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This report on federal-state relations was prepared by the Council of State Governments for the Commission on Organization of the Executive Branch. The primary focus is placed on fiscal relations and the future of federal-state relations.
When President George W Bush came into office in January 2001, he arrived from a campaign in which he had emphasised efficiency in government, particularly through the use of information technology, but had not revealed any plans for reorganising the executive branch. Then in the aftermath of the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon, the organisation of the federal government for maintaining homeland security and combating terrorism became an important consideration for both the President and the 107th Congress. Establishment of the Office of Homeland Security in October 2001 as a co-ordinating entity as an important first step, followed by the President's June 6, 2002 call for the creation of a Department of Homeland Security. This book regards reorganisation and management as involving the alteration of the program administrative structure and operations of the executive branch for reasons of efficiency, economy and direction.