Fiscal Federalism Skeletal Outline

Fiscal Federalism Skeletal Outline - b Block Grants b.i...

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Fiscal Federalism Skeletal Outline 1. What is it? a. Knowing what to give to states and federal gov. b. Varies in different states, different tax structures. c. After shrinkage in aid programs under Reagan, rapid expansion under Clinton and Bush d. Grant spending increases 25% in 10 years 2. Congress a. Blurry as to Congress’ power to regulate interstate commerce through mandates b. Often uses funding as inducement or sanction instead of mandates c. No Constitutional issue 3. Grant Types a. Categorical a.i. Mostly federal to state, but sometimes federal to local a.ii. Federal matching component a.iii. Reauthorization necessary
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Unformatted text preview: b. Block Grants b.i. Gives states more freedom for general programs b.ii. Accountability issue b.iii. Common 1970s onward c. Formula grants v. Project Grants d. Kelly 2004 d.i. Property tax declines d.ii. States supposed to give revenue to municipalities d.iii. Economic crisis, unable to. Consequently, this harms the abilities of local government to function. e. Rivlin 2002 e.i. 2001 state budget crisis e.ii. Hard to balance budget; 15-20% drop in state revenue. e.iii. Long-term, services must be cut such as higher ed. and Medicaid. f. Devolution...
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