Chapter Three Federalism

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 Copyright © Houghton Mifflin Company. All rights reserved.

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

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.

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) Copyright © Houghton Mifflin Company. All rights reserved.

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) Copyright © Houghton Mifflin Company. All rights reserved.

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) Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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) Copyright © Houghton Mifflin Company. All rights reserved.

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! Copyright © Houghton Mifflin Company. All rights reserved.

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”) Copyright © Houghton Mifflin Company. All rights reserved.

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. Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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? Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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. Copyright © Houghton Mifflin Company. All rights reserved.

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. Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

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? Copyright © Houghton Mifflin Company. All rights reserved.