COMPARABLE WORTH IN STATE GOVERNMENT; TRENDS AND ISSUES

Comparable worth continues to be a controversial issue both in the private and public sector, but particularly in state government. Between 1981 and 1985, a t least 38 states entertained the comparable worth issue at some level. Based on three surveys conducted in 1984 and 1985, this study found that the extent o f states' comparable worth activities, when measured by the introduction of comparable worth bills, tends to vary depending upon the states' geographical location, party line-ups in the legislatures, unionization of state employees, and the states' votes on the Equal Rights Amendment. The study also identifies a few issues in implementing comparable worth in state government–such as job evaluation, and costs of comparable worth.     

Coping With the Loss of General Revenue Sharing in Ohio

The authors examine the impact of the loss of general revenue sharing on Ohio local governments. A study of seven large cities and surrounding counties found that the loss of the federal funds did not trigger any fiscal crises: it came as no surprise. Localities engaged in a number of coping strategies including cuts in spending and replacement of lost federal funds from local surpluses, increased debt, and some tax increases.     

Intergovernmental Relations in the Reagan Era

This article reviews federal Reagan-era policies that affected grant-in-aid programs to state and local governments. We find the most important developments in federal aid policies of the Reagan years are twofold—the relative decline in the national government's involvement in domestic affairs and the concomitant rise in the role of the states. The administration achieved these effects by devolving federal authority to states and by reducing grant spending. Reagan's biggest cuts in federal aid outlays came in 1981; in subsequent years, total grant outlays began to rebound, increasing in nominal dollars to levels above those in the Carter years, though still below the high-water mark reached in 1978 in real terms. Medicaid, the largest federal aid program, accounts for most of the overall growth, masking cuts in operating and capital grant programs. Reagan's devolutionary and retrenchment policies are one of several factors we see as contributing to the rising role of states in domestic affairs, a trend we think is likely to continue in the next administration.     

Interaction between federal taxation and horizontal tax competition: theory and evidence from Canada

The aim of this paper is to determine to what extent and how federal taxes affect local tax decisions. Testing the impact of an increase in the federal tax on horizontal tax competition with Canada-US data for 1984–1994, it finds evidence that an increase in federal tax makes horizontal tax reactions weaker. This is because an increase in federal tax raises the cost, in terms of utility of income, of a unit increase in the province’s tax rate. On the methodological side, it is possible to estimate the impact of the federal tax on the fiscal policy of the province without neglecting control for year effects, which cannot be used in the empirical literature because they are perfectly collinear with the federal tax.     

Public Opinion and American Federalism: Perspectives on Taxes, Spending, and Trust--An ACIR Update

The research reported here updates for 1999 some public opiniondata previously provided by the U. S. Advisory Commission onIntergovernmental Relations. The 1999 survey results indicatea general continuation of opinion trends established by thelate 1970s to the mid-1980s. Local government is viewed as givingcitizens the most for their money, followed by state governmentand the federal government. Americans still regard the federalincome tax as the worst tax, followed by the local propertytax. Likewise, Americans express the most trust and confidencein local government and the least trust and confidence in thefederal government, although confidence in all governments increasedover comparable data for 1992. Race and party identificationand, in one case, region are significant factors differentiatingopinions about the federal, state, and local governments andtheir taxes.     

Federalism and Community in the American Context

The rise of modern federalism was shaped significantly by desiresto protect smaller, diverse communities against forces of imperialcentralization. The protection of community liberty was seenas a prerequisite for protecting individual liberty as well.As such, a federal polity was seen to be a limited self-governingcommunity of entrenched self-governing constituent communities.The rise of the idea of national community and the ideologyof the cosmopolitan nationstate, however, eroded the legitimacyand authority of local self-government and, thereby, federalism.Constituent communities also came to be seen as oppressive,especially of individual rights. Yet, desires for local self-governmenthave maintained a strong hold on public opinion, and recentextensions of individual rights, particularly voting rights,coupled with policy weaknesses of the national government andmodernization of state governments appear to be renewing possibilitiesfor revitalizing federalism as a self-governing community ofself-governing communities.     

McCloskey versus McIntyre: Implications of Contested Elections in a Federal Democracy

The 1984 election in the Eighth Congressional District of Indianaproduced an unclear result. Election night totals gave the victoryto the Democratic incumbent Francis McCloskey. Subsequent recountsby state and local officials gave the victory to RepublicanRichard McIntyre. A further recount by the U.S. House of Representativesreturned the victory to McCloskey by a four-vote margin. Partisanshipwas important in all phases of deciding the outcome of the election,in part, because unclear rules and inconsistent counting procedurescreated ample opportunities for partisan interpretations ofelectoral rules. This contested election raised questions aboutthe legitimacy of the outcomes produced by various countingrules and about the problems of assuring majority rule wherecounting rules are inconsistent. The election also raised questionsabout the propriety of U.S. House intervention into local electoraladministration and about the roles of local, state, and federalofficials in deciding the outcome of a federal contested election.     

The Personal Vote in Australian Federal Elections

Although there has been little reliable evidence to date, the 'personal vote' for local Members of Parliament in Australian elections is generally thought to be negligible by political scientists. This article analyses new data from the 1987 Australian National Social Science Survey which demonstrate that the personal vote is a significant factor in federal lower house elections even when numerous other variables known to influence voting behaviour are controlled for. The data allow a calculation of the potential electoral effect of the personal vote which shows that it could be worth at least ³ per cent in some circumstances. The analysis tests for varying levels of personal voting in safe and marginal seats, Labor and coalition seats, urban and rural seats and according to the length of time the incumbent has been in office. Lastly, the electoral effects of the social background of local members are examined.     

The National Interest and the Federal Role in Education

The current discussion of national goals for education createsa predicament for the federal government. Political pressureis mounting for an increased federal role in education, butits ability to play this role is limited both by its own budgetand policy constraints and by the increase in education policyinitiatives of state and local government over the past tenyears. This predicament is not amenable to solution by resortto traditional doctrinal or functional views of federalism.It requires the formulation of a new federal strategy. Amongthe initiatives the federal government might take are raisingpublic discourse about educational performance, sponsoring collaborativeefforts to reduce the incoherence of current educational reformsat the high school level, and increased use of federal categoricalprograms as development projects for new approaches to teachingand learning. These initiatives have the advantage of beingconsistent with current federal budget and policy constraints,drawing upon traditional federal functions, and complementingstate and local reform efforts.     

URBAN DEVELOPMENT ACTION GRANTS REVISITED

The Urban Development Block Grant (UDAG) program evolved from preceding programs in aid of distressed communities, including permitting local officials and private businesses wide berth in making deals for UDAG utilization and actively recruiting small cities to participate. This case study examines the impact these evolutionary departures had in two small cities—Follansbee, WV, and Farrell, PA—which received multi-million dollar UDAGs for steel projects in 1984 and 1988, respectively. Although the two cities had much in common economically, their use of UDAG funds was quite dissimilar. Outcomes were vastly disparate, raising questions about the ability of small communities, particulary those dominated by one declining company, to make appropriate decisions regarding program participation, as well as larger issues of federal intervention.     

Federal Intervention in the Municipal Bond Market: The Effectiveness of the Build America Bond Program and Its Implications on Federal and Subnational Budgeting

The American Recovery and Reinvestment Act of 2009 (ARRA) included several new federal programs intended ostensibly to “unfreeze” the credit markets as a result of the global financial crisis. One such program, the Build America Bond (BAB) program, aimed to lower the borrowing costs for state and local governments by increasing their access to capital and providing a more generous federal subsidy than the traditional indirect tax exemption subsidy. BABs are taxable bonds sold by subnational governments, which carry a 35 percent direct federal payment subsidy to the borrower. In creating this program, the federal government hoped that the large direct federal subsidy along with greater potential investor interest in taxable securities would result in lower borrowing costs for state and local governments vis‐à‐vis traditional tax‐exempt bonds. This research study examines the relative effectiveness of the BAB program and details the various quantitative and qualitative implications on federal and subnational budgeting by moving from an indirect to a direct federal subsidy approach in facilitating state and local government capital raising.     

THE SURFACE MINING CONTROL AND RECLAMATION ACT OF 1977 IN OKLAHOMA: STATE AND FEDERAL COHABITATION

The enforcement of the SMCRA in Oklahoma has led to improvements and transformations in the coal industry, state and federal regulatory agencies and the public. The catalyst for these changes was the federal takeover of inspection and enforcement of the SMCRA in Oklahoma with the state carrying on all other mining regulatory activities from 1984 through 1987. This pattern of cohabitation differed from that in Tennessee where OSM took over all enforcement of the SMCRA or that in states that enter into cooperative agreements to provide state regulation of coal mining on federal lands within the state. Cohabitation in Oklahoma produced a new, more positive attitude toward cooperative federalism by both federal and state regulatory bodies that might serve as a model for other states with OSM maintaining state agency support for policy objectives while allowing the state reasonable decisional discretion.     

Budgetary Consequences of Selling Federal Power Assets

This article reports on an analysis of the long-term budgetary effects of selling federal power programs at market value. The analysis looks at changes in future budgetary receipts and costs for power operations and at changes in future federal taxes as a result of new ownership. Under current rate-setting policy, federal agencies must generate a future operating surplus (and hence, budgetary income) worth about $46 billion in today's dollars to repay past capital investments. With optimistic assumptions about rising power rates, market values for all federal power assets (including the power-generation assets of the Bureau of Reclamation and the Corps of Engineers) could be as high as $62 billion. In that case, their sale would produce long-term budgetary savings of about $16 billion, in today's dollars. The analysis also notes that budgetary savings are not a measure of the gains in economic efficiency from privatization. Such considerations as efficiency or fairness to particular groups will be important in any debate about the future of federal power programs.     

The Voting Rights Act and Hispanic Political Representation in the Southwest

Extensions of the Voting Rights Act (VRA) in 1970 and 1975 expandedcoverage to the southwestern United States and included provisionsfor non-English speaking minorities. In the South, the VRA hadthe effect of increasing the number of black voters and electedofficials. In this article, we examine the changes in numbersof Mexican American and other Hispanic elected officials inthe five southwestern states for federal, state, and local officesduring the eleven-year period of 1973–1984. Gains occurredduring the period, although they were uneven across the statesand for different types of offices. The VRA served to removethe more blatant obstacles to electoral participation, but thelaw's fullest impact has also required effective political mobilizationby Hispanic organizations to increase voter registration andproduce a conducive environment for Hispanics to seek and winelective positions.     

The Single Audit Act of 1984: A Survey of Practitioners

The Single Audit Act of 1984 (SAA) attempted to strengthen Congress's control over disbursement and monitoring of federal funds intended for governmental and nonprofit entities. The SAA's primary agent of federal control is the auditor. This article examines the historical development of the SAA and discusses the results of a survey of auditors and accountants who are members of the Intergovernmental Auditing Forum. The survey addresses auditors' conception of the SAA and the auditor's role in achieving better control of federal disbursements.     

Potential Effects of Federal Policy Devolution on Local Housing Expenditures

As 1994 came to a close, the future of the U.S. Department ofHousing and Urban Development (HUD) and the continued role ofthe federal government in low-income housing assistance washighly uncertain. The agency was targeted for elimination bycongressional leaders, its budget was the object of recissionattempts, and agency officials proposed a radical reinventionto alter housing programs and the delivery system for federalhousing assistance. Given the likelihood of either more budgetcuts (resulting in greater reliance on nonfederal sources offunds) or the devolution of policy responsibility through blockgrants, there is heightened concern for how local governmentsallocate housing funds. This article examines housing expenditurestrategies of large U.S. cities. The analysis describes factorsrelated to a greater use of nonfederal housing revenues by cities,and examines the impact of funding source on program and beneficiarytargeting. The data suggest that reduced federal spending ora shift to block grants is likely to result in more housingbenefits directed to moderate-income households and to homeownersand homebuyers.     

INITIATING A COMPARABLE WORTH WAGE POLICY IN MINNESOTA: NOTES FROM THE FIELD

As of January 1986, Minnesota has progressed farther than any other state in implementing acomparable worth (pay equity) wage policy, with two laws requiring pay equity, one covering state employees and a second covering employees of all types of jurisdictions. This article presents a discussion of Minnesota's importance as a case study, a definition of comparable worth, the history and politics o f pay equity policy in Minnesota, and an analysis of Minnesota's role in a national campaign to change wage policy. The article shows that implementation has been more straight-forward in state government than for the 1,583 local jurisdictions, many of which had less-developed personnel systems than did the state. The passage of the local pay equity law ushered in a new stage in this policy, where the issue Is no longer controlled by a small number of legislators, bureaucrats, and lobbyists.     

The Federal Formula and the Collapse of the USSR

A plan for the most ambitious political reform in Soviet historywas approved by the USSR's parliament in late 1988. As the reformunfolded, a key component came to be what Mikhail S. Gorbachevcalled "a renewed federal structure. "Reform proponents arguedthat only a renewed federalism could provide for the continuedintegrity of the Soviet state while assuring greater responsivenessto local demands. However, the attempt to breathe life intothe USSR's pseudo-federal structure unleashed long-suppressednationalist, territorial, and localist sentiments. Beginningin 1990, "refederalization" passed from mainly rhetorical discussionto a plan for a more loosely organized federation under theauspices of a Union Treaty. Following the attempted coup d'étatby Kremlin hard-liners in August 1991, pressures for decentralizationled, in the closing weeks of 1991, to the complete abandonmentof the "Great Soviet experiment." With the demise of the USSR,the plan for federal redesign was superseded by the rapid emergenceof independent states.     

The Federal, and the State and Local Roles in Government Expenditures

This article compares government expenditures by functional category of the federal government relative to state and local governments and the changes in their respective roles since 1955. The article includes a review of the federal role relative to the state and local role on a function-by-function basis for these three and a half decades. This analysis demonstrates considerable stability in the federal sector and the state and local sector, but also the capacity for change.     

Two Cheers for Paperwork: The Value and Burden of Federal Reporting

In principle, reporting by state and local governments to thefederal government is essential to the design and implementationof national policy. In practice, reporting often engenders resentmentof federal intrusion and is often dismissed as a waste of stateand local resources. Is reporting useless? Does it strengthenthe federal government at the expense of state and local governments?We asked federal, state, local, and site officials about thevalue and burden of five specific reporting systems in elementaryand secondary education. Common assumptions about reportingdid not correspond to respondent reactions. Both value and burdencascade through the intergovernmental system, reaching policymakersin all governments. Although critics seldom discriminate betweentypes of reporting, we found that reporting designed to improvecompliance with federal standards evoked different judgmentsof value and burden than reporting designed for assistance.These results suggest some new approaches to federal policygoverning the collection of information and to the design ofindividual reporting systems.