Budgeting for State and Local Government Services

Abstract

State and local governments have an increasingly important role in the solution of complex domestic problems. Despite improvements in many services and increasing tax efforts, urban-related problems are growing even more rapidly, and greater financial efforts must be made. State and local governments probably cannot bear this burden alone; federal assistance must be increased above already high levels. Im proved state and local decision-making and administration may accrue if less emphasis is placed on narrow categories of federal grants. Block grants, tax sharing, and tax credits are possible methods of providing greater flexibility in grant-ad ministration. The state and local governments must improve their own fiscal and administrative systems, and strong efforts are now being made in this direction throughout the nation.