GAO Work under Title II of the Public Works Employment Act of 1976

The Public Works Employment Act of 1976 requires GAO to report to Congress on the impact of Title II payments on the operations of State and local governments and on the national economy. The program is designed to achieve three objectives: maintenance of public employment, maintenance of public service, and countering the recession. It is believed that the cyclical problems brought about by recession and inflation are separate from those associated with regions and governmental units experiencing long-term economic decline. It is, therefore, not efficient to attempt to address both sets of problems with one allocation formula based on a single measure of need. The fact that a jurisdiction may face either cyclical or secular problems (or both) raises questions as to whether the present formula in Title II effectively responds to these problems. Based on preliminary observations, the current program does not provide assistance directly into the economy or provide selectively targeted assistance. Anti-recession funds are not getting into the economy quickly. This slowness is partly because governments could not plan in advance on receiving a specific amount and partly because of complicated budgetary processes.