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8 LONG TITLE
9 General Description:
10 This joint resolution of the Legislature requests that Utah's congressional delegation
11 submit federal legislation amending federal block grant maintenance-of-effort
12 requirements.
13 Highlighted Provisions:
14 This resolution:
15 ▸ recognizes that federal maintenance-of-effort requirements can severely limit state
16 budget flexibility; and
17 ▸ requests that Utah's congressional delegation submit federal legislation adding the
18 following language to each maintenance-of-effort statutory requirement: "In nowise
19 shall the state amount obligated as a maintenance-of-effort calculation exceed the
20 amount of federal funding provided through the grant."
21 Special Clauses:
22 None
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24 Be it resolved by the Legislature of the state of Utah:
25 WHEREAS, block grants offered by the federal government often include
26 maintenance-of-effort provisions specifying required state spending levels necessary to receive
27 a grant;
28 WHEREAS, maintenance-of-effort requirements are intended to prevent supplantation
29 of state efforts using federal funds;
30 WHEREAS, for some federal grants, calculated maintenance-of-effort requirements
31 increase if states voluntarily increase state spending on budget items that receive block grants;
32 WHEREAS, over time, maintenance-of-effort requirements can become several times
33 larger than the amount of the federal block grant;
34 WHEREAS, if a state does not meet its maintenance-of-effort requirements in any
35 fiscal year, the federal government will often reduce the state's federal block grant in the
36 following year by an amount equal to the two-year average of the maintenance-of-effort
37 shortfall;
38 WHEREAS, this penalty for failing to meet maintenance-of-effort requirements occurs,
39 even when a state spends more than the maintenance-of-effort requirement at the time the grant
40 was originally awarded;
41 WHEREAS, these maintenance-of-effort requirements can severely limit state
42 legislative budget flexibility, especially during economic downturns, because attempts to
43 reduce state spending to address decreased state revenue can lead to additional decreases in
44 revenue from reductions in federal block grant funds;
45 WHEREAS, in fiscal year 2015, Utah received a $3.2 million Mental Health Block
46 Grant that required a maintenance-of-effort obligation of $29.3 million;
47 WHEREAS, in fiscal year 2015, Utah received a $5 million Baby Watch Early
48 Intervention Grant that required a maintenance-of-effort obligation of $12 million;
49 WHEREAS, in fiscal year 2015, Utah received a $16.5 million Substance Abuse
50 Prevention and Treatment Block Grant that required a maintenance-of-effort obligation of
51 $19.2 million; and
52 WHEREAS, the state of Utah obligates hundreds of millions of dollars in
53 maintenance-of-effort requirements:
54 NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah
55 requests that Utah's congressional delegation submit federal legislation amending federal block
56 grant maintenance-of-effort requirements by adding the following language to each
57 maintenance-of-effort statutory requirement: "In nowise shall the state amount obligated as a
58 maintenance-of-effort calculation exceed the amount of federal funding provided through the
59 grant."
60 BE IT FURTHER RESOLVED that a copy of this resolution be sent to the President of
61 the United States, the Majority Leader of the United States Senate, the Speaker of the United
62 States House of Representatives, and the members of Utah's congressional delegation.