KEY TO ACCOUNT NUMBERS LISTED IN THIS PUBLICATION

Each government listed in this publication has an identifying nine digit account number with the following characteristics:

The third digit identifies the type of government as follows:

The middle three digits identify the county code for the county in which the government is located.

The final three digits are the unit identification of that particular government.

REVENUE SHARING ALLOCATIONS AND ADJUSTMENTS

Title I of the State and Local Fiscal Assistance Act of 1972 (Revenue Sharing) as amended by Public Law 94-488 in 1976, provides for the distribution of approximately $55 billion to more than 39,000 units of State and local government, over a period of eight years and nine months. The amounts to be distributed to each unit of government are determined by applying a set of formulas to descriptive data pertaining to each unit. The formula and data are used to determine each government's share of the total amount. Because of the relative nature of the allocation process, it is possible that in some cases a change in a single data element could change a large number of governments' shares by varying amounts.

The payments to eligible units of government are made quarterly, based upon each unit's allocation for an entitlement period. The entitlement periods and the amounts to be distributed are as follows:

P.L. 94-488 (Sec. 106 (c)) provides additional amounts to any State in which civilian employees of the Unites States Government receive an allowance under section 5941 of title 5, United States Code. This currently only includes Alaska and Hawaii but is not limited to them.

* Beginning with Entitlement Period Eight, the amounts to be distributed are equal to $6.65 billion multiplied by a fraction the numerator of which is the amount of Federal individual income taxes collected in the last calendar year ending more than one year before the end of the entitlement period, and the denominator of which is the amount of Federal individual income taxes collected in the calendar year 1975. The resulting appropriation is not to exceed $6.85 billion on an annualized basis. The fraction for Entitlement Period Eight is 1.0 yielding $6.50 billion on an annualized basis or 4,987,500,000 for the nine month term of Entitlement Period Eight.

For the Ninth Period, 1976 Federal individual income taxes divided by 1975 income taxes produces a fraction of 1.166. This fraction multiplied by the statutory $6.65 billion results in an amount which exceeds the $6.85 billion maximum. The appropriation for Entitlement Period 9 is therefore limited by statute to $6.85 billion.

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THE REVENUE SHARING ALLOCATION PROCESS

To determine the amounts to be allocated to each State for an entitlement period, $5.3 billion is allocated among the States according to the three factor formula as well as the five factor formula. The greater amount for each State is selected and is compared with the sum of the amounts similarly determined for all States. The State is then allocated the resulting proportion of the appropriation for the entitlement period.

The amount allocable to each State under the five factor formula (Sec. 106 (b) (3)) of the Act is the amount to which that State would be entitled if first $3.5 billion were divided among all the States and then $1.8 billion were divided among all the States. The distribution of the $3.5 billion is weighted equally by three elements: population, urbanized population, and population inversely weighted for per capita income. The $1.8 billion is based equally on two elements: income tax collections and general tax effort.

The elements involved in the five factor formula calculation (population, urbanized population, population inversely weighted for per capita income, income tax collections and general tax effort) are determined in the following manner:

Population the amount which bears the same ratio to 1/3 of $3.5 billion as the population of that State bears to the sum of the populations for all States.

Urbanized Population - the amount which bears the same ratio to 1/3 of $3.5 billion as the urbanized population of that State bears to the sum of the urbanized populations of all States.

Population Inversely Weighted for Per Capita Income - the amount which bears the same ratio to 1/3 of $3.5 billion as the quotient of population divided by per capita income for that State bears to the sum of such quotients for all States.

Income Tax Collections - the amount shall be 15 percent of the
income tax collections for that State, except that such amount
shall not exceed 6 percent nor be less than 1 percent of the Federal
income tax liabilities attributed to such State. The amount alloca-
ted on the basis of such collections is the amount which bears the
same ratio to 1/2 of $1.8 billion as the income tax amount defined
above bears to the sum of such amounts for all States.

General Tax Effort the product of the net amount collected from
State and local taxes of such State multiplied by the general tax
effort factor of that State. The amount collected on the basis of
such a product is the amount which bears the same ratio to 1/2 of
$1.8 billion as the general tax effort amount defined above bears
to the sum of such amounts for all States.

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