State survey of the federal grant review process, 2021
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States employ a variety of processes to apply for and administer federal grants. This report examines the general processes applied by the 50 states in order to seek and distribute federal funds.
Research from the Pew Charitable Trusts found that federal funds made up 32% (roughly $639 billion) of all state revenue in 2017, making them the second-largest source of state revenue behind state tax collections.[1] States direct federal funds to government programs related to education, healthcare, transportation, infrastructure, and other policies.[1]
This report proceeds through four sections. Click on a link below to jump to a section:
Background
From August 5, 2021, to September 27, 2021, Ballotpedia staff contacted the executive and legislative budget offices of all 50 states via email and/or telephone to update a publicly available 2016 survey on state approaches to the federal grant review process.
Our staff contacted state officials with the following survey questions:
- Approval processes for federal grants
- What is your state’s process for federal grant applications and the approval process?
- What is your state’s approval process when the legislature is not in session?
- How does the legislature monitor the intent of federal grants? What legislative rules allow the state greater oversight of federal funds in the budgets?
- Contingency plans for the loss or decline of federal funds
- What is your state’s contingency plan in the case of a decline or loss of federal funds?
- Quality control processes for federal grants
- What is your state’s quality control process for tracking the effectiveness of federal funds?
- Does your state attempt to estimate the cost of federal fund requirements? If so, how?
- How does your state prioritize federal funds to best meet the needs of constituents?
- If your state doesn’t appropriate key federal funds like food stamps and unemployment benefits, are your state’s federal funds off-budget? How do you track this information?
Our staff also contacted state officials with the following two new survey questions regarding federal funds made available in response to the coronavirus (COVID-19) pandemic:
- Coronavirus (COVID-19) pandemic funds
- Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations in your state?
- Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations in your state?
Methodology
Ballotpedia staff performed a categorical statistical analysis of each state’s survey responses, allowing us to answer the following questions about each state's federal grant review process:
- Does the state require a central approval process for federal funds?
- Does the state require legislative approval of federal funds?
- Does the state ensure the intent of funds is upheld?
- Does the state have a contingency plan in the event of a loss of federal funds?
- Does the state have a quality control process for the use of federal funds?
- Does the state track federal funds after use?
- Does the state attempt to estimate the costs associated with federal grant expenditures?
- Does the state seek federal funds generally or specifically?
- Does the state hold federal funds off-budget?
- Do executive, legislative, and/or local entities have decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations?
- Do executive, legislative, and/or local entities have decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations?
For non-responsive states, Ballotpedia staff reviewed applicable state laws and administrative codes in order to determine any changes from the state's 2016 survey responses. Staff also performed independent research to determine approaches to the new survey questions in non-responsive states when possible.
Findings
Ballotpedia's 2021 state survey responses were largely consistent with the 2016 responses. Changes from the 2016 responses are noted in the findings below. The findings also include 2021 state responses to the two additional questions on state approaches to federal funds related to the coronavirus (COVID-19) pandemic.
The 2021 responses revealed the following findings:
Approval process for federal grants
- Does the state require a central approval process for federal funds?
- 32 states have a central approval process in place to review agency applications for federal grants before agencies receive funds.
- 18 states have no central approval process prior to the receipt of federal grants.
- Does the state require legislative approval?
- 14 states require state agencies to obtain legislative approval before receiving federal grants.
- 35 states do not require legislative approval for state agencies to receive federal grants.
- One state (Pennsylvania) did not specify whether the state requires legislative approval for the receipt of federal grants.
- Does the state ensure the intent of funds is upheld?
- 41 states have processes in place to monitor the intent of federal grant expenditures.
- Three of these states monitor the intent of federal grants with regular audits and/or controls in place.
- 11 of these states monitor the intent of federal grants and have an executive and/or legislative approval process in place.
- 27 of these states monitor the intent of federal grants but do not have an executive and/or legislative approval process in place.
- Six states do not monitor the intent of federal funds.
- Three states did not specify procedures to monitor the intent of federal funds.
- 41 states have processes in place to monitor the intent of federal grant expenditures.
Contingency plan for loss/decline of federal funds
- Does the state have a contingency plan in the event of a loss of federal funds?
- 21 states have a revenue contingency plan in the event of a loss or decline in federal funds.
- 24 states do not have a revenue contingency plan in the event of a loss or decline in federal funds.
- Five states did not specify whether they have a contingency plan in the event of a loss or decline in federal funds.
Quality control processes for federal grants
- Does the state have a quality control process for the use of federal funds?
- 38 states execute quality control processes for federal grants.
- Mississippi in 2016 did not respond with a quality control process for federal grants. In 2021, the state responded that federal grants to state agencies over $750,000 are subject to auditing under the Single Audit Act.
- 11 states execute no quality control processes for federal grants.
- One state (Rhode Island) did not specify whether the state uses quality control processes for federal grants.
- 38 states execute quality control processes for federal grants.
- Does the state track federal funds after use?
- 39 states track the efficiency of federal grant expenditures.
- Mississippi in 2016 did not respond with a process to track the efficiency of federal grants. In 2021, the state responded that federal grant expenditures for certain grants are audited through the Single Audit Act.
- 11 states do not track the efficiency of federal grant expenditures
- 39 states track the efficiency of federal grant expenditures.
- Does the state attempt to estimate the costs associated with federal grant expenditures?
- 32 states attempt to estimate the costs associated with federal fund requirements.
- Minnesota responded in 2016 that it did not attempt to estimate the cost of federal funds. In 2021, the state responded that "state agencies are required to provide information on any state match and staffing costs."
- Mississippi in 2016 did not respond with a process to estimate the costs associated with federal grant expenditures. In 2021, the state responded that state agencies are responsible for estimating costs associated with federal grant expenditures and including the estimates in their annual budget requests.
- Washington responded in 2016 that it did not attempt to estimate costs associated with federal funds. In 2021, the state responded that the Office of Financial Management works with agencies to estimate the costs associated with federal grants.
- 16 states do not attempt to estimate the costs associated with federal fund requirements.
- Two states did not specify whether they attempt to estimate the costs associated with federal fund requirements.
- 32 states attempt to estimate the costs associated with federal fund requirements.
- Does the state seek federal funds generally or specifically?
- 18 states seek specific federal funds tailored to constituents rather than general federal funds.
- 26 states seek general rather than tailored funds.
- Six states did not specify whether they seek general or tailored federal funds.
- Does the state hold federal funds off-budget?
- 29 states hold a portion of their federal funds off-budget.
- Louisiana in 2016 responded that no federal funds were kept off-budget. In 2021, the state responded that all federal funds are included in the state budget with the exception of food stamps and unemployment insurance.
- Minnesota in 2016 responded that the state did not keep federal funds off-budget. In 2021, the state responded that unemployment insurance benefits are kept off-budget.
- 11 states do not hold federal funds off-budget.
- Hawaii indicated that the state kept federal funds off-budget in 2016. In 2021, staff responded that the state legislature appropriates all funds.
- Kentucky in 2016 responded that the state kept federal funds off-budget. In 2021, the state responded that all funds are appropriated.
- 10 states did not specify whether they hold federal funds off-budget.
- 29 states hold a portion of their federal funds off-budget.
- Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations?
- Eight states have executive decision rights over ARPA allocations.
- Six states have legislative authority over ARPA allocations.
- 34 states have joint legislative/executive authority over ARPA funds. These states allocate ARPA funds through the appropriations process, which requires legislative approval followed by a governor's signature. In the case of a gubernatorial veto, a state legislature may act unilaterally to override the governor's veto.
- Two states did not specify which government branch has decision rights over ARPA funds. Independent staff research proved inconclusive.
- Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations?
- 21 states split decision rights over ESSER allocations between the executive branch and local school districts.
- 21 states distribute decision rights over ESSER allocations between the legislative branch, the executive branch, and local school districts.
- Eight states did not specify which government entity had decision rights over ESSER allocations. Independent staff research proved inconclusive.
State survey responses
Click on a state below to view its responses to the 2021 survey on the federal grant review process:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
See also
- State responses to the federal grant review process survey, 2021
- State responses by question to the federal grant review process survey, 2021
- Federalism
External links
Footnotes
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