Emergency management is acomplex policy subsystem that involvies an intergovernmental, multiphased effort to mitigate, prepare for, respond to, and recover from disasters. This article develops a frame work for analyzing the fiscal and functional aspects of disasters policy. It uses established theories of intergovernmental relations to offer a rationale for examining the capabilites required to implement disaster policy and the behavioral incentives that drive policy formulation. In particular, the article identifies the extent to which the capabilites and policial objectives characteristic of each level of government are aligned, and illustrates the interplay between incencitives and competencies by reviewing the federal disaster funding process. The current rules for fedral budgeting may inappropriately promote spending on disaster response and recovery, while de-emphasizing mitigation and preparedness. Various proposals for reform could establish more coherent incentives, making disaster spending more consistent with the relative functional capabilities of the various levels of government

Public Administration Review PAR

November/December 2001 Volume 61 Number 6