The Potential Impacts of Devolution on State Government Programs and Finances

Testimony

The Potential Impacts of Devolution on State Government Programs and Finances

Testimony Finances before the House Budget Committee
March 5, 1996

Abstract

Devolution is a mixed blessing for states. The positive side of the ledger the increased flexibility in using funds that may accompany block grants has been widely discussed, although it is impossible to be certain about how states will take advantage of that flexibility. Less attention has been devoted to the potential disadvantages of devolution, most of which are tied to diminished federal aid.

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