State support under the new federalism

Thomas Luce and Janet Rothenberg Pack

Journal of Policy Analysis and Management, 1984, vol. 3, issue 3, 339-358

Abstract: The new federalism will reduce total intergovernmental revenues to local governments. The reduction will be due to both the transfer to the states of much of the federal aid which previously flowed directly to local governments and reductions in total federal aid levels. Pass-through requirements on the shifted aid will not affect this general result but may soften the impact in many states. Because of differences in the extent to which state governments substitute federal pass-through aid for state aid from own-source revenues and in the degree to which different sources of revenues are treated differently by the states, local revenue reductions will vary greatly from state to state. The losses for local governments will range from 100% of the shifted aid in some states to as little as 15-20% in others.

Date: 1984
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jpamgt:v:3:y:1984:i:3:p:339-358

DOI: 10.1002/pam.4050030302

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