A couple of observations from the PEW Federalism forum
On June 24, I listened in on a Pew / States Newsroom event titled “Federalism Tested: How States Are Navigating an Area of Uncertainty.”
I won’t summarize the event given the video is available below, but I do want to make just a few quick observations on the event. There is also a balanced summary of the comments by former Maryland Gov. Larry Hogan and former Montana Gov. Steve Bullock published in the Maine Morning Star.
The forum offered helpful insight into how two former governors—both considered moderates, particularly in establishment circles—are thinking about current events. Overall, many of the questions seemed slanted toward preserving Washington’s largesse and exploring how governors can navigate that to their advantage. Still, Larry Hogan did highlight some of the spending and staffing cuts he implemented in Maryland’s state government.
While obviously highly complimentary of each other, Hogan and Bullock did diverge on the response to Iran and events in Los Angeles. Hogan was much more complimentary of Trump’s actions against Iran and working to restore order in Los Angeles.
Hogan expressed disagreement with Democratic mayors and governors who, in his view, allowed their cities to be overrun by criminals and violent offenders, particularly in 2020. He pointed to his own response to unrest in Baltimore, noting that he ensured the National Guard was available to help maintain order. In contrast, Bullock pushed back on what he saw as Trump’s exaggeration of unrest in Los Angeles, stressing that it’s Gov. Gavin Newsom’s responsibility to prioritize California’s interests. Hogan concluded by emphasizing the importance of strong local governance, arguing that effective leadership at the state and city level can prevent the need for federal intervention.
Finally, during the second hour, I thought Jared Walczak of the Tax Foundation made a great point about states leaning heavily on the federal government and their progressive tax code to be competitive with cutting their own taxes for economic growth. Because so much money comes from the federal government now, states can plan better for tax cuts. Walczak pointed out that many state rainy day funds are in good shape, too. And that those are mostly threatened by a prolonged recession.
Still, the larger concern is that this growing dependence on federal dollars risks undermining state autonomy and distorting responsible budgeting. While there has been some progress on sounding this alarm, it would be beneficial to have even more state legislators and governors talking about it now.
—Ray Nothstine
— The Federalism Beat