DEFICITS AND DEVOLUTION IN THE 104TH CONGRESS

Deficit, eduction was an important impetus for the devolution initiati ves that moved through the 104th Congress, but it was not the only cau se. Other objectives, notably building an alliance with Republican gov ernors and transforming the American welfare state, also helped to dri ve devolution. Although the Republican deficit and devolution agendas appeared mutually reinforcing at first, arguments over the terms of de volution (e.g., entitlement status, program mandates, and funding form ulas) helped to slow down and build opposition to those agendas. The u se of omnibus legislation helped to get Republican proposals through t he Congress in 1995, but packaging together popular and highly unpopul ar provisions in a single bill ultimately provided President Bill Clin ton with political cover to veto the legislation. The unpopularity of Aid to Families with Dependent Children (AFDC) and Clinton's pledge to ''end welfare as we know it'' propelled a more limited devolution age nda focused on AFDC in the lead-up, to the 1996 presidential election. Devolution of Medicaid was dropped, however, while Food Stamps and ch ild nutrition programs experienced budget cuts but little devolution.