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10.1 Fiscal Federalism in the United States and Abroad
10.2 Optimal Fiscal Federalism
10.3 Redistribution Across Communities
10.4 Conclusion
State and Local Government Expenditures
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Fiscal Federalism: No Child Left Behind Act
In 2002, President Bush signed into law the No Child Left Behind (NCLB) Act.
The goal of NCLB was to address the poor educational opportunities for low income and minority students by requiring standardized testing.
NCLB required schools to publish scores, and penalties were to be imposed on schools that did not show student progress.
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Fiscal Federalism: No Child Left Behind Act
Intense controversy existed during the first few years between states and the federal government.
Proponents of the Act felt states had ignored educational quality for low income and minority students while opponents felt the states knew best how to address any educational deficiencies in its student population.
In 2015, the House passed a rewrite which reduces the federal role in supervising education. The bill prohibits federal government from mandating or encouraging specific curricula among a host of other revisions.
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Fiscal Federalism
The United States has a federal system, dividing activity between a national government and state and local governments.
Education, for example, is often provided by state governments.
Optimal fiscal federalism: The question of which activities should take place at which level of government.
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10.1
The distribution of government spending has changed dramatically over time in the United States.
1902: Federal government accounted for about 34% of total government spending.
2012: Federal government