Winter 1997-98 Volume 2, Number 4		States face cuts in federal immunization operations grants Atlanta, March 10 - State health departments are trying to absorb cuts averaging 34% in federal Section 317 immunization operation grant funds. The cuts are the result of an $80 million reduction in the congressional appropriation for immunization operational grants for FY 1998, which began on October 1, 1997. Many states have been forced to reduce or eliminate some immunization operational activities. Section 317 provides federal grants to state immunization projects. The funds are used for purchasing vaccine to be used in children who are not eligible for the federal vaccine entitlement, Vaccines for Children, and for immunization staff salaries, immunization registries, vaccine- preventable- disease surveillance, vaccine coverage surveys, and other operations. Since 1991, funding for Section 317 operational activities has increased dramatically: $34 million in FY 1991, $87 million in FY 1992, $94 million in 1993, $228 million in FY 1994, $261 million in FY 1995, $182 million in FY 1996, and $159 million in FY 1997. Because of these large increases, many states have had difficulty in gearing up their internal financial and personnel systems quickly enough to use the rising dollars. For example, many state health departments must trudge through several layers of bureaucratic approvals before federal funds can be used for new personnel or equipment. Additionally, tardiness in CDC granting has caused some delays. When states are unable to expend all the 317 funds awarded to them in a given budget year, the remaining funds are carried over into the states' next budget period. These funds can be expended in the subsequent year if justified and permitted by CDC. Since FY 1993, total carryover by the states has expanded greatly, from $58 million in FY 1993 to $119 million in FY 1994, $141 million in FY 1995, and $109 million in FY 1996. FY 1997's carryover is estimated at $39 million. Reportedly, U.S. Senate staffers became worried last year about the expansion of carryover and sought large cuts in 317 appropriations for FY 1998. States are working with CDC to prioritize projects funded by a reduced pool of available funds. CDC has instructed states to reduce carryover in their programs to lower levels than in past years. The agency considers an acceptable carryover rate to be 10% or less of the grant amount. The FY 1998 cuts will not affect all states equally. According to Jack Jackson, CDC's Associate Director for Management and Operations, "grantees who in FY 1997 spent substantially more on non-core activities, or who had more carryover in their budgets than others, will experience greater reductions than grantees whose spending has been relatively stable."