Reviews 95

munism. As a result, most countries of eastern Europe have either peacefully or through violent revo- lutions abandoned communism and the communist world is now in turmoil. Scholars and politicians can speculate about the future, but nobody can predict it accurately. As many communist regimes are being dismantled, the citizens of those countries have to adapt to new realities. Hill contends that these citizens would like to keep some of the benefits of the communist regimes, like universal health care and universal education. He also speculates that there may be young revolutionaries who think that they can avoid the mistakes made by their predecessors and would like to try creating better communist systems again. However he concludes, rightly, that most citizens who have had direct experience under former communist regimes would reject such experiments.

The organization of the book is logical. An index at the end of the book enhances the access provided by the table of contents. The extensive bibliography is very useful for beginner and advanced scholar alike. The style is clear, and occasionally the author uses humor to make a point. Because the book is based on lectures, there is a certain amount of repetition. The enumeration of all the different brands of Marxist thought and of all the communist parties that do not have the word communist in the name occurs several times in different chapters. This redundancy can be explained by the fact that the book’s intended audience consists of beginning students, and in that sense, it is a textbook. However, its ana- lytical style, excellent examples, clear exposition of ideas, and bibliography, make it a useful book for more advanced scholars. Hill does a great job of explaining an abstract idea, its importance to political thought, and its applications to political systems. His analysis of the importance of myths and symbols is a case in point.

Events taking place in the communist world make this book timely. It acquires a meaning that is appropriately expressed in the subtitle as “surgery or autopsy.” The book is a historical account of the situation ofcommunism as it was during its days ofdominance. Reading Hill’s book enables the reader to understand the underlying causes of current events. His lucid analysis provides an excellent descrip- tion of communism.

SEVER BORDEIANU General Library

University of New Mexico Albuquerque, NM 87 13 1

USA

The Changing Face of Fiscal Federalism. Edited by Thomas R. Swartz and John E. Peck. New York: M. E. Sharpe, Inc., 1990. ISBN O-97332-664-4. 181~. $39.95.

“A truly remarkable sea change has occurred in how we finance the public enterprise” (p. 3). So asserts this volume that focuses on how the fiscal relationship among the national, state, and local gov- ernments has changed in the years following 1978. The contributors to this volume perceive as central issues concerns regarding how basic government responsibilities should be assigned to the appropriate government level, how these responsibilities have changed in the recent past, and who the winners and losers are in the emerging federal structure of government.

This book brings together six analysts ofan emerging field of inquiry-fiscal federalism- to examine whether and how purposeful attempts by Presidents Reagan and Bush are creating a new dynamic in the traditional structure of federalism. During the period 1960- 1978, and especially through the admin- istrations of Kennedy and Johnson, federalism brought forth “Federal-state-local fiscal relations [that] are at last on the threshold of a promised land created by vigorous economic growth and balanced

political reapportionment” (p. 5). This period, considered the golden years of fiscal federalism, was brought to an abrupt end by California’s Proposition 13 in June 1978. Proposition 13 created a national debate regarding the funding of policies and programs as states placed new controls over local govern- ments and national policy makers reflected the public’s growing conservative attitude toward domestic programs.

The book argues, ultimately, that the changes in the federal structure have resulted in substantive policy and process transformations that have made the public enterprise a more problematic operation. The aftermath of these initial changes has included efforts to make state and local governments compete amongst and between themselves for federal dollars. Once “competitive” federalism was in place, the

96 Reviews

existing system of intergovernmental finance was changed permanently, and, arguably, for the worse. A brief summary of each essay follows.

The volume’s first essay is by John Shannon, who traces the constitutional components of federalism. He separates the federalism concept into three distinct periods of American history: Constitutional Fed- eralism ( 1789- 1929); Crisis Federalism ( 1929- 1953); and Fiscal Federalism ( 1953-present). Shannon’s critique of Fiscal Federalism traces the evolutionary buildup to a strong national involvement in state and local matters and its very quick departure in the post-1978 period. Fiscal Federalism is, by its nature, dependent on the national budget picture. According to Shannon, “the status of the federal budget now largely shapes the character of the general relationship between Washington and the state- local systems. When Congress finds itself in an “easy” budget situation, additional federal aid dollars flow into the state-local sector.” (p. 23). However, income tax, defense buildup, and budget deficit real- ities have not made federal aid “easy” in recent years. The result, Shannon argues, is a sort of “fend for yourself” federalism in which state and local governments have been forced to find their own new sources of money. These governments have become fiscally resilient bodies, and the charges that sub- national governments were “federal aid junkies” can be dismissed. Shannon concludes that today’s competitive federalism process has actually strengthened state and local governments; these govern- ments have by necessity diversified their systems of raising revenue.

Richard Hill’s essay focuses on the effects of fiscal federalism on urban policies. Hill argues that the emerging clarity with which fiscal federalism is maturing brings forth an emphasis on economic growth through federalism and a retreat from the previous goal of social welfare. Hence, “changes in public aims, political coalitions, strategies for realizing public purposes and the loci for initiating change in the intergovernmental system” (p. 35) are the targets of Hill’s inquiry. The traditional aid and attention given to urban areas by Democratic administrations was deemphasized under President Reagan. Hill believes that because Reagan left office with tremendous federal budget deficits and national debt, urban areas will remain in decline because of continuing conservative policies and fiscal constraints.

Roy W. Bahl analyzes new trends and variations among states in the fiscal federalism era. He exam- ines patterns of state and local funding, spending, trends toward centralization or decentralization, and the fiscal conditions under which subnational governments now operate. He concludes that the move- ment toward fiscal decentralization and a growing responsibility for state and local governments to pay their own way, was offset by a general preparedness by these governments to take over such functions. The prioritization of government efficiency rather than the redistribution of income has left govern- ments in a better position to raise revenues and allocate resources but also left an increasingly poor population.

Steven D. Gold’s essay examines state finances in the new era of fiscal federalism. He analyzes several areas of import, traditional state functions, and the impact of structural change by the national govern- ment. Thus, tax policies, reductions in federal aid, general trends in expenditure policy, and education spending provide Gold with enough information to make some predictions for the coming decade. These will include increasing fiscal stress, challenges for increased efficiency, and a general optimism that if state and local governments have survived recent obstacles they can continue to do so in the future.

Helen F. Ladd argues, in contrast to the more optimistic accounts offered by Gold, Bahl, and Shan- non, that big cities have not been well tended under fiscal federalism. In an analysis of over 30 big cities, Ladd concludes that the fiscal crises faced by New York City during the mid-seventies are likely to be replayed in the future. The decline in fiscal health “is likely to continue and may be exacerbated by the effects of the Tax Reform Act of 1986” (p. 148). Ladd predicts that big city residents will experience either a marked decline in quality of life and services or significant tax increases to combat lower amounts of federal aid.

Edward M. Gramlich closes the volume with the development of an ideal model of fiscal federalism. An ideal model is one in which collective consumption, income redistribution, and social insurance outlays are matched by budget, intergovernmental grant, and tax subsidies. Gramlich offers some reform&for example, converting categorical grant and elimination of tax deductions for income and property taxes-but finally concludes that American federalism conforms relatively well to his ideal model. Some exceptions include state residence for the roles of income redistribution and higher edu- cation support.

These essays provide an informed, reasoned, and helpful analysis of contemporary federalism as it is displayed in a decentralized, competitive, and often unsure policy and fiscal environment. As should be the case, each essay stands on its own as a strong commentary and analysis of the subject at hand. Conversely, there is an ironic strength to the book that also uncovers its most glaring omissions.

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The book posits, without explicitly developing it, a theory of federalism that fits in well with other contemporary analyses. It has always been extraordinarily difficult for scholars to get a handle on what federalism means. As is pointed out by Shannon, there are constitutional, historical, policy, and admin- istrative interpretations of what federalism is in practice. This book goes a long way towards uncovering federalism in practice, yet it does not attempt to provide a more comprehensive linkage to theories of federalism. This is unfortunate in that, as a whole, the essays fit in well with the work of some leading scholars on federalism. For example, Thomas J. Anton has created a “benefits-coalition” theory of fed- eralism in which he argues “if the major products of government actions are benefits for designated populations, it seems reasonable to assume that the major sources of such benefits are the individual beneficiaries. A benefit coalition . . . mobilizes to develop, support, and implement government benefit programs.” [ 1 ]

It seems quite clear that the fiscal competitiveness that this volume addresses is a derivative of the emerging political competition that Anton perceives in national-state-local relations. The federalism environment can be explained as a pluralistic process in which state and local governments com- pete for funds through political channels in the same manner that other groups might compete for favorable policies.

One further comment is needed about the book’s breadth with regards to its contextual linkage to federalism. The Supreme Court has often played an instrumental role in how federalism is defined. Certainly much ofwhat Anton perceives as politics and the contributors to this volume perceive as fiscal competition is due to court decisions in cases such as Garcia v. San Antonio Metropolitan Transit Authority [2] and South Carolina v. Baker [3]. In these cases, the reach of the federal government into state and local fiscal autonomy was extended via court decision. The editors of this volume would have strengthened its utility by some analysis and inclusion of these political and constitutional/judicial dimensions of fiscal federalism.

These suggestions notwithstanding, this is an interesting, worthy, and well-conceived addition to the federalism literature. The book provides important studies of the policies, processes, and emerging structure that fiscal federalism continues to create. Scholars and students of state and local government. intergovernmental relations, and urban politics will find this worthwhile reading.

SCOTT HILL Institute of Governmental Affairs

University of California Davis, CA 95616

NOTES

I. Thomas J. Anton, American Federalism and Public Policy (New York: Random House, 1989), 32. 2. 105 S. Ct 1005 (1985). 3. 1085 S. Ct. 1355 (1988).

Political Science: A Guide to Reference and Information Sources. By Henry E. York. Englewood, Col- orado: Libraries Unlimited, Inc., 1990. (Reference Sources in the Social Sciences, Number 4.) 265~. Index. ISBN O-87287-749-9. LCCN 90-41158. $38.00.

This new publication should prove to be useful to both librarians and researchers. It is a bibliography of 805 political science reference sources, most of them in English. Because it covers the years 1980 to 1987, this updates the other available standard political science research bibliographies, such as Infor- mation Sources in Politics and Political Science: A Survey Worldwide, edited by Dermot Englefield and Gavin Drewry (London: Butterworths, 1984); and Information Sources ofPolitical Science, 4th edition, by Frederick L. Holler (Santa Barbara, California: ABC-Clio, 1986). It is a selective, not a comprehen- sive, compilation of research tools. The well-written annotations provide plenty of descriptive infor- mation for each item.

The entries are logically grouped into six chapters. Chapters 1 and 6 (“General Social Science Ref- erence Sources” and “Public Policy”) are subdivided by book format. The other four chapters (“Social