A Little Help from Uncle Sam : )

Grant-in-aid system First took the form of land grants to state governments and the railroads – Land Ordinance of 1785 – Land grant colleges (Penn State!) – Canals, railroads – Tip toe around the Constitution 20 th century more cash available – Budget surpluses and federal income tax

1960s – Changing Grants to Meet “National Needs” Grew out of the progressive trends of the Great Society – Federal bureaucrats identify national priorities such as ending poverty or reducing pollution – money goes directly to cities and local governments Result: States getting increasing amount of their budget $ from federal sources – Rise of “intergovernmental lobby” to chase down the funding for thousands of projects

Categorical Grants Federal funds designed for a specific purpose – Ardmore Redevelopment Project “Race to the Top” – Often with “strings attached” to get the $$$ that are known as conditions of aid – Intergovernmental lobbyists and interest groups still chasing this money – Block Grants = Group of categorical grants (and fewer strings) – Projects/spending (called earmarks) of questionable value to the taxpayer are labeled “pork” Congress finds them irresistible

Revenue Sharing Federal money with few or no strings attached Funding based upon demographic data determined by the Census Mandates Laws requiring states and local government to do something, often without federal funding – Americans with Disabilities Act 1990 – School desegregation