American Planning And Civic Annual volume 15

Cover American Planning And Civic Annual volume 15
American Planning And Civic Annual volume 15
American Civic Association
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Most students of the subject feel that the grants-in-aid fell short of expectations because they did not have a fair trial. The critics point out (1) that so-called matching grants instead of variable, or equalization grants were used and (2) that only a few selected, often secondary, ser- vices were favored to the detriment of broader classes of services that needed support.
The matching principle requires the States and municipalities to match the Federal grants dollar for dollar otherwise no
... grant is forth- coming. Since rich States had more dollars to match the grants than poor States, they were able to get more dollars of aid from the Federal Govern- ment. Furthermore, the poor States so extended themselves to match the Federal grants offered for selected services that they sometimes had to starve or undernourish other services.
Thomas H. Reed, in his study entitled Federal-State-Local Fiscal Relations, prepared for the Municipal Finance Officers Association and published in 1942, criticized Federal and state assistance on the ground 64 AMERICAN PLANNING AND CIVIC ANNUAL of its inequities and uncertainty, and because it stimulated local ex- penditure rather than relieved local tax burdens.


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