Sensitivity of state aid allocation to measures of needs and resources in local governments

This analysis examines the sensitivity of state intergovernmental aid, per capita, to measures of resources, infrastructure, social services, social problems and demographics in Northern and Southern local governments in 1982 and 1992. Time-periods chosen are based on the potential for domestic policies born through new federalism to harm local governments through lesser amounts of available state aid. North and South are compared to account for possible regional differences. Regardless of region and time however, redistribution efforts to local governments with higher levels of need and lower levels of resources are not particularly good. Redistribution tendencies present in 1982 declined by 1992 in both the North and South. Southern local governments in 1982 and 1992 did not show more willingness, or ability, to target state aid to areas with high need and low resources. Redistribution efforts being weak in both the North and South contradicts the frostbelt/sunbelt distinction.