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1、CHAPTER13IntergovernmentalFiscalRelations:DiversityandCoordinationFederal,state,andlocalgovernmentsprovideandfinancepublicservicesintheUnitedStates,sometimesindependently,sometimescooperatively.Governmentsofeachlevelareselectedbytheirownelectoratesandnogovernmentlevelfunctionsasaregional
2、departmentofanother.Eventhoughthelocalitiesadduptothestateandthestatesadduptothenation,thebalanceofchoicesdiffersamonglocalitiesinastateandamongstatesinthenation.Becauseofthatdiversityofchoice,stateandlocalgovernmentshaveanimportantandindependentroleinprovidingandfinanc-inggovernmentserv
3、ices.Thatincludesthepowertospend,aswellastheresponsi-bilitytoraiserevenueadequatetosupportthatspending.Completelyindependentanduncoordinatedoperationoftheselevelswould,mostargue,produceunacceptableresults.Suchaposturewouldundoubtedlyleavethepublicwithoutdesiredandaffordableservices,infli
4、ctsevereburdensonsomeunluckilyplacedindividualsandbusinesses,andleavesomelower-levelgovern-mentsinchronicfiscalcrisis.Thoseproblemshighlighttheimportanceforregular-1izedfiscalinterrelationshipsamonggovernments.Subnationalgovernmentsallowfiscaldiversityandchoicesaboutwhichgov-ernmentshoul
5、dprovidewhichservices.Althoughthefederalgovernmentcontinuesassolegovernmentproviderofnationaldefenseandpostalservices,othersignificantgovernmentfunctionsaredividedamongfederal,state,andlocalgovernments.Stateandlocalgovernmentsaredominantfortheservicesofpublicsafety(police,fire,andprotect
6、iveregulation),education(primary,secondary,andhigher),recreationandculture,andtransportation(highways,air,water,andurbanmasstransit).1NotallfederationsarecharacterizedbythedegreeofpoliticalindependencebetweenfederalandregionalgovernmentsthatcharacterizestheUnitedStates.Forinstance,Russia
7、andIndiahavesystemsinwhichregionalchiefexecutivesareselectedinaprocessthatgivesconsiderablecontrolandinfluencetothenationalchiefexecutive,ratherthanthefreeelectionofstategovernorsthatisthepracticeintheUnitedStates.Also,recallfromChapter1thatmanynationsareunitary,notfedera
