Revenue Sharing Reform Act

Revenue Sharing Reform Act - Provides that no unit of local government receiving funds under the State and Local Fiscal Assistance Act may spend more than 45 percent of such funds in any one of the priority expenditure categories. Sets forth such priority expenditure categories which include ordinary and necessary maintenance and operating expenses for public safety, environmental protection, public transportation, health, recreation, libraries, social services for the poor and aged, and financial administration.

Authorizes the Secretary of the Treasury to reserve such percentage of the total entitlement payment for any entitlement period, not to exceed 10 percent, as he deems necessary to insure that there will be sufficient funds available to pay adjustments due after the final allocation of funds. Provides that the reserved funds shall be allocated to those units of local government, excluding counties, wherein the number of persons at or below the low-income threshold exceed 15 percent.

Sets forth local allocation procedures which require a unit of local government to establish procedures for the allocation of funds received in order to qualify for any payment under this Act. Requires that such procedures include citizen participation in the decision making process with regard to allocated funds and provide for the convening of a series of public hearings.

Directs that no person shall be excluded from participation in, or be denied the benefits of, any program or activity of a State government or unit of local government which receives funds made available under this Act, on account of race, color, religion, sex, or national origin.

Authorizes appropriations of sums necessary to carry out the purposes of this Act.