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Poverty and Urban Public Expenditures

Public Policy and Management, The Wharton School, University of Pennsylvania and a Visiting Fellow in the Economics Division, The Brookings Institution, 1775 Massachusetts Avenue, NW, Washington, DC 20036, USA

Cities in the US bear a disproportionate responsibility for the public expenditures that grow out of poverty because they contain disproportionate numbers of the poor and because a substantial part of the public expenditures associated with poverty are financed from local resources. The research reported here estimates how large these poverty-related expenditures are and how the fiscal burdens differ for the populations of cities with high and low poverty rates. A major finding is that the largest poverty-related expenditure burdens come from indirect poverty expenditures-additional expenditures on police, fire, courts, general administrative functions-rather than from primary poverty functions like public welfare, health and hospitals.

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