The state of American federalism, 1997-1998

Although it war a relatively quiet year for the courts and congressional ac tion, 1997-1998 saw several developments that may significantly define fede ralism in the coming years. The 1998 federal budget is projected to show a surplus, ending decades of deficit financing in Washington, D.C., but also raising questions about the budget's fiscal impact on federalism and interg overnmental relations. Devolution look a beck seat in Washington, D.C., as concerns about managed care, education, and internet access led to proposal s for increased federal involvement in stale and local affairs. The stales continued their implementation of welfare reform and launched other program s in health, environment, and education.