ABSTRACT
Richard Nathan argues that the lasting impact of Reagan's domestic program changes will be the shift of authority to the states, not the much heralded or feared budget cuts. Under the Education block grant, state authority to determine how local school districts used the pass-through funds was limited, since the federal intent was to promote local discretion in the use of funds. General accounting office (GAO) concluded that states often maintained program funding and service priorities, in spite of the federal funding cuts accompanying most of the block grants, through the fiscal year 1983. GAO did find some examples of states consolidating, eliminating, or transferring program responsibilities among state offices, reflecting their new role and authority under the block grants. States have traditionally been given an important role as the administrative arbiter of federal categorical grants. Traditional federal management and regulatory activities were curtailed as part of the Reagan administration's effort to reduce federal intrusion in state block grant management.
