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4 <br />FL 2 General Revenue Sharing (CAS) <br />Recognition le the importance programfofpdirect federal assistanceg basic services ttohe local <br />cities. <br />level must be reflected in a program <br />Continued funding is needed along with revised allocation of GRS psyments to <br />provide needed assistance to cities with most needs and the least ability to pay <br />for local services. FFY'87 GRS appropriations are not to be funded through <br />reductions in other programs to aid cities. <br />GRS provides the most efficient program of direct federal assistance to <br />local government, along with the flexibility that permits cities to use GRS <br />funds for needs and priorities determined at the local level. <br />The purposes for which General Revenue Sharing was created remain valid: <br />Direct assistance for general purpose local government to compensate cities for <br />the cost of federal mandates as well as to aid in the funding of local services <br />in areas of national Interest. GRS also provides revenues to assist cities in <br />nationallicies and is <br />overcThose purposes adverseming effects federal o <br />purposeshavespecial meaningforcities where unemployment, and loss of <br />local tax base and real estate values place an unreasonable burden on local <br />taxpayers to fund basic public services. <br />Reauthorization of GRS as an entitlement program is needed; making it <br />subject to annual appropriations aggravates current uncertainty over the future <br />of the program. If funding is not available for a multiyear entitlement, it <br />would be preferable to extend current payments for at least FFY 87 while <br />preparing a transition to a program that recognizes differences in local fiscal <br />capaity and al <br />nd <br />ion <br />at directs <br />mostcassistance otodcities nwith nthe ae <br />greatest needandlthetleasththe <br />resources. <br />-75- <br />