The Bottom-line of Decentralization and Boundaries for Innovation:A Discussion on the Legal Environment for Government Innovation

This paper discusses the critical articles and clauses in the U.S.Constitution and state legislations on the relationship between Federal and State Governments and between the State and Local Governments with an emphasis on their relevance to China's central/local government relations reform.The principle of reciprocity and the mustn't-do terms in those laws clarify the working relationship between state governments and the federal supremacy over the state;the articles on delegation of power in emergency situations give relevant government officials and departments necessary authority to handle emergency situations at the time of need;the articles on citizen rights set boundaries for governmental administrative authority.Also,at the state government level,Dillon's Rule and the Home Rule charter work in tandem to maintain state supremacy over local government while at the same time give local government autonomy in handling local affairs innovatively.These articles and clauses serve as the bottom lines for decentralization and set the boundaries for governmental innovation.They create a legal environment in which authority of the upper level government is maintained while at the same autonomy and innovations are allowed to the local government for handling their own affairs.