Intergovernmental Relations and Public Administration

The widespread nature of federalism has combined with growing intergovernmental ties in all directions to create an unquestionably complex situation. Public administration has been altered, perhaps permanently, by rapid changes in IGR. A second area of serious concern for public administration is fiscal relations, especially the financial difficulties of some American governments. State and local government revenues can be severely affected by economic downturn and lag behind private-sector economic activity in returning to fiscal strength and stability.

Adding to these difficulties is the fact that about one-third of states suffer from structural budget imbalances due to revenue growth that is chronically slower than increases in the costs of services they must provide. Although intergovernmental aid can bail out a city here or a suburb there, its still not clear whether costs imposed by inflation, tax limitation movements, and rising service needs can be met over the long term by aid. At the core of the problem is the fact that recipient governments can easily develop a continuing dependency on such aid, which may not always be available.

A third area of concern is control over grants-in-aid and other funding. A stark reality of IGR is the existence of bureaucratic controls on much of the money flowing from one level to another. These controls raise questions about public accountability and about the ability of chief executives to coordinate spending effectively.

Other emerging patterns in contemporary IGR include some decline in the relative prominence of fiscal and grant-related issues and a corresponding rise in the importance of intergovernmental regulatory issues. The key role of the courts in settling federalism-related questions is also important to consider. There is also growing recognition of a possibility that increased coordination among local governments may prove to be elusive in the long run. Finally, scholars in the field of federalism continue their efforts to bring some intellectual order to the chaos that has occurred in IGR just in the last fifty years.