1. Intergovernmental Relations Today Chapter 3 – Federalism Section 3

2. 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 Narrowly interpreted powers of federal government Ended in the 1930s

3. Cooperative Federalism Definition: a system of government in which powers and policy assignments are shared between states and the national government Like a marble cake Shared costs and administration States follow federal guidelines

4. Devolution? Devolution: Transferring responsibility for policies from the federal government to state and local governments. Describe how the relationship between the federal and state government changed in the 1980s, 1994, and 2000s.

5. Fiscal Federalism Definition: the pattern of spending, taxing, and providing grants in the federal system Grants-in-Aid – Federal funds appropriated by Congress for distribution to state and local government – The main instrument the national government uses for influencing state and local governments

6. Intergovernmental Relations Today

7. Fiscal Federalism The Grant System – Categorical Grants: Federal grants that can be used for specific purposes; grants with strings attached (Ex: school lunch program within an education budget) ; often times given on a matching basis Project Grants: Funds are competitive and go towards projects within the states. (Ex: National Science Foundation grants to universities to support the work of scientists.) Formula Grants: Usually given on the basis of need. Money given to states according to a mathematical formula.

8. Fiscal Federalism The Grant System: (con’td) – Block Grants: Federal grants given to a state government to be spent within a certain policy area (ex: welfare, education), which the state can decide how to spend within that area. Given more or less automatically to support broad programs – Grants are given to states and local governments

10. Fiscal Federalism The Scramble for Federal Dollars – $460 billion in grants every year – Grant distribution follows universalism—a little something for everybody.

11. Fiscal Federalism The Mandate Blues – Mandates direct states or local governments to comply with federal rules under threat of penalties or as a condition of receipt of a federal grant. – Unfunded Mandates Mandates for which federal government provides no money Ex: Clean Air Act, Americans with Disabilities Act, NCLB Attempted restriction with Unfunded Mandate Act of 1995

12. Intergovernmental Relations The Politics of Federal Grants – Republicans generally favor fewer strings, less supervision, and the delegation of spending discretion to the state and local governments. – Democrats have generally been less supportive of broad discretionary block grants, instead favoring more detailed, federally supervised spending.