Deciding to Provide: Local Decisions on Providing Social Welfare

Fiscal federalism predicts local governments will avoid social welfare expenditures, owing to capital mobility across local jurisdictions. Yet Census of Governments data consistently show that many local governments provide one or more social welfare functions, and moreover many jurisdictions provide these functions without federal or state intergovernmental support. This article finds evidence that, while local expenditures are largely driven by fiscal capacity and federal and state assistance, local decisions on providing social welfare functions and participating in intergovernmental revenues are primarily affected by degree of capital mobility and by local political factors. Consequently, local governments exercise much greater autonomy over social welfare policymaking than fiscal federalism suggests.     

American Federalism and the Search for Models of Management

Changes in the United States federal system mean that managers must operate by taking into account multiple interacting governments and nongovernmental organizations; dealing with numerous programs emanating from Washington and state capitols; and engaging in multiple intergovernmental transactions with an expanding number of intergovernmental instruments. Four models of management within this changing system are identified. The top-down model emphasizes executive-branch control and is embedded in enforcement and exchange related to the laws, regulations, funding rules, program standards, and guidelines associated with federal/state grant, procurement, and regulation programs. The donor-recipient model emphasizes mutual dependence or shared program administration, where two-party bargaining or reciprocal interactions among government officials is the norm. The jurisdiction-based model is defined by the initiated actions of local officials and managers who seek out program adjustments and other actors and resources to serve the strategic aims of their governments. The network model highlights the actions of multiple interdependent government and nongovernmental organizations pursuing joint action and intergovernmental adjustment. Although the first two models are long-standing and the latter two are emergent, all appear to be alive and well on the intergovernmental scene, posing complex challenges for public managers.     

And the Beat Goes On: Intergovernmental Mandates and Preemption in an Era of Deregulation

For state and local governments, the 101st Congress (1989–1990)compiled a mixed record of intergovernmental regulation andpreemption. Costly and intrusive mandates were enacted to combatair pollution, protect the rights of disabled persons, and providemedical assistance to the poor. At the same time, new restrictionswere defeated in legislation affecting oil-spill liability andchild care. This article reviews the issues and politics surroundingthese enactments, and places them within the broader contextof intergovernmental regulatory trends during the 1980s. Thepast decade was characterized by increasing regulatory burdensimposed on states and localities, punctuated by occasional examplesof regulatory relief and deferral.     

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.     

LOCAL IMPLEMENTATION OF NATIONAL POLICY

This article is an examination of failures in implementing intergovernmental programs. The programs were failures in the sense that actions to implement programs were delayed far beyond the expected dates of completion. Two such failures in cities implementing two different programs (wastewater management and Section 8 housing programs) are contrasted with one instance of success (in Section 8 housing). If a Sharkansky's discussion of political and policy routines is found to be a useful explanation of the different results. When local government routines must be broken to comply with the goals and objectives of federal programs, local actors will do all they can to resist the federal program. This finding demonstrates the importance of varying local political environments in explaining varying patterns of implementation of federal programs.     

Mandates and Management Challenges in the Trenches: An Intergovernmental Perspective on Homeland Security

Scholars and practitioners agree that homeland security policy implementation is contingent on a strong system of intergovernmental relations. The responsibilities associated with the homeland security mission, often mandated, cut across federal, state, and local boundaries. Local-level stakeholders are especially important players in the implementation process. This article presents a local perspective on the way intergovernmental relations have changed—and the reasons for those changes—since 9/11. Results of a survey of county and city officials in Florida provide evidence that intergovernmental cooperation has improved as a result of federal and state mandates. These results are refined by an analysis of the effects of specific local characteristics and the quality and quantity of vertical and horizontal networks on intergovernmental cooperation and local preparedness. Homeland security appears to be a policy area in which mandated cooperation and coordination—in a time and place of urgency—have actually strengthened the intergovernmental system.     

Ukrainian Local Governments’ Finance on the Threshold of a New Millenium: Will Interbudgetary Reform Meet Public Needs?

Since independence, market–oriented reforms have been undertaken in Ukraine. Yet, intergovernmental relations are obsolete, remaining as they were in the Soviet time. In fact, Ukrainian subcentral governments have no significant discretion in revenues and expenditures. First, the article delivers an overview of the current system of intergovernmental finance in Ukraine. Second, the article reveals some negative trends in Ukrainian local governments' fiscal performance through the late 1990s that made a reform of intergovernmental fiscal arrangements timely. Third, the article analyzes recent reform steps as presented by the recent Budget Code, proposing policy options that could strengthen Ukrainian intergovernmental policy.     

Water and Federalism in the 1990s

Federalism has always been an issue in water management. Thephasing out of grants for the construction of sewage treatmentplants, the reduction of the federal contribution for constructionof water development projects, the decrease in federal expendituresfor basic water data collection, and the lack of federal fundsfor state dam-safety programs have all had an impact on watermanagement and intergovernmental relations. This article summarizescontemporary issues in intergovernmental relations and waterpolicy. First, the relationship between water, environmentalprotection, and federalism is examined. Then, the shifting financialresponsibility for water pollution control from the federalto state and local governments is reviewed.     

Organising for mutual advantage: municipal associations in Bulgaria

Networks of local government support organisations (LGSOs) are critical to successful intergovernmental relations and effective local governance in democratic societies. Bulgaria had no such network of municipal associations when it began the transition from communist rule in the early 1990s. Using US and other external technical assistance, Bulgaria over the next decade overcame the impediments to collective action and established what appears to be an effective and sustainable system to back up its cities and towns. Important factors in mobilising support included a long‐term focus on institutional development, non‐partisanship, flexibility in implementation and a pragmatic orientation that focused on learning by doing. Copyright © 2006 John Wiley & Sons, Ltd.     

Overcoming the Barriers to Cooperation: Intergovernmental Service Agreements

Interlocal cooperation through service‐sharing agreements has a long history, but its use has increased in popularity during the last 20 years. The decisions of local government units to collaborate through intergovernmental service agreements are best understood as a two‐stage process. The first stage, in which communities decide whether to consider interlocal cooperation, involves the nature of the immediate problem faced plus specific demands for performance and efficiency gains that can result from service cooperation. In the second stage, communities confront a question of institutional supply, and hence must overcome inherent bargaining and collective action issues in order to forge interlocal agreements. Heckman probit estimates of such complex relationships using data drawn from a 2003 ICMA survey suggest strong support for this model. The authors conclude by discussing the role of network relationships among local actors for reducing transaction costs and facilitating intergovernmental collaboration.     

Life at the Bottom of the Fiscal Food Chain: Examining City and County Revenue Decisions

Any shifting of responsibilities from the state or federal governmentsto local governments would fall mostly on the shoulders of general-purposegovernments, namely, cities (municipalities) and counties. Thisstudy explores city and county revenue decisions associatedwith general funds—the governmental fund most likely tobe affected by state requirements for greater local financingresponsibility for new or devolved programs. The results suggestthat state control over local revenue authority affects decisionsregarding the imposition of financial burdens on residents,and that intergovernmental aid to cities and counties does notnecessarily mitigate those burdens. Despite evidence of healthyfinancial reserves, especially for cities, shifting responsibilitiesfrom the state to city or county governments could place citiesand counties in difficult fiscal positions. Given the importanceof own-source revenues to current budgets, and in view of thequestionable impact of intergovernmental aid on city and countyresidents' revenue burdens, questions persist about the abilityof city and county governments to maintain (and, if necessary,to expand) services during economic recession.     

Developing and Testing a Composite Model to Predict Local Fiscal Distress

One of the thorniest issues of intergovernmental fiscal relations is state oversight of local fiscal affairs. States have oversight responsibility and must take action when local governments run afoul of responsible fiscal behavior. Less accepted is how states can detect local financial difficulties before they become emergencies that require state takeover. Research in the 1970s provided some assistance to states wishing to recognize local financial emergencies. But the time has come to look at this issue anew, particularly with an eye toward predicting local financial problems before they become serious. This article describes a 10-point scale that predicts these problems and tests the scale to predict local fiscal stress in a sample of Michigan local governments.     

ISTEA and the Role of MPOs in the New Transportation Environment: A Midterm Assessment

This article undertakes a modest midterm assessment of MetropolitanPlanning Organizations (MPOs) under the Intermodal Surface TransportationEfficiency Act of 1991 (ISTEA). The focus is on the role ofthe MPO, emphasizing its intergovernmental context. Two major sources of primary data are used: (])a national surveyof MPOs, completed in March 1994, and (2) an ACIR study of eighteenMPOs in twelve U.S. regions. The article addresses decentralization of transportation policyto regional MPOs, local policymaking and decision authority,intergovernmental issues under ISTEA, and what lies ahead forMPOs. The article concludes that ISTEA has brought a great dealof change to MPOs. The data suggest that ISTEA is having somesuccess: decentralization is taking place; more stakeholdersare getting involved; public involvement programs are becomingmore common; and greater attention is being given to air quality,intermodal issues, long-range planning, and intergovernmentalcoordination. However, most MPOs are encountering difficulties in implementingISTEA. They do not know how to do many of the new tasks assignedto them, and the intergovernmental links that ISTEA dependson are not yet forged solidly.     

How gubernatorial budgetary power and interest groups affect vertical fiscal imbalances in the US states: Focusing on fiscal centralization and decentralization

This study empirically examines the roles of gubernatorial budgetary power and interest groups in vertical fiscal imbalances across US states via a two-step generalized method of moments estimation during a 22-year period (1987–2008). States' share of intergovernmental transfers and the local share of intergovernmental transfers are often affected by interaction between governors and interest groups, as are expenditure centralization and revenue/expenditure centralization. Revenue decentralization and the local share of intergovernmental transfers are frequently influenced by cooperation between governors and interest groups via mutual support. Long-term cooperation and gridlock each influence expenditure centralization, revenue/expenditure centralization, and revenue decentralization. Long-term cooperation is not statistically significant in terms of the state and local shares of intergovernmental transfers; that is, governors and interest groups cooperate in pursuit of short-term benefits rather than long-term results. Long-term political influence also has no impact, affirming a short-term-oriented political viewpoint.     

Supporting low-income homeowners: lessons from a program to coordinate weatherization and rehabilitation services

Homeownership is the primary way most families build wealth in this country. Low-income homeowners are less likely to get that benefit because they are more likely to own older houses that are more costly to operate and need more essential maintenance. Rapidly escalating home energy costs are straining the budgets of many low-income homeowners, increasing the likelihood of under maintenance and mortgage default. This paper presents an evaluation of a demonstration program designed to coordinate weatherization and rehabilitation programs in order to assist low-income households, decrease energy costs, and to improve the condition and value of their homes. The experience of 11 local non-profit organizations, funded to develop programs to coordinate weatherization and housing rehabilitation services, were studied over a five-year period. The results of the evaluation indicate that there are many obstacles to coordinating weatherization and rehabilitation programs, but that it can be accomplished under the right conditions. Major gaps exist between program eligibility thresholds and in the types of assistance available to low-income homeowners. Policy recommendations for facilitating coordination are presented.     

AFTER REAGAN'S DEREGULATION: STATE-FEDERAL CONFLICT OVER ENERGY POLICY

President Reagan's New Federalism has promised to redistribute the political power within the fcdcral system through a concerted program of deregulation and decentralization. Through such an approach, the Administration holds that intergovernmental policy making will reap the benefits of increased cooperation, efficiency, and effectiveness. This paper examines Reagan's New Federalism in energy policy, finding a continued presence of state-federal conflict in intergovernmental implementation decisions. This conflict emerges as the President's priorities of deregula- tion and decentralization often combat one another. This analysis, then, suggests that New Federalism's emphasis on deregulation, rather than decentralization, carries the greatest weight in explaining the politics on intergovernmental energy policy implementation in the 1980s.     

Public Sector Reform, Intergovernmental Relations and the Future of Australian Federalism

Recent developments in the reform of intergovernmental relations have been influenced by contemporary models of public sector reform. Their systematic application to intergovernmental administration, in particular the manner in which jointly funded and managed programs are organised, may have profound and unanticipated effects on the federal system. When viewed in the context of a recent history of collaborative policymaking between political executives, the possibility that new forms of intergovernmental joint policy-making and program management might become the norm poses serious challenges to federal traditions of dual government. Arm's length and collaborative forms of joint decision making are contrasted as ideal types, and then used to analyse two case studies in collaborative intergovernmental decision-making — National Competition Policy and the National Training Agreement. It is concluded that the system-wide implications are profound if they are part of a broader trend, but caution is expressed about the powers of inertia and resistance in traditional forms of federal politics.     

City Managers View Intergovernmental Relations

This report presents the findings of a national survey of citymanagers concerning intergovernmental relations. Key aspectsof intergovernmental relations covered in the survey are theadministration of the grant system, effects of federal grantson local government decisionmaking, types of federal aid, imagesof federal administrators, intergovernmental service agreements,comparison of state and federal government, and city managerinvolvement in intergovernmental relations.     

Institutionalized Evaluation and Intergovernmental Relations: The Case of Coastal Zone Management

The enactment of national environmental management programswas prompted, in large part, by the perceived failure of stateand local government officials to deal adequately with pollutioncontrol and resource management problems. Paradoxically, theimplementation of several important environmental managementprograms relies heavily on these same state and local officials.Congress has sought to resolve this paradox by requiring federalevaluation of state and local environmental planning and managementactivities. Many of these evaluations are little more than routinefiscal audits. However one agency, the Office of Coastal ZoneManagement, has sought to develop a systematic evaluation processfocusing on all aspects of state coastal zone programs. Theseevaluative efforts have led to intergovernmental tensions, mostnotably with regard to the purposes and methods of evaluation,the appropriate roles of federal and state officials, and theresources available for evaluation. In spite of these tensions,there is broad agreement about the value of the evaluation processand its potential applicability in other contexts.     

Issues in Program Budgeting

Funding arrangements for human service programs are often complex, particularly when intergovernmental financing is involved. There are two financial arrangements used by human services administrators to assure that money budgeted is spent as intended. Reallocation of unspent funds among jurisdictions and carryover to the following year of unspent balances are examined in this article based on examples drawn from two programs in Minnesota.