1. Federalism 9/12/2011 Lecture 4

2. Clearly Stated Learning Objectives Upon completion of this course, students will be able to: – understand and interpret the United States Constitution and apply it to present policy dilemmas. – understand why our national government works and why the American system of government is unique.

3. Office Hours Tomorrow 8-12 Wednesday 8-10:30 Free Constitutions for anyone who stops by

4. Concurrent Powers Power shared by Federal and State Governments – Power To TaxTax – Make laws protecting Public safetyPublic safety

5. Income Taxes By State

6. Interstate Relations :Privileges and Immunities

7. Interstate Relations: Full Faith and Credit of Public Records

8. THE EVOLUTION OF FEDERALISM

9. 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.

10. So How many governments are there? The Federal Government Ok, That’s one

11. What Else? 50 State Governments

12. What Else are there? 3,034 County Governments 36,000 Local Governments 13,000 School Districts 37,000 Special Districts – Utility Districts- PEC – Hospital Districts – Transit Districts- e.g. CAP Metro – Park Districts – Water Districts- e.g. LCRA – And more!

13. What Does This Mean? There are roughly 89,500 governments that have legal authority over policymaking. Some governments are impotent in certain policy areas, while extremely powerful in others.

14. Things Not Mentioned By the Constitution Health Care Education Police Power The Environment

15. Metaphors of Federalism

16. Dual and Cooperative Federalism

17. FEDERALISM TODAY How Things Get Done

18. Federalism Today Relies on Implied Powers 16 th Amendment 14 th Amendment

19. What is Fiscal Federalism Providing Financial incentives for states to pursue national policy goals Come in the Form of Grants-in-aid

20. How important?

21. Sources

22. Block Grants Few Strings Attached States like these

23. Categorical Grants 90% of All Grant Money Most require state matching funds Less Freedom

24. Project Grants A Type of Categorical Grant Competitive

25. Formula Grants Based on specific income or population formulas Often census based

26. Medicaid The Biggest Categorical Grant (a formula grant) Health Insurance for the Poor Demand has increased as have costs

27. ENTITLEMENTS

28. Entitlements Provide resources directly to individuals If You are eligible, you receive the resource Bypasses the states altogether.

29. These are Very Expensive

30. Social Security The Largest Single Federal Program A program that everyone loves A Program that tracks baby namesnames

31. Why do we love it? Almost everyone gets it- 54 million people were receiving benefits. It has very basic goals that are easy to reach The average worker gets $1,164 a month

32. How Do We pay for it? Payroll Taxes – I Pay 4.2% of my salary For 2011 – St. Edward’s matches this There is an upper limit on taxes… for Now (the most you can pay is $4,485.60 ) The most you can get in benefits is $2366

33. SOCIAL SECURITY IS IN FINANCIAL TROUBLE

34. America is Getting Older

35. Americans are living Longer

36. There are Fewer Workers

37. The 2011 Numbers In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2036 the Social Security Trust Fund will be exhausted* and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits.

38. Baby Boomers and Recession (2011)

39. Bankrupt vs. Broke Bankrupt- not being able to meet your obligations Broke- not having any money Either way, we need policy change

40. How to Solve the Problem? There are many solutions All involve risk and create winners and losers Your primary targets are voting constituents