Nutrition

V. PROGRAM FUNDING, COSTS, AND EFFICIENCY

C. TITLE III FUNDING TRANSFERS

Because Title III funding represents the largest single source of funding for elderly nutrition projects, it is important to look more closely at this funding. In particular, important insight about the program and the ways it has changed over time can be gained by examining shifts in funding among its main Older Americans Act (OAA) legislative components, and Titles III-B, III-C1, and III-C2. Title III-B monies are designated principally for supportive services that are not directly connected with the provision of meals. Title III-C1 is designated principally for the provision of congregate meals. However, this section is also used to provide funding for other services directly related to nutrition, such as nutrition education, nutrition counseling, or transporting clients to congregate sites for meals. Monies under Title III-C2 are used principally to finance home-delivered meals and directly related services.

In this section, we focus on trends in how funds are transferred among parts of Title III. The data in this section come principally from the AoA. Section D then examines agency interview data on perceived reasons for transfers.

1. Funding Transfers Between Program Components Over Time

The OAA allows states to transfer a certain amount of funds between sections of Title III without authorization from the AoA commissioner. Specifically, in FY95 states may transfer up to 25 percent of funds from supportive services (Title III-B) to nutrition services (for example, congregate and home-delivered meals, Title III-C) or vice versa. In FY96, the limit is 20 percent. Additionally, states may transfer up to 30 percent of their allotment of funds between congregate meals (Title III-C1) and home-delivered meals (Title III-C2).

a. Data Source

Our data, which are unpublished tabulations provided by AoA, include initial allotment amounts, allotment amounts after transfers, and net transfers between allotments. The analysis covers 1986, 1987, and 1989 through 1994. Data for 1988 are unavailable. For five of these years (1987, 1989, 1990, 1992, and 1994), we also have data for funds transferred between allotments.

Some territories receive a consolidated grant, which allows them to allocate funds without restriction to congregate meal services, home-delivered meal services, or supportive services. In order to compare the same group of states and territories over time, we have excluded any territory that received a consolidated grant in any of the years under analysis. The total number of states and territories examined in this section is 53. [ The excluded territories are the Virgin Islands, the Northern Mariana Islands, American Samoa, and the Trust Territories (Palau). The term "states " is used to refer to both states and territories.]

b. Title III Allotments Over Time

As described in detail next, each year program agencies transfer about 17 percent of the funds initially allocated to Title III-C1 to other uses. About a third of the transformed funds go to supportive services, and two-thirds go to home-delivered meals.

Each year, Congress determines the initial funding amount for each Title III allotment. Table V.14 shows these initial allotments and each allotment's proportion of the Title III appropriation from 1986 to 1994. The table shows that the initial allotments have changed slightly over time. Initial allotments for congregate meals (Title III-C1) have decreased slowly, from 50 to 48 percent of the total Title III appropriation, but the initial allotments for home-delivered meals (Title III-C2) have increased, from 10 to 12 percent of the total appropriation.

TABLE V.14

INITIAL TITLE III ALLOTMENTS

	Support Services (Title III-B)			Congregate Meals (Title III-C1)			Home-Delivered Meals (Title III-C2)
Year	Allotment (In Dollars)	Percentage of Total Allotment		Allotment (In Dollars)	Percentage of Total Allotment		Allotment (In Dollars)	Percentage of Total Allotment
1986	251,712,458	39.6		319,036,265	50.2		64,495,380	10.2
1987	268,174,962	38.9		345,479,190	50.2		74,893,575	10.9
1989	274,619,708	38.9		353,765,457	50.1		77,972,382	11.0
1990	271,517,506	38.8		349,984,675	50.0		78,563,873	11.2
1991	289,313,600	39.3		359,136,100	48.8		87,376,571	11.9
1992	297,719,547	39.6		364,135,953	48.5		89,148,319	11.9
1993	294,709,395	39.7		359,134,323	48.3		89,014,178	12.0
1994	305,118,940	39.5		373,527,291	48.4		93,191,844	12.1

Source: Elderly Nutrition Program Evaluation, AoA data.

Table V.15 shows the three allotments after transfers. As a proportion of the total, Title III-B allotments have been very similar every year after transfers, at about 42 percent. Title III-C2 allotments after transfers have increased slightly over time as a proportion of the total appropriation, but the Title III-C1 proportion has decreased. The increase in the proportion of the allocation devoted to home-delivered meals has been continuous but relatively gradual.

TABLE V.15

TITLE III ALLOTMENTS AFTER TRANSFERS

	Support Services (Title III-B)				Congregate Meals (Title III-C1)				Home-Delivered Meals (Title III-C2)
Year	Allotment (In Dollars)		Percentage of Total Allotment		Allotment (In Dollars)		Percentage of Total Allotment		Allotment (In Dollars)		Percentage of Total Allotment
1986	271,768,812		42.8		271,771,867		42.8		91,703,424		14.4
1987	287,215,703		41.7		296,935,196		43.1		104,396,828		15.2
1989	300,984,570		42.6		295,206,955		41.8		110,166,022		15.6
1990	294,049,000		42.0		291,518,125		41.6		114,498,929		16.4
1991	312,939,585		42.5		300,395,142		40.8		122,491,544		16.6
1992	319,935,081		42.6		304,348,323		40.5		126,720,415		16.9
1993	315,688,268		42.4		297,804,860		40.0		130,920,947		17.6
1994	327,445,890		42.4		310,136,451		40.2		134,255,735		17.4

Source: Elderly Nutrition Program Evaluation, AoA data.

Table V.16 shows the net amount and percentage transferred from each allotment over time. The percentage of the initial Title III-C1 allotment transferred has increased only slightly over time, from 15 to 17 percent of the initial allotment. The total Title III-C2 allotment has increased by about 40 percent every year through transfers, and the total Title III-B allotment has increased by about 8 percent.

TABLE V.16

NET CHANGE IN TITLE III ALLOTMENTS

	Support Services (Title III-B)			Congregate Meals (Title III-C1)			Home-Delivered Meals (Title III-C2)
Year	Net Transfer (In Dollars)	Percentage Change		Net Transfer (In Dollars)	Percentage Change		Net Transfer (In Dollars)	Percentage Change
1986	20,056,354	8.0		-47,264,398	-14.8		27,208,044	42.2
1987	19,040,741	7.1		-48,543,994	-14.1		29,503,253	39.4
1989	26,364,862	9.6		-58,558,502	-16.6		32,193,640	41.3
1990	22,531,494	8.3		-58,466,550	-16.7		35,935,056	45.7
1991	23,625,985	8.2		-58,740,958	-16.4		35,114,973	40.2
1992	22,215,534	7.5		-59,787,630	-16.4		37,572,096	42.1
1993	20,978,873	7.1		-61,329,463	-17.1		41,906,769	47.1
1994	22,326,950	7.3		-63,390,840	-17.0		41,063,891	44.1

Source: Elderly Nutrition Program Evaluation, AoA data.

Aggregate nationwide trends in Title III fund transfers are constant, but transfer patterns in states may vary greatly over time and among states. Next, we examine states' consistency in transferring funds over time in a particular direction, and regional patterns in fund transfers.

Tables V.17, V.18, and V.19 divide net transfers into their components, indicating the number of states transferring in each direction and the total amount and percentage of funds transferred. Table V.17 shows that, every year, at least two-thirds of the states transfer funds from Title III-C1 to Title III-B, but transfers from Title III-B to Title III-C1 are minimal. The amount and percentage of funds transferred from congregate meals to supportive services appeared to peak around 1989, with seven percent of Title III-C1 funds transferred into III-B, and to decrease slightly afterward. Although the amount may have decreased over time, the number of states transferring funds from Title III-C1 to Title III-B has held steady. As shown in Table V.18, 44 or more states have transferred funds from Title III-C1 to III-C2 in every year. The data indicate a slight trend toward increasing the funds transferred from congregate to home-delivered meals, from 8 percent in 1987 to almost 11 percent in 1994. Table V.19 shows transfers between Title III-B and III-C2. Few states transfer funds between these two parts. In particular, the number of states transferring from home-delivered meals to supportive services has decreased over time. These three tables show that transfers to supportive services and home-delivered meals from the congregate meal allotment are widespread and consistent over time. They also reveal only a small amount of transfers between supportive services and home-delivered meals, and negligible transfers to the congregate meals allotment.

TABLE V.17

FUNDING TRANSFERS BETWEEN TITLE III-B AND III-C1, SELECTED YEARS

	III-C1 to III-B				III-B to III-C1
	Number of States	Amount Transferred (In Dollars)	Percentage of III-C1		Number of States	Amount Transferred (In Dollars)	Percentage of III-B
1987	42	23,114,631	6.7		2	616,054	0.2
1989	36	25,853,837	7.3		1	46,869	0.0
1990	35	23,200,552	6.6		0	0	0.0
1992	36	23,432,860	6.4		1	430,006	0.1
1994	36	23,643,715	6.3		1	226,062	0.1

Source: Elderly Nutrition Program Evaluation, AoA data.

TABLE V.18

FUNDING TRANSFERS BETWEEN III-C1 AND III-C2, SELECTED YEARS

	III-C1 to III-C2				III-C2 to III-C1
	Number of States	Amount Transferred (In Dollars)	Percentage of III-C1		Number of States	Amount Transferred (In Dollars)	Percentage of III-C2
1987	44	26,045,417	7.5		0	0	0.0
1989	44	32,771,001	9.3		2	19,467	0.0
1990	45	35,265,998	10.1		0	0	0.0
1992	46	37,102,179	10.2		1	317,403	0.4
1994	44	39,973,188	10.7		0	0	0.0

Source: Elderly Nutrition Program Evaluation, AoA data.

TABLE V.19

FUNDING TRANSFERS BETWEEN TITLE III-B AND III-C2, SELECTED YEARS

	III-C2 to III-B				III-B to III-C2
	Number of States	Amount Transferred (In Dollars)	Percentage of III-C2		Number of States	Amount Transferred (In Dollars)	Percentage of III-B
1987	6	437,604	0.6		5	3,895,440	1.5
1989	4	996,200	1.3		7	438,306	0.2
1990	1	27,418	0.0		4	696,476	0.3
1992	0	0	0.0		5	787,320	0.3
1994	2	533,613	0.6		6	1,624,316	0.5

Source: Elderly Nutrition Program Evaluation, AoA data.

Many states have been increasing Title III-C2 funding as a proportion of their appropriations. Volume III, Appendix I gives the proportion of the appropriation in Title III-C2 after transfers for each state from 1986 to 1994. The New England states (Maine, Massachusetts, New Hampshire, and Vermont) have consistently increased their Title III-C2 allotments by a substantial amount every year. In fact, in every year since 1986, Maine has made the largest percentage increases nationwide in its Title III-C2 allotment, consistently increasing it by as much as 200 percent. The percentage of its total appropriation in Title III-C2 ranged between 30 and 36 percent. There is little consistency in the transfer patterns for the rest of the East Coast states.

Some other regions of the country are very consistent in the percentage of funds used for Title III-C2 allotments. The West Coast states (California, Oregon, and Washington) have increasingly transferred large proportions of funds into their Title III-C2 allotments. California has had the largest dollar amountincrease in its home-delivered meals allotment in four of the past five years, increasing its Title III-C2 allotment by as much as two-thirds. The Midwest states have some of the lowest transfer rates, keeping their Title III-C2 allotments after transfers very similar to their initial allotments. As we saw earlier, these states also have made relatively few or no changes to Title III-B allotments.

Overall, there are some regional variations in the percentage of funds transferred. New England and West Coast states transfer some of the highest percentages of funds into Title III-C2 allotments. Many Central Plains states make few or no changes to their initial allotments. Many southern states transfer funds so that Title III-B is a high percentage of the appropriation, and many also have relatively large transfers to Title III-C2.

c. Are States Pushing Their Caps?

Congress has placed limits on the amount of funds that can be transferred between parts of Title III without prior approval from the DHHS Assistant Secretary for Aging. [ The DHHS Assistant Secretary for Aging must approve transfers over these limits.] It is important to examine whether states are constrained by these limits.

The limit on transfers between Title III-B and III-C does not appear to be affecting most states. The limit on transfers between Title III-B and Title III-C has fluctuated over the years; the current limit is 25 percent. [ The 1992 amendments stipulate maximum transfers between Title III-C and Title III-B funds to be limited to not more than 25 percent in FY 94 and FY 95, and not more than 20 percent in FY 96.] We examine the data in light of this limit, although the actual limit in many previous years was higher. Data presented in Volume III, Appendix I show that few states transfer funds from Title III-B (support services) to either of the Title III-C allotments (congregate or home-delivered meals). In 1986, one state transferred 26 percent of its Title III-B allotment into Title III-C, but the highest transfer in the remaining four years from Title III-B to III-C was only 11 percent. In the five years we examined, only one state ever transferred more than 25 percent of funds from Title III-B to III-C. Every year, at least halftransferred less than five percent of their funds from Title III-B to III-C. In fact, in both 1992 and 1994, the highest amount transferred by any state was only 20 percent of Title III-C. The limit does not appear to restrict states from transferring funds to components that need more funds.

There are more transfers between the Title III-C components, but most states appear unconstrained by the 30 percent limit set by Congress. In 1994, three states went over the 30 percent limit; another five approached the limit with transfers of more than 20 percent. The percentages transferred from Title III-C1 to III-C2 have grown over time. In 1987, an average of eight percent was transferred. The average was 11 percent by 1992. Nonetheless, in every year, more than 40 states had transfers of under 20 percent--well under the limit. The 30 percent limit appears to give most, but not all, states freedom to transfer enough funds from congregate to home-delivered meals.