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B-146285 1 (1974-05-30)

handle is hein.gao/gaobaafpy0001 and id is 1 raw text is: - CUMPTROLLER GENERAL OF THE UNiTED STATES X- WASHINGTON. 0 C. 2054, ~Oqs~sq, B-146285 MAY 0 1974 The Honorable John Brademas llillll IIEII Ill 1IlI1111 Chairman, Select Subcomnittee on LM095854 Education Comnittee on Education and Labor House of Representatives Dear Mr. Chairman: In accordance with your February 19, 1974, request, we have analyzed the data we collccted on the disposition of revenue sharing funds by 250 local governments to determine the extent to which the feundswere being targeted for handicapped peoDie of all ages and children. A more general de scrip tion of_ the uses of revenue sharing fun ds y these governments and our views on certain accountability aspects of revenue sharing are con- tained in our report entitled, Revenue Sharing: Its Use by and Impact on Local Governments ( -46285, Apr. 25, 1974), which has been provided to your office. The Revenue Sharing Act (Public Law 92-512) provided for distr -- ting approximately $30.2 billion to State and local governments for a 5-year progran. The Office of Revenue Sharing, Department of the Treasury, made initial payments under the revenue sharing program in December 1972 and had distr Duted about $6.6 billion through June 30, 1973, to the 50 States, the District of Columbia, and about 38,000 local governments. Approximately one-third of the funds were distributed to the States and the remaining two-thirds to local governments. One objective 3f revenue sharing is to give State and local govern- ments flexibility in using the funds. Therefore, the act provides only general guidance on how local goveranments can use the funds by requiring them. to be spent within specified, but quite extensive, priority areas. The areas are: maintenance and operating expenses for public safety, environmental protection, public transportation, health, recreation, libraries, social services for the poor or aged, and financial adminis- tration. In addition, a local goverz'ent may use the funds for any ordinary and necessary capital expenditure. We selected the 250 govern~ments primarily on the basis of dollar significance and geographical dispersion. Our selection included the 50 cities and 50 counties that received the largest amounts of revenue sharing funds for calendar year 1972. The 250 governments received 70~2,0-3 0 15- ET AVAILABLE

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