Public Policy Institute of California                         California Institute for Federal Policy Research

500 Washington Street, Suite 800                          419 New Jersey Avenue, SE, Basement Level

San Francisco, CA 94111                                     Washington, DC 20003

415-291-4400 (fax:415-291-4401)                      202-546-3700  (fax:202-546-2390)                                     



December 3, 2002


Dear Friends and Colleagues:


It is our pleasure to provide you with the first reports in our new series, Federal Formula Grants and California.  At the request of the bipartisan leadership of California’s congressional delegation, the Public Policy Institute of California and the California Institute for Federal Policy Research have developed this new and unique research product. 


We hope that this series will enhance the ability of California’s federal policymakers to make decisions in the best interests of the state by providing objective, nonpartisan analysis of the state’s share of federal grants and the mechanics by which those funds are distributed.  In addition, we seek to inform the public debate and improve understanding among state and local public officials, the news media, and the general public about this critical topic. 


The project’s first components include two overview pieces – one examining California’s share of formula funding and the other reviewing factors used in the formulas – as well as the first of our in-depth formula grant studies: TANF and Welfare Programs.  We are currently preparing an analysis of the formulas that distribute federal transportation funds in anticipation of next year’s renewal of the Transportation Efficiency Act for the 21st Century (TEA-21).


These reports will be followed over the next two years by numerous additional reports, briefings, fact sheets, a web database, and other products.  In early 2003, we will conduct briefings in Washington, D.C., and Sacramento to familiarize legislators and staff members with the series. 


We hope you find these and future products valuable, and we welcome your participation and feedback as we seek to improve the public debate regarding this important subject.




David W. Lyon, President and CEO                    Tim Ransdell, Executive Director

Public Policy Institute of California                       California Institute for Federal Policy Research