1. Federal Budget and Intergovernmental Fiscal Issues: can the twain meet?

2. The evolution of fiscal interdependence and conflict Dual Federalism Cooperative Federalism Coercive Federalism Contentious Federalism

3. Trends in federal grants

4. Rise of Federal Mandates

5. Polarization and the federal system: Variable speed federalism Mandate resistance – Real ID, NCLB, Medicaid mandates Opt out = conservative states who decline to participate in Medicaid expansion, health exchanges, Race to the Top, high speed rail Partial preemption – states with more stringent rules in air pollution, carbon dioxide and banking regulation 5

6. Vertical Equalization: The Obama Stimulus

7. GAO State and Local Simulation

8. State sales tax bases have been eroding 8

9. State and Local Pension Costs as shares of budgets 9

11. Deinstitutionalization of IGR 1980 – ACIR – OMB – GAO – Congressional IGR subcommittees – Academy for State and Local Government 2013 – CBO cost estimation – GAO – Whither state and local groups?

12. Federalism in an Age of Austerity Go it alone federalism Partial and ineffective solutions Public confusion Cost shifting Unfunded mandates Fiscal substitution Fiscal coordination Win-win strategies VAT Sorting out responsibilities

13. Centralizing Effects of Deficit Commission Proposals Reduced discretionary budgets will prompt cuts in federal grants Tax expenditures reexamined State and local deduction Tax exempt bonds Cost shifts and mandates Extend social security coverage Revenue nationalization - VAT Cap and consolidate Medicaid long term care Homeland security grants

14. A Federalism reform agenda? Tax policy – Tax expenditure reform – Consumption taxation – Tax base sharing Grants – Sorting out – Consolidation/performance grants – Targeting Regulatory – Unfunded mandates act – Performance outcomes – Variable speed federalism Institutions – National/federal for engagement – Fiscal impacts – State capacity for engagement