| State Program Management Match Example |
|---|
| Assume a State will receive a $10 million capitalization grant, and it would
like to use 10% of
the funds for this set-aside, which is $1 million. The State must match it with $1 million in State
funds. According to the
Statute, a State may receive credit for certain expenditures in FY 1993 and the current year being
discussed, in lieu of
having to match entirely with new appropriations. One important reminder is that at least one-half
of the funds must be in
addition to the amount expended by the State for the PWSS program in FY 1993. |
| FY 1993 | FY 1997 |
| PWSS grant | $900,000 | $1,200,000 |
| State match for PWSS match | $300,000 | $400,000
|
| Additional State funds | $200,000 | $300,000
|
|
Determination of State Credit |
In lieu of providing funds for part or all of this match provision, many
States
may be able to credit
current funds that a State is using for its PWSS program or other eligible funding. The Statute
allows a State to use
funds expended for the PWSS program that are above and beyond the required PWSS State
match, for both the
current year ($300,00 for FY 1997 in this example) and in FY 1993 ($200,000 here). In
addition, a State may credit the
funds that the State is using for the State PWSS match portion in FY 1993 only ($300,000).
Thus, in this example, you
first look at the $300,000 from FY 1997, since the Statute requires that at least 50% of the total
match come from the
current year (FY 1997 in this example). The State could then potentially use up to $500,000
($200,000 + $300,000)
from FY 1993. However, in this example, the State would be limited to the use of $300,000
credit in FY 1993, due to the
limitation of having only $300,000 of credit available in FY 1997. Thus, the State could use a
total of $600,000 without
providing new appropriations or other in-kind services. If the State wants to use the remaining
$400,000 ($1 million less
$600,000 already matched) in eligible set-aside funds, the State would need to provide an
additional $200,000 or an
equivalent amount of in-kind services. This additional $200,000 in FY 1997 would allow the
State to use the additional
$200,000 of unused credit from FY 1993. Thus, the State could take advantage of the full 10%
set-aside with only a
small amount of new funding or other in-kind contributions. In-kind services could include funds
that the State currently
expends on operator certification or capacity development programs. The State could also
choose to simply use only
$600,000 if no additional funding could be secured.
|
| Second Example |
Using the above example, if the State provided no funding for the
PWSS
program above the
$400,000 State match in FY 1997, the allowable credit for FY 1997 would be zero. Thus, the
State could not receive
credit for FY 1993 allowable credits without providing State contributions in addition to the
PWSS State match in FY
1997. This is due to the requirement that at least one-half of the funds be in addition to funding
since 1993. For each
new dollar the State provides, up to $500,000, the State could match it with eligible credits from
the FY 1993
expenditures described in the example above. Thus, in order to use the full $1 million set-aside in
this example, a State
would have to provide $500,000 in new funding or in-kind services.
|
| Third Example |
Again using the above example, if the State provides $600,000 for the
PWSS
program above the
State match requirement in FY 1997 (versus $300,000 as stated above), the State could use the
$600,000 from FY
1997 and use $400,000 from FY 1993 as credit for the State match. In this example, the State
would not have to
provide any additional match in cash to take full advantage of this set-aside. |
