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State Discretion in Welfare Spending: Do Nonprofits Have an Impact?

PAQ, Vol. 29 No. 2, (2005)

Using data compiled for the 50 states, this study examines
state discretion in welfare programs by defining a set of programs that,
in 1995, gave considerable discretion to the states and a set of programs
that did not. It explores the effect of nonprofits on discretionary and
non-discretionary programs. The study finds that the categorization of
programs by degree of discretion is problematic at best, given different
forms and avenues for discretion. It also finds that the nonprofit sector
had its biggest impact on programs with the most mandates from the
federal government.

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