Medicaid in the 1990s: Trends, Innovations, and the Future of the "PAC-Man" of State Budgets

Rapidly escalating health-care inflation and congressionallymandated expansions have led to large increases in spendingfor Medicaid, the federal-state program of health care for thepoor. These increases came at a time when state budgets werealready under recession-induced stresses. In addition, 1991brought new pressures for Medicaid spending from the courtsand closer federal scrutiny and control over revenues used forthe program's state "match." Yet the Medicaid picture is farfrom bleak. Diversity, innovation, and an emerging stale policyrole also characterize the program in ways that epitomize thestrengths and weaknesses of the American intergovernmental system.     

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.     

CANADA'S INTERGOVERNMENTAL RELATIONS SPECIALISTS*

Abstract: Over the last decade the federal government and each of the ten provincial governments in Canada have put in place in their administrations significant numbers of intergovernmental relations specialists. These specialists are public servants up to departmental head level who work solely on intergovernmental business. They are located in separate departments or as separate units within central agencies, and are responsible for the coordination of relations with other governments and of intergovernmental activities within their own government. Coming at a time of increasing intergovernmental tension within the Canadian federation, these specialists have been subject to a great deal of criticism. The critics have charged that the specialists have exacerbated and even produced intergovernmental conflict. Lately, some scholars have come to their defence, emphasizing the positive functions that the specialists perform, and arguing that their influence has, in any case, been exaggerated. Australia has its own relatively small number of intergovernmental relations specialists at both the federal and state levels. And it is possible that in the future additional positions will be created. The variety of the Canadian experience means that there are a number of models from which each Australian government, of whatever size, can learn.     

Conflict and Collaboration in Wildfire Management: The Role of Mission Alignment

Responding to large wildfires requires actors from multiple jurisdictions and multiple levels of government to work collaboratively. The missions and objectives of federal agencies often differ from those of state land management agencies as well as local wildfire response agencies regarding land use and wildfire management. As wildfire size and intensity increase over time and associated annual suppression costs range between $2 billion and $3 billion, learning more about the existence and management of perceived agency differences becomes imperative within the academic and practitioner communities. This article examines the extent to which perceived mission misalignment exists among federal, state, and local actors and how well those differences are managed. Findings provide quantitative evidence that mission misalignment is greater within intergovernmental relationships than within intragovernmental relationships. Additionally, findings speak to the larger conversation around intergovernmental relationships within the federal structure and perceptions of the presence and management of potential interagency conflict.

Practitioner Points

• Potential conflict between the missions of federal and state land agencies presents a challenge for disaster management, and differing governmental levels and land‐use mandates may highlight relationships where tensions are likely greater.
• Wildfire managers may need to more proactively address relationships among federal agencies and state and local partners rather than relationships among multiple federal agencies.
• Wildfire management may benefit from increased awareness of—and discussion around—partner agencies’ stated land management philosophies and legal mandates, as structural frameworks, such as the Incident Command Structure, may not alone lead to conflict‐free collaboration.

     

Bullfrog County: A Nevada Response to Federal Nuclear-Waste Disposal Policy

One of the most significant intergovernmental issues today isthe disposal of high-level nuclear waste. Although there isconsiderable scholarly work on the subject, the emphasis hasbeen limited primarily to federal-state relations. Few observershave looked at the intrastate implications of the 1982 NuclearWaste Policy Act. This article attempts to do just that by focusingon the extreme action taken by the Nevada legislature in 1987when it created Bullfrog County, a zero-population county surroundingthe proposed waste repository site. The county was endowed withthe maximum property tax rate allowed under Nevada's Constitutionso as to enable the state to obtain additional funds from thefederal government in exchange for hosting the unpopular "dump."However, what began as a simple maneuver designed to extractthe maximum benefit for the state quickly produced politicaland legal consequences far beyond the intentions of the county'soriginal proponents.     

Intergovernmental Structure and Fiscal Management Strategies: A Crossnational Analysis

Does intergovernmental structure have a systematic effect on the impacts of local governments' fiscal policy responses? Using empirical data from more than 800 local governments in five countries, the article concludes that intergovernmental structure is associated with the impact attributed to various fiscal management strategies. Such strategies have generally had greater impact in local governments in federal systems than those in unitary state systems. There are similarities between federal and unitary local governments regarding the fiscal management strategies that have least impact, and both types stress the importance of productivity gains via technology. But the differences in relative importance and level of impact are more striking than the similarities. In particular, fiscal management strategies involving the relations of the local government with other governments, such as obtaining intergovernmental revenue and shifting service provision to other governments, have greater impact in significantly more federal systems than in unitary state systems. These federal local governments also experience greater impacts from increasing user charges and raising local taxes. In contrast, local governments in unitary state systems place greater reliance on the more politically expeditious strategy of across–the–board expenditure reductions and on reductions of capital spending. These findings suggest that local governments in more decentralized systems have greater flexibility to manipulate relations with other governments in order to enhance their own fiscal situation. The data also suggest that the government's level of fiscal stress is not systematically associated with the level of impact from most fiscal management strategies, especially in the unitary state systems.     

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.     

Implications of the Balanced Budget Act of 1997 for the "Devolution Revolution"

From an economist's perspective, the fiscal and administrativegoals of the so-called "devolution revolution" include lessfederal intergovernmental aid, especially if fiscally equalizing;the substitution of block grants for matching grants; greateradministrative flexibility for the states; and fewer underfundedmandates. This article uses these devolulionary yardsticks toanalyze the major provisions of the federal Balanced BudgetAct of 1997. These provisions fall far short of a "devolutionrevolution." The act increases the level of federal assistance,leaves Medicaid as an open-ended entitlement, and preservesa strong role for the federal government in shaping intergovernmentalgrants. The article discusses the political forces moderatingthe act's devolutionary impact.     

The Growth and Decline of Executive-Centered Intergovernmental Management

The idea that the president should manage intergovernmentalrelationships gained credence and became more feasible as theExecutive Office of the President developed managerial capacities.Executive-centered intergovernmental management gained considerablesupport in the Kestnbaum Commission's deliberations, developedrapidly in response to Great Society coordination problems,and culminated during the Nixon administration. This perspectiverelies on the use of hierarchical management techniques to producean orderly, rational federal system. Its decline began duringthe Carter administration and accelerated during the Reaganyears. It is doubtful that this perspective will again be influential,given the erosion of professional support for and waning presidentialinterest in comprehensive, federal intergovernmental management.     

Federalism and U.S. Water Policy: Lessons for the Twenty-First Century

This article traces five historical streams of water policyin the United States, revealing the strain and stresses of intergovernmentalrelations pertaining to water resource management. It findsthat water policy is increasingly characterized by pragmaticfederalism emphasizing collaborative partnerships, adaptablemanagement strategies, and problem and process orientation.The evolving nature of federal-state relations, characterizedby expanding federal authorities and increased state capacity,coupled with a rise of local watershed groups and greater ecologicalconcern, calls for improved coordination. Yet challenges resultingfrom policy fragmentation and ecosystem complexity remain. Continuedcalls for greater integration will likely be heard as federal-staterelations continue to evolve.     

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.     

Organizing the Federal System for Homeland Security: Problems, Issues, and Dilemmas

Improving the capacity of U.S. governments to provide greater homeland security will require numerous changes in the way federal, state, and local governments are organized and operate. It also will require significant alterations in intergovernmental relations. Changes will be required in intergovernmental dimensions, including operational, financial, legal, and political dimensions. A dual–track approach to rearranging intergovernmental relationships in order to provide a coordinated intergovernmental response to the requirements of homeland security is to be expected.     

The dynamics of federalism,subnational markets and trade policy-making in Canada and the US

Preferential trade agreements are now the dominant trend in the international trading regime. Unlike earlier ‘first generation’ agreements, the new agreements became more comprehensive in their coverage, impinging on areas that are subject to subnational jurisdiction of federal systems. Given constitutionally-prescribed competences allocated to subnational governments, the diversity of interests and sensitivities of subnational entities bring deeply entrenched regulatory practices under scrutiny. Few studies have focused on whether the combination of economic liberalization and political fragmentation will push federal and sub-federal entities to address domestic market fragmentation. We examine whether international market liberalization fosters domestic regulatory and structural reforms to cross-border barriers to trade in Canada and the United States. We show that while the political incentives and functional pressures generated by free trade agreements have fostered attempts at addressing internal market restrictions in Canada, the US has not followed the same path due to weaker mechanisms of intergovernmental coordination.     

Intergovernmental Politics in the Allocation of Block Grant Funds for Substance Abuse in Michigan

This article examines the intersection between federal programmaticgoals and state politics in the allocation of substance-abuseblock-grant money by the State of Michigan. The Alcohol andDrug Abuse and Mental Health Services (ADMS) block grant allowsstates more flexibility in allocating "Drug War" funds. TheADMS formula determines the amount of money going to Michiganbut does not determine the distribution of funds within thestate. An examination of the distribution of ADMS funding amongthe eighteen coordinating agencies in Michigan finds that neitherthe state nor the national formulas distribute funds in a mannerthat reflects substance-abuse deaths. Michigan's formula producesa result consistent with the federal formula, despite the separatestate and national formula negotiations. The process is notone of bargaining or even coercion; it may be described as mutuallyindependent decisionmaking—or parallel policies. Modelsof intergovernmental relations must be revised to include thepossibility of joint synergistic action without coordination.     

Constitutional Law and the Protection of Subnational Governments in the United States and West Germany

In Garcia v. San Antonio Metropolitan Transit Authority (1985),the U.S. Supreme Court concluded in a 5–4 decision thatthe Tenth Amendment does not protect state and local governmentsfrom federal intervention into their "traditional governmentfunctions." The Court majority insisted instead that the protectionof state and local functions lies in the political process and,thus, reversed the previous majority decision in National Leagueof Cities v. Usery (1976). Constitutional provisions in WestGermany grant the states a general protection rather comparableto the Tenth Amendment. These provisions also give explicitprotection to local governments. In spite of the apparent differencesthat suggest greater legal protection for their autonomy, Germanstates and local governments are now sharing most of their protectedfunctions with the federal government in a complex system ofintergovernmental relations. The Federal Constitutional Courthas allowed numerous federal and/or state incursions in localgovernment decisionmaking based on considerations of the commongood.     

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.     

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.     

Intergovernmental Innovation and the Administrative State in Canada

Canadian federalism has experienced considerable pressure for change and innovation in recent years. There have been calls for more collaborative federalism and demands for public sector reforms consistent with the precepts of New Public Management. This article examines the hypothesis that these pressures might be expected to have resulted in some intergovernmental institutional innovation in the arena of federal–provincial–territorial relations. Using a conceptual distinction between federalism, intergovernmental relations, and intergovernmental management (IGM) as the basis of analyzing institutional innovation at six levels in the Canadian intergovernmental administrative state, the authors find a differentiated impact with more institutional innovation evident at the micro levels of IGM and innovation more constrained at the macro levels of the administrative state by the traditional institutional infrastructure of executive federalism.     

The Medicaid Mandates of the 1980s: An Intergovernmental Perspective

Medicaid, the health care program for the poor, has undergone significant changes in the last fifteen years. Many of those changes relate to the intergovernmental nature of the program. Medicaid is jointly operated, with the federal and state governments sharing program costs. Despite a set of program guidelines dictated by the federal government, states have traditionally had substantial latitude in Medicaid decisions. However, a series of developments in the 1980s led to increasing constraints on state Medicaid discretion, including federal mandates to expand Medicaid coverage. This article examines the inception and effectiveness of the Medicaid mandates from the perspective of interstate equity of health care services for poor families.     

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.