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A Race to the Bottom? Exploring County Spending Shortfalls under Welfare Reform in North Carolina
Author(s) -
BERNER MAUREEN
Publication year - 2005
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.1540-5850.2005.00375.x
Subject(s) - devolution (biology) , decentralization , welfare , flexibility (engineering) , government (linguistics) , state (computer science) , block grant , local government , control (management) , race to the bottom , business , public economics , economics , public administration , political science , geography , incentive , linguistics , archaeology , algorithm , computer science , market economy , human evolution , philosophy , management , microeconomics
North Carolina's experiment with local control of Temporary Assistance to Needy Families programs provides a unique example of the budget implications of state to local government policy devolution. County‐level expenditure data indicate that after state to local government devolution, only 45 of 100 counties met welfare maintenance of effort (MOE) budget requirements. Several important factors, including control over program eligibility and benefit levels, were significantly associated with MOE spending variation. Counties given more flexibility spent dramatically less than others. Many failed to meet MOE requirements without penalty, year after year. These issues raise serious questions about decentralization from both the budget and policy perspectives.