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Privatization continues to be a controversial management issue in state governments. In the past five years, 1997-2002, the extent of privatization activities in the states has largely remained the same as in the previous five years or slightly increased. The main reasons for privatization are a lack of personnel or expertise and cost savings. In most cases, privatized services account for less than 5 percent of agency services, while reported costs savings range from none to less than 5 percent. But many state agency directors surveyed seem to have no clear ideas as to how much has been actually saved from privatization. Nevertheless, privatization is likely to continue in the states in the next few years as in the past decade.

Many of the state constitutional developments described in recent editions of The Book of the States have continued into the 21st century. Probably the most important of these is the absence of constitutional conventions and new constitutions. Instead, constitutional change is dominated by amendments and is piecemeal rather than comprehensive. Concerns about terrorism and the threat of war will most likely make it difficult to reverse this trend. Also important is the trend away from adoption of amendments designed to limit state governments’ capacity to govern and toward reforms that are arguably designed to make government more representative and efficient.

The American federal system has been shaken by the impact of recent traumatic events, especially the threats to homeland security and the states’ fiscal crises. These developments have produced deep seated tensions across a wide range of intergovernmental relationships. Recent trends toward coercive relations may be ameliorated by strategies fostering contingent collaboration.

This article reviews the most significant emerging trends in economic development and their ramifications for the states. It focuses on the role of information technology, the increasing regionalization of economic development and the new financing tools available to economic developers and how these tools have helped change the states’ development priorities.

Tomorrow’s energy policy should look beyond the Middle East to include all of North America. To achieve certainty in an era of volatility and to reach the wealth of untapped energy in the Americas will require new partnerships with regional, national and even continental planning. We need a North-South energy policy — an Energy Policy for the Americas.

Teaching quality seems likely to remain a state concern for the long-term, even though policymakers will come to see, if they haven't already, that it isn't a magic bullet. The impetus for that continued focus comes not only from the states’ pressing needs for well-qualified teachers, but also from the federal government.

With continued threats of terrorism facing the country, states are struggling to maintain basic public safety programs while taking on the additional responsibility — and costs — of homeland security. The year 2002 produced a National Strategy for Homeland Security and legislation creating a new federal Department of Homeland Security, but little funding has been provided to support enhanced preparedness efforts by states. It will be important for states to think and plan regionally, utilize mutual aid and leverage limited resources to meet the challenge of making communities safe from terrorism and natural disasters.

Medicaid stands out as the program hit hardest by the economic downturn and rising health care costs. Governors, legislative leaders and Medicaid officials around the country see the program’s current cost trajectory as unsustainable in both the short-term and the long-term. Yet, states have faced similar situations before. As in previous eras of runaway cost growth, state leaders are marvelously adept at developing coping mechanisms. Emerging trends in state responses to the Medicaid crisis may indicate the future direction of Medicaid policy.

This article traces past and current trends in parole and probation. Lessons from history are framed in the context of implications for future trends in the 50 states. It discusses parole and probation’s public value in terms of public safety and justice, along with the cost-benefit  implications of past, current and future trends.

In his 2002 State of the Union message, President George W. Bush announced the creation of an umbrella citizen service initiative, the USA Freedom Corps, intended to dramatically increase volunteerism. Under this initiative, the Citizen Corps has the central responsibility for mobilizing local volunteers in emergency preparedness and response. Interviews of state officials who will implement Citizen Corps suggest a framework for understanding the success of federal volunteerism initiatives devolved to the state and local levels. Five factors appear important to implementation success: goal clarity, resource availability, promotional activity, management capacity, and the strength of the implementation network.