TITLE

EVALUATING THE FEDERAL AID REFORM OPTIONS--SORTING OUT, BLOCK GRANTS AND TAX TURNBACKS: STATE REACTION

AUTHOR(S)
Connock, Stuart W.
PUB. DATE
September 1981
SOURCE
National Tax Journal;Sep81, Vol. 34 Issue 3, p329
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article evaluates the federal aid reform options, such as block grants and tax turnbacks, proposed in the U.S. House for fiscal year 1982. The current federal aid system encompasses some 500 odd categorical grant programs and many of these grant programs have own separate or special planning requirements and administrative regulations. It is also consisted mainly of non-formula grant programs which makes it difficult for states to plan and budget, since there is always a high degree of uncertainty over whether certain federal funds will be forthcoming and in what amounts. Thus, on the surface, most states would probably favor block grant or grant consolidation programs, just as a means of eliminating certain duplications, over laps and uncertainties of governmental programs. Yet, a further and probably more significant concern of the states with the block grant approach, is that of lessening the restrictions on the use of grant funds, a long with lessened regulations and requirements. With the realization that a movement to the block grant approach will almost certainly involve a reduction in grant funds, it is imperative that the rules, regulations and restrictions should be reduced.
ACCESSION #
4585699

 

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