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PLEASE NOTE:   This policy issuance has been withdrawn in its entirety and should be used only for historical or reference purposes.

ACF
Administration for Children and Families

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children, Youth and Families

1. Log No. ACYF-PI-90-16 2. Issuance Date: 10/02/90
3. Originating Office: Children's Bureau
4. Key Word: State match - Independent Living Funds - Title IV-E

PROGRAM INSTRUCTION

TO:   State Agencies Administering or Supervising the Administration of Titles IV-B and IV-E of the Social Security Act; and State Independent Living Coordinators

SUBJECT:   Requirement for State Match of Federal Independent Living Funds Over a Certain Amount

LEGAL AND RELATED REFERENCES:   Sections 474(a) and 477(e)(1) of the Social Security Act, and 45 CFR Part 92

BACKGROUND:   For Federal fiscal years 1987 through 1990, Federal funds have been available to the States for the provision of Independent Living services with no requirement for cost sharing of any kind on the part of the States.

The amount available to the States for fiscal years 1987 through 1989 was $45 million per year, and the amount available for fiscal year 1990 is $50 million. For fiscal years 1991 and 1992, all States will continue to be entitled to their share of $45 million with no requirement for cost sharing. However, the Congress may appropriate additional funds beyond the $45 million level. Section 477 of the Social Security Act (the Act) authorizes $15 million additional for fiscal year 1991, and $25 million additional for fiscal year 1992. Cost sharing will be required for any State which wishes to receive some or all of its share of the additional amounts.

Public Law 101-239, signed by the President on December 19, 1989, amends sections 474 and 477 of the Social Security Act (the Act) to require that, in order to be eligible for any additional Independent Living funds over its basic amount (i.e., the State's share of $45 million), a State must provide a non-Federal share to match the additional funds. This provision is effective beginning with fiscal year 1991.

Attachment A contains the newly amended language of sections 474 and 477 of the Act.

INFORMATION:   Basic amounts for each State and additional amounts for each State are determined by a formula provided in the law. Attachment B lists the basic amount for each State, and the additional amounts for each State which will be available in fiscal years 1991 and 1992 if the Congress appropriates the full amounts authorized.

A State will be entitled to receive all of its additional amount, provided that it spends at least that additional amount plus a like amount of State funds to support programs for the Independent Living purposes described in section 477 of the Act. A State may choose to spend less in State funds for Independent Living for a particular year than the amount available to the State as additional funds. In that case, the lesser amount expended by the State will still be matched by Federal funds at the rate of one dollar for every dollar spent by the State.

INSTRUCTION:   State funds which are eligible to be used as match for the additional Independent Living funds must meet the regulatory requirements at 45 CFR Part 92 which establish the rules for cost sharing or matching funds. States should consult the regulations directly for a full and accurate understanding of the requirements. However, to restate in brief the provisions of 45 CFR Part 92, State funds eligible to be used as matching funds, among other things: (1) must not be Federal grant funds, unless specifically allowed by Federal statute; (2) must not be used to match any other Federal grant; and (3) must be used for costs which are otherwise allowable.

Eligible matching contributions may be cash or in-kind contributions of services, equipment, or property; and may originate with a third party.

Other Limitations:   The State contribution may not be any part of the funds otherwise used by the State to fulfill the requirement of section 477(e)(3) of the Act which stipulates that Federal Independent Living funds are to "...supplement and not replace any other funds which may be available for the same general purposes in the localities involved." In other words, for a State to be entitled to its full basic amount and its full additional amount, the total amount expended in a State must be the sum of: (1) non-Federal funds expended for independent living services prior to Federal funds becoming available in fiscal year 1987, (2) State matching contributions to the additional funds to be made available in fiscal years 1991 and 1992 and (3) the sum of Federal funds provided under the basic allocation and additional funds of the independent living program.

The State matching contribution, whatever its nature, must be used for the Independent Living purposes described in section 477 of the Act.

This means, for example, that expenditures for room or board would not be eligible components of the State matching contribution.

Each State will be expected to indicate in its application for Independent Living funds for fiscal years 1991 and 1992 whether it intends to apply for and match additional funds and, if so, must specify the amount of the funds it will apply for and match.

The policy expressed in this Program Instruction is based on legislation which reauthorizes the Federal Independent Living Program for fiscal years 1990, 1991, and 1992. Unless rescinded or superseded, this policy is intended to remain in effect so long as the Independent Living Program is authorized or reauthorized by the Congress and so long as a matching requirement remains in the law.

INQUIRIES TO: Regional Administrators,
Office of Human Development Services
  Michael Ambrose (202) 245-0740
Program Operations Division, Children's Bureau,
  Washington, D.C.
  Wade F. Horn, Ph.D.
Commissioner

Attachments:

Attachment A:   Sections 474 and 477 of the Act
Attachment B:   Independent Living Allotments