The gross effect of revenue sharing is to centralize around the 9/1 ratio, proportional democracy. For California, that means four or five accounting regions with negotiating authority. California can make it work. Easy enough to the five regional budget authorities to pay out on one or two programs shortages, now and then.
At the end if this chain is an implied liquidity swapper, just like the one Janet worked at the federal level. Give the authority ability to dump positive funds, and otherwise programs can get automated liquidity swaps.
The Walmart Market model of government, optimally congest the value added channel. Get the best precision measurement as possible. at some level we have risk equalized government agencies, and the trading pit model works fine, with cash infusion. In a government agency chain this offsets a lot of illiquidity constraints imposed by monopoly executive. We get the double whammy of government smoothing. Why? It is cool cash, due for this purpose as defined in the Power to coin. If there ever was a why, this is it; enforce the Law.
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