ABSTRACT
The 1980s can be considered the "devolution decade," during which domestic leadership shifted from the nation's capital to state capitols. The Reagan administration's New Federalism philosophy, and related policy initiatives, were catalysts for these changes. The federal roles in other domestic programs, such as community and economic development, transportation, housing, and education, would be gradually turned back to states and localities and transition funding would be provided to cushion the fiscal impact. While the states' capacity-building record has been well-documented, less is known about how states have actually performed their well-publicized role as "laboratories of democracy." Although less coherent philosophically, the Bush administration continued the general thrust of the Reagan domestic policy. State Policy Problems focuses on the "extent to which the states in the American system can exhibit policy innovation and responsiveness in a time of devolution of power from the federal government".
