Health and Human Services

Pursuant to a congressional request, GAO examined the funding requirements for the State Legalization Impact Assistance Grants (SLIAG) program, to help states meet the costs of services provided to legal aliens.

GAO found that: (1) legislation provided for appropriations of $1 billion for each of the 4 fiscal years, 1988-1991; (2) approximately $3.5 billion was available to reimburse the states for SLIAG costs; (3) several states had been overallocated funds, resulting in projected surpluses by the end of fiscal year (FY) 1992, as well as at the end of the program in 1994, while other states did not have sufficient funds to meet their program costs by 1994, even with the full appropriation of $4 billion; (4) states estimated that they would need over $3.3 billion by the end of FY 1992, about $450 million of the appropriation for that year; (5) states estimated that their costs may eventually exceed the authorized $4 billion in SLIAG funds; (6) the present allocation method results in funding imbalances because the eligible legal alien population estimates are heavily weighted, and the method formula, assumed an even utilization rate of services among the states which has not happened; and (7) redistribution of some previously distributed funds would enable states to meet more of their funding needs through 1994.