General-Purpose Aid in New York State: Targeting Issues and Measures

Abstract

This article explores key questions about targeted versus distributive aid policies within the context of New York's general-purpose state aid program. Development of that program over the past forty years shows ebbs and flows of support for both targeted and distributive approaches. Intense policy debates concerning local fiscal policies occur as part of annual state budget negotiations, although recently, New York policymakers have favored targeted approaches. Yet the traditional measures of targeting governmental needs, such as differences in fiscal capacity and effort, have been expanded to emphasize differences in service responsibilities. Strong, and perhaps ironic, parallels are also evident between New York's program and the now defunct federal revenue sharing program.