Final answer:
Dillon's Rule actually restricts the power of local governments to only what is expressly granted by the state, making the correct answer False.
Step-by-step explanation:
The statement that Dillon's Rule gives local governments the freedom and flexibility to make decisions for themselves is False. Dillon's Rule is a legal principle that states local governments can only exercise powers expressly granted to them by the state government, powers necessarily or fairly implied in those express powers, or powers essential and indispensable to the declared purposes of the municipality.
Therefore, rather than granting freedom and flexibility, Dillon's Rule restricts the authority of local governments to those powers which are specifically conferred upon them by state law.