1. The Politics of Modern Federalism

2. Politics of Modern Federalism The structures of the federal system have not changed much since the Constitution was writtenThe structures of the federal system have not changed much since the Constitution was written Modern politics have changed the relationship between national and state governments, especially over the past 50 years or soModern politics have changed the relationship between national and state governments, especially over the past 50 years or so

3. The Politics of Modern Federalism Today a major aspect of federalism is the grants-in-aid-systemToday a major aspect of federalism is the grants-in-aid-system National government provides millions of dollars for federal grants to statesNational government provides millions of dollars for federal grants to states

4. GRANTS-IN-AID One of the national government’s most important tools for influencing policy at the state & local levels is the federal grantOne of the national government’s most important tools for influencing policy at the state & local levels is the federal grant

5. GRANTS-IN-AID Congress authorizes grants, establishes rules for how grants may be used, and decides how much control the states have over federal fundsCongress authorizes grants, establishes rules for how grants may be used, and decides how much control the states have over federal funds

6. GRANTS-IN-AID Federal funds fall into three general types:Federal funds fall into three general types: (1) Categorical grants(1) Categorical grants (2) Block grants(2) Block grants (3) Revenue sharing(3) Revenue sharing

7. Categorical Grants Appropriated by Congress for specific purposesAppropriated by Congress for specific purposes Highway funding, airport building, welfare, school lunches, etc.Highway funding, airport building, welfare, school lunches, etc. Usually require the state to “match” (put up money for) the federal grants although matching funds can vary widelyUsually require the state to “match” (put up money for) the federal grants although matching funds can vary widely

8. Categorical Grants Many categorical grantsMany categorical grants A few, including Medicaid, and Aid to Families with Dependent Children, account for almost 85% of total spending for categorical grantsA few, including Medicaid, and Aid to Families with Dependent Children, account for almost 85% of total spending for categorical grants

9. Categorical Grants State & local officials complain that these grants are often too narrow and cannot be adapted easily to local needsState & local officials complain that these grants are often too narrow and cannot be adapted easily to local needs

10. Block Grants Consolidate several categorical grants into a single “block” for broad activities, such as social services, health services, or public educationConsolidate several categorical grants into a single “block” for broad activities, such as social services, health services, or public education

11. Block Grants This type of grant was promoted by Ronald ReaganThis type of grant was promoted by Ronald Reagan During the early 1980s, Congress consolidated a number of categorical grants into block grantsDuring the early 1980s, Congress consolidated a number of categorical grants into block grants

12. Block Grants Later Presidents have advocated that more consolidation occur, but Congress has been reluctant to do soLater Presidents have advocated that more consolidation occur, but Congress has been reluctant to do so

13. Block Grants Give Congress less control over how money is usedGive Congress less control over how money is used Representatives cannot take credit for grants to their particular districtsRepresentatives cannot take credit for grants to their particular districts

14. Why have state governors generally supported block grants?

15. Block Grants State governors generally have supported block grants because they give states wide control of how & where the money is spentState governors generally have supported block grants because they give states wide control of how & where the money is spent

16. Why have city mayors tended to oppose block grants?

17. Block Grants City mayors have tended to oppose them because cities must rely on state governments to determine funding rules & amountsCity mayors have tended to oppose them because cities must rely on state governments to determine funding rules & amounts

18. Revenue Sharing Grant system that no long existsGrant system that no long exists More permissive than block grantsMore permissive than block grants States & localities were given federal funds with no requirement for matching fundsStates & localities were given federal funds with no requirement for matching funds Freedom to spend the money on almost anythingFreedom to spend the money on almost anything

19. Block Grants In the late 1980s federal deficits grew so large that revenue sharing was terminatedIn the late 1980s federal deficits grew so large that revenue sharing was terminated National government claimed that it had “no revenue to share”National government claimed that it had “no revenue to share”

20. GRANTS-IN-AID Today, even though block grants still exist, Congress is always tempted to add “strings” that set requirements for how federal grants are to be spentToday, even though block grants still exist, Congress is always tempted to add “strings” that set requirements for how federal grants are to be spent As a result, block grants gradually become more categorical, a phenomenon known as “creeping categorization”As a result, block grants gradually become more categorical, a phenomenon known as “creeping categorization”

21. MANDATES Federal control on the activities of state & local governmentsFederal control on the activities of state & local governments Rule that tells states what they must do in order to comply with federal guidelinesRule that tells states what they must do in order to comply with federal guidelines

22. MANDATES Often the mandates are tied to federal grants, but sometimes the mandates have nothing to do with federal aidOften the mandates are tied to federal grants, but sometimes the mandates have nothing to do with federal aid

23. MANDATES Most apply to civil rights & environmental protectionMost apply to civil rights & environmental protection State programs may not discriminate against specific groups of people, no matter who pays for themState programs may not discriminate against specific groups of people, no matter who pays for them

24. MANDATES Today, anti-discrimination rules apply to race, sex, age, ethnicity, and physical and mental disabilitiesToday, anti-discrimination rules apply to race, sex, age, ethnicity, and physical and mental disabilities States must comply with federal laws and standards regarding the environment, as wellStates must comply with federal laws and standards regarding the environment, as well

25. MANDATES Mandates have been criticized strongly by state & local governmentsMandates have been criticized strongly by state & local governments From their point of view, it is easy enough for Congress to pass mandates when the states must pay the bills (“unfunded mandates”)From their point of view, it is easy enough for Congress to pass mandates when the states must pay the bills (“unfunded mandates”)

26. MANDATES 1986 Handicapped Children’s Protection Act provided federal regulations meant to assure equal access & opportunity for disabled children1986 Handicapped Children’s Protection Act provided federal regulations meant to assure equal access & opportunity for disabled children

27. MANDATES Federal guidelines included requirements for public schools to build access ramps & elevators, provide special buses & personnel, & widen hallways—all with no federal money to help schools complyFederal guidelines included requirements for public schools to build access ramps & elevators, provide special buses & personnel, & widen hallways—all with no federal money to help schools comply

28. MANDATES Examples of federal mandates for States & Local Governments:Examples of federal mandates for States & Local Governments: 1983 - Social Security Amendments1983 - Social Security Amendments 1984 – Hazardous & Solid Waste Amendments, Highway Safety Amendments1984 – Hazardous & Solid Waste Amendments, Highway Safety Amendments

29. MANDATES 1986 – Asbestos Emergency Response Act, Handicapped Children’s Protection Act, Safe Drinking Water Act Amendments1986 – Asbestos Emergency Response Act, Handicapped Children’s Protection Act, Safe Drinking Water Act Amendments 1988 – Drug Free Workplace Acts, Ocean Dumping Ban Act1988 – Drug Free Workplace Acts, Ocean Dumping Ban Act 1990 – Clean Air Amendments, Americans with Disabilities Act1990 – Clean Air Amendments, Americans with Disabilities Act