"The states will want more handouts first and even then,the money will possibly go to other things. I wonder how the system would work if everything was run or controlled by the fed govt."
I wouldn't want Canberra to be the one running essential services for the community; it is too far away from the grass roots.
In recent years, I read that there has been an increasing use of tied grants by Canberra. It can be a way for the federal government to make sure that those grants will be used by the states for what they are meant for.
