956 



70 



Section 305^ Development Grants. — The increase in funding for this 

 activity is required to cover the increased federal share of the funding 

 and the expanded scope mandated for state coastal zone management 

 program development. The annual funding is authorized to be in- 

 creased to $24 million and to be extended through FY 1979. Obliga- 

 tions are assumed to equal authorization for each year, and a snend-out 

 rate of 10 percent in the current year and 90 percent in the following 

 vear of the obligation is assumed. This yields the following budget 

 impacts. 



Authorization levels : 



Fiscal year : Millions 



1977 $14. 6 



1978 24. 



1979 24. 



1980 



1981 



Costs: 



Fiscal year : 



1977 1. 5 



1978 15. 5 



1979 24. 



1980 21. 6 



1981 



Section 306, Program Administration Grants. — The rationale for 

 increased funding of this activity is the same as for the program 

 development grants. The annual funding level is authorized to be 

 increased to $50 million and to be extended through FY 1980, Obliga- 

 tions are assumed to equal the authorization levels for each year, and a 

 spend -out rate of 10 percent, 90 percent is assumed. This yields the 

 following estimates. 



Authorization levels : 



Fiscal year: Millions 



1977 $40 



1978 50 



1979 50 



1980 50 



1981 



Costs 



Fiscal year : 



1977 4 



1978 41 



1979 50 



1980 50 



1981 45 



Section 305 and 306. Tradeoif. — It is possible that the re-quire- 

 ments for either Section 305 or Section 306 could reach the authoriza- 

 tion levels. However, to a sismificant extent, these sections support com- 

 plementary activities. The level at which either program is funded de- 

 pends upon state level decisions about whether to expand and extend 

 coastal zone management program development activitv or to advance 

 to the implementation of the programs developed. Therefore, it ap- 

 pears unlikely that both activities would require funding at the au- 

 thorization levels in anv one year. 



Section 308(a). OCS Payments. — This section nrovides for a pay- 

 ment for each fiscal year to each coastal state as a share of the funding 

 level. Fach state's share is based on a formula aimed at approximating 

 the relative level of OCS activitv in each of the states. Since the 



