Page "government" Paragraph 338

In order to assist the States in maintaining basic vocational rehabilitation services, Section 2 of the amended Act provides that allotments to States for support of such services be based on ( 1 ) need, as measured by a State's population, and ( 2 ) fiscal capacity, as measured by its per capita income.

The Act further provides for a `` floor '' or minimum allotment, set at the 1954 level, which is called the `` base '' allotment, and a `` ceiling '' or maximum allotment, for each State.

It stipulates, in addition, that all amounts remaining as a result of imposing the `` ceiling '', and not used for insuring the `` floor '', be redistributed to those States still below their maximums.

These provisions are designed to reflect the differences in wealth and population among the States, with the objective that a vocationally handicapped person have access to needed services regardless of whether he resides in a State with a low or high per capita income or a sparsely or thickly populated State.

The provisions are also designed to avoid disruption in State programs already in operation, which might otherwise result from the allotment of funds on the basis of wealth and population alone.

Method of computing allotments.