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WIC Funding and Caseload

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

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WIC Funding and Caseload

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  1. 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

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

  3. 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.

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

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

  6. 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

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

  8. Food Funding Formula 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.

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

  10. Food Funding Formula 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.

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

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

  13. 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.

  14. 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

  15. NSA Funding Formula NSA formula and caseload • 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

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