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Wednesday, August 8, 2001



Hawaii State Seal


Census mistakes
cost isles millions

The state stands to lose over
$105 million in federal funds with
a 2 percent undercount


By Pat Omandam
pomandam@starbulletin.com

HAWAII COULD LOSE an estimated $105.5 million in federal funding over the next 10 years because the state population was undercounted by 2 percent in last year's census.

The mistake could also affect local projects and grant programs that rely on census data.

"The undercount will cost Hawaii millions of dollars in funds that are earmarked for programs that largely serve the state's most disadvantaged," said Gilbert F. Casellas, co-chairman of the U.S. Census Monitoring Board, which is charged with oversight of Census 2000 operations and reports to Congress on its findings.

The board said yesterday an examination of the Census 2000 undercount of states and counties with populations larger than 500,000 showed the survey missed an estimated 26,747 local people -- about 2.16 percent of Hawaii's adjusted population last year.

The adjusted figures would have put the state population at 1,238,284, instead of at 1,211,537, as reported earlier this year.

The 26,747 undercounted translates into a $3,945 federal funding loss per uncounted person, the board said.

About $185 billion in federal funds are allocated by Congress each year, based on each state's respective share of the U.S. population, as determined every 10 years by the census.

State economist Pearl Imada Iboshi said yesterday the undercount is not alarming but of concern because it increased from 10 years ago.


States hurt by Census undercounts

The estimated number of people missed or undercounted by the 2000 U.S. Census, and the corresponding loss of federal funding over the next decade, based on a census study commissioned by the U.S. Census Monitoring Board. The top six states that are most affected, as well as Hawaii, are:

STATE PEOPLE LOSS IN UNDERCOUNTED FEDERAL FUNDING
California 522,796 $1.5 billion
Texas 373,567 $1.0 billion
Ohio 65,084 $796.0 million
Pennsylvania 101,537 $669.7 million
Missouri 25,857 $521.4 million
Michigan 71,068 $511.2 million
Hawaii 26,747 $105.5 million


IN 1990, THE UNDERCOUNT for Hawaii was about 1.8 percent of the state's population, or about 21,000 people.

She did not immediately know how much the 1990 census undercount cost Hawaii in federal dollars.

"From our perspective, we want to put ourselves in position to get the federal money that are available to states," Imada Iboshi said.

"Therefore, the state and the Census Bureau spent much more time and effort last year and encouraged people to fill out the census forms and be counted," she said.

Imada Iboshi said the Hawaii State Data Center makes available census data for those who need statistics to help prepare grant applications or for community development projects, to cite a few examples.

The Census 2000 data is already in use, she said.

The undercount report, done by PricewaterhouseCoopers, examined eight programs most affected by the census: Medicaid, foster care and rehabilitation services, as well as block grants for social services, substance abuse prevention and treatment, adoption assistance and child care and development.

The national professional services firm also looked at grants for vocational education.

The eight programs represent 87 percent of federal funding of programs affected by the undercount.

The firm used undercount figures reported by the Census Bureau to estimate the dollar amounts.

Overall, the report found 31 states and the District of Columbia could lose a total of $4.1 billion, with most of the lost funds, $3.6 billion, coming from 58 of the nation's largest counties.

THE POPULATION OF HONOLULU County, the only Hawaii county examined, was undercounted by 18,403 people -- about 2 percent -- and should have an adjusted population of 894,559.

Other Hawaii data in the report shows of the number undercounted in Hawaii, 17,481 were over age 18.

The report shows the Aloha State stands to lose $399,000 in federal funds because of it next year, $7.18 million the year after and $7.78 million in 2004.

The losses increase each year until 2012, for a total loss of $105.51 million between 2002-2012.

THOSE ESTIMATED LOSSES are small compared to California and Texas, which risk losses in federal funds of $1.5 billion and $1 billion, respectively.

Meanwhile, a partisan debate continues on Capitol Hill whether the Census Bureau should adjust its Census 2000 figures to correct the undercount.

Democrats and civil rights groups say making adjustments would solve the problem. Republicans, in general, contend the changes would insert mistakes into a census that Bush administration officials have called one of the most accurate in history.

A Census Bureau official said a decision is expected in mid-October.



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