The method used in computing the allotments is specifically set forth in the Act. The term ``State'' means the several States, the District of Columbia, the Virgin Islands, Guam and Puerto Rico; the term ``United States'' includes the several States and the District of Columbia, and excludes the Virgin Islands, Guam and Puerto Rico, and, prior to 1962, Alaska and Hawaii. The following steps are employed in calculations:

For each State (except Puerto Rico, Guam, the Virgin Islands, and, prior to 1962, Alaska and Hawaii) determine average per capita income based on the last three years. (See Source of Data, below for per capita income data to be used in this step.)

Determine the average per capita income for the U. S. based on the last three years. (See Source of Data, below, for per capita income data to be used in this step.)

Determine the ratio of 50% to the average per capita income of the U. S. (Divide 50 by the result obtained in item 2 above.)

Determine for each State (except the Virgin Islands, Guam and Puerto Rico, and, prior to 1962, Alaska and Hawaii) that percentage which bears the same ratio to 50% as the particular State's average per capita income bears to the average per capita income of the U. S.. (Multiply the result obtained in item 3 above by the result obtained for each State in item 1 above.)

Determine the particular State's ``allotment percentage.'' By law this is 75% for the Virgin Islands, Guam and Puerto Rico. (Alaska and Hawaii had fixed allotment percentages in effect prior to fiscal year 1962.)