3. WIC Funding and Caseload Wayne DeNyse Mary Lou Woelfel (mlw04@health.state.ny.us) NYS Department of Health Division of Nutrition Evaluation and Analysis Unit

4. Funding Formulas Introduction NYS caseload a key factor in determining funds NYS receives from USDA

5. Funding Formulas Purpose To show how NYS caseload relates to funding NY state receives from USDA  This is about how USDA allocates money to states; Not how NYS allocates funds to local WIC agencies.

6. Funding Formulas Background Two formulas Food and Nutrition Services Administration (NSA) Food formula revised in 1994 and 1999; NSA formula revised in 1999

7. Funding Formulas Reasons for 1999 revisions WIC growth plateaued Significant funding increases unlikely Some states receive more than their fair share of funds

8. Funding Formulas Goal of revised formulas To ensure each states receives their fair share of WIC funds Fair share means each state has an equal chance to serve their eligibles

9. 1999 food formula - three components Prior year food grant Inflation Fair share Food Funding Formula

10. Prior year grant < Given available funds, priority given to ensure each state receives prior year grant Inflation  Given remaining funds, each state receives 80% food inflation (2000=2.2%) Fair share < Any remaining funds go to under fair share states –NYS over fair share so not eligible for more funds. Food Funding Formula

11. How is fair share measured? l State’s fair share of food funds equal to their proportional share of nation’s eligibles è This means that the national average food package cost applied to each WIC eligible Food Funding Formula

12. Food grant and caseload Failure to expend 97% of funds results in return of some funds and lowers future grant NYS’s food grant, caseload and food costs used to determine NY’s fair share of national funds for operating WIC. (Food grant divided by state’s average food package cost. Average food package cost is state’s food expenditures divided by state’s caseload). Result equals number of WIC eligibles USDA provides admin funds to serve.

13. Food Funding Formula NYS concerns At least maintain caseload levels 80% inflation No adjustment for high food cost states è Incentive for states to contain costs Inflation based on thrifty food package plan Use of uniform definition of poverty

14. NSA Funding Formula NSA - three components Base grant Fair share Regional operating adj

15. NSA Funding Formula Base grant  Given available funding, priority given to prior year’s formula calculated grant. Full inflation included. Fair share < Any remaining funds to states under fair share < NYS over fair share Regional adjustment < Once state’s share calculated, 10% removed for Regional pool for discretionary awards.

16. NSA Funding Formula Measuring fair share < 90% of NSA fair share on cost per person basis. Food grant divided by state’s average food package cost to get number of people state expected to serve. This number is multiplied by national average per person costs for operating WIC Program. Some adjustments for economies of scale < 10% of NSA fair share based on salary differential

17. NSA Funding Formula NSA formula and caseload l Higher caseloads increase state’s chances of receiving additional funds Higher food package costs decrease state’s chances of receiving additional funds  This prompts cost containment efforts