Devolutionary Federalism and Elazar's Typology: The Arkansas Response to Reagan's New Federalism

This article examines the relationship between the federal and state governments with regard to the Reagan administration's New Federalism. The underlying concern centers on the financial relationship among governments portrayed by Elazar's typology of federal aid. The focus of this investigation is directed toward the adjustments being made by the states to accommodate the financial and administrative changes occurring on the national level, as illustrated by the case of Arkansas. The analysis centers on two questions: 1) Has the New Federalism initiative achieved Reagan's goals of decentralizing governmental authority back to the states? 2) Has a major redirection in the federal system been achieved by reducing the federal financial obligation in the intergovernmental system? The changes being made in the federal system, as reflected by the adjustments occurring among the states, may signal an important realignment of federalism.