Local Governments Give Taxpayers The Most For Their Money And Spend Tax Dollars Most Wisely

Americans believe, by wide margins, that local governments give them the most for their tax dollars and spend their tax dollars most wisely. In the 1993 national poll conducted by the U.S. Advisory Commission on Intergovernmental Relations (ACIR), 38% of Americans picked local government as giving them the most for their money, compared to 23% holding this view of the federal government and 20% for state government.

Local government was picked by 43% of Americans as spending their tax dollars most wisely, compared to 19% citing state government and 11% the federal government.

This year, Americans gave the most positive response to local governments and the most negative to the federal government ever recorded in 20 annual ACIR polls. In fact, as recently as 1989, 33% of Americans believed they got the most for their money from the federal government, while only 29% picked local government. State governments have averaged around 22% over the years.

"This acknowledgment by the public that local governments use their tax dollars more responsibly than the federal government," said Robert M. Isaac, Mayor of Colorado Springs and a member of ACIR, "reflects a growing awareness of the willingness and ability of local governments to set priorities, balance budgets, and yet deliver services. Hopefully, members of Congress will take note of these results and will consider restraining their desire to continue micromanaging local governments."

There were marked differences in responses from different groups. Among homeowners, 19% picked the federal government as giving them the most for their money, compared to 34% of renters. Similarly, only 9% of homeowners, compared to 15% of renters, said that the federal government spends their tax dollars most wisely. Fully 48% of homeowners felt that local government spends their tax dollars most wisely, compared to 30% of renters. Similarly, 43% of homeowners, compared to 24% of renters, said they get the most for their money from local government.

Among black Americans, 37% felt they get the most for their money from the federal government, compared to 21% of whites. Among whites, 41% said they get the most for their money from local government, compared to 20% of blacks. Similarly, 22% of blacks, compared to 9% of whites, said that the federal government spends their tax dollars most wisely. On this question, 47% of whites and 18% of blacks picked local government.

Compared to persons with less education, college graduates less often picked the federal government (16%) and more often picked local government (50%) as the government that gives them the most for their money. Likewise, only 4% of college graduates said that the federal government spends their tax dollars most wisely, compared to 55% who picked local government. More higher income persons, compared to lower income persons, favored local government over the federal government on both questions.

Regionally, local government received the best rankings in the West, where 43% of citizens chose local government as giving them the most for their money and 53% as spending their tax dollars most wisely. The federal government got the lowest ratings in the Midwest — 18% on most for the money and 7% on spending tax dollars most wisely.

On the "most for your money" question, local government was picked by 40% of Americans living in non-metropolitan areas, 38% in suburban areas, and 34% in central cities. The results for the federal government were 17%, 25%, and 28%, respectively. Similarly, only 8% of non-metropolitan residents said that the federal government spends their tax dollars most wisely, compared to 10% of suburban residents and 14% of central-city residents. In turn, local government was picked as spending tax dollars most wisely by 46% of persons living in non-metropolitan areas, 45% in suburban areas, and 37% in central cities.

"There are several disturbing features of these results," said John Kincaid, ACIR's Executive Director. "The first is the serious deterioration in public views of federal spending. Second, many people could not or would not answer these questions: 27% could not say which government spends their tax dollars wisely, and 20% which government gives them the most for their

October 1993 / Illinois Municipal Review / Page 25

money. Apparently, quite a number of people don't believe that any of their governments spend especially wisely or give them enough for their tax dollars.

"Third, the results suggest the emergence of different constituencies for federal and local spending. For the most part, whites, homeowners, college graduates, upper income people, and persons living outside of central cities have more positive views of local spending. In contrast, those most likely to have more positive views of federal spending are blacks, renters, lower income people, non-college graduates, and central-city residents."

The poll was conducted for ACIR by the Gallup Organization from June 25 through July 5, 1993. The results are based on personal, in-home interviews with 1,029 adults aged 18 and older. The margin of error is plus or minus 3-4 percentage points.

Detailed results and analysis of the poll will be published in late September in Changing Public Attitudes on Governments and Taxes: 1993 (U.S. Advisory Commission on Intergovernmental Relations, 800 K Street, NW, Suite 450 South Building, Washington, DC 20575, Report S-22). $15 per copy.

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The U.S. Advisory Commission on Intergovernmental Relations is an independent, bipartisan federal commission established by the Congress in 1959 to monitor and evaluate developments in the American federal system and to recommend improvements in intergovernmental cooperation and allocations of responsibilities. The Commission has 26 members — 3 private citizens, 6 members of Congress, 3 federal executive branch officials, 4 governors, 3 state legislators, 4 mayors, and 3 elected county officials. •

Page 26 / Illinois Municipal Review / October 1993