State fiscal transfers and grants also affect local
budgets. A major source of revenue for local governments
has been state aid, and the timing and amount
of this funding affects budgets. Grants-in-aid are
awarded to local governments from state and federal
programs. The direct conditions of grants may impose
additional financial burdens in the form of requiring
services, matching funds, or establishing additional
procedures. Thus, in addition to general mandates,
specific grants of aid have strings attached that serve
to supervise local government practices.