Community Development Block Grant Spending Revisited: Patterns of Benefit and Program Institutionalization

This article analyzes Community Development Block Grant (CDBG)spending by local governments between 1988–1992. We addressfour issues examining actual expenditure patterns in a smallcentral city and five satellite cities in Michigan: changesin CDBG expenditure patterns; levels of social targeting; theextent of institutionalization of expenditure patterns; andthe level of privatization of CDBG spending. We conclude thatwhile spending for housing and public works is related to thefiscal health of cities, expenditures for economic developmentand social services are related to political characteristics.Further, local governments exceed federal social targeting guidelines.Finally, while there is little privatization, the communitiesstudied evidence modest levels of program innovation in thelater years of the CDBG program.