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Shrinking local autonomy: corporate coalitions and the subnational state

Yunji Kim and Mildred E Warner

Cambridge Journal of Regions, Economy and Society, 2018, vol. 11, issue 3, 427-441

Abstract: Using focus groups and government finance data, we explore three areas of US state rescaling at the subnational level: revenue tools, expenditure responsibilities and policy authority. Expenditure responsibilities, especially social welfare, have been devolved to the subnational level, while local revenue tools and policy authority are preempted. This decoupling of responsibility and power is cracking the foundations of fiscal federalism. At the behest of corporate-legislative coalitions, subnational state governments are shrinking local capacity and authority to govern. This is not state shrinkage; it is a fundamental reshaping of the subnational state to the detriment of democracy and the social contract.

Keywords: state rescaling; fiscal federalism; austerity; preemption; democracy; state and local finance (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (8)

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Cambridge Journal of Regions, Economy and Society is currently edited by Judith Clifton, Anna Davies, Betsy Donald, Emil Evenhuis, Stefania Fiorentino (Associate Editor), Harry Garretsen, Meric Gertler, Amy Glasmeier, Mia Gray, Robert Hassink, Dieter Kogler, Michael Kitson, Linda Lobao, Charles van Marrewijk, Ron Martin, Peter Sunley, Peter Tyler and Chun Yang

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