A Little Help from Uncle Sam : )

1. A Little Help from Uncle Sam : )

2. 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 • 20th century more cash available • Budget surpluses and federal income tax

3. 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

4. Categorical Grants • Federal funds designed for a specific purpose • Ardmore Redevelopment Project - 2010 “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

5. 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