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ATTACHMENT VI <br /> <br />FEDERAL BLOCK GRANTING <br /> <br />-~ Proposed federal block grants involve "caps" on administrative costs. The cap is a <br />limit and is a set percentage of total program costs. <br /> <br />-- Some proposed caps, (especially for JOBS services), are below current spending levels <br />in Cabarms and most other counties in North Carolina. <br /> <br />-- These will cause problems where a federal or State mandate continues and not enough <br />administrative funding is available "under" the cap to fulfill the mandate. This is what is <br />currently being termed federal and State "cost-shifting". <br /> <br />-- Fortunately, several proposed caps are above current spending levels in Cabarms <br />and other counties. <br /> <br />-- The County can be protected greatly from cost shifting by redistributing spending <br />from funding streams where proposed caps are problems to those where there is room for <br />additional expense under the caps which have been proposed (to the extent it is legitimate <br />to do so). <br /> <br />-- The Department's plan for restructuring accomplishes this. Many individual <br />workers will have new duties which pe~ mit them to charge their time to a wider array of <br />funding sources. <br /> <br />-- The chart given in Attachment Vl-a demonstrates the planned redistribution of <br />revenue sources among the proposed federal block grants. ( "Redistributed spending", <br />represented by white bars, needs to be below "proposed administrative percentage caps", <br />represented by the black bars. Funding caps and spending levels in columns 2 and 6 are <br />illustrative). <br /> <br /> <br />