Alfred Tat-Kei Ho and Daniel Mullins
Indiana University - Purdue University Indianapolis; School of Public and Environmental Affairs
Center for Urban Policy and the Environment
This White Paper compares the fiscal structure of the state and local sectors of Indiana and other states and examines some implications of fiscal centralization. The centralized fiscal structure of Indiana remained stable in the 1970s and the 1980s mainly because of the rapid increase of federal transfers to the state. However, new challenges will face Indiana's state and local governments when the federal government reduces its roles in various areas of public service.