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In response to a congressional request, GAO provided information on: (1) the magnitude of existing disparities in the revenue-raising ability of local governments serving residents of high- and low-income communities; (2) the extent to which the General Revenue Sharing program has served to offset the revenue-raising disadvantage of local governments serving low-income communities; and (3) how more targeted formulas could lower the cost of reducing revenue-raising disparities between high- and low-income communities.

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