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![handle is hein.gao/gaobaaxci0001 and id is 1 raw text is:
DOCUMtENT RESUME
05707 - (B1296258]
Impact of Antireces.sion Assistance on 52 Governments: ln Update.
GGD-78-56; B-146285. May 1, 1978. 36 pp. + 8 appendices 417 pp.)
+ 3 enclosures (362 pp.).
Report to the Congress; by Elmer B. Staats, Comptrcller General.
I3sue Area: Intergovernmental Belationt and Rerenue Sharing:
Long-range Improvements in Assistance (403).
Contact: General Government Div.
Budqet function: Revenue Sharing and General Purpose Fiscal
Assistance: Other General Purpose Fiscal Assistance (852 .
Orqanizatiog Concerned: Department of Transportation.
ConqressionaA Relevance: Senate Committee cm Finance: Congress.
Authority: Public Works Employment Act of 1976 4P.L. 94-369).
P.L. 95-30.
Title II of the Public Works nEplcynent Act of 1976
authorized emergency Federal aid tc State and local governmeats
hard hit by recessionary pressures in order to reduce their need
to take budjetary actions which would run ccunter to Federal
efforts to stimulate economic rkicovery. the assistance was
desiqned to be selectively targeted tc go only tj those
governments substantially affected by the recession.
Findings/Conclusions: Officials from 30 of the 52 qovertments
studied believed that their fiscal ccmditicn had improved since
GAO's previ-its review in February 1977, and an additional 14
qovernments had maintained a good fiscal condition. Imprcvements
noted in States were strong revenue gains, due mostly to
increased tax revenues from business activity and increases in
state fund balances. However, 10 of 21 cities studied were
considered to be in fair or poor fiscal condition. cities'
problems were caused primarily by tax base erosion and
inflation. Most government officials cited inflation as the
major inpediment to fiscal stability. Although some effects oi
the recession continued, major recessionary pressures
diminished. Most officials believed that actirecession funds,
although representing a small proportion of total revenues, had
favorable effects such as preventing tax increases cr eatloyee
layoffs and enlarging surpluses. Althcugh it is difficult to
assess the effect of the funds on governments' tudgets, they
probably helped 12 governments fill a tudgetary gap, permitted
20 to increase expenditures, assisted 4 in maintaining or
increasing surpluses, and had compound affects on 15
qovernments. In spite of these benefits, the Grogram has not
effectively met its objective of selectively targeting aid.
Recommendations: The Congress should consider the following
a]ternatiyes ia relation to renewal cf the antirecession
assistance program: establish a revised prcgram to tetter
achieve the oriqinzl objective of assisting State and local
governments during recessionary periods; if it concludes that it
is nc longer necessary to provide recession-related assistance](ViewImageLocal?handle=hein.gao/gaobaaxci0001&div=1&collection=&method=preview&ext=.png&size=3)