Federal financial support to rural local government and nonprofit service providers declined during 1981-86. But, local officials deflected crisis conditions by anticipating revenue declines and responding with short-term coping policies. When Federal General Revenue Sharing was terminated in 1986, local governments, who expected the program's end, had formulated contingency plans to offset revenue losses. County and city officials used revenue replacement or spending cuts or a combination of the two strategies to offset funding losses. This report investigates how, declining Federal funding affected six nonmetro counties and six small cities in Ohio. The study examines the following programs: General Revenue Sharing, Community Development Block Grant, Social Services Block Grant, Community Services Block Grant, and the Older Americans Act.