State and local governments may have significant spending power, but limited freedom of using it. The central government can very effectively pressure states to comply with its policies by providing or withdrawing federal subsidies (e.g., NCLB). It can also directly veto any politically controversial decision by a state on how to spend its money (e.g., California Proposition 187).
State and local governments may have significant spending power, but limited freedom of using it. The central government can very effectively pressure states to comply with its policies by providing or withdrawing federal subsidies (e.g., NCLB). It can also directly veto any politically controversial decision by a state on how to spend its money (e.g., California Proposition 187).