America’S Cities and the 1980S: The Legacy of the Reagan Years

ABSTRACT:

This study examines the implications of President Reagan’s domestic agenda, the New Federalism, for America’s cities. The finance officers of all U.S. cities with populations more than 50,000 were surveyed about the fiscal impacts of the Reagan administration. Specific issues considered are: (1) the impacts of New Federalism initiatives on the changing sources of municipal general revenue, (2) the programmatic and service delivery consequences of these changes, and (3) the effect of New Federalism policies on the changing relationships between cities and states. Cities have turned primarily to local revenue sources to compensate for losses of federal aid. For the most part, the newly developed administrative relationships between cities and states are working satisfactorily. Finally, cities generally are considerably less dependent on aid from Washington today than prior to the Reagan years. Cities have paid a high price for their new independence: They have had to significantly reduce service deliveries to urban residents and significantly expand regressive taxing policies. Some of the implications are considered for intergovernmental relations in the coming years.