1     
JOINT RESOLUTION ON MAINTENANCE-OF-EFFORT

2     
REQUIREMENTS

3     
2017 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Edward H. Redd

6     
Senate Sponsor: Allen M. Christensen

7     

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
23     

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.