
(D) document any differences between the
group’s recommendations and the plan,
(E) document specifically the degree to
which the plan is consumer-directed, and
(F) meet regularly with officials of the des-
ignated State agency (or agencies) to provide
advice on all aspects of implementation and
evaluation of the plan.
SEC. 408. PAYMENTS TO STATES.
(a) IN GENERAL.—Subject to section 402(a)(9)(B)
(relating to limitation on payment for administrative
costs), the Secretary, in accordance with the Cash Man-
agement Improvement Act, shall authorize payment to
each State with a plan approved under this title, for each
quarter (beginning on or after January 1, 1996), from its
allotment under section 409(b), an amount equal to—
(1) the Federal matching percentage (as de-
fined in subsection (b)) of amount demonstrated by
State claims to have been expended during the quar-
102
ter for home and community-based services under
the plan for individuals with disabilities; plus
(2) an amount equal to 90 percent of amount
expended during the quarter under the plan for ac-
tivities (including preliminary screening) relating to
determination of eligibility and performance of needs
assessment; plus
(3) an amount equal to 90 percent (or, begin-
ning with quarters in fiscal year 2003, 75 percent)
of the amount expended during the quarter for the
design, development, and installation of mechanical
claims processing systems and for information re-
trieval; plus
(4) an amount equal to 50 percent of the re-
mainder of the amounts expended during the quar-
ter as found necessary by the Secretary for the prop-
er and efficient administration of the State plan.
(b) FEDERAL MATCHING PERCENTAGE.—
(1) IN GENERAL.—In subsection (a), the term
‘‘Federal matching percentage’’ means, with respect
to a State, the reference percentage specified in
paragraph (2) increased by 20 percentage points, ex-
cept that the Federal matching percentage shall in
no case be less than 70 percent or more than 88
percent.
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(2) REFERENCE PERCENTAGE.—
(A) IN GENERAL.—The reference percent-
age specified in this paragraph is 100 percent
less the State percentage specified in subpara-
graph (B), except that—
(i) the percentage under this para-
graph shall in no case be less than 50 per-
cent or more than 83 percent, and
(ii) the percentage for Puerto Rico,
the Virgin Islands, Guam, the Northern
Mariana Islands, and American Samoa
shall be 50 percent.
(B) STATE PERCENTAGE.—The State per-
centage specified in this subparagraph is that
percentage which bears the same ratio to 45
percent as the square of the per capita income
of such State bears to the square of the per
capita income of the continental United States
(including Alaska) and Hawaii.
(c) PAYMENTS ON ESTIMATES WITH RETROSPEC-
TIVE ADJUSTMENTS.—The method of computing and
making payments under this section shall be as follows:
(1) The Secretary shall, prior to the beginning
of each quarter, estimate the amount to be paid to
the State under subsection (a) for such quarter,
104
based on a report filed by the State containing its
estimate of the total sum to be expended in such
quarter, and such other information as the Secretary
may find necessary.
(2) From the allotment available therefore, the
Secretary shall provide for payment of the amount
so estimated, reduced or increased, as the case may
be, by any sum (not previously adjusted under this
section) by which the Secretary finds that the esti-
mate of the amount to be paid the State for any
prior period under this section was greater or less
than the amount which should have been paid.
(d) APPLICATION OF RULES REGARDING LIMITA-
TIONS ON PROVIDER-RELATED DONATIONS AND HEALTH
CARE-RELATED
TAXES.—The provisions of section
1903(w) of the Social Security Act shall apply to pay-
ments to States under this section in the same manner
as they apply to payments to States under section 1903(a)
of such Act .
SEC. 409. TOTAL FEDERAL BUDGET; ALLOTMENTS TO
STATES.
(a) TOTAL FEDERAL BUDGET.—
(1) FISCAL YEAR 1996.—For purposes of this
title, the total Federal budget for State plans under
this title for fiscal year 1996 is $11.0 billion.
105
(2) SUBSEQUENT YEARS.—For purposes of this
title, the total Federal budget for State plans under
this title for each fiscal year after fiscal year 1996
is the total Federal budget under this subsection for
the preceding fiscal year increased by the percentage
increase (as estimated by the Secretary) in Federal
expenditures under title XVIII of the Social Security
Act from the previous fiscal year to the fiscal year
involved.
(3) CONSTRUCTIONS.—
(A) NO
DUPLICATE
PAYMENT.—No pay-
ment may be made to a State under this section
for any services to the extent that the State re-
ceived payment for such services under section
1903(a) of the Social Security Act.
(B) CONSTRUCTION.—Nothing in this sub-
section shall be construed as requiring States to
determine eligibility for medical assistance
under the State medicaid plan on behalf of indi-
viduals receiving assistance under this title.
(b) ALLOTMENTS TO STATES.—
(1) IN GENERAL.—The Secretary shall allot to
each State for each fiscal year an amount that bears
the same ratio to the total Federal budget for the
fiscal year (specified under paragraph (1) or (2) of
106
subsection (a)) as the State allotment factor (under
paragraph (2) for the State for the fiscal year) bears
to the sum of such factors for all States for that fis-
cal year.
(2) STATE ALLOTMENT FACTOR.—
(A) IN GENERAL.—For each State for each
fiscal year, the Secretary shall compute a State
allotment factor equal to the sum of—
(i) the base allotment factor (specified
in subparagraph (B)), and
(ii) the low income allotment factor
(specified in subparagraph (C)),
for the State for the fiscal year.
(B) BASE ALLOTMENT FACTOR.—The base
allotment factor, specified in this subparagraph,
for a State for a fiscal year is equal to the
product of the following:
(i) NUMBER
OF
INDIVIDUALS
WITH
DISABILITIES.—The number of individuals
with disabilities in the State (determined
under paragraph (3)) for the fiscal year.
(ii) 80 PERCENT OF THE NATIONAL
PER CAPITA BUDGET.—80 percent of the
national average per capita budget amount