A Race to the Bottom? Exploring County Spending Shortfalls under Welfare Reform in North Carolina

North Carolina's experiment with local control of Temporary Assistance to Needy Families programs provides a unique example of the budget implications of state to local government policy devolution. County‐level expenditure data indicate that after state to local government devolution, only 45 of 100 counties met welfare maintenance of effort (MOE) budget requirements. Several important factors, including control over program eligibility and benefit levels, were significantly associated with MOE spending variation. Counties given more flexibility spent dramatically less than others. Many failed to meet MOE requirements without penalty, year after year. These issues raise serious questions about decentralization from both the budget and policy perspectives.     

Race, Bureaucratic Discretion, and the Implementation of Welfare Reform

This article explores the impact of the race of individual clients and of the local racial context on the implementation of sanctions for recipients of Temporary Assistance for Needy Families (TANF) in a Midwestern state. We find that although nonwhites are sanctioned at lower rates than whites overall, nonwhites are sanctioned more compared to whites in each local area. This paradox occurs because nonwhites tend to live in areas with lower sanction rates. Consistent with the literature on race and policy, we find that sanction rates increase as the nonwhite population increases until a threshold is reached where nonwhites gain political power .     

Regulatory Competition and Environmental Enforcement: Is There a Race to the Bottom?

This article examines several of the key hypotheses suggested by the race to the bottom theory in environmental regulation. The research studies annual state-level enforcement of federal air, water, and hazardous waste pollution control regulation, covering the period from 1985 to 2000. Specifically, the study estimates a series of strategic interaction models to examine whether a state's environmental regulatory behavior is influenced by the regulatory behavior of the states with which it competes for economic investment. While there is clear evidence of strategic interaction in state environmental regulatory behavior, states do not respond in the asymmetric manner suggested by the race to the bottom theory.     

Implementation: Making Hard Work of Something Simple

Early in 2012 the Rural Property Addressing Project in South Australia announced that it had substantially met its outcomes, and that the whole of the project was soon to be completed. In 2003, one of the recommendations to cabinet from the South Australian Premier's Bushfire Summit was to endorse the development of a standard property addressing system for rural properties across the state. This was formally endorsed by cabinet, and was a direct response to the fact that essential services such as ambulance, medical and social care were hindered in providing services to the residents of Eyre Peninsula during and after the bushfires. Overall, this was not a controversial decision, nor was it a huge implementation challenge, yet it took nine years to come into effect. This is a classic case of the tyranny of small decisions. This article outlines some of the implementation challenges faced by this apparently simple project, and provides some thoughts for implementation challenges of the future. The take‐away message is that if something so comparatively simple was made so complex, how can we adapt our public services to the cross‐cutting challenges of the future?     

Something Old, Something New: A Historical Perspective on the Butler Review

Simon Case and Catherine Haddon demonstrate the value of contemporary history by looking at the recent Butler Report into intelligence on weapons of mass destruction (WMD) in its historical context. Intelligence failures form the most visible activity of the intelligence services, yet from the policy-maker's perspective it is important that the intelligence process remains undisturbed so that the intelligence product remains useful. The intelligence effort on Iraqi WMD, as with previous changes in intelligence targets, shows the difficulties in establishing good intelligence on a new threat. Increases in demand and the centrality of intelligence put more pressure on the intelligence services. Butler has set a precedent for public awareness and therefore a desire for accountability that must be internalised by government and the intelligence services. The problems experienced over Iraq show the need for continual reappraisal by both producers and users of intelligence products, particularly in light of defence policy changes and the wider machinery of government.     

The Race Among the States in Welfare Benefits: A Comment

One error in research on the welfare-magnet thesis is its focuson the poor rather than on the well-endowed and mobile economicactors who influence state policymakers. Another error is theassumption that poor people are mobile participants in the gameof locational advantage. Yet, unlike well-endowed economic actorswho move funds and goods, the poor must move themselves andtheir own bodies, rather than resources. Hence, it is unlikelythat poor people are playing much of a role in any race to thebottom in welfare policymaking.     

The Politics of Social Welfare Reform in Urban China: Social Welfare Preferences and Reform Policies

China’s social welfare reform since the mid-1980s has been characterized as incremental and fragmented in three dimensions—social insurance, privatization, and targeting. This paper attempts to explore the micro-foundation of China’s urban social welfare reform by examining the diverse social welfare preferences and the cleavages among societal groups. It argues that the diversity of the societal groups’ preferences for social welfare has given rise to two lines of cleavage in urban China with respect to social welfare—between state sector and non-state sector employees and between labor market insiders and outsiders. The Chinese authoritarian regime’s political priority—economic growth with social stability—has induced the government to accommodate public social welfare preferences in social welfare policies. Therefore, the three dimensions of Chinese social welfare reform policies since the mid-1980s reflect and respond to the social cleavages derived from societal groups’ different preferences for social welfare.     

State Fiscal Responses to Welfare Reform during Recessions: Lessons for the Future

The 1996 welfare reform transformed open-ended matching grants to states to fixed block grants. This article considers whether, given the new regime, states will be able and willing to meet the need for public assistance during recessions. The accumulation of large balances of unspent federal welfare funds helped states weather the first year or so of the current recession without having to cut programs for needy families. While new fiscal rules promoted positive reform during a period of economic prosperity, they may be leaving states and their most vulnerable citizens at serious risk as the economic and fiscal slowdown continues.     

State TANF Spending: Predictors of State Tax Effort to Support Welfare Reform

State spending on Temporary Assistance to Needy Families (TANF) greatly varies. Combined federal and state spending by the states per TANF family or recipient reflects the historic level of state generosity for Aid to Families with Dependent Children (AFDC), the failure of the federal government to set any minimum spending standard for the states, and the failure of the federal government to adjust federal grants for huge changes in state TANF caseloads. Our multivariate analysis shows that state spending for TANF is greatly influenced by the percentage of the state population that is black, the percentage of the state population that is on TANF (especially if a significant percentage of the rolls consist of black recipients), and the economic conditions within the state. Some states spend as much as their economies will allow, while other states spend far below capacity. Despite the very different goals of TANF, state spending is still heavily influenced by their historic approach to AFDC.