State Minimum Return Act of 1985

[AI summary unavailable — showing source text] State Minimum Return Act of 1985 - Declares any State eligible for a positive reallocation of Federal expenditures in the categories of procurement contracts and need-based programs if such State has a Federal expenditure to Federal tax ratio which is less than 90 percent. Declares any State which has such ratio of between 90 and 100 percent eligible for a positive reallocation in the category of procurement contracts. Requires the Director of the Office of Management and Budget to determine a State's eligibility, and to take into account subsidies for water and power programs through Government corporations. Declares all Federal expenditures subject to reallocation except: (1) subsidized water and power programs; (2) compensation and allowances of Federal officers and employees; (3) maintenance of Federal buildings and installations; (4) offsetting receipts; and (5) programs for which the Government assumes total cost and in which direct payment is made to recipients other than governmental units. Sets forth reallocation mechanisms under which each Federal agency shall ensure that each State receives an amount of Federal spending that is at least 90 percent of the amount of such S…