Final answer:
A significant observation about government functioning is the balance of power between federal and state governments, with states gaining more authority over welfare programs but still being influenced by federal spending and unfunded mandates. The concepts of New Federalism and the distribution of government employees illustrate the complexity of relationships within the federal structure.
Step-by-step explanation:
One major new learning about how federal, state, or local government works involves the shift in welfare program management. With legislation like the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, states were granted increased discretion over welfare provision, thus showing a rebalance of power between national and subnational governments. However, despite this increased state autonomy, the federal government maintains significant influence through funding and unfunded mandates, which can shape state policies and practices. Key periods like the era of New Federalism under Presidents Nixon and Reagan highlight attempts to decentralize power and enhance state authority, seeing policies such as general revenue sharing and a push for administrative efficiency.
Moreover, understanding the distribution of government employees demonstrates that the majority work at the state and local levels. This distribution supports the idea of government being 'closer to the people.' However, disparities in benefit levels and service provision across states can result from administrative flexibility. Lastly, financial resources and spending power play a pivotal role in the dynamic between federal and state levels. The federal government's ability to surpass state and local government spending after 1940 enabled it to exert more control over state policies through grants and unfunded mandates, emphasizing the ever-changing landscape of federalism.