One of the most basic axioms a conservative should have in his arsenal is known as the Principle of Subsidiarity. Plainly stated, it says that things should be done on the most local level possible. Why? Because that it the surest way to get necessary things accomplished in the most efficient manner.
The closer we are to a problem the better we ought to be able to understand it. We will see it more clearly, and indeed, particularly with issues and events nearby, we will likely have a greater interest in it. Schools, for example, should by and large be run within the local community because it is the locals who have the greatest interest in the education of their kids. Their kids are the ones who are generally going to hang around and run things when the current generation cannot anymore.
As a rule, the closer to a problem the less money which must be spend alleviating it. This is in part due to localized control, again as issues should be seen more clearly but also as there would be no added layers of bureaucracy which would otherwise have to be paid for by the electorate. Perhaps this is why, try as she might, Washington cannot get a grip on poverty: too much money which is supposed to help the poor in fact keeps bureaucrats at a desk.
There are of course many factors to consider when deciding what job should be done where in a national scheme. A nation as a whole must take up the defense of its people: could Detroit reasonably be expected to ward off an attack by a large foreign power on its own? If we were to leave Detroit to its own devices (a prospect many folks out there may not mind, but let's set aside jokes right now) we would hardly be a nation in the best sense of the word.
As a rule, conservatives would argue that few powers would be nationwide in scope. Military protection, the necessary and proper federal judicial arrangements, coinage, and issues of commerce (to varying degrees) come first to mind. State power would be wider than that of municipalities, perhaps, while communities would see to the bulk of day in and day out tasks: police and fire protection, trash pickup, and to the schools, among other chores.
It goes without saying that the most localized control we can have is to go right down to the individual. The more that an individual can do for himself, to pay for and nurture by himself, the better quality product he will generally have. What was the first part of the famous Milton Friedman quote? When a person is paying for something directly and for himself, he will demand the best price and the best quality. This goes for nearly all the everyday things human beings require: food, clothes, shelter, and education.
We could go on all day discussing particulars, but you get the point. Local control is the best remedy for most ills. It is a point which should be discussed, if you'll excuse the irony, on a wider scale.