Federalism and the Strong-State/Weak-State Conundrum: Canadian Economic Policymaking in Comparative Perspective

The areal dispersion of power and constitutional division ofresponsibilities in federal arrangements are generally feltto limit the ability of federal systems to improve economicperformance. Examining Canada within a comparative framework,we assess "the federations as weak states" hypothesis as wellas the utility of the "strong-state/weak-state" model itself.Although some aspects of the Canadian federal system—namelythe combination of federal with parliamentary traditions andthe resulting adverse policy styles—inhibit the adoptionof effective economic adjustment policies, these features arenot necessarily found in other federal arrangements. Comparisonswith Switzerland, Austria, and West Germany suggest that, undercertain circumstances, federal power sharing may be conduciveto bringing about broad agreement on both goals and policiesamong national, regional, and local governments and major economicactors.     

Public Opinion on U.S. Federal and Intergovernmental Issues in 2006: Continuity and Change

A 2006 trend survey found that Americans most often select localgovernment as giving them the most for their money, followedby the federal and state governments. African Americans aremost supportive of the federal government as giving them themost for their money; Hispanics are most supportive of localgovernment. As in many previous years, the local property taxwas viewed as the worst tax, followed by the federal incometax, state sales tax, and state income tax. Americans displayedreduced trust and confidence in the federal government; however,trust in all three spheres of government—federal, state,and local—dropped between 2004 and 2006, possibly reflectiveof the poor response of all governments to Hurricane Katrina.Analysis of surveys since 1972 reveals that there has been along-term decline in the public's support for the federal governmentand a corresponding increase in support of state and especiallylocal governments.     

U.S. Prosecution of State and Local Officials for Political Corruption: Is the Bureaucracy Out of Control in a High-Stakes Operation Involving the Constitutional System?

Perhaps the most serious and disabling federal intrusion ofrecent years into the independent political status of stateand local governments has been actions by the U.S. governmentto prosecute elected state and local officials and their closeassociates for local political corruption. In 1986 U.S. Attorneysin New York, Boston, District of Columbia, Pennsylvania, andelsewhere pursued such investigations and prosecutions withunusual vigor. These activities have a recent genesis—since1974—and they are basically unauthorized, in importantrespects out of control, and overall questionable in terms ofthe federal nature of our constitutional system. These findingsare supported by data from the Public Integrity Section of theCriminal Division and the Office for U.S. Attorneys, both inthe Department of Justice, and by opinions of U.S. courts, legislativehistories of bills and statutes, and sources on criminal lawand political corruption.     

The Fiscal Consequences of Changing Federal and State Revenue Policies: The Case of Small Oregon Cities

This article examines the fiscal consequences for twelve, smallOregon cities of recent changes in federal and state intergovernmentalrevenue policies. Many small local governments have experienceddouble revenue reverses in recent years—reductions inown-source revenues because of economic decline as well as decreasesin intergovernmental revenues, especially federal aid. The twelvesmall cities are compared with all 241 cities in Oregon andthe 136 Oregon cities in the 1,000 to 49,999 population range.Using aggregate and interview data, a major finding is thatalthough stabilization and/or decline in federal-state revenuesharing and entitlement program funds have accentuated difficultlocal revenue situations, economic decline has been the moreimportant contributor to the fiscal stress of the twelve smallmunicipalities. Most of the twelve cities had limited fiscalcapacity—as indicated by low assessed property valuations—makingit difficult to produce sufficient revenue to meet basic publicservice needs. These cities were also unable to get citizenapproval of increases in property taxes.     

HAVA and the States

Two major events—the 2000 vote counting crisis in Floridaand passage of the Help America Vote Act (HAVA) in October 2002—spawneda wave of federal, state, and local policy innovation and policyimplementation. The major effect of the Florida crisis was anationwide effort to analyze information on elections and todebate policy solutions. Subsequently, HAVA, the first majorelection law in U.S. history that includes federal funds forelection equipment and operations, had a more substantial effecton policy innovation and implementation. Both before and afterHAVA, election law changes have been affected by partisan considerations,policy analyses, and entrepreneurial leadership. Thus far, HAVAhas positively affected election administration, though administrativepractices and their effectiveness vary across and within thestates.     

Alternate Routes to Autonomy in Federal and Quasi-Federal Systems

In late twentieth-century federal systems, provinces and stateshave sought greater autonomy because of economic neglect, distinctivenessof society and political culture, administrative inefficiency,and local efficacy. This article examines both structural andpolitical avenues to autonomy in six stable democratic federalsystems. In general, structural attempts to increase provincialor state autonomy in federal systems are found wanting. Becauseamendments to federal constitutions require extraordinary majoritysupport, they tend to centralize power. Referenda may be usedto retard centralization only under exceptional circumstances.Secession has been a successful strategy in only a small numberof cases. Political strategies, such as judicial interpretationof the constitution and conferencing, have been somewhat moreeffective; but political system characteristics impose restrictionson their use. Two types of decentralization that apply universally—devolutionand deconcentration—appear to enhance powers of subnationalunits. However, they require significant facilitating conditionson the national plane. The article calls into question the practicalvalue of structural arrangements, suggesting that alternatepolitical strategies sometimes produce more decentralized effects.     

Many Borders to Cross: Is Immigration the Exclusive Responsibility of the Federal Government?

In a period when many policymakers in Washington are attemptingto push an unprecedented number of programs and functions backto state and local jurisdictions, immigration stands out asa policy area that is universally regarded as the exclusivedomain of the federal government. This article challenges thispervasive understanding of policies toward legal as well asillegal immigrants. It does so by examining the historical evolutionof state-federal responsibilities in this area and then by scrutinizingcontemporary evidence of state and local efforts to influenceimmigration flows. Finally, the unique political dynamics ofimmigration will be explored to explain why—in the faceof so much evidence to the contrary—this one-sided viewof state-federal responsibilities persists in this increasinglyvolatile policy domain.     

Federal Intervention in the Management of Groundwater Resources: Past Efforts and Future Prospects

The role of the federal government in groundwater regulationis likely to increase over the next few decades. A combinationof events—including recent federal court decisions, pastfederal intervention in state groundwater utilization, the publicpronouncements by a variety of federal actors, and increasingconcern over the inability of states to control overdrafting—allsuggest that the federal role in groundwater management maybe increasing. These events are examined here, and it is arguedthat, without change in state groundwater management practicesto mitigate the negative effects of state competition for groundwater,federal intervention in groundwater management seems likely.     

Rational and Pluralistic Approaches to HAVA Implementation: The Cases of Georgia and California

The Help America Vote Act (HAVA) has created a new dynamic forthe oversight and implementation of federal elections, requiringstates to assume greater control of election processes vis-à-vistheir local governments than was previously the case in moststates. We consider how HAVA has changed the relationship betweenstates and localities, especially through the HAVA planningprocess. We examine two approaches that states have used inHAVA planning—a rational approach and a pluralistic approach—andhow each can shape the power relationship between states andlocalities. We then present case studies from Georgia and Californiato illustrate how these two approaches have functioned in practice.     

The Federal Role in State Fiscal Stress

This article examines the extent to which the federal government'spolicies were responsible for the fiscal stress experiencedby most state governments in the early 1990s. Federal policieshave contributed considerably to recent state fiscal stress,particularly through the Medicaid program—the fastestgrowing part of state budgets—and the recession, whichdepressed revenue and increased welfare and Medicaid spending.Federal aid reductions have not been an important source ofrecent state fiscal stress. The real value of per capita federalaid other than for welfare programs fell considerably in the1980s, but the reductions were much greater for local governmentsthan for states. The largest reductions were in the early 1980s.Federal policies have affected state finances in several otherways—through tax policy, unfunded mandates, and the federalfailure to cope effectively with problems like health and poverty.Federal court rulings have also caused budget problems (as havestate court decisions). In some respects, state fiscal problemsare not a federal responsibility. Rising school enrollments,new corrections policies, and inelastic tax systems have createdfiscal stress for many states. Excessive state spending in the1980s has contributed to recent fiscal problems in some states,but not generally.     

American Federalism on the Horizon

The American federal system took some unpredictable twists andturns during the twentieth century. As a new century—indeed,a new millennium—begins, which trends are likely to continue,which are likely to dissipate? What issues pose the greatestchallenges for the intergovernmental system? This article plotsseveral possible paths along which the federal system couldtravel over the next decade. The fundamental issue in Americanfederalism is a perennial one: How will the balance of powerbetween the federal government and the states change? Otherkey issues facing American federalism are identified and theirlikely impacts examined. The article concludes with an assessmentthat the next decade in American federalism may be surprisinglyrobust.     

The Consequences of Shifting Control: Federal and State Distribution of Small Cities CDBG Funds in Four Southern States

Following the shift of the Small Cities Community DevelopmentBlock Grant program in 1982 from federal to state control, foursouthern states—Alabama, Georgia, Louisiana, and NorthCarolina—adopted policies intended to reduce, if not eliminate,the federal emphasis on housing rehabilitation and other activitiesthat benefit lower income groups. These states now emphasizepublic works projects, which benefit a broader spectrum of thepopulation, as well as policies designed to spread funds broadlyacross communities. As a result, the share of funds going tosmaller communities has increased substantially. States alsoappear to be allocating fewer funds to poorer communities thandid federal officials, although to date the difference is notsubstantial.     

Racial and gender income inequality in the American states

The purpose of this article is to uncover the political factors associated with greater income parity for black men, black women, and white women relative to white men in the American states. Variables are constructed for federal, state, and local government employment, state electoral competition, federal procurement, black state legislators, and women state legislators along with a number of socioeconomic factors. It is discovered that the political variables carry less weight than the socioeconomic ones. These findings raise questions about the future prospects for increased earnings parity for minorities and women as previous federal efforts to eliminate racial and gender discrimination appear to have been weakened and state political factors have little relationship with greater income equality.     

Consociational Cradle of Federalism

Except for the time of its painful—consociational—birth,federalism in its theory and practice does not entail a rejectionof a majoritarian mode of decisionmaking. Differently at differenttimes on different issues decisional modes will most probablyvary along a continuum from consociationalism to majority rule.When the governing elites adopt consociational practices, withregard to some issues, such practices result from factors otherthan the federal nature of the system. Most of these factorswould lead to consociationalism in a unitary system as well.In contrast, consociationalism is bound to be the dominant decisionalmode in loose confederations, including those whose componentunits do not practice consociational or majoritarian democracyeither within their own confines or at the confederal summit.     

Advisory Commission on Intergovernmental Relations in 1996: The End of an Era

On 30 September 1996 the U.S. Advisory Commission on IntergovernmentalRelations (ACIR) closed its doors, ending thirty-seven yearsof advocacy for federalism and intergovernmental relations.A majority of members in the Congress felt that A CIR had becomeirrelevant to the issues facing them and agreed that littlewould be lost by terminating the commission. The Clinton administration,although supportive until near the end, withdrew its'supportout of displeasure with the commission's handling of the unfundedfederal mandates issue. The national associations representingstate and local governments were ambivalent. ACIR was no longerlooked to for solutions to the nation's intergovernmental relationsproblems. With the exit of ACIR, the federal government's lastresource for addressing broad intergovernmental issues—beyondthe confines of individual programs—is gone.     

State Sovereignty and the Eleventh Amendment in the U.S. Supreme Court: The 1988 Term

During its 1988 term, the U.S. Supreme Court addressed two importantaspects of the Eleventh Amendment, which generally protectsstates from being sued in federal courts. First, the Court heldthat the Congress has power to abrogate states' immunity fromsuit—to subject states to suits in federal courts fordamages—under Congress' expansive commerce-clause power.Second, the Court made clear that such abrogation would be foundonly where the text of the statute itself, as distinct fromits legislative history, clearly and specifically so provided.This article describes these decisions, and analyzes some oftheir implications for judicial federalism.     

The Farm Crisis and the Future of Rural Local Governments

America's farmers are facing difficult financial times, andtheir problems are spilling over to rural local governments.Declining farm incomes and farm property values erode the localtax base. At the same time, demand for publicly provided servicesmay increase, creating a squeeze between falling revenues andhigher costs. This article documents the impact the farm crisishas had on local government tax bases in eight multi-countyregions in the Midwest. The impacts found, while severe, wouldgenerally be manageable in the absence of other shocks. However,when changes in the intergovernmental aid system–suchas the elimination of General Revenue Sharing and other cutsin federal aid—are factored in, local governments in agriculturallydependent areas can encounter financial stress. Higher taxesand lower service levels may permanently change the qualityof life in rural America.     

Small City Autonomy in the Federal System: A Study of Local Constraint and Opportunity in California

How severe have been the restrictions on the autonomy of localgovernments, as state and federal mandates and grant programsproliferated in the 1970s? This study of mandate and grant impactsin nine, small California cities suggests that local controlhas not been reduced as much as the recent literature of federalismargues. Municipal officials in these communities perceived arange of effects according to program areas. Clean water standardswere negatively viewed, while state planning mandates actuallyserved to further local goals. Most of the cities did not hesitateto compete for grants, despite their many strings. Based onthe "hard case" of small cities—which are relative newcomersto grant and mandate programs, and generally change-resistantin attitude—this study points out some positive localgovernment impacts of federal-and state-local entanglements. ¹ As associate investigator of the project on which this paperis based, Joan Hogan of the Institute of Governmental Affairs,University of California at Davis, contributed significantlyto the research.     

Politics and Constitutional Reform in Canada: A Study in Political Opposition

Political opposition in a federal system is particularly richand complex, involving not only political parties and pressuregroups, but constitutionally sovereign governments as well.This article examines political opposition in a federation througha case study of the mobilization of opposition to the CanadianConstitution Act. Introduced by the federal government in 1980,the Act proposed a series of important changes in the powersof Canada's ten provinces. The resistance offered by a numberof provinces, the two opposition parties holding seats in Parliament,and a handful of interest groups were sufficient to secure significantchanges in the Act. The analysis presented here demonstratesthe key role of provincial governments—and especiallyof provincial premiers—as oppositional actors, while indicatingthe importance of the courts and intergovernmental conferencesas sites where political opposition expresses itself in a federation.