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Removing Tiering From the Revenue Sharing Formula Would Eliminate Payment Inequities to Local Governments

GGD-82-46 Published: Apr 15, 1982. Publicly Released: Apr 15, 1982.
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Highlights

GAO reviewed the inequities in the distribution of General Revenue Sharing funds which are caused by the statutory tiering procedure. Under this procedure, funds are first allocated to county geographic areas before being allocated to individual jurisdictions within the county. This review provides Congress with a comprehensive analysis of the effect tiering has on funding distribution patterns.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should amend the Federal Revenue Sharing Act, as amended, to eliminate the tiering procedure, thereby making allocations within states directly to all units of local government based on the three factors of population, relative income, and tax effort.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

Federal aid programsstate relationsFunds managementIntergovernmental fiscal relationsLoans to localitiesLoans to statesProgram evaluationRevenue sharing paymentsRevenue sharingLocal governments