The payout is based on a formula that grants Altitude a percentage that decreases with a bigger award.

FORBES: Magazine Article

Those block grants replaced the old federal matching funding formula with fixed finite funding that left the states responsible for 100% of increased spending, but gaining 100% from any savings.

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"Spending power" takes into account both the core "formula grant" which councils get from central government and other income - council tax and other grants.

BBC: Council offices