Grantinaid 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 ID: 429949
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Slide1
A Little Help from Uncle Sam : )Slide2
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
20
th
century more cash available
Budget surpluses and federal income taxSlide3
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 projectsSlide4
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 irresistibleSlide5
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