State and Local Final

According to Oates' Decentralization Theorem, local provision of a service is at least as efficient as a uniform national level when:

There are no spillovers or economies of scale

The Tiebout model of "voting with your feet" describes:

Households sorting among communities based on their tax–service bundles

What are the four rationales for intergovernmental grants?

The vertical fiscal gap, equalization of fiscal capacity, spillovers across jurisdictions, national priorities

Approximately how much did the federal government spend on grants to state and local governments in FY2023?

1.08 T

A state receives $5M in federal aid for a school district that already gets $15M from the state. It passes the $5M to the district but cuts its own support to $10M. This is best described as:

Fungibility

Flypaper Effect

Money sticks where it hits, turns temp grants into last commitments

A maintenance-of-effort requirement:

Requires recipients to keep spending their own funds at a set level to receive federal money

TANF

It is a fixed $16.5B block grant in nominal 1996 dollars 

Under the 2024 revision of the Uniform Guidance (2 CFR 200), a non-federal entity needs a Single Audit when it spends at least how much in federal awards in a year?

$1M

In NFIB v. Sebelius (2012), the Supreme Court found the ACA's Medicaid expansion unconstitutionally coercive because

States that refused expansion risked losing all of their existing Medicaid funding

Congress authorized federal funding of up to 40% of the excess cost of special education under IDEA but has funded roughly 10–15%. This is an example of:

An underfunded federal mandate

Why is the federal government's role in school funding so limited?

The U.S. Constitution does not mention education, leaving it to the states

In San Antonio ISD v. Rodriguez (1972), the Supreme Court held that:

Education is not a fundamental right under the federal Constitution

As a legal standard, "One Scholar, One Dollar" means:

Per-pupil funding should be equal and not depend on district wealth

Today, local public education is funded roughly:

Half by local own-source revenue (mainly property tax) and half by state aid

Which equity standard is emphasized in most recent court decisions?

 Adequacy

What are the four policy decisions a foundation aid formula should address?

1. Whether to adjust the foundation level for cost differences across districts

2. whether to require minimum local property tax rate

3. how much spending is adequate

4. adequacy or equity

The foundation level is $6,000 per student at a 1% minimum tax rate. A district's 1% levy raises $1,000 per student. How much state aid does it get per student?

$5,000

If the state can't fund its share and districts don't raise taxes, whose budgets are most volatile under a foundational aid program?

Low-wealth districts

Using Vermont's weights and a $1,000 base grant, how much does a Pre-K student (weight 0.46) generate?

$460

A main drawback of a fully centralized school funding system is:

Less local choice and more exposure to state budget swings

In a recession, which program design automatically sends more federal money to states?

An open-ended entitlement or matching program

A block grant’s dollar value stays the same for decades. What happens to it over time?

Its real purchasing power erodes with inflation

In a “state-supervised, county-administered” system, who typically decides eligibility for individual applicants?

County human services workers, under state rules and oversight

In federal law, who is ultimately accountable for a program like SNAP in states with county-run systems? 

The state agency

Which explanation of state welfare variation predicts a “race to the bottom”?

Competition among states, out of fear of attracting low-income residents

“Administrative burden” in safety-net programs refers to:

The learning, compliance, and psychological costs people face in getting and keeping benefits

Why is federal rental assistance described as “rationed” rather than guaranteed?

It is funded by annual appropriations for a limited number of households, so many eligible households never receive it

With a housing voucher, how does the tenant’s rent contribution generally respond when the household’s income rises?

It rises, at about 30% of income, as the subsidy falls

Which principle explains why SNAP excludes hot prepared foods, vitamins, and household supplies?

SNAP buys food for preparation and eating at home

In the SNAP benefit formula (maximum allotment minus 30% of net income), what does the 30% represent?

The share of a household's net income it is expected to spend on food

Why is public water management described as “negotiating across levels”?

Federal, state, regional, and local actors each hold power, influence, or a revenue stream

What are the three families of state climate policy?

Prepare for impacts

price carbon

mandate clean energy

In a cap-and-trade system, what is the correct order of steps?

Cap, allowances, trade, invest

In a cap-and-trade program, what do firms that can cut emissions cheaply typically do?

Sell allowances to firms that find cutting emissions more expensive

How do utilities typically comply with a clean electricity standard?

By buying renewable energy credits and meeting a rising share of retail sales from eligible sources

When states retreat from clean electricity standards, where do siting, transmission, and rate impacts often land?

On local governments

What does “science-informed policy” mean in the slides’ state adaptation framework?

Assessments are linked by statute to strategies, agency guidance, local plans, and budgets

What are the four ways to divide a shared river?

Congressional apportionment

interstate compact

equitable apportionment

international treaty

Why did a river compact negotiated in a very wet period later create a structural deficit?

It promised more water than the river now reliably supplies, because of long-term drought and aridification

What is relevant for local officials when managing interstate resource conflicts?

Litigation is slow and costly, courts tend to set minimums rather than produce good management

infrastructure, such as storage and release points, gives its controller leverage

federal govt is a party in interstate negotiations bc it owns dams and holds tribal trust duties

Cash solvency

ability to generate enough cash over 30 - 60 days to pay bills

budget solvency

can balance budget/generate enough resources to last thru the fiscal year

service-level solvency

ability to provide adequate public services (health, safety, and welfare needs) given its revenue sources

long-term solvency

long-run balance btwn revenues and spending. Implies government can adapt to uncertain future conditions, including sever shocks