1. How the FEDERAL GOV and the sTATES get along
Federalism
How the FEDERAL GOV and the sTATES 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 SHARED relationship between the federal government and the state governments
How do we as individuals fit into this idea?

3. Defends the Constitution Explains why a strong gov’t is necessary
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. Why is Federalism So Important?
Defining Federalism
Why is Federalism So Important?
Decentralizes our politics
More opportunities to participate
Decentralizes our policies
Which government should take care of which problem?
States can solve the same problem in different ways.

6. 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

7. 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

8. OLD SCHOOL – Dual Federalism
2 Federalisms?
OLD SCHOOL – Dual Federalism
Federal and state governments remain dominant in their separate spheres of influence
NEW SCHOOL – Cooperative Federalism
State and Federal governments work together to solve complex problems

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

10. Intergovernmental Relations Today
Dual Federalism
Definition: A system of government in which both the states and the national government remain supreme within their own spheres, each responsible for some policies.
Like a layer cake
Ended in the 1930’s

11. Intergovernmental Relations Today
Cooperative Federalism
Definition: A system of government in which powers and policy assignments are shared between states and the national government.
Shared costs
Shared administration
States follow federal guidelines

12. Fiscal Federalism continued
The Grant System: Distributing the Federal Pie
Categorical Grants: Federal grants that can be used for specific purposes. They have strings attached.
Block Grants: Federal grants given more or less automatically to support broad programs.
Grants are given to states & local governments

13. Grants-in-Aid types
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 they raised age to 21 and lowered BAC to .08)
Gives more power to national government and reduces power of state leadership
Block Grants – given for broad, general purposes and allow more discretion on how the money is spent (ex. Welfare reform)
This gives more power to state governments to decide how money is spent**

14. Devolution
Definition: Devolution is the return of power to the state governments
A movement spearheaded by conservative leaders from the 1980’s onwards
Picking up more movement since 2010 republican control of Congress and election
Idea is fueled by distrust of the federal government and the desire to save money by reducing the size of the “bloated federal government”

15. 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

16. Quiz Review What is Federalism? Categorical Grants: Pro/Con
Identify Dual/Cooperative
Devolution
Categorical Grants: Pro/Con
General Examples
Block Grant: Pro/Con
What is the purpose of the Necessary Proper and Commerce Clause
NO SUPREME COURT CASES ON QUIZ!

17. 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

18. 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

19. 17% 23% 60% 47% 30% 64% 19% 66% 15% Change in Spending 1929 1939 1960
Shift towards Federal Gov’t Spending
Federal
State
Local (City)
1929
17%
23%
60%
1939
47%
30%
1960
64%
19%
1997
66%
15%

20. What did the Supreme Court determine in McCulloch v. Maryland?
To carry out its economic power, Congress may reasonably decide to create a national bank
The necessary and proper clause enables Congress to take actions not specifically listed in the Constitution
States have the right to tax all economic activity within their borders

21. 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

22. 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

23. McCulloch v. Maryland (1819)
Is a Bank of the US Constitutional?
YES. The national gov’t has certain implied powers that go beyond delegated powers. US needs a national bank for borrowing, lending, holding minted money, etc. All of which are delegated powers.

24. 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 Necessary and Proper Clause- National government gets STRONGER

25. 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.

26. 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

27. Gibbons v. Ogden (1824) Result – Gibbons wins
Expanded national power in all areas of commerce law because nation overruled state in interstate trade issues (national gov. for the most part cannot touch INTRASTATE)
Fed Gov’t gets STRONGER
All trade today is primarily controlled by national law
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28. 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

29. United States v. Lopez (1995)
Research U.S. v. Lopez
After reading background history, what is your answer to the question, “Is the Gun-Free School Zones Act, forbidding individuals from knowingly carrying a gun in a school zone, unconstitutional because it exceeds the power of Congress to legislate under the Commerce Clause?”
Listen to the reading of the opinion of U.S. v. Lopez.
After listening to the reading, did your position change? Why or Why not?

30. United States v. Lopez (1995)
1995 – “Gun Free School Zone” law banned possession of a firearm within feet of a school, 12th grader Lopez carried a gun on to the property
Declared law unconstitutional – “nothing to do with commerce” – carrying a weapon through a school zone is too much of a stretch for “commerce”
LIMITED National government power