Implications of the Balanced Budget Act of 1997 for the “Devolution Revolution”
Robert Tannenwald
Publius: The Journal of Federalism, vol. 28, issue 1, 23-48
Abstract:
From an economist's perspective, the fiscal and administrative goals of the so-called “devolution revolution” include less federal intergovernmental aid, especially if fiscally equalizing; the substitution of block grants for matching grants; greater administrative flexibility for the states; and fewer underfunded mandates. This article uses these devolulionary yardsticks to analyze the major provisions of the federal Balanced Budget Act of 1997. These provisions fall far short of a “devolution revolution.” The act increases the level of federal assistance, leaves Medicaid as an open-ended entitlement, and preserves a strong role for the federal government in shaping intergovernmental grants. The article discusses the political forces moderating the act's devolutionary impact. Copyright , Oxford University Press.
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