1. Federalism SHAREDSHARED POWERS OF STATE GOVERNMENTS

2. Defining Federalism What is Federalism? –Definition: A way of organizing a nation so that two or more levels of government have formal authority over the land and people. Intergovernmental Relations- –Definition: The workings of the federal system- the entire set of interactions among national, state and local governments.

3. Defining Federalism UnitaryConfederateFederal CentralHolds primary authority Regulates activities of states Limited powers regarding states Shares power with the states StateLittle or no powers Regulated by central government Sovereign Allocate some duties to central government Shares power with the central government CitizensVote for central government officials Vote for state government officials Votes for both state & central officials

4. Defining Federalism Why is Federalism So Important? –Decentralizes our politics More opportunities for citizens to participate –Decentralizes our policies Gives Federal & state the choice of which government should take care of which problem States can solve the same problem in different ways

5. The Constitutional Basis of U.S. Federalism The Division of Power is found in: –The U.S. Constitution –Laws of Congress –State Constitutions –State Laws

6. The Constitutional Basis of U.S. Federalism National Supremacy is established through- –Implied Powers(Artl. 1) –Commerce Powers(Artl. 1) –Supremacy Clause(Artl. 6)

7. The Constitutional Basis of Federalism States’ Obligations to Each Other & Federal –Article IV: * Full Faith and Credit * Extradition * Privileges and Immunities (citizens in every state have same rights)

8. 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 –16 th Amend- income tax –17 th Amend- direct elec. of Senate -10 th Amendment * Reserved powers - Court reinforces – McCulloch (implied powers) & Gibbons (interstate commerce)

9. 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 (fed/state/local) –States follow federal guidelines -Marble cake

10. Intergovernmental Relations Today New Federalism - During Reagan & G.W.Bush admin (1980-92) * stronger role of states * used block grants to move responsibility of some programs from federal to state - Devolution Revolution – power back to states (1994 – today) * Unfunded Mandates Reform Act 1995 – Congress can’t make states fund programs Congress passes (eg: Clean WaterAct) * Fed. Programs moved to states where the decisions are closer to the people– eg: Welfare

11. Intergovernmental Relations Today New Federalism (cont’) - W. Bush Administration & Federalism * Committed to devolution but.. * Growth of federal Govt (9-11)– eg: Homeland Security / War in Iraq * NCLB – underfunded mandate * SC recognized “preemption” – trend of national govt overriding state & local (NCLB) * Judicial Federalism: Courts have reinforced w. decisions that withdraw some rights of Natl govt and extend to states ( Webster & Casey – extends power over abortion laws to states)

12. Intergovernmental Relations Today How do the states pay for these programs?

13. Figure 3.2 Intergovernmental Relations Today Fiscal Federalism –Definition: The pattern of spending, taxing, and providing grants in the federal system; it is the cornerstone of the national government’s relations with state and local governments.

14. Intergovernmental Relations Today Fiscal Federalism continued: –The Grant System: Distributing the Federal money Categorical Grants: Federal grants that can be used for specific purposes. They have strings attached –Project Grants- based on merit –Formula Grants: amount varies based on formulas Block Grants: Federal grants given more or less automatically to support broad programs but have some strings attached Grants are given to states & local governments

15. Intergovernmental Relations Today Fiscal Federalism continued… –The Scramble for Federal Dollars $300 billion+ in grants every year States sometimes compete for dollars –The Mandates of the Federal Govt. Compulsory laws/regulations passed by Congress (ADA) Funded mandates compulsory regulation, with money to help defray costs Unfunded mandates are requirements on state & local governments- but no money Underfunded mandates have some money but not enough to carry out program so there is a cost to states

16. Understanding Federalism Advantages for Democracy –Increasing citizen access to government –Local problems can be solved locally –Hard for political parties / interest groups to dominate ALL politics Disadvantages for Democracy –States have different levels of service –Local interest can counteract national interests –Too many levels of government- too much money

17. Figure 3.4 (1999 average: $6,734) Understanding Federalism

18. Federalism and the Scope of Government –Which level of government is best able to solve the problem? –Which level of government is best able to fund solutions to the problem?