1. Federalism Constitutional Underpinnings #3

2. Federalism Defined Political system with local government units, besides national one that can make final decisions regarding some governmental activities and whose existence is protected

3. A New System Unitary System Strong Central Government Trampled on Liberty Confederate System Weak Central Government Couldn’t Protect the People NATIONAL STATE Federal System Split Powers Between State and National NATIONAL STATE

4. A New System The plan had no historical precedence The idea was neither the Federal nor State governments would ever dominate over the other since the power comes from the people, and the people would shift their support

5. Federalism in the Constitution Types of Powers Expressed Powers Powers granted to the Federal Government (Article 1, Section 8) Reserved Powers Powers reserved to the States by the 10 th Amendment (“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people”) Concurrent Powers Powers that both the Federal and the State Governments hold to some extent (Taxation, Construction, Etc…)

6. Federalism in the Constitution Full Faith and Credit Clause (Article IV, Sec 1) States must respect the laws and decisions of other state governments (Driver’s License, Marriage License, Divorce, Etc..) Privileges and Immunities (Article IV, Sec 2) Can’t deny a non-state resident of the same protections of law as a resident Extradition (Article IV, Sec 2) Return fugitives to the state they are wanted in

7. Two Theories of Federalism Dual Federalism The national and state governments are partners, and co- equals, sovereign in their own areas Belief that the federal government only can act in areas specifically stated in the Constitution Cooperative Federalism The national government is supreme over the states. The state governments act as agents to help design programs that go along with the national interest The Tenth Amendment The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. The Supremacy Clause This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.

8. Evolution of Federalism Dual Federalism The easiest way to picture how Dual Federalism Works is to picture this….. Dual Federalism is referred to as LAYER CAKE federalism. In this case the layers exist independently of the other layers. There is no interaction between them. Each is responsible for their own flavor. Federal Government State Government Local Government

9. Evolution of Federalism Founding until 1930s (Dual Federalism) Although, for the most part, the federal and the state government remained independent of each other, certain things chipped away at the balance of power between the two.

10. Evolution of Federalism 1819: McCulloch v. Maryland Ruled of the existence of “Implied Powers.” Powers not specifically given to the government but implied by the “elastic” or “necessary and proper clause” Ruled that the Federal Government was supreme and immune from state challenges such as taxes 1824: Gideon v. Ogden Congress's right to regulate commerce under the Commerce Clause could be "exercised to its utmost extent, and acknowledges no limitations, other than those prescribed in the constitution...“ Nullification The doctrine that a state can declare a federal law null and void, if the state believes it is unconstitutional. Used by the South against efforts to limit or abolish Slavery. The Civil War answer that question

11. Dual Federalism Breaks Down As time went on Dual Federalism erodes due to several factors – Defining “Intrastate” and “Interstate” Commerce As the economy grew due to advance in technology and transportation it became impossible to differentiate between the two. By 1940s almost all commerce was considered “interstate.” – Expansion of the definition of Commerce By far the biggest way the national government has expanded its power is through redefinition of “commerce.” Today “pollution”, “crime”, and “education” all fit into “commerce” in some way.

12. Cooperative Federalism is referred to as MARBLE CAKE federalism. In this case the layers get mixed in with each other to where it is impossible to separate them from one another. Usually it results in one flavor being the dominant one. Evolution of Federalism Cooperative Federalism The easiest way to picture how Cooperative Federalism Works is to picture this….. FEDERAL GOVERNMENT STATE GOVERNMENT

13. Era of Cooperative Federalism Like all great relationships…. The relationship between State and Federal Government is defined by $$$

14. Grants-in-Aid Definition: Money (or resources) given by the national government to the states. Land Grants: Began even prior to Constitution. Land was given to the states and then sold, the proceeds used to finance Universities (land-grant colleges)

15. Cash Grants Began in 1808, but remained relatively few Increased Dramatically in the 20 th Century. – Federal Surplus – Income Tax led to increase in revenue – Federal Government controlled money supply – States liked the money (spend none of the money but take all of the credit for the project) Leads to National Legislature voting for everybody’s projects so they would have support for theirs.

16. Cash Grants 1920s to 1950s these grants were PROJECT GRANTS. States would design the project, the federal government would provide funding for it. 1960s the Federal Government started taking the lead and designing programs to fulfill “national needs.” Hard for states to counter since the states had become dependent on federal money.

17. Types of Grants Land Grants Project Grants Categorical Grants – Money given for a specific purpose defined by federal law. Block Grants – Money from the national government that states can spend within broad guidelines. Revenue Sharing – Federal sharing of a fixed percentage of its revenue with the states (no longer used)

18. Impact of Grants Intergovernmental Lobby – State and Local government hire people to lobby the Federal Government to keep money flowing with hopefully less strings. Rivalry Among States – Importance of the Census (more money with more population) Categorical Grants have grown faster than Block Grants – Block Grants are so broad based there is no “constituency” that constantly lobbies for them as opposed to Categorical Grants.

19. Federal Aid and Control Conditions of Aid If States meet certain conditions then the States will receive certain federal funds. Mandates Terms set by the national government that states must meet.

20. Federal Mandates Most mandates revolve around civil rights or environmental protection. – Problems Sometimes vague in terms of definitions or estimated costs Unfunded Mandates – Requirement by Federal Government that is not paid for by Federal Government (Americans with Disabilities Act)

21. Devolution Driven by the Republican Party – Republican Majorities in House and Senate (1994) Goal: Shift important functions back to states by turning some categorical grants into block grants to scale back the size of federal government. Focus: Shifting Entitlement (Programs in which individuals who meet a set criteria are legally obligated to received money/services from government) Grants (Aid to families and individuals) Success with Welfare (AFDC) but not Medicaid.

22. Limits on States When it comes to State Power there are two limits. One formal the other informal (but perhaps more impactful) – The states must observe the Constitution of the United States of America and they must obey valid laws of the federal government made under the Constitution. – The second major limitation on state power is their relative lack of financial resources compared with those of the federal government.

23. Effects of Federalism Negative – Entrenches Powerful Local Interests. Progress can be blocked by a small group. Civil Rights, Voting, Segregation Positive – Diversity in Power (# of positions in government at national, state, and local levels allows not only a diversity in demographics but diversity of view points) – Lowers Cost of Political Activity (can get active at local and state levels, not just national) – “Laboratories” of Democracy (states can design programs that other states can use as models to emulate or avoid).