commission on fiscal imbalance 合集

Categorical grants are grants that require that

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: otecting programs than initiating them. There were sporadic instances of presidential initiation of grant programs, such as Johnson’s Great Society, and bureaucratic momentum to sustain programs in place. But Congress was clearly the major player, with interest groups and bureaucracies integral parts of the “iron triangle.” The grant system that existed in the early 1970s involved for the most part categorical grants for designated purposes, and included requirements for strict supervision by the federal government. Categorical grants are grants that "require that federal funds be expended for specified purposes only and have quite specific planning, record-keeping, and reporting requirements as well."14 The following provisions are typical of categorical grants: ♦ statements of permitted uses of funds (such as specifying by law how the funds are to be used or requiring the grantee to submit detailed plans of how the funds are to be used); ♦ expenditure constraints (such as that the money 'supplement, not supplant' local funds); 6 7 8 9 10 11 12 13 14 26 See US Advisory Commission on Intergovernmental Relations, The Federal Role in the Federal System: The Dynamics of Growth, Volume II (Washington, DC: ACIR, 1981), chapter four. Ibid., chapter three. Ibid. Ibid. Calculated from Table 18, US Advisory Commission on Intergovernmental Relations, Significant Features of Fiscal Federalism 1994 (Washington, DC: US Advisory Commission on Intergovernmental Relations, 1994). The Federal Role in the Federal System, chapter three. Significant Features of Fiscal Federalism 1994, Table 10. US Advisory Commission on Intergovernmental Relations, The Federal Role in the Federal System, Vol.X. Richard D. Bingham, Brett W. Hawkins, and F. Ted Herbert, The Politics of Raising State and Local Revenue (New York: Praeger, 1978), p. 56. Commission on Fiscal Imbalance ♦ requirements that the grantee match the federal contribution with own-source funds; ♦ record-keeping and reporting requirements (for example, that grantees maintain accounting records of how they spent federal money); ♦ and requirements that non-accounting data be supplied (such as reports on planned and actual resource use). Most categorical grant programs also require the preparation of state or local plans as a condition of receiving aid, and most also require reports of program activities and accomplishments.15 Clearly, while providing state and local governments with new revenue, categorical grants did not come free. The preference of Congress for categorical grants was the result of many forces. Congress likes the categorical approach chiefly because it allows members to take direct credit for the programs. Members love being able to appear at ribbon cutting ceremonies opening, for example, a new park financed by federal funds. The connection is direct, and is one that the member hopes his or her constituents will recall at re-election time. Further, internal Congressional norms suggest that the more dolla...
View Full Document

This note was uploaded on 03/06/2013 for the course ECON 220 taught by Professor Paulo during the Spring '13 term at University of Liverpool.

Ask a homework question - tutors are online