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Congressional preemption of state governments’ regulatory powers dates to 1790, but it generally did not have a major impact until 1965, when the number of preemptive statutes increased sharply. Most congressional preemptions involve commerce, the environment, finance and health. Technological developments and interest group lobbying will result in the enactment of new preemption statutes — particularly in the areas of banking, communications, finance services, insurance and taxation — unless states initiate actions producing harmonious interstate regulatory policies.

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.

When it comes to voters’ reactions to initiatives and referenda on the ballot in 2002, “cautious” was the word of the day. Amidst concerns about war, terrorism and the economy, the voters once again defied party labeling and voted their conscience when it came to ballot measures. In a time of great uncertainty, voters picked through the list of statewide ballot measures and systematically made their feelings known, while at the same time not revealing whether their underlying principles lean more liberal or conservative. The great race to categorize the voters’ political beliefs will once again have to wait for another election day.

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.

The states’ current fiscal crisis is due not only to the country’s economic downturn but also to changes in fiscal federalism that have exposed state fiscal systems to the impacts of federal policymaking, economic developments and demographic changes to greater degrees than in the past. Essentially, the states face growing long-term contradictions between escalating spending pressures and eroding tax bases over which states have only limited control. Short-term crisis-management actions, such as cutting spending, increasing taxes, accelerating tax collections, delaying bill payments, expanding gambling and using up reserves, are damaging, stopgap tactics. Long-term solutions will require more fundamental remedial fiscal reform by both the federal government and the states.

Chapter 6 of the 2003 Book of the States contains the following articles and tables:

Chapter 10 of the 2003 Book of the States contains the following articles and tables:

The distribution of federal funds affects a wide array of organizations, individuals and activities throughout the United States economy. Data abound on the size of the overall federal government budget and on spending by federal departments and agencies. However, only one primary source shows not only the agency and program detail, but also the geographic distribution of these funds: the U.S. Bureau of the Census’ Consolidated Federal Funds Report. This article provides details and insights into the make-up and significance of these huge flows of federal funds on state and local areas.

State budget shortfalls are expected to balloon to $82 billion by 2004. What avenues are available for governors to bring about fiscal solvency in the states? This article assesses their plans to navigate this continuing fiscal storm. The author then reviews the state government revenue situation and draws conclusions based on the content of governors’ 2003 state of the state addresses.

Chapter 9 of the 2003 Book of the States contains the following articles and tables:

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