TABLE 22 (CONCL'D).--FEDERAL GRANTS-IN-AID TO STATE AND LOCAL GOVERNMENTS, 1966-1968 Disease prevention and environmental control Health, Education and Welfare $ 47,510 $ 138,341 72,800 49,600 Excluded are shared revenues and certain minor grants, such as Department of State: East-West Cultural and Technical Inter- Included in higher educational activities. Note: 4/ Included under child welfare services. Not subtotaled because of account classification shifts. 5/ Included under disease prevention and environmental health 11/ 12/ 9/ Reflects proposed establishment of a new Beauty-Safety trust fund. 6/ Included under hospital and medical facilities construction. 13 This is the account classification for health grants for 1967 and 1966 fiscal data: Table 84, Federal grants-in-aid to State and local governments and to individuals and private institutions 1960; and 39 from 1961-1966. The amount of Federal grants-in-aid from budget and trust accounts in fiscal year 1968 was estimated in the 1968 Budget at $17.3 billion. Of the total of $12.6 billion actually spent in fiscal year 1966, $4.4 billion was from the pre-1930 grants;* $3.6 billion from the "depression era" grants; $2.4 billion from those established from 1945-1960; and $2.2 billion from those enacted from 1961 on. The bulk of the $4.7 billion increase from fiscal year 1966 to fiscal year 1968 was accounted for by the 39 programs added since 1960. Shifts in program focus can also be traced in Fig. 13.** In 1950 and 1955, prior to the expansion of the Federal aid highway program, 60 to 65 percent of grant payments were for health, labor and welfare programs. Public assistance payments alone accounted for nearly half the total. Commerce and transportation activities comprised another 20 percent. By 1960, with the infusion of more than $2-1/4 billion in additional highway grants from the Federal Aid Highway Act of 1956, commerce and transportation programs dominated Federal grant activities. More recently, aid programs have changed substantially in both number and kind. In the last four years, Congress has enacted several programs aimed primarily at broadening the scope of individual opportunity for educational and economic enhancement. The cumulative effect of these programs has been to place the principal emphasis of Federal aid once again on health, labor and welfare activities--as well as to give added impetus to education and housing and community development efforts. In 1968, it is estimated that these programs will account for two-thirds of total estimated aid payments. The dollar trend in grants-in-aid since 1940, in terms of major functional areas, is shown in Fig. 14.*** FEDERAL AID IN RELATION TO FEDERAL AND STATE-LOCAL EXPENDITURES The expansion of Federal aid to State and local governments has become an increasingly important factor in the finances of all levels of government. As seen in Fig. 15, Federal aid as a proportion of total Federal expenditures more than doubled in the past 13 years, rising from 4.6 percent in 1955 to an estimated 10.1 percent in 1968. Over 20 percent of total Federal payments for domestic programs will go as grants to State and local governments in 1968. relative increase in the amount of Federal aid has not been quite as marked for the recipient State and local governments as it has for the Federal Government because of their efforts to expand State and local revenue resources. Still, The * This was almost entirely ($3.9 billion) for Federal-aid highways, established in 1916 but greatly expanded in 1956 with the massive interstate program. ** For further detail, see Table A-19. *** For further detail, see Table A-20. |