GAO Releases Report on VR Funding Formula

The report, Vocational Rehabilitation Funding Formula: Options for Improving Equity in State Grants and Considerations for Performance Incentives: (1) examines the extent to which the current formula meets generally accepted equity standards, (2) presents options for revising the formula, and (3) identifies issues to consider with incorporating performance incentives into the formula.GAO presents three options for revising the formula to illustrate a range of possibilities: the first distributes funds based on states’ disability populations, the second also accounts for costs of providing services, and the third further accounts for state resources beyond per capita income. Because any formula change would redistribute funds among states, potentially disrupting services to individuals, GAO also presents options for establishing a transition period.