General Revenue Sharing: Termination and City Response

When the federal general revenue sharing (GRS) program was terminated in 1986, proponents and opponents of GRS debated the impact this termination would have on cities. This study compares what officials of 153 cities expected to be the consequence of GRS loss before the termination of the program with actions the cities took to raise revenues and reduce expenditures after termination. The findings indicate that the plans cities made for coping with GRS loss did not correspond to their later actions. Most cities pursued a mixed strategy of raising revenues and cutting expenditures.