Federalism: Chapter 3

The Structure of Federalism Both NATIONAL and REGIONAL governments exist Each must be reasonably INDEPENDENT of each other Decisions need the ability to be made with minimal interference from the other Our system continues to exist because: The American public likes locally controlled government National politicians would be voted out if they messed with it.

Some Vocabulary Terms Sovereignty – supreme political authority Unitary System – sovereignty is entirely in the hands of the national government

Some Vocabulary Terms Confederation – Sovereignty is entirely in the hands of local governments Federation – sovereignty is SHARED Between the local and national governments

Federalism in the Constitution Amendment X The Reserved Clause – 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. Added afterward to clearly state that the Constitution listed all of the national government’s power.

Federalism in the Constitution Article 1; Section 8 The Elastic Clause – 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. It allows the national government to stretch the stated powers. too time consuming to list everything Could not envision all future developments

Debating the Meaning of Federalism McCulloch v Maryland Supreme Court decides in favor of national supremacy and tips the scales to central power Maryland convicted James McCulloch (in a state court) for refusing to pay the state tax levied on his branch of the Bank of the USA McCulloch takes it to the Supreme Court

Debating the Meaning of Federalism McCulloch v Maryland Can the bank be created? The nation has the right to establish a bank even though it is not EXPLICITLY stated in the Constitution by using “necessary and proper” wording. Nation has the power to manage money, etc … The nation has the right to do what was necessary to carry out those economic responsibilities

Debating the Meaning of Federalism McCulloch v Maryland Can a state tax a national institution? The states do not have the power to overpower the government when the national government is within its rights to act in a certain way. The power to tax is the power to destroy. The states do not have the authority to destroy national laws.

Debating the Meaning of Federalism Nullification Can states decide that national laws are unconstitutional? If the states think the law is unconstitutional, then those states can ignore (nullify) that law within its borders WRONG – that violates the doctrine of separation of powers States cannot declare laws unconstitutional Only the Supreme Court can do that! The Civil War ultimately decides the issue!

Federalism Models Dual Federalism Each level has supremacy in its own sphere Those spheres can be kept separate

Federalism Models Dual Federalism “Layer Cake Federalism”

Federalism Models Cooperative Federalism – national and state governments act cooperatively and collectively to solve common problems “Marble Cake Federalism”

Is State Sovereignty Dead? The Interstate Commerce Clause and Federalism Article 1; Section 8 – Elastic Clause Stretched Interstate Commerce to include nearly EVERYTHING Supreme Court sets some limits US v Lopez – federal gun ban in school zone is illegal US v Morrison – violence against women is NOT interstate commerce! Printz v US – federally mandated gun background checks are illegal

State Sovereignty State Powers Anything NOT forbidden to them by the Constitution Anything NOT granted to the national government by the Constitution!

State Powers Police Powers Promote health Promote safety Promote morals Detailed state constitutions Education Law enforcement Public land Public welfare Etc.

State Powers Some states allow more democratic powers Initiative Referendum Recall

Federal and State Relations Grants-in-Aid Money given FROM the national government TO the states States benefit Access to national funds (and large tax base) Accounts for impressive percent of state budgets

Federal and State Relations Grants-in-Aid States benefit Circumvents constitutional limits on federal spending for local programs National Government Pays The Bills! State Governments Run The Programs! And come out looking like the heroes!

Federal and State Relations Grants-in-Aid The American Way What is available to one state is available to all 50 Congressmen will trade favorable votes Each district benefits And Congressmen can rake in the credit!

Federal and State Relations Grants-in-Aid 1960s Change in the Grant philosophy Away from state “Demands” Toward national “Commands” If the states didn’t act quickly, or didn’t act at all, the national government might bypass the state and send aid directly to local governments!

Federal and State Relations Grants Categorical Grants Money for a specific purpose Narrowly defined States are normally required to put up Matching Funds “Put up money for this program and we’ll match that money” Block Grants Several categories of grants lumped together Broadly defined States are normally required to put up Matching Funds “Put up money for something that fits this topic and we’ll match that money”

Federal and State Relations Revenue Sharing Giving funds to states No matching funds Almost no limitations on what the money is to be spent on “Here’s some money (revenue). Take it, we’re sharing!”

Federal Aid = Federal CONTROL Conditions of Aid Strings are attached The conditions which states MUST meet to get the money States may refuse conditions, but kiss the money good-bye!

Federal Aid = Federal CONTROL Mandates Programs which a state MUST fund States may refuse federal money, but they STILL have to fund the program! The 10 th Amendment is NOT protection from federal mandates

Devolution Scale back national power Return power to states Growing trend Reverse years of growth of national power

Devolution Conservative movement to move more aid into BLOCK Category so states have more control of programs within their borders Types Operational grants – to cover costs of running the programs (day to day paperwork etc.) Capital grants – for building infrastructure Entitlement grants – money to needy families and individuals Mixed success so far

Devolution Motivation American LOVE of local government control Distrust of federal government Too much money gets wasted along the way The national government is too far away from cities, towns and regions to know what is best for them!