Changes in Federal Aid and City Finances

Federal aid was not found to stimulate spending for cities in Oregon during 1984–1989. Oregon cities relied primarily on their own-source revenues to finance spending increases. The exception was capital spending, where receipt of federal aid in 1989 positively influenced the rate of spending change. This most likely reflected lower spending by those cities that did not receive competitive federal grants. The amount of federal aid received is greatly influenced by the grants skill available to the community. Growth in total direct current spending was significantly associated with increases in user fees and charges. A closer look at specific spending categories revealed a hierarchy of reliance on cities' own-source revenues. Cities increased user fees and other benefit charges where possible, and seemingly only resorted to property-tax increases when these other revenues were inappropriate

Business · Capital expenditure · Economics · Federal budget · Fiscal year · Hierarchy · Market economy · Public economics · Receipt · Revenue · Tax revenue · Urban hierarchy · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Finance

• The effect of intergovernmental aid on city property taxes

  Open Access•John R Bartle•Journal of Public Budgeting…•1996

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