NCSL: Washington still shifting costs to states.(News & Numbers)

The cost of implementing federally mandated programs to state governments will reach more than $29 billion in fiscal year 2004, according to a new report from the National Conference of State Legislatures. NCSL is launching a renewed campaign against unfunded federal mandates, the first such campaign since the enactment of the Unfunded Mandates Reform Act of 1995.

"Although the Unfunded Mandates Reform Act has been effective in curtailing some forms of unfunded mandates, Congress and the administration have continued to shift the cost of many major policy initiatives to the states," said Utah House Speaker Marty Stephens, president of NCSL. "In so doing, states' own budget choices and priorities are being supplanted by federal spending priorities."

A key component of the state lawmakers' campaign is the revival of NCSUs Mandate Monitor: This publication was used extensively in the early 1990s as a means to track proposed federal legislation that would have a negative financial impact on state governments.

The first installment of the new Mandate Monitor shows states will be forced to spend nearly 6 percent of their general fund revenues during fiscal year 2004 on federally mandated programs. The cost climbs to 7 percent in fiscal 2005.

The report shows that although the enactment of the Unfunded Mandates Reform Act has slowed the tide of unfunded mandates, states still must foot the bill for several categories of cost shifts that are not defined as unfunded mandates under the law, including the following:

* Conditions of grant aid (No Child Left Behind Act)

* Changes in entitlement programs (elimination of welfare benefits to legal immigrants)

* Failure to release appropriated funds (Help America Vote Act)

* Reduction in payments for administering federal programs (food stamps)

* Sanctions (reductions in transportation funding for non-compliance with drunk driving standards)

* Under-appropriation (Individuals with Disabilities Education Act)

Stephens believes the growing trend toward shifting costs to the states, if left unchecked, will lead to trouble.

"Even during strong economic times, states can ill afford to shoulder the burden that Washington has passed to us," he said. "During a fiscal crisis, the burden is intolerable. We are hopeful that members of Congress, especially the 51 percent of members who have served in state legislatures, will join us to craft workable safeguards against unfunded mandates."

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