ABSTRACT
Many considerations enter into urban decisions for public services. Among these considerations is the "hard" tax dollar, against which are weighed: the budget of the previous year, cost-benefit comparisons at the margin, and the "Social-Problem-of-the-Year," carved out and dramatized in presidential and gubernatorial messages. Decisions about urban public services are influenced, too, by grants-in-aid from state and national governments. In this paper, we shall explore some of the issues raised by two questions about grants-in-aid: What restrictions do they impose upon local decisions? And, can grant programs be amended to achieve a more effective and efficient use of resources?
