1. How the circle and the squares get along
Federalism
How the circle and the squares get along

2. What is Federalism?
Federalism – Two or more governments exercise power and authority over the same people in the same territory
OR… the relationship between the federal government (circle) and the state governments (squares)

3. Federalist #51 Defends the Constitution
Explains why a strong gov’t is necessary
“If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary.”
Defends separation of powers between state and national gov’t

4. Powers
Delegated Powers (enumerated powers) – powers given to Fed gov’t by Constitution
Reserved Powers – state power alone
Concurrent Powers – shared
Prohibited Powers – denied from both
Ex. Neither gov’t can tax exports

5. Elastic Clause Aka – “Necessary and Proper Clause”
Art. I, Sec. 8, Cl "The Congress shall have Power - To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."
Impossible to predict all powers Congress will need to function, sometimes we might have to allow Congress extra powers to fulfill their delegated powers

6. McCulloch v. Maryland (1819)
Background
Bank of the US operated in Maryland
Maryland did not want BoUS to operate in state, competition unwanted, unfair
Maryland taxed the bank to put it out of business
McCulloch, BoUS employee, refused to pay the state tax

7. McCulloch v. Maryland (1819)
Can a state tax the federal gov’t?
-NO. The federal gov’t is supreme. Since the BoUS is constitutional, only the feds may tax it.
-John Marshall reaffirmed Supremacy Clause and Elastic Clause
-National (Federal) Gov gets STRONGER

8. Commerce clause
Art. I, Sec. 8, Cl. 3 – ‘The Congress shall have power - To regulate commerce with foreign nations, and among the several states, and with the Indian tribes.”
Congress has used the elastic clause to stretch this power
What is commerce? “Buying and selling of goods and services.”
Congress given the power to regulate commerce between foreign countries and US as well as state to state… they control business law.

9. Gibbons v. Ogden (1824) 1824 – aka “The Steamboat Case”
Ogden received a state licensed monopoly to run a ferry across the Hudson River
Gibbons also saw the potential of the traffic between NJ and NY and obtained a federal license.
Ogden sued saying he had the valid state license, even though Gibbons had US license

10. Gibbons v. Ogden (1824) Result – Gibbons wins
Expanded national power in all areas of commerce law because nation overruled state in interstate trade issues
Fed Gov’t gets STRONGER
All trade today is primarily controlled by national law

11. Commerce Clause Who cares? Why is it important?
Gibbons v. Ogden ruling makes a loop hole giving Congress power to take control over any issue involving the movement of people, or things
Fed gov’t power increased

12. 2 Federalisms? OLD SCHOOL – Dual Federalism
Federal and state governments remain dominant in their separate spheres of influence
Gibbons v. Ogden proved life is not that simple
NEW SCHOOL – Cooperative Federalism
State and Federal governments work together to solve complex problems

13. 2 Federalisms TWO METAPHORS… Dual Federalism – Layer Cake
State
Cooperative Federalism – Marble Cake

14. Fiscal Federalism Fiscal means $
Q – How do you get the states to do things they normally wouldn’t do?
A – Money
Q – What is the answer to any question ever asked?

15. Grants-in-Aid
Money paid from one level of government to another to be spent for a specific purpose
Categorical Grants - target specific purposes and “strings attached.” (States receive funds if state raised age to 21 and lowered BAC to .08)
Block Grants – given for broad, general purposes and allow more discretion on how the money is spent (ex. Welfare reform)

16. Mandates
A requirement that a state undertake an activity or provide a service
Most apply to Civil Rights and the Environment
Often times the states or local gov’ts have to pay the bill of the mandate set by Congress

17. Mandates
1986 – Asbestos Emergency Response Act, Handicapped Children’s Protection Act
1988 – Drug-free Workplace Acts, Ocean Dumping Ban Act
1990 – Clean Air Act
EX – Columbus, OH spends 23% of the city budget trying to meet environmental mandates (including testing for pesticides used on rice and pineapple)
EX – Public schools have to use Internet filtering or schools lose e-rate subsidies

18. Devolution Devolution is the return of power to the state gov
Idea is fueled by distrust of the federal gov and the desire to save money by reducing the size of the “bloated federal government”

19. Devolution Example
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Eliminated welfare and transferred the money to states as block grants
States received wide latitude on how to administer “workfare” but with the knowledge that Congress was counting on anti-poverty spending”
Strings attached: head of family must work or lose benefit; lifetime benefits limited to 5 years; unmarried mother < 18 only receive $ if stay in school and live with adult; immigrants ineligible for 5 years

20. Federalism is good Living under 2 governments is great…
Built on compromise, promotes unity
Gov’t duties can be split up
Brings gov’t closer to people
Allows for state gov’t to address issues in unique regions of the country
Allows states to experiment with policy before enacting it at the federal level – Ex. Vermont’s free health care for children

21. Federalism is bad Living under 2 governments is bad…
States can impede progress of Nation
States are unequal
States have different policy
Easier for states to be dominated by interest groups

22. Giving state governments greater discretion in deciding how to achieve the specific goals of welfare reform is an example of
a. An unfunded mandate
b. Implied powers
c. Dual federalism
d. Devolution
e. Affirmative action

23. Which of the following is the best example of a categorical grant?
a. Money given to states for special education programs
b. Money given to individuals in the form of tax rebates
c. Money given to state unconditionally
d. Money given to states to spend at their discretion on transportation
e. Money given directly to private business for economic development

24. Which of the following constitutional principles most directly addresses the relationship between the national and state governments?
a. Checks and balances
b. The Bill of Rights
c. Separation of powers
d. Representation
e. Federalism

25. Which of the following is the most likely consequence of divided government?
a. Reorganization of the federal bureaucracy
b. Conflicts between states
c. Delays in confirmation of federal court nominees
d. Conflicts between national government and states
e. Elimination of the seniority rule in Congress

26. Cooperative federalism can best be described by which of the following statements?
a. Different levels of government are involved in common policy areas
b. Government must have cooperation from the people in order to make legislative decisions
c. Local levels of government can make decisions on issues more efficiently than state and national governments can
d. The federal government must make regulations that can be applied across every state in the same way
e. Business and government can work together to more effectively accomplish shared goals