1. Chapter Three
Federalism

2. Governmental Structure
Federalism: a political system where local government units can make final decisions regarding some governmental activities and whose existence is protected
Unitary System: local governments are subservient to the national government
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3. Hot Issues
Some of the hottest issues in American politics are, at their core, disputes over federalism.
Some hot issues involving federalism today are
Gay marriage
Medical marajuana
Obamacare
Immigration enforcement
Education

4. Federal and State Powers
In general, the federal government has power over economic issues, the military and defense.
In general, state governments have power over social, moral, and family issues.

5. Figure 3.1: Lines of Power in Three Systems of Government
Insert figure 3.1, but just the drawing of the federal system (the one in the middle)
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6. Figure 3.1: Lines of Power in Three Systems of Government
Insert figure 3.1, but just the drawing of the federal system (the one in the middle)
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7. Figure 3.1: Lines of Power in Three Systems of Government
Insert figure 3.1, but just the drawing of the federal system (the one in the middle)
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8. Checks and Balances
Purpose- “ambition to counter ambition” (Federalist 51)
gov’t of separated institutions
sharing powers
Modifications-
Rise of national political parties
Changes in electoral methods
Regulatory Agencies
Technology
US as world power
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9. Positives and Negatives of Federalism
Negative view: Federalism blocks progress and protects powerful local interests
Positive view: Federalism contributes to governmental strength, political flexibility, and fosters individual liberty
Federalist #10: small political units allow all relevant interests to be heard
Federalism increases political activity
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10. Federalism: A Bold New Plan
THEME A: WHO GOVERNS WHAT?
FEDERALISM AND CONSTITUTIONAL LAW
Federalism: A Bold New Plan
No historical precedent
Tenth Amendment was added as an afterthought to clarify the limits of the national government’s power
Elastic language in Article I: Necessary and Proper Clause expands federal power
These sum up the tension in American Federalism:
Decentralist (states’ rights)
Centralist (nationalist)
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11. Decentralist-States’ Rights
Constitution as compact among the states
states created national gov’t & gave it limited power
when in doubt, err to the state’s side
“strict construction”
reserved powers restrict scope of delegated powers
state governments “closer to people”
need to “watch” national government-it’s out to deprive people of liberties!
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12. Centralist-Nationalist
supremacy of Constitution
people created national government with sufficient power to accomplish the goals of the Preamble
“liberal” or “loose” construction
deny national power only when actions conflict w/ constitutional limits or have no constitutional basis
reserved powers do not limit/may not be used against national gov’t
nation represents “all” (vs. “parts”)
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13. McCulloch v. Maryland 1819 Nullification
Could Congress charter a national bank? Yes, even though this power is not explicitly in the Constitution (Necessary and Proper Clause)
Could states tax the national bank? No, because “the power to tax is the power to destroy”
Marshall interprets the Elastic Clause broadly:
“Let the end be legitimate, let it be within the scope of the Constitution, and all means which are appropriate, which are plainly adopted to the end, which are not prohibited, but consist with the letter and the spirit of the Constitution, are constitutional.”
Nullification
Do States have the right to declare federal laws unconstitutional?
Settled by the Civil War.
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14. Federalism Over Time
Dual federalism: Both national and state governments are supreme in their own spheres, which should be kept separate-Layer Cake
Particular state issues: law enforcement and education
Hard to make distinctions between state and federal spheres; distinctions between them were blurred-Marble Cake
But Supreme Court has strengthened states’ rights in several recent cases
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15. THEME A: DISCUSSION QUESTIONS
Historically power has flowed to the central government. What reasons exist for the states to continue exercising independent power? Given the Supreme Court’s decision in McCulloch, what prevents the central government from assuming legal authority over any area of public policy?
Why doesn’t the federal government always intervene when states defy its authority?
Certain areas in Nevada permit prostitution, nine states have legalized the use of marijuana for “medical purposes”; Colorado, Washington, Ohio?. Could the federal government legally intervene to forbid such practices in these states? Explain why or why not?
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16. Grants in Aid Example: Medicaid
THEME B: WHO GOVERNS NOW?
THE CONTEMPORARY POLITICS OF FEDERALISM
Grants in Aid
Dramatically increased in scope in 20th
century
-grants were a way for federal government to circumvent strict constructionist reading of federal power.
Grants were attractive to state officials for various reasons (“free money”)
Requires broad congressional coalitions with wide distribution of funds, because every state has incentive to seek grant money (vote for each other’s
Example: Medicaid
Intergovernmental lobby exists to get more funds
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17. Categorical Grants v. Revenue Sharing
Categorical grants for specific purposes defined by federal law; often require local matching funds
Supported by federal officials
Block grants (sometimes called special revenue sharing or broad-based aid) devoted to general purposes with few restrictions—states preferred block to categorical grants
Supported by state/local officials
Formulas often based on population
Census is a big deal!
Revenue sharing (sometimes called general revenue sharing) required no matching funds and could be spent on almost any governmental purpose
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18. Budget of the U.S. Government, Fiscal Year 2005, table 12.2.
Figure 3.2: The Changing Purpose of Federal Grants to State and Local Governments Why the change?
Insert figure 3.2
Budget of the U.S. Government, Fiscal Year 2005, table 12.2.
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19. Figure 3.3: Federal Grants to State and Local Governments, 1984-2004
Insert figure 3.3
Budget of the U.S. Government, Fiscal Year 2002, Historical Tables, table 6.1, and Budget of the U.S. Government, Fiscal Year 2005, table 12.1.
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20. Federal Aid and Federal Control
Conditions of aid: tell state governments what they must do if they wish to receive grant money-STRINGS!
Mandates: federal rules that states or localities must obey, generally have little or nothing to do with federal aid. Apply to all states
Civil rights
Environmental protection
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21. Devolution Revolution
Happens beginning in the 1990s-more power to states
Devolution initiatives returned program management to the states, with some federal guidelines, but there is no guarantee of federal support
“welfare”
Block grants fund entitlements
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22. The Devolution Revolution
Devolution proponents harbor a deep-seated ideological mistrust of federal government and believe that state governments are more responsive to the people
Currently a conservative ideology
Deficit politics encouraged devolution
Devolution is supported by public opinion, but the strength of that support is uncertain
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23. Congress and Federalism
Members of Congress represent conflicting constituencies
The erosion of parties increases political competition
Americans differ in the extent to which we like federal versus local decisions
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24. THEME B: DISCUSSION QUESTIONS
Does the system of grant-in-aid upset the balance of federalism? Do grant programs enable Congress to dow what it pleases by bribing states into compliance? Or do these programs merely increase the likelihood of national policy uniformity? What would be the consequence if a state refused federal grant money?
To what extent have interest groups produced grants-in-aid, and to what extent have grants-in-aid produced interest groups? Who constitutes a governmental lobby?
How and why do conservatives and liberals differ over giving aid to the states without conditions?
Why can’t federal agencies attack complex problems by producing and implementing a coherent systematic policy? Why don’t (can’t) federal bureaucrats issue orders where necessary?
Does the recent push toward devolution give states too much power?
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