Both liberal and conservative interest groups can use

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Unformatted text preview: al-state partnership. Cooperative federalism continued through the early years of the Clinton administration, which saw passage of the Unfunded Mandates Reform Act in 1995, and welfare reform in 1996. Both the Republicans in Congress and the Democratic president worked cooperatively with governors to enact these two bills. Welfare reform not only turned an individual entitlement program into a block grant, but it also gave states substantial authority to tailor the program to the needs of their citizens. From the mid- 1990s through the present, we have been in a period of "coercive federalism," where the federal government more often just tells the states what to do. It does not ask for advice or enter into serious negotiation with the states. [____] Federal transit subsidies are wasteful and undermine state action - jurisdiction should remain devolved to states and local governments. Randal O’Toole CATO Institute Senior Fellow 2006 (Randal.. “A Desire Named Streetcar: How Federal Subsidies Encourage Wasteful Local Transit Systems.” Policy Analysis – CATO Institute. Jan. 5 Prior to 1964, when Congress began subsidizing transit, the industry was mostly private. Since then, the industry has been almost entirely taken over by state and local governments. Today more than three of every four dollars spent on transit come from taxpayers, not transit riders. The effectiveness of local transit systems is undermined by federal subsidies, which encourage the construction of highly visible and expensive services such as light-rail trains to suburban areas despite the chronically low number of riders on those routes. Federal subsidies to transit advocacy groups and misguided environmental and labor regulations also encourage a large investment of taxpayer money in wasteful transit systems. The ideal solution would be to devolve transit and other transportation funding entirely to state and local governments. Short of that, Congress should reform the federal transportation funding system to minimize the adverse incentives it creates. 11 | P a g e Federalism DA BDL Link – Federal Support/Block Grants [____] Federal support to the states undermines federalism Darien Shanske, Associate Professor of Law, University of California, Winter 2012 (Virginia Tax Review HOW LESS CAN BE MORE: USING THE FEDERAL INCOME TAX TO STABILIZE STATE AND LOCAL FINANCE, p. 423) Yet there are still deeper issues to be considered. First, the federal financing subsidy undermines truly competitive federalism because the central government is putting its thumb on the scale in favor of certain activities - specifically, borrowing. Furthermore, this subsidy allows subnational governments to avoid internalizing the full cost of their borrowing because the borrowing is subsidized by the national government, and so this subsidy is particularly suspect. [____] Federal subsidies to the states undermine interstate competition John O. McGinnis and Ilya Somin, Research Professor,...
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This document was uploaded on 02/06/2014.

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