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Budget Reflects Inflation Burden on State and Local Aid
President Carter proposes an 8.4 percent rise in federal aid to states and localities to 96.3 billion for the new fiscal year, but inflation exceeding 13 percent erodes purchasing power. Mayors and state groups urge austerity and consolidation while continuing key programs. The plan includes funds for Medicaid, housing, energy assistance, education, and job programs, with a shift toward efficiency and revenue sharing at current levels.
MENTIONED IN THIS ARTICLE
Washington
Carter
U.S. Conference of Mayors
National League of Cities
John Gunther
Mayors’ Conference
Congress
National Conference of State Legislatures
National Governors’ Association