The following summary is intended to point up some of the more significant data disclosed in the 50 tables constituting Part I of this study. It does not purport to set forth all of the interpretations that might ensue from a critical or evaluative analysis of the data therein contained. But it will serve in this brief form to orient the reader to the general nature of the material presented without need for examining the individual tables in their entirety.

1. During the fiscal year 1960 Federal grant payments were made to Virginia state and/or local governments covering a total of 53 different programs (Tables 1 and 2).

2. Thirty-five of these programs required either the State or its political subdivisions, or both, to supplement the Federal grants with State or locally raised moneys; 12 of the programs were in the nature of outright grants requiring no matching with State or local funds; and six of the programs were in the nature of shared revenues (Tables 1 and 2).

3. Prior to 1910, four Federal grant programs were in existence in Virginia, only one of which required supplemental matching by the Virginia state government (Table 2).

4. By 1939, the number of Federal grant programs operating in Virginia had increased to 28, of which 18 required matching by Virginia state and local governments (Table 2).

5. In the fiscal year 1960, Federal grant-in-aid payments throughout the nation to lesser governmental units totaled more than $7 billion. In 1950, the total was $2.2 billion; in 1940, $645 million (Table 3).

6. The 1960 Federal grant payments to lesser governmental units of $7 billion represented 8.79% of the aggregate Federal budget expenditures of $79.5 billion. These payments represented. 47.5% of all Federal domestic-civilian budget expenditures, excluding payments to veterans and interest on the national debt (Table 3).

7. Federal grant payments received by lesser governmental units throughout the nation represented· 13.2% of all state and local governmental expenditures during the fiscal year 1959. These grants represented 20.0% of the aggregate amount of taxes raised by state and local governments throughout the nation (Table 4).

8. During the fiscal year 1960, Virginia state and local governments received $125.7 million in grants from the Federal government. This was approximately five times as much as was received in 1950 (Table 6).

9. During fiscal year 1959, Federal grants to Virginia governmental units .aggregated $108.9 million. These grants accounted for 13. 7% of all the expenditures of Virginia state and local governments, and were equivalent to 22.1 % of all state and local taxes raised in Virginia (Table 7). (Figures for 1960 local taxes not being available at this time prevented a like comparison for the more recent year.)

10. In addition to the $125.7 million received by Virginia state and local governments in fiscal year 1960, Federal grants in the amount of $25.3 million were paid to non-governmental agencies within the State, making an aggregate of $151.0 million in the combined total of Federal grant funds entering the State (Table 8).

11. Per capita Federal grants to state and local governments in all states during fiscal year 1959 averaged $36.65. Those to Virginia averaged $27.28. These figures and the detailed purposes for which the grants were made appear in Table 28.

12. Of the $125. 7 million in Federal grants received by Virginia and its political subdivisions in fiscal year 1960, $101.0 million was for programs in which the State government and/or its political subdivisions were required to supplement the Federal moneys under specified matching requirements (Table 31).

13. Of the $101.0 million Federal grants to Virginia governmental units in fiscal year 1960 which required matching, the five largest were as follows: Highways $53.3 million; Public Assistance Programs (aged, dependent children, blind, and disabled) $17.2 million; Housing and Home Finance $9.9 million; Public Health Services $6.3 million; and the School Lunch Program $4.1 million. The total grants received for these five activities was $90.7 million, or 89.9% of all grants received which required matching (Table 33).

14. Of the $24.7 million in Federal grants to Virginia state and local governments in 1960 which did not require matching, the five largest were for Maintenance and Operation of Schools (in Federally impacted areas) $13.0 million; School Construction and Survey (in Federally impacted areas) $4.0 million; Unemployment Compensation and Employment Service Administration (not including benefit payments to unemployed persons) $2.8 million; Surplus Commodities Donated, Valued at $1.8 million; and the Special School Milk Program, $1.5 million. These five program totaled $23.1 million, or 93.4% of all grant money which did not require matching (Table 33).

15. For each dollar paid by Virginians in Federal taxes required to finance the total Federal payments to state and local governments in the 48 states and the District of Columbia in fiscal year 1959, state and local governmental units in Virginia received back $1.02 (Table 41).

16. For each dollar paid by Virginians in Federal taxes required to finance total Federal grant payments made to individuals and to other than state or local governmental units in the 48 states and the District of Columbia in fiscal year 1959, 74 cents came back to Virginia (Table 41).

17. When Federal grants to state and local governments and to other than governmental units are combined we find that for each dollar paid by Virginians in Federal taxes required to finance these grants throughout the 48 states and the District of Columbia in fiscal year 1959, 93 cents came back to Virginia (Table 41).

18. When all Federal grants entering each of the 48 states and the District of Columbia are reduced to a per capita basis and ranked in the order from low to high, Virginia is found to occupy 47th position in fiscal year 1959 with an average per capita amount received of $36.29 as compared with an all state average of $52.20 (Tables 39 and 42).

19. Of Virginia's average per capita grant received in 1959 ($36.29), $27.28 represented grants to state and local governmental units and $9.01 represented grants going to individuals and others (Table 39).

20. Based upon a formula by which the total of all Federal taxes was allocated to each of the states (see· Appendix B of Part I) according to the burden borne by each, we find that in the fiscal year 1959, 9.5% of all Federal taxes borne by Virginians was returned to Virginia in the form of Federal grants to Virginia. Of this 9.5%, 7.9% came back to Virginia as grants to state and local governments and 1.6% in grants for other than state or local governmental purposes (Table 48).

21. Per capita Federal grants to state and local governments in 1959, on programs requiring matching, averaged $21.96 as compared with an all state average of $30.92. Ranked in the order from low to high in this comparison Virginia was found to occupy 14th lowest position (Table 50).

SUMMARY COVERING PART II

22. During the fiscal year 1959 Federal grant payments were made to Virginia state or local governments under 50 different programs of which 16 were financed solely by the Federal Government, 20 jointly by the Federal and State governments, 5 by the Federal and local governments and 9 by Federal, State and local governments (Tables A-A-4).

23. Those programs cost a total of $157.3 million of which $110.1 million was furnished by the Federal Government, $33.4 million by the State and $13.8 million by Virginia counties and cities (Table A).

24. For every dollar of Federal grant-in-aid program costs in Virginia, seventy cents was furnished by the Federal Government, twenty-one cents by the State and nine cents by counties and cities.

25. Funds for 11 of the programs furnished solely by the Federal Government which received $22.1 million, were provided by appropriation from the General Fund of the United States; the remaining 5, which were insignificant in amount, were financed from special funds and represented shared revenues (Table A-1).

26. Approximately 60% of the $22.3 million in grants for programs financed solely by the Federal Government was for public schools in areas which have experienced a large increase in Federal military and civilian personnel; $9.4 million for school maintenance and operation and $3.9 million for school construction (Table A-1).

27. Twenty Federal grant-in-aid programs costing $80 million were financed jointly by the Federal Government and the Commonwealth of Virginia in fiscal year 1959; $52.2 million from Federal funds and $27.8 million from State funds (Table A-2).

28. Federal grant-in-aid programs for highways was by far the largest program in total cost, Federal grants, and matching fund requirements.

29. Federal grants of $44.6 million for highway systems, other than the urban system which is Federal-State-local financed, represented 85% of all grants received for Federal-State programs and 40.5% of all grants received by Virginia and its political subdivisions.

30. Funds required to match grants for highway systems other than the urban system totalled $22.4 million or 80% of all State funds used to match Federal-State programs (Table A-2).

31. Virginia spent $100 million for highway purposes in fiscal year 1959 of which $24.6 million was required to match Federal grants.

32. Federal-State programs for which Virginia received more than one million dollars of Federal grants in 1959, in addition to the highway program, are: cooperative agricultural extension work; cooperative vocational education; and vocational rehabilitation (Table A-2).

33. Only 5 programs, for which $11.6 million was spent, were operative in Virginia in fiscal year 1959 as Federal-local financed (Table A-3).

34. Eighty-three per cent of Federal grants for this category of projects was received by 10 cities for urban renewal and low-rent housing programs.

35. Ten programs with a cost of $43.3 million were Federal-State-local financed in fiscal year 1959 as follows : Federal, $28 million ; State, $5.6 million; counties and cities, $9.7 million (Table A-4).

36. The four public assistance programs, consisting of old age assistance, aid to dependent children, aid to permanently and totally disabled and aid to blind, received $16.2 million in Federal grants or 58% of all grants received in this category (Table A-4).

37. The State and its political subdivisions were required to provide $.35 for every dollar of Federal grants received for the public assistance programs, which was divided almost equally between State and local funds.

38. Virginia counties and cities participated in 25 Federal grant-in-aid programs during the fiscal year 1959 which cost $76.8 million or $19.37 per capita for which $56.1 million of Federal grants and $6.8 million of State grants were received (Table C).

39. The 25 grant programs affecting Virginia counties and cities consisted of 8 non-matching programs, 2 Federal-State programs, 6 Federal-local programs and 9 Federal-State-local programs.

40. Nine of the programs affecting political subdivisions of Virginia were operative in all, or substantially all counties and cities; 10 were active in from 6 to 46 counties and cities; 4 in from 1 to 30 counties; and 2 in 3 and 10 cities respectively.

41. Programs in which the Federal, State and local governments participated accounted for 56.2% of total program costs and 49.6% of Federal grants; which together with non-matching programs accounted for 84.1 % of Federal grants received in fiscal year 1959.

42. The 4 public assistance programs had both the highest cost ($21.8 million) and largest Federal grant ($16.2 million) of the programs affecting localities (Table C).

43. Other significant Federal grants to locality programs were public schools, $13.3 million; urban renewal and low-rent housing, $6.2 million; donation of agricultural commodities, $4.3 million; and urban highway system $4 million (Table C).

44. Federal grants totalled slightly more for counties than for cities ($27.8 million vs. $25.9 million) while total program costs were somewhat less ($35.3 million vs. $37.4 million).

45. Per capita costs ($13.56 in grants and $18.35 in total costs) showed a wide variation between counties and cities being $11.04 in grants and $14.01 for total costs for counties as compared to $17.96 and $25.94 respectively for cities.

46. Federal grants were 31.8% of local levies. assessed on property for all counties and cities; 30.3% for counties and 33.7% for cities.

47. Counties and cities which received in excess of one million dollars in Federal grants in fiscal year 1959 in order of such were: counties, Fairfax $5.4 million, Arlington $2. 7 million, Princess Anne $1.6 million, Norfolk $1.2 million; and cities, Norfolk $9.7 million, Richmond $3.9 million, Newport News $2 million, Portsmouth $1.8 million, Roanoke $1.4 million, Alexandria $1 million and Lynchburg $1 million.

48. James City with $17,918 in Federal grants was the lowest county in amount of grants received and Colonial Heights with $36,538 was the lowest city.

49. Counties and cities which received Federal grants in excess of $20 per capita (a better basis than dollar amounts of determining the proportionate grants received) were: counties, Dickenson $24.55, Norfolk $23.82, Wise $21.24, and Princess Anne $20.38; and cities, Norfolk $31.71, Williamsburg $29.63, Falls Church $23.37 and Virginia Beach $21.80.

50. Counties which received the lowest per capita grants were: James City $1.55, Amherst $2.94, Chesterfield $3.05, Lunenburg $3.37 and Henrico $3.37; and cities, Colonial Heights $3.81, Covington $3.57, Winchester $3.97, Waynesboro $5.06, and Charlottesville $4.60.

51. In two Virginia counties Federal grants exceeded the total or local levies assessed on property; Lee 108.1%, and Buchanan 106.5%.

52. Other counties in which grants were more than 75% of local levies in fiscal year 1959 are: Dickenson 97.6%; Princess Anne 88.3%; and Wise 79.4%.

53. Federal grants were more than 50% of local levies in the following cities: Norfolk 73.7%; Portsmouth 61.8% and Williamsburg 51.1%.

54. Grants were less than 10% of local levies in 3 counties and 5 cities as follows: James City county 4.6%; Henrico County 7.2%; Chesterfield County 7.3%; Covington 7.9%; Colonial Heights 8.3%; Charlottesville 8.6%; Waynesboro 9.1%; and Winchester 9.1%.