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

Abstract

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.