An Important Change to Formula for CED Programs?

<p>We often hear “measure what matters,” usually in the general context of discussions about what you are measuring. The Federal Office of Management and Budget (OMB) is considering an important change in how we measure inflation rather than generally what we measure when it comes to a number of significant community and economic development programs. The change could make one aspect of the Official Poverty Measure more accurate, with significant impact on the size and scope of beneficiary populations, and by association, to criteria used in many CED programs.</p> <p>Two months ago, on May 7, 2019, OMB issued a request in the Federal Register for comments concerning an alternative measure of inflation under consideration for the annual indexing of eligibility levels for a number of federal benefits programs. The devil is in the details with this proposal. While the change is statistical in nature, it is more likely to interest die-hard number nerds than most applied CED professionals. Although the public comment period is closed, it is important for the CED community to understand the proposal and watch for details of the decision, even if the decision is to maintain the current formula.</p> <p>The Proposal</p> <p>The proposal only affects those programs using the Official Poverty Measure in some way. This includes a wide variety of programs including Medicare and Medicaid, Supplemental Nutrition Assistance (SNAP), Low-Income Home Energy Assistance (LIHEAP), Head Start and others. OMB is not suggesting a change in program activities or eligibility standards directly. Instead, the change is in how inflation is accounted for in the measures [...]</p>