Determine if the particular State's unadjusted allotment (result obtained in item 11 above) is less than its minimum (base) allotment, and if so raise its unadjusted allotment to its minimum allotment. Regardless of its unadjusted allotment, each State is guaranteed by law a minimum allotment each year equal to the allotment which it received in fiscal year 1954 -- increased by a uniform percentage of 5.4865771 which brings total 1954 allotments to all States up to $23000000.

The funds recouped by reductions in item 12 above are used: first, to increase the unadjusted allotments to the specified minimum in those States where the unadjusted allotment is less than the minimum allotment (item 13 above); and second, to increase uniformly the allotments to those States whose allotments are below their maximums, with adjustments to prevent the allotment of any State from thereby exceeding its maximum.

For the States which maintain two separate agencies -- one for the vocational rehabilitation of the blind, and one for the rehabilitation of persons other than the blind -- the Act specifies that their minimum (base) allotment shall be divided between the two agencies in the same proportion as it was divided in fiscal year 1954. Funds allotted in addition to their minimum allotment are apportioned to the two agencies as they may determine.

As is the case with the allotment provisions for support of vocational rehabilitation services, the matching requirements are also based on a statutory formula. Prior to 1960, in order to provide matching for the minimum (base) allotment, State funds had to equal 1954 State funds. Prior to and since 1960 the rest of the support allotment is matched at rates related to the fiscal capacity of the State, with a pivot of 40% State (or 60% Federal) participation in total program costs. The percentage of Federal participation in such costs for any State is referred to in the law as that State's ``Federal share.'' For purposes of this explanation, this percentage is referred to as the States ``unadjusted Federal share.'' Beginning in 1960, the matching requirements for the base allotment are being adjusted (upward or downward, as required) 25% a year, so that by 1963 the entire support allotment will be matched on the basis of a 40% pivot State share, with maximum and minimum State shares of 50% and 30%, respectively. The pre 1960 rate of Federal participation with respect to any State's base allotment, as well as the adjusted rate in effect during the 1960 -- 1962 period, is designated by the statute as that State's ``adjusted Federal Share.'' The provisions for determining a State's unadjusted Federal share are designed to reflect the varying financial resources among the States. The purpose of the adjusted Federal share relating to the base allotment and of the transition provisions for reaching the unadjusted Federal share is to prevent dislocations from abrupt changes in matching rates.