Effects Of The New System Of Fiscal Federalism On Local Economic Development Efforts A Test Case

Abstract

Although Congress has never officially endorsed President Reagans plan for a New Federalism, it is apparent that our system of fiscal federalism has undergone massive changes in recent years with Federal grants as a percentage of state and local own revenue falling since 1978 on a yearly basis. This paper considers the impact of the changing fiscal federalism upon local economic development efforts using South Bend, Indiana, a rather typical community in the manufacturing belt as a case study.