Title II, SEC. 2109. TOTAL FEDERAL BUDGET; ALLOTMENTS TO STATES. (a) Total Federal Budget. (1) Fiscal years 1996 through 2003. For purposes of this subpart, the total Federal budget for State plans under this subpart for each of fiscal years 1996 through 2003 is the following: (A) For fiscal year 1996, 4.5 billion. (B) For fiscal year 1997, 7.8 billion. (C) For fiscal year 1998, 11.0 billion. (D) For fiscal year 1999, 14.7 billion. (E) For fiscal year 2000, 18.7 billion. [$56 to 2000} (F) For fiscal year 2001, 26.7 billion. [48-56 for out years] (G) For fiscal year 2002, 35.5 billion. (H) For fiscal year 2003, 38.3 billion. (2) Subsequent fiscal years. For purposes of this subpart, the total Federal budget for State plans under this subpart for each fiscal year after fiscal year 2003 is the total Federal budget under this subsection for the preceding fiscal year multiplied by (A) a factor (described in paragraph (3)) reflecting the change in the CPI for the fiscal year, and (B) a factor (described in paragraph (4)) reflecting the change in the number of individuals with disabilities for the fiscal year. (3) CPI increase factor. For purposes of paragraph (2)(A), the factor described in this paragraph for a fiscal year is the ratio of (A) the annual average index of the consumer price index for the preceding fiscal year, to (B) such index, as so measured, for the second preceding fiscal year. (4) Disabled population factor. For purposes of paragraph (2)(B), the factor described in this paragraph for a fiscal year is 100 percent plus (or minus) the percentage increase (or decrease) change in the disabled population of the United States (as determined for purposes of the most recent update under subsection (b)(3)(D). T3[review:] (5) Additional funds due to medicaid offsets. (A) In general. Each participating State must provide the Secretary with information concerning offsets and reductions in the medicaid program resulting from home and community-based services provided under this title, that would have been paid for under the State medicaid plan but for the provision of similar services under the program under this title. (B) Reports. Each State with a program under this title shall submit such reports to the Secretary as the Secretary may require in order to monitor compliance with subparagraph (A). (C) Compliance. The Secretary shall review such reports. The Secretary shall increase the total Federal budget for State plans under subsection (a)(1) by the amount of any reduction in Federal expenditures for medical assistance under the State medicaid plan for home and community based services. (D) No duplicate payment. No paymet may be made to a State under this section for any services to the extent that the State received payment for such services under section 1903(a) of the Social Security Act. (b) Allotments to States. (1) In general. The Secretary shall allot to each State for each fiscal year an amount that bears the same ratio to the total Federal budget for the fiscal year (specified under paragraph (1) or (2) of subsection (a)) as the State allotment factor (under paragraph (2) for the State for the fiscal year) bears to the sum of such factors for all States for that fiscal year. (2) State allotment factor. (A) In general. For each State for each fiscal year, the Secretary shall compute a State allotment factor equal to the sum of (i) the base allotment factor (specified in subparagraph (B)), and (ii) the low income allotment factor (specified in subparagraph (C)), for the State for the fiscal year. (B) Base allotment factor. The base allotment factor, specified in this subparagraph, for a State for a fiscal year is equal to the product of the following: (i) Number of individuals with disabilities. The number of individuals with disabilities in the State (determined under paragraph (3)) for the fiscal year. (ii) 80 percent of the national per capita budget. 80 percent of the national average per capita budget amount (determined under paragraph (4)) for the fiscal year. (iii) Wage adjustment factor. The wage adjustment factor (determined under paragraph (5)) for the State for the fiscal year. (iv) Federal matching rate. The Federal matching rate (determined under section 2108(b)) for the fiscal year. (C) Low income allotment factor. The low income allotment factor, specified in this subparagraph, for a State for a fiscal year is equal to the product of the following: (i) Number of individuals with disabilities. The number of individuals with disabilities in the State (determined under paragraph (3)) for the fiscal year. (ii) 10 percent of the national per capita budget. 10 percent of the national average per capita budget amount (determined under paragraph (4)) for the fiscal year. (iii) Wage adjustment factor. The wage adjustment factor (determined under paragraph (5)) for the State for the fiscal year. (iv) Federal matching rate. The Federal matching rate (determined under section 2108(b)) for the fiscal year. (v) Low income index. The low income index (determined under paragraph (6)) for the State for the preceding fiscal year. (3) Number of individuals with disabilities. The number of individuals with disabilities in a State for a fiscal year shall be determined as follows: (A) Base. The Secretary shall determine the number of individuals in the State by age, sex, and income category, based on the 1990 decennial census, adjusted (as appropriate) by the March 1994 current population survey. (B) Disability prevalence level by population category. The Secretary shall determine, for each such age, sex, and income category, the national average proportion of the population of such category that represents individuals with disabilities. The Secretary may conduct periodic surveys in order to determine such proportions. (C) Base disabled population in a State. The number of individuals with disabilities in a State in 1994 is equal to the sum of the products, for such each age, sex, and income category, of (i) the population of individuals in the State in the category (determined under subparagraph (A)), and (ii) the national average proportion for such category (determined under subparagraph (B)). (D) Update. The Secretary shall determine the number of individuals with disabilities in a State in a fiscal year equal to the number determined under subparagraph (C) for the State increased (or decreased) by the percentage increase (or decrease) in the disabled population of the State as determined under the current population survey from 1994 to the year before the fiscal year involved. (4) National per capita budget amount. The national average per capita budget amount, for a fiscal year, is (A) the total Federal budget specified under subsection (a) for the fiscal year; divided by (B) the sum, for the fiscal year, of the numbers of individuals with disabilities (determined under paragraph (3)) for all the States for the fiscal year. (5) Wage adjustment factor. The wage adjustment factor, for a State for a fiscal year, is equal to the ratio of (A) the average hourly wages for service workers (other than household or protective services) in the State, to (B) the national average hourly wages for service workers (other than household or protective services). The hourly wages shall be determined under this paragraph based on data from the most recent decennial census for which such data are available. (6) Low income index. The low income index for each State for a fiscal year is the ratio, determined for the preceding fiscal year, of (A) the percentage of the State's population that has income below 150 percent of the poverty level, to (B) the percentage of the population of the United States that has income below 150 percent of the poverty level. Such percentages shall be based on data from the most recent decennial census for which such data are available, adjusted by data from the most recent current population survey as determined appropriate by the Secretary. (c) State Entitlement. This subpart constitutes budget authority in advance of appropriations Acts, and represents the obligation of the Federal Government to provide for the payment to States of amounts described in section 2109(a).