The New Face of Intergovernmental Relations

This article, which appeared in the GAO Journal, No. 6, Summer 1989, discusses the intergovernmental system. Although the previous administration had clear goals for potential significant changes in intergovernmental relations, the growth of the deficit and passage of the deficit reduction legislation, and court decisions probably had greater effect on the intergovernmental system. The change from the traditional top-down, hierarchical relationship between the federal government and the states and localities has extended to the growth of state and local influence in federal policies. The force behind these changes has been the drop-off in federal funding. Reasons for the complexity of the intergovernmental system include the: (1) effects of budget-driven federalism; (2) states' growing prominence in forming policy initiatives; (3) expanding number of federal tax policy changes affecting states and localities; and (4) federal government's increasing reliance on regulations, preemptions, and mandates to achieve its policy goals.