No, it doesn't. You are misleading Freepers.
The taking of state functions by the one or the few can be described by several different terms. Federal isn't one of them. The Anti-Federalists of 1787-1789 used "consolidation."
So, I am not suggesting that what has been happening is legal, or entitled to moral respect--or is a "consolidation"; but it has given the Federal Government additional jobs to do, illegally. And unless the Courts or someone stops it, it will continue to create "Federal" agencies, in addition to those intended by the Federating sovereigns in 1789. (These take the practical immediate effect of layering Federal job holders over legitimate State & local agencies. Obamacare & "No Child Left Behind" are examples. The Constitution gave the Federal Government no role whatsoever in either civilian education or civilian health care--None!