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PAD-80-9 1 (1980-06-11)

handle is hein.gao/gaobabaqm0001 and id is 1 raw text is: 



BY THE COMPTROLLER GENERAL



Report To The Congress

OF THE UNITED STATES





The Impact Of Tiering And Constraints On

The Targeting Of Revenue Sharing Aid



The General Revenue Sharing Program (GRS},
first authorized in 1972 and extended through
fiscal year 1980, has distributed aid to State
and local governments based on a distribution
formula that has remained unchanged through-
out the history of the program.

The GRS allocation formula is designed to aid
those governments whose per capita incomes
are low and those governments who help them-
selves through tax effort. The combined effect
of the income factor and the tax factor is
called fiscal effort.

If the formula worked equitably, two govern-
ments with equal levels of fiscal effort would
receive equal revenue sharing grants on a per
capita basis. GAO's analysis of New York
State county governments shows that inequi-
table differences in per capita payments do
exist.

The poor targeting performance of GRS aid
was analyzed by comparing it with the New
York State revenue sharing program, which is
funded from State revenue sources and which
uses a formula that has no constraints and does
not contain a tiering process.

         sTD S2                                                    112518




                                                                       PAD-80-9
                                                                   JUNE 11, 1980

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