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Employing an analytical framework suggested in a PAR article by Alan K. Campbell and Seymour Sacks, the author re-examines the major factors which are associated with variations in per capita total municipal expenditures of 304 cities with a 1960 population of 50,000 or more and shows that the formulae used for State grants-in-aid, and the State-local system and local sub-systems of government, are dominant determinants of variations in municipal expenditure levels. The empirical evidence of impacts of both State aid and the allocation of functional responsibilities on municipal spending may be used as a guideline for city administrators and municipal finance officers in formulation of fiscal plans.
Public Administration Review © 1967 American Society for Public Administration