About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


PAD-78-20 1 (1977-11-29)

handle is hein.gao/gaobaawik0001 and id is 1 raw text is: DOC~UMENT RESUME 04304 - (B333U562] Antirecescjion Assistance: An Evaluation. PAD-78-20; B-146285. November 29, 1917. 21 pp. + 2 appendices (107 pp.). Report to thu Congress; by Elmer B. Staats.- Comptroller General., 7ssue Area: Regional and National Economic Problems (3500). Contact: Program Analysis Div. Badget Function: Revenue Sharing and Seneral Purpose Fiscal Assistance: Other General Purpose Fiscal Assistance (852); Commerce and Transportation: Ground Transport ation (404). Organization Concerned: Office of danagement and Budget; Congressional Budget Office; Cefincil of Ecunom.c Advisers. Congressional Relevance: House Committee on Banking, Finance and Urban Affairs; Senate Ccmmittee on Banking, Fousiag and Urban Affairs; Congress. Authority: Public Works Employment Act of 1976 (P.L. 94-369. Tax Reduction and Simplification Act of 1977. Title II of the Public Works Employment Act of 1976, known as the antirecession assistance or countercyclical program, represents one compoient of the Federal Government's response to severe downturns in economic activity. The aim of the program is to offset destabilizing actions of State and local governments during recessions and, in particular, to maintain basic services customarily provided with emphasis on the wages and salariev; of public employees. Since local governments generally experience less budgetary disruption during a r cession than State governments because their revenue sources and expenditures are less sensitive to economic conditions than State revenues and expenditures, the present allocation of two-thirds of the funds to Iccal governments and one-third the State governments may not be app'opriate for effective targeting of antirecession aid. Findings/Conclusions: The present antirecession assistance program is not a particularly effective tool for stimulation of the economy during a downturn, and there is ser±ous disagreement over the sensitivity to cyclical changes of the program's trigger. Although recession does not necessarily lead to State and local destabilizing actions, the combination of recession and inflation may provoke a response fro- those governments that runs counter to Federal fiscal policy. The antirecession assistance allocation does roughly correspond to the incidence of secular decline in a jurisdicticn, but if it is the intent of the Congress to provide assistance to mect such problems, ;. formula more specific-ally tailored to secular decline could be devised. (Author/SC)