Federal Aid Losses
Cloudy Fiscal Future for State, Local Units
There is a quiet revolution going on in the financing of American government. President Reagan's fiscal 1987 budget and the inevitability of cuts in federal spending programs have focused public attention on the deepening fiscal problems of the national government. But they also underscore an equally important development of the past few years—the growing budget clout of state and local governments. Facing a future in which they may get little or no financial help from Washington, state and local governments are preparing to go it alone. Increasingly, decisions about raising and spending money for the array of services most Americans expect from their government will be made at the state and local level.
“The wind is at ...