Conditions of State Aid to Distressed Communities

Abstract

Several studies have been undertaken to explain state aid to local governments and to ascertain if state aid is "responsive" to cities and urban problems. Most scholars have interpreted their findings with reference to the state role in the federal system. This study examines state aid to distressed communities (a category of aid programs created by the Advisory Commission on Intergovernmental Relations). We find that, independent of other factors, local need shapes the allocation of these programs. This evidence adds to other evidence suggesting that the states are responsive to urban distress.