While state governments have become proactive in their ability to tackle issues, being able to adapt and reform their policies when needed, they still face the formidable, almost domineering might of the federal government. This is not to say that state governments are faultless, but many state governments, especially during the 1970s and beyond, have been able to reform their constitutions, often to a point where state administrations are well-rounded enough to give a realistic image of the state. However, even with proactive innovations and their varied scope of operations, no local, or federal government for that matter, is wholly prepared for fluctuations in the economy, both on national and local levels. While the textbook delineates the challenges brought about by the Great Recession, we can see similar challenges being reflected in our current times, e.g. the closing of many businesses, many people being laid off/losing their jobs, increased prices of commodities and goods, etc. In an attempt to bolster the state's economy, California, for example, has "reopened", many restaurants and local businesses resuming their operations with what we would assume to be appropriate COVID restrictions.
While at times we may not be acutely aware of it, another challenge both state and federal governments face is corruption. State governments have taken measures to be more transparent with the public, however, this does not necessarily prevent forms of corruption within the states. Even if an act of corruption is not an outright embezzlement scheme, the public can lose faith in the government, especially at a local level, for something as "simple" as a scandal. One that immediately comes to mind is Governor Newsom's French Laundry scandal. State and locals can appear to be immune from these challenges, however, even despite their innovative and proactive measures to counter and prevent them, they can still fall into these non-national problems.
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