What do we do now? Devolution and the legislative institution.

AuthorFeustel, Bruce

States have argued long and hard for more power. Now they're getting it, and making it work will be a bigger job than anyone thought.

Be careful what you wish for - your wish could come true. State legislators have long argued with Congress that more issues should be decided at a level of government closer to the people. Now, it appears, Congress and the people seem to agree, and more power and authority are devolving from the federal government to the states. In many different areas, the federal government is either passing the decision-making authority to the states or at least allowing states significantly greater flexibility in how they manage programs.

State officials have been worrying about how they will handle a specific issue, like welfare reform, safe drinking water, health insurance, or deregulation of electric utilities or telecommunications. However, since so many issues formerly controlled by the federal government may be coming to the states, often with little advance notice, legislators need to look at the institutional impacts of devolution and develop some general guidelines and strategies.

What challenges will this bring to the legislature as an institution? The Legislative Effectiveness Committee of NCSL's Assembly on State Issues has identified some of them:

* Legislatures lack institutional knowledge about the issues involved.

* Devolution may spark a series of battles between legislative and executive branches.

* Local governments, businesses and other organizations, and citizens need to be involved in decisions.

* Devolution decisions may have huge and unanticipated consequences for budget and revenue planning.

* These new issues may require legislators to make tough decisions on complex questions in a short time. Lawmakers may need to use a different outlook and structure to make these decisions quickly.

INSTITUTIONAL KNOWLEDGE

The critical first step, according to Gary Olson, director of the Senate Fiscal Agency in Michigan, is developing expertise in new areas. As states prepare for devolution, it is important to realize that the institutional knowledge on federal appropriations tends to be limited. There is one major reason for this lack. "Federal funding issues have not received much scrutiny in the state legislative budget process," says Olson, who gives a six-point plan for acquiring that knowledge:

* Develop contacts in Congress and in federal agencies. It is critically important to begin these relationships so you find a source for answers to specific questions.

* Use state offices, the National Conference of State...

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