After more than three decades of institutional and fiscal capacity-bui
lding, the debate over the states' commitment to their citizens and lo
cal governments continues. Federal domestic disengagement, the nationa
l recession, taxpayer unrest, and anti-incumbent sentiments, among oth
er factors, have raised concerns about the states' performance. This a
rticle reviews recent trends in state spending for public education, M
edicaid, corrections, AFDC, and local aid to discern changes and asses
s their implications for the states' role and record.