There are several lessons that the federal government can learn from the experience with fiscal rules in the states. First, a strong federalist system is required to restore fiscal sanity. This requires devolution of federal programs to state and local governments. The experience with welfare reform reveals that state and local governments can deliver these services more efficiently than the federal government.

Devolution must be accompanied by greater fiscal autonomy, shifting tax and expenditure powers from the federal government to state and local governments. Fiscal autonomy for state and local governments would restore the strong federalist system envisioned in the Constitution. //

Recent research discovered that more than the required number of states called for such a convention of states in 1979, yet Congress failed to act. Legislation introduced in Congress this year (H.C.R. 24) would require Congress to fulfill its obligation under Article V of the Constitution to certify and count state resolutions and call the convention.

Non-profit organizations are now working with state legislators in an appeal to the Supreme Court for a Declaratory Judgement that would require Congress to record and count the applications. State legislators and citizens must now step up and demand that Congress set the time and place for such a convention as required under Article V. That may be our only recourse to restore dynamically growing credence capital and fiscal sanity.

The time for action is now.