In a federal system, the 50 state governments retain sovereignty, which prevents the federal government from interfering in the financial matters of states.However, state governments can become involved in the fiscal matters of local governments, which is most recently evident in the state takeover of the city finances of Harrisburg, Pennsylvania, and Flint, Michigan.Why can state governments interfere in the fiscal matters of local governments when the federal government cannot do so with state governments?

Question

Quizplus · Accepted Answer

Local governments are not recognized by the U.S. Constitution, which means they derive their powers and existence from the state governments. This allows states to have authority over local governments, including fiscal matters.

In a Federal System, the 50 State Governments Retain Sovereignty