FINANCIAL INDICATORS AND TRENDS FOR LOCAL GOVERNMENTS: A STATE-BASED POLICY PERSPECTIVE

Recent federal reports, the projected "new" federalism, research in financial and economic trends, and the emerging consensus concerning local government distress have highlighted the fact that no comprehensive or systematic federal, state, or local policies exist to deal with the problems that have been identified. The purpose of this article is to perform a statebased study of financial patterns and trends in local governments that have implications for state policy. Included in the analysis were correlations between constant dollar financial indicators and an instability index for four data points. The results of the analysis and trends suggest that certain consistent patterns which have implications for state policy exist.     

Public choice in a federal system

Except for the mobility constraints imposed on political decisions of lower-level governments, public choice analysts assume that the working of the political process under federalism remains the same at all levels of governments as under unitary state. This paper argues that one dimension of the political process in a federalist framework lends itself to specific economic analysis, namely the fact that, once constitutional limits break down and functions overlap, two or more levels of government compete for the same voters in the supply of services in a given territory. Viewing votes as inputs in the production of political outputs, the conventional analysis of allocation under common-property rule should shed light on the outcome of this process. The analysis shows that it is in the interest of both suppliers to seek to gain the votes in being first to implement programs. There are thus two forces operating in a typical federalist system, an expansionist one rooted in the political dynamics analysed here, and a restrictionist one based on the mobility of resources among decentralized entities. This may explain why the empirical record is rather mixed on the contribution of federalism to containing government growth. The consequences of this process are derived and possible avenues for improvement are explored.     

Federalism and Social Policy: The Case of Domestic Violence

This paper challenges long standing critiques of federalism that suggest it stymies the development of progressive social policies. Through a case study of national domestic violence policies in Australia, this paper argues that not only can the curses of federalism – especially conservatism, duplication and overlap – be surmounted, but even more positively, under the right condition, federalism can enhance opportunities for the development of progressive social policy. While the Howard government has adopted a conservative approach to domestic violence, federal structures have made it possible to maintain an alternative discourse at the state level. Moreover, national policy coordination machinery has opened the path for policy learning and innovation between governments in this social policy area.     

Föderalismus und wohlfahrtsstaatliche Entwicklung. Österreich und die Schweiz im Vergleich

Starting from the stylised fact that federal institutions are held to be inimical to welfare state expansion, this paper examines the ways in which federalism has shaped the dynamics of welfare state development in Switzerland and Austria. A comparison of these different federal polities reveals that the welfare breaking effect attached to federalism crucially depends on the extent of vertical power separation. In both countries economic competition among constituent units did not fuel a race to the bottom in social standards. In Switzerland, the most important reason connected to federalism for why federal social policy was delayed and downsized was policy-preemption by the cantons and their considerable influence on the federal policymaking process. In contrast, the Austrian Länder neither had major social policy competencies nor an effective veto power which allowed them to block the centralisation of public policy. Instead, federalism is subordinate to the partisan arena at the central state level which itself is dominated by political parties quite favourable to welfare state expansion.     

Women,Federalism and Women Friendly Policies

Australian women activists have never been enthusiastic about federalism because of its reputation as a system that restricts the scope of government and obstructs the path of progressive social change. Like their sisters in other countries, women's groups have sought collectivist solutions to economic and social problems. In the last couple of decades, however, orthodox ideas about the restrictive impact of federalism have been questioned. A revisionist view has emerged, which holds that the system sometimes facilitates the adoption of innovative policies and may lead to an expansion of the role of government. The revisionist perspective raises the question of whether women's groups have been wise to oppose federalism. This article examines relevant Canadian and Australian studies in order to test the validity of orthodox and revisionist perspectives and to draw conclusions about appropriate feminist approaches to federalism. The evidence is mixed. The main argument of this article is that, to the extent that we can distinguish its independent effect, federalism sometimes obstructs policy development and sometimes facilitates it. There are serious methodological problems involved in trying to isolate the impact of the federal variable from the many factors that influence policy, making generalisations precarious. Experience, therefore, offers little guidance to women's groups seeking to decide whether to support centralised or decentralised decision‐making structures. However, this study concludes that in the context of present Australian federal arrangements, women are more likely to achieve their aims when the Commonwealth government takes action, either alone or in cooperation with sub‐national jurisdictions.     

Intergovernmental Relations in Canada: The Emergence of Collaborative Federalism

"Executive federalism" or "federal-provincial diplomacy" haslong been considered the defining characteristic of Canadianfederalism, which combines federalism and Westminster-stylecabinet government. However, these processes have come underincreasing stress in recent years from a number of forces thathave affected the nature and conduct of federalism and intergovernmentalrelations in Canada. Executive federalism has not been displaced,but has been increasingly informed by a set of practices thatwe call "collaborative federalism," characterized more by theprinciple of co-determination of broad national policies ratherthan by the more traditional pattern of federal-leadership.     

George W. Bush, the Party System, and American Federalism

George W. Bush's presidency presents two major puzzles. TheRepublican Party has traditionally stood for "limited government,"but Bush's principal legacy for federalism is centralizationof power in the federal government and the executive branch.Most modern presidents have neglected their partisan duties,but Bush has been a uniquely vigorous party leader. Here, weshow that Bush's puzzling lack of attention to federalism issuesis in large part the result of his efforts to strengthen theRepublican Party to cope with the political and electoral challengescharacteristic of the contemporary political context. We explainwhy the Bush administration's strategy for redressing the Republicanparty's shortcomings has presupposed the deprecation of federalism,and consider the implications of our argument for the developmentof federal arrangements.     

Public Sector Politics, Modernization, and Federalism: The Canadian and American Experiences

The focus of this analysis is an attempt to compare Canadianand American federalism in terms of Samuel Beer's modernizationtheory. In Canada, it is argued that modernization had led tothe enhancement of provincial power rather than the centralizationof the federal system. The Westminster model of parliamentarygovernment contributed to these developments, although the wayin which power is organized in government has been even moreimportant in determining the directions taken by Canadian federalism.     

American Federalism as American Exceptionalism

Americans paradoxically claim uniqueness for their politicalsystem, yet promote it as a model for others. This is especiallytrue of federalism, the clearest example of American exceptionalism.At its inception, American federalism was produced in an environmentclosely approximating what scholars have since distilled asoptimal conditions for fostering such a system. In other contexts,federalism has not flourished, because those preconditions areseldom approximated. Remarkably, American federalism has adjustedto meet drastically changed social, geographic, and politicalconditions, and the case for its continued adaptiveness andappropriateness remains strong. Although enclaved state differencesin economics and religion are no longer a reality, these andother differences are widespread especially on a regional basis.Even on a statewide basis, cultural mixes keep the country heterogeneous.The U.S. Constitution has been reinterpreted to permit rathermore nationalized control in accordance with this process ofeliminating differences. Indeed, this is to the point wherefederalism could become legally problematic, explaining theRehnquist court's recent decisions.     

The Debate on Australian Federalism: Local Government Financial Interrelationships with State and Commonwealth Governments

The nascent debate on Australian federalism has hitherto focused almost entirely on Commonwealth-state interrelationships to the virtual exclusion of local government. Since Australian local government employs around 156,000 people and spends in excess of $10 billion this neglect is unfortunate. In an effort to at least partly remedy this oversight, the present paper seeks to assess various unsettled questions in local government financial relationships with both Commonwealth and state governments, especially the issue of financial assistance grants and their efficiency consequences.     

How federalism influences welfare spending: Belgium federalism reform through the perspective of the synthetic control method

The question of whether and how federalism influences a country's welfare state has been a longstanding concern of political scientists. However, no agreement exists on exactly how, and under what conditions, federal structures impact the welfare state. This article examines this controversy. It concludes theoretically that the specific constellation of federal structures and distribution of powers need to be considered when theorising the effects of federalism on the welfare state. Using the case of Belgium and applying the synthetic control method, it is shown in the article that without the federalism reform of 1993, the country would have had further decreases in social spending rather than a consolidation of this spending in the years after 1993. In the case of Belgium, the combination of increased subnational spending autonomy in a still national financing system provided ideal conditions for a positive federalism effect on social spending to occur.     

State Merit Amicus Participation and Federalism Outcomes in the U.S. Supreme Court

Research suggests that merit amicus curiae participation correlateswith Supreme Court decision making and that states make frequentand effective use of this tool. To date, however, no study hasadequately examined the relationship between state amicus participationand the federalism values reflected in the Court's decisions.This article dev"Lelops and finds evidence for the assertionthat, when they cooperate in the amicus process, state participationis associated with an increase in the likelihood of rulingsfavoring state rather than national government power.     

ECONOMIC DEVELOPMENT, EMPLOYMENT AND TRAINING POLICY AND FEDERALISM

There are widespread misperceptions about the way in which American federalism has worked in the past and is working now. One is the belief that since the 1930s, the federal government has engaged in many new activities. Another misperception is that liberals support centralization and conservatives, decentralization. Actually, most Americans tend to be pragmatic. The vitality of this American pragmatism is seen in state economic development policies. States have provided leadership in initiating new economic development programs in such areas as foreign trade and enterprise zones. Four major patterns in American federalism characterize the emergence and development of most of these programs: responsiveness, elitism, pluralism, and experimentation. Implications for employment and training policy are examined.     

Theoretical Developments in Public Administration: Implications for the Study of Federalism

The perspective of public administration potentially carries great relevance for the development of theory concerning federal systems. However, the impact of each specialty on the other has often been uneven. Reasons for this state of affairs are explored. Some recent and current research on public administration is highlighted for its implications regarding the study of federalism.     

Federalism and Democratic Transitions: The "New" Politics of the Governors in Brazil

Although federalism is a potentially important variable in democratization,few studies explore its impact in democratic transitions andconsolidation. Scholars generally agree that federalism is quitestrong in contemporary Brazil. This study examines how and whystrong federalism reemerged in Brazil following twenty yearsof centralizing military rule. In brief, the 1964–1985military regime tried but failed to transform the state-basedorganizational structure and power base of Brazil's traditionalpolitical elite; Brazil's "transitional" electoral cycle alsoreinforced the strength of state governors. Examples are providedof how subnational actors influenced the transition processin the national government and how state based actors and interestschallenge Brazil's efforts to consolidate its democracy.     

Federalism, the Bush Administration, and the Transformation of American Conservatism

Most recent Republican presidents have proposed signature federalisminitiatives intended to devolve power or sort out federal andstate functions. The Bush administration has not propoundedan explicit federalism policy of this sort, but its approachto federalism can be gleaned from analyzing presidential advocacyof legislation and constitutional amendments, fiscal policies,administrative actions, and judicial policies. What emergesfrom this analysis is an administration that has been surprisinglydismissive of federalism concerns and frequently an agent ofcentralization. In one sense, Bush is merely the latest in astring of presidents who have sacrificed federalism considerationsto specific policy goals when the two have come in conflict.However, the administration's behavior is somewhat surprising,given the president's background as a governor and the factthat he has been the first Republican president to enjoy Republicancontrol of Congress since 1954. Our explanation for the Bushapproach begins with the president's lack of any philosophicalcommitment to federalism and explores the changing status offederalism concerns within conservative ideology. Any explanationfor the Bush approach should account for this shifting politicaldynamic, which has seen Republicans in recent years become increasinglysupportive of exerting federal authority on behalf of theireconomic and social objectives, encouraging Democrats at timesto become more supportive of state authority.     

Decentralization in Italy and the Troubles of Federalization

Since the mid-1990s, Italy has made significant steps towards federalism, decentralizing political, fiscal and administrative powers, also by means of a major constitutional reform. Yet, 20 years after the beginning of this process, the country is experiencing problems in finalizing these reforms towards a stable federal architecture. This article examines Italy as a case of failed federalization. Adopting a long-term focus inspired by the ‘gradual institutional change’ approach, we argue that federalization has been trapped between a rather anomalous (and pathological) alliance between a persistent centralism, which prevailed when Italy was born as a state in 1861, and an ever-present strong tradition of localism. This approach allows us to show the very incremental nature of institutional change and to map changes and continuities along the 150 years of the Italian state, identifying both political and cultural factors that help to explain this unfulfilled journey towards federalism.     

Bodo ethnic self-rule and persistent violence in Assam: A failed case of multinational federalism in India

Indian federalism has been credited in the literature on comparative federalism for having successfully resolved many of its ethnic conflicts (in a country of immense ethnic diversity) since 1956 by conceding varied forms of statehood. In most cases, the resolution of ethnic conflict has entailed self-determination for ethno-nationalist groups. There are however cases when the experiment has failed and the institutional arrangements for recognition of ethnic self-determination have given birth to more conflicts and persistent violence. In this article, we argue that the Bodoland Territorial Authority (created in 2003) in Assam is a failed case of multinational federalism in India. We argue that the case of Bodoland illustrates the limits of territorial management when groups are intermixed and highlight the need for power sharing in government and/or non-territorial representation as a better method for managing ethnic conflict in such cases.     

Federalism at the American Founding: In Defense of the Diamond Theses

Vincent Ostrom's analysis of The Federalist's understandingof federalism fails to consider the historical and theoreticalcontext of The Federalist's arguments. Ostrom takes certainrhetorical devices of The Federalist too much at face value.He correctly sees that the authors of The Federalist view eighteenth-centuryfederalism as bad government. He incorrectly concludes thatsince it is bad government, that understanding could not havebeen the true meaning of federalism. The Federalist understandseighteenth-century federalism to be "the true meaning" of federalismas established by the political discourse of the times. TheConstitution departs radically from eighteenth-century federalism,but The Federalist seeks to conceal how radical the departureis, in part, by offering a looser definition of federalism thatwill allow the Constitution to be characterized as a federalsystem. A consideration of the writings of the opponents tothe Constitution suggests the limited success of this attemptat redefinition.     

FEDERAL-STATE RELATIONS IN THE IMPLEMENTATION OF SURFACE MINING POLICY

The federal Surface Mining Control and Reclamation Act of 1977 not only established national performance standards and permitting procedures for the coal industry, but also provided for stateprimacy. The principle of state primary is both simple and intuitively appealing: Because states do not have adequate resources to develop effective regulatory programs, the federal government would set up comprehensive procedures and criteria to guide the states in preparing their own plans. The obvious advantage of state primacy is that i t provides for flexibility in implementation.
Ultimately, state primacy is an experiment in cooperative federalism, a sharing of authority and responsibility between the states and the federal government to insure both the general welfare and sensitivity to local conditions. The history of surface mining regulation is instructive because i t points out the pitfalls and promise of cooperative federalism as well as the critical role of the courts in making state primacy work.