Copyright © 2011 Pearson Education, Inc. Publishing as Longman

Chapter 3: Federalism Defining Federalism Brief Contents of Chapter 3: Federalism Defining Federalism The Constitutional Basis of Federalism Intergovernmental Relations Today Understanding Federalism Summary

Chapter Outline and Learning Objectives Lecture Tips and Suggestions for In-Class Activities Hold an in-class discussion on the following: How would politics and policies be different in America if there were a unitary system instead of a federal system? Or a confederation instead of a federal system? Defining Federalism LO 3.1: Define federalism and explain its consequences for American politics and policy.

Chapter Outline and Learning Objectives Lecture Tips and Suggestions for In-Class Activities Assign the students an essay. In this assignment have students discuss if they think the federalist system influenced the civil rights movement. Would this change have occurred faster in the South if America had a unitary democratic system? Can the students think of any negative effect such a system might have had on the outcome of the civil rights movement? The Constitutional Basis of Federalism LO 3.2: Outline what the Constitution says about division of power between national and state governments and states' obligations to each other and trace the increasing importance of the national government.

Chapter Outline and Learning Objectives Lecture Tips and Suggestions for In-Class Activities Ask students to study the budgets of the local school system, university, or city to determine the various proportions of revenue that the federal, state, and local governments contribute. Would the school district, university, or city benefit from a change in how it is funded? Assign two groups of students to serve as panels to debate the following question: Does the American form of federalism increase democracy, or does it have a negative effect on democracy? Intergovernmental Relations Today LO 3.3: Characterize the shift from dual to cooperative federalism and the role of fiscal federalism in intergovernmental relations today. Understanding Federalism LO 3.4: Assess the impact of federalism on democratic government and the scope of government.

Defining Federalism LO 3 Defining Federalism LO 3.1: Define federalism and explain its consequences for American politics and policy. Lecture Outline A system of organizing governments. What Is Federalism? Why Is Federalism So Important? To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

Defining Federalism What Is Federalism? LO 3.1 Defining Federalism Lecture Outline Federalism is a way of organizing a nation so that two or more levels of government have formal authority over the same area and people. Only 11 (out of approximately 190 nations of the world) have federal systems. Most governments in the world today have unitary governments, in which all power resides in the central government. In a confederation, the national government is weak and most or all of the power is in the hands of its components. The workings of the American system are sometimes called intergovernmental relations, which refers to interactions among national, state, and local governments. What Is Federalism? Federalism – Organizing a nation so that two or more levels of government have formal authority over the same land and people. Unitary governments – Organizing a nation so all power resides in the central government. Confederation – A nation in which the national government is weaker than the states. To Learning Objectives

LO 3.1 To Learning Objectives Table 3.1 Authority Relations in Three Systems of Government To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

Defining Federalism Why Is Federalism So Important? LO 3.1 Defining Federalism Lecture Outline Why Is Federalism So Important? The federal system decentralizes our politics. Federalism decentralizes our policies. Why Is Federalism So Important? Decentralizes our politics – More opportunities for political participation. Decentralizes our policies – Federal and state governments handle different problems. To Learning Objectives

LO 3.1 To Learning Objectives LO 3.1 Image: National campaigns for the presidency actually take place in the states because candidates must win states rather than the national votes. To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

The Constitutional Basis of Federalism LO 3 The Constitutional Basis of Federalism LO 3.2: Outline what the Constitution says about division of power between national and state governments and states' obligations to each other, and trace the increasing importance of the national government. Lecture Outline The word federalism is not mentioned in the Constitution. Eighteenth-century Americans had little experience in thinking of themselves as Americans first and state citizens second. The Division of Power Establishing National Supremacy States’ Obligations to Each Other To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

The Constitutional Basis of Federalism LO 3.2 The Constitutional Basis of Federalism Lecture Outline The Division of Power The writers of the Constitution carefully defined the powers of state and national governments [see Table 3.2]. Although favoring a stronger national government, states were retained as vital components of government. The supremacy clause deals with the question of which government should prevail in disputes between the states and the national government; Article VI states that three items are the supreme law of the land: The Constitution Laws of the national government (when consistent with the Constitution) Treaties (which can only be made by the national government) Judges in every state were specifically bound by the Constitution. Questions remain concerning the boundaries of the national government’s powers. The national government can only operate within its appropriate sphere and cannot usurp the states’ powers. The Tenth Amendment states that “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.” There have been variations in the Court’s interpretation of the Tenth Amendment. The Division of Power Supremacy Clause – Article VI of the Constitution states the U.S. Constitution, laws of Congress, and treaties are supreme. Tenth Amendment – “The powers not delegated to the U.S. by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.” To Learning Objectives

LO 3.2 To Learning Objectives Table 3.2 The Constitution’s Distribution of Powers To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

The Constitutional Basis of Federalism LO 3.2 The Constitutional Basis of Federalism Lecture Outline Establishing National Supremacy Four key events have largely settled the issue of how national and state powers are related: the McCulloch v. Maryland case, the Supreme Court’s interpretation of the Commerce Clause, the Civil War, and the civil rights movement. McCulloch v. Maryland (1819) - the case that first brought the issue of state versus national power before the Supreme Court. In this case, the Supreme Court ruled that national policies take precedence over state policies: Chief Justice John Marshall wrote that “the government of the United States, though limited in its power, is supreme within its sphere of action.” The Court also ruled that the Constitution gives Congress certain implied powers (based on the provision granting Congress the power to “make all laws necessary and proper for carrying into execution the foregoing powers”) that go beyond the enumerated powers that are specifically listed in Article I, Section 8. Establishing National Supremacy Implied Powers - McCulloch v. Maryland (1819) ruled Congress had implied powers in addition to its enumerated powers. Commerce Power - Gibbons v. Ogden (1824) defined commerce very broadly to encompass virtually every form of commercial activity. To Learning Objectives

The Constitutional Basis of Federalism LO 3.2 The Constitutional Basis of Federalism Lecture Outline Establishing National Supremacy The Civil War (1861–65) - settled militarily the issue that McCulloch had enunciated constitutionally. The civil rights movement - a century after the Civil War, the policy issue was equality. In 1954, the Supreme Court held that school segregation was unconstitutional (Brown v. Board of Education). The conflict between states and the national government over equality issues was decided in favor of the national government: throughout the 1960s, the federal government enacted laws and policies to end segregation in schools, housing, public accommodations, voting, and jobs. Establishing National Supremacy (cont.) The Civil War – Militarily the national government asserts its power over the Southern states’ claim of sovereignty. The Struggle for Racial Equality – Brown v. Board of Education (1954) outlawed segregation in the public schools. To Learning Objectives

LO 3.2 To Learning Objectives LO 3.2 Image: Alabama Governor George Wallace failed stand in 1963 to resist integration of the all-white University of Alabama. To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

The Constitutional Basis of Federalism LO 3.2 The Constitutional Basis of Federalism Lecture Outline States’ Obligations to Each Other Federalism involves more than the relationships between the national government and state and local governments: Article IV of the Constitution outlines certain obligations that each state has to every other state. Full faith and credit - States are required to give full faith and credit to the public acts, records, and civil judicial proceedings of every other state. States’ Obligations to Each Other Full Faith and Credit – Article IV, Section I of Constitution requires each state to recognize the public acts, records, and judicial proceedings of all other states. To Learning Objectives

The Constitutional Basis of Federalism LO 3.2 The Constitutional Basis of Federalism Lecture Outline States’ Obligations to Each Other Federalism involves more than the relationships between the national government and state and local governments: Article IV of the Constitution outlines certain obligations that each state has to every other state. Extradition - States are required to return a person charged with a crime in another state to that state for trial or imprisonment. States’ Obligations to Each Other (cont.) Extradition - Article IV, Section II of Constitution requires a state to surrender a person charged with a crime to the state in which the crime is alleged to have been committed. To Learning Objectives

The Constitutional Basis of Federalism LO 3.2 The Constitutional Basis of Federalism Lecture Outline States’ Obligations to Each Other Federalism involves more than the relationships between the national government and state and local governments: Article IV of the Constitution outlines certain obligations that each state has to every other state. Privileges and immunities of citizens - Citizens of each state receive all the privileges and immunities of any other state in which they happen to be. States’ Obligations to Each Other (cont.) Privileges and Immunities – Article IV, Section II of Constitution requires states to give citizens of each state the privileges of citizens of other states. To Learning Objectives

Intergovernmental Relations Today LO 3 Intergovernmental Relations Today LO 3.3: Characterize the shift from dual to cooperative federalism and the role of fiscal federalism in intergovernmental relations today. Lecture Outline Intergovernmental relations today refers to interactions among national, state, and local governments. From Dual to Cooperative Federalism Devolution? Fiscal Federalism To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

Intergovernmental Relations Today LO 3.3 Intergovernmental Relations Today Lecture Outline From Dual to Cooperative Federalism Dual federalism (“layer cake federalism”) - a form of federalism in which states and the national government each remain supreme within their own spheres. From Dual to Cooperative Federalism Dual Federalism – A system of government in which both the states and the national government remain supreme within their own spheres, each responsible for some policies. To Learning Objectives

Intergovernmental Relations Today LO 3.3 Intergovernmental Relations Today Lecture Outline From Dual to Cooperative Federalism Cooperative federalism (“marble cake federalism”) - a form of federalism with mingled responsibilities and blurred distinctions between the levels of government. The American federal system leaned toward dual federalism before the national government began to assert its dominance. From Dual to Cooperative Federalism (cont.) Cooperative Federalism – A system of government in which powers and policy assignments are shared between states and the national government. Standard operating procedures of cooperative federalism - Shared costs, federal guidelines, and shared administration. To Learning Objectives

LO 3.3 To Learning Objectives LO 3.3 Image: The federal government provided about half of the funds for the Big Dig in Boston. To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

Intergovernmental Relations Today LO 3.3 Intergovernmental Relations Today Lecture Outline Devolution? Devolution – Transferring responsibility for policies from the federal government to state and local governments. Devolution? Devolution – Transferring responsibility for policies from the federal government to state and local governments. State and local governments are mostly responsible for handling crime, welfare, and education. To Learning Objectives

Intergovernmental Relations Today LO 3.3 Intergovernmental Relations Today Lecture Outline Fiscal Federalism Fiscal federalism - the pattern of spending, taxing, and providing grants in the federal system. Fiscal federalism is the cornerstone of the national government’s relations with state and local governments. Grants-in-aid are the main instrument the national government uses for both aiding and influencing states and localities. Federal aid to states and localities amounted to approximately $306 billion in 2001, despite cutbacks during the Reagan administration. Fiscal Federalism Fiscal Federalism – Pattern of spending, taxing, and providing grants in the federal system. Federal grants to state and local governments have grown rapidly and now amount to more than $600 billion per year. Grants increased in 2010 and 2011 due to the stimulus package. To Learning Objectives

LO 3.3 To Learning Objectives Figure 3.1 Fiscal Federalism: Federal Grants to State and Local Governments To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

Intergovernmental Relations Today LO 3.3 Intergovernmental Relations Today Lecture Outline Fiscal Federalism There are two major types of federal aid for states and localities: categorical grants and block grants. Categorical grants (the main source of federal aid) - grants that can be used only for specific purposes, or categories. State and local agencies can obtain categorical grants only by applying for them and by meeting certain qualifications. Categorical grants come with numerous “strings” (rules and requirements) attached, such as nondiscrimination provisions and punitive cross-over sanctions and cross-cutting requirements that reduce or deny federal funds if certain local or state laws are not passed or if federal guidelines are not met. (cont.) Fiscal Federalism (cont.) The Grant System: Distributing the Federal Pie ($600 billion) Categorical grants (project grants and formula grants) can be used for specific purposes and have strings attached. Block grants support programs in community development and social services. To Learning Objectives

LO 3.3 To Learning Objectives There are two types of categorical grants. Project grants - the most common type of categorical grant; awarded on the basis of competitive applications (such as grants to university professors from the National Science Foundation). Formula grants - distributed according to a formula; states and local governments automatically receive funds based on a formula developed from factors such as population, per capita income, or percentage of rural population (such as Medicare, Aid for Families with Dependent Children, and public housing). Block grants - used to support broad programs in areas like community development and social services. In response to complaints about the cumbersome paperwork and restrictive federal requirements attached to categorical grants, Congress established block grants to support broad programs. States have discretion in deciding how to spend the money. --- LO 3.3 Image: Federal government often uses grants-in-aid to get states to promote integrate government state and local government departments. To Learning Objectives

Intergovernmental Relations Today LO 3.3 Intergovernmental Relations Today Lecture Outline Fiscal Federalism On the whole, federal grant distribution follows the principle of universalism—that is, something for everybody, even though some money goes where it is not really needed. There are some occasions when states would prefer not to receive some federal aid—such as when Congress extends a program that is administered by the states and only partly funded by the national government—an underfunded mandate. This means that the states have to budget more funds for the project in order to receive federal grant money. (cont.) Fiscal Federalism (cont.) Scramble for Federal Dollars – Grant distribution ($600 billion yearly) is universalism; a little something for everybody. Mandate Blues - Mandates direct state governments to comply with federal rules under threat of penalties or as a condition of receipt of a federal grant. To Learning Objectives

Understanding Federalism LO 3 Understanding Federalism LO 3.4: Assess the impact of federalism on democratic government and the scope of government. Lecture Outline Of even greater concern to states are unfunded mandates. These require state and local governments to spend money to comply with laws such as the Clean Air Act of 1970 and the Americans with Disabilities Act of 1990 with no financial help from the federal government that enacted the laws. In addition, federal courts create unfunded mandates for states regarding school desegregation, prison construction, and other policies. In 1995, Congress passed a law that will make it more difficult for Congress to impose new unfunded mandates. --- Federalism impacts democratic government and the scope of government. Federalism and Democracy Federalism and the Scope of the National Government To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

Understanding Federalism LO 3.4 Understanding Federalism Lecture Outline Federalism and Democracy Advantages for Democracy Different levels of government provide more opportunities for participation in politics. Additional levels of government contribute to democracy by increasing access to government. Two levels of government increase the opportunities for government to be responsive to the demands for policies. A party that loses strength at the national level can rebuild and groom leaders at the state and local levels. It is possible for the diversity of opinion within the country to be reflected in different public policies among the different states. By handling most disputes over policy at the state and local level, federalism reduces decision making and conflict at the national level. Federalism and Democracy Increases access to government. Local problems can be solved locally. An interest concentrated in a state can exercise substantial influence in the election of that state’s officials. Hard for political parties to dominate all politics. To Learning Objectives

Understanding Federalism LO 3.4 Understanding Federalism Lecture Outline Federalism and Democracy Disadvantages for Democracy The quality of services like education is heavily dependent on the state in which the service is provided; states differ greatly in the resources they can devote to public services. Diversity in policy can discourage states from providing services that would otherwise be available because poor people may be attracted from states with lower benefits. Federalism may have a negative effect on democracy when local interests are able to impede national majority support of certain policies. The vast number of local governments makes it difficult for many Americans to know which government is responsible for certain functions. Federalism and Democracy (cont.) States have different quality and quantity of public services. Local interest can counteract and impede national interests. Having so many governments (89,527 American governments) makes it difficult to know which governments are doing what. To Learning Objectives

LO 3.4 To Learning Objectives Table 3.3 The Number of Governments in America To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

Understanding Federalism LO 3.4 Understanding Federalism Lecture Outline Federalism and the Scope of the National Government The national government took a direct interest in economic affairs from the very founding of the republic (see Chapter 2). As the United States changed from an agricultural to an industrial nation, new problems arose and with them new demands for governmental action. The United States moved from a system of dual federalism to one of cooperative federalism, in which the national and state governments share responsibility for public policies (as seen above). The national government’s share of expenditures has grown rapidly since 1929; today it spends about 25 percent of the GDP, while state and local governments spend about 12 percent today. The growth of the national government has not supplanted the states. Federalism and the Scope of the National Government National power increased with industrialization, expansion of individual rights, and social services. Most issues, concerns, and problems require resources afforded to the national, not state, governments. To Learning Objectives

LO 3.4 To Learning Objectives Figure 3.2 Fiscal Federalism: The Public Sector and the Federal System To Learning Objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

LO 3.1 Summary Defining Federalism LO 3.1: Define federalism and explain its consequences for American politics and policy. Defining Federalism Federalism is a way of organizing a nation so that two or more levels of government have formal authority over the same area and people. It decentralizes both politics and policy in the United States. To Learning Objectives

LO 3.1 Federalism is organizing a nation so that or more levels of government have formal authority over the same land and people. Federalism is organizing a nation so that or more levels of government have formal authority over the same land and people. B. 2 (LO 3.1) 1 2 3 4 To Learning Objectives

LO 3.1 Federalism is organizing a nation so that or more levels of government have formal authority over the same land and people. Federalism is organizing a nation so that or more levels of government have formal authority over the same land and people. B. 2 (LO 3.1) 1 2 3 4 To Learning Objectives

LO 3.2 Summary The Constitutional Basis of Federalism LO 3.2: Outline what the Constitution says about division of power between national and state governments and states' obligations to each other, and trace the increasing importance of the national government. The Constitutional Basis of Federalism The Constitution divides power between the national (federal) government and state governments and makes the national government supreme within its sphere. The national government has implied as well as enumerated powers, as McCulloch v. Maryland made clear. To Learning Objectives

LO 3.2 Summary The Constitutional Basis of Federalism (cont.) LO 3.2: Outline what the Constitution says about division of power between national and state governments and states' obligations to each other, and trace the increasing importance of the national government. The Constitutional Basis of Federalism (cont.) Civil War helped establish national supremacy, and the Supreme Court has interpreted the constitutional powers of the national government broadly, as Washington has taken on more responsibilities to deal matters such as the economy and civil rights. To Learning Objectives

LO 3.2 Summary The Constitutional Basis of Federalism (cont.) LO 3.2: Outline what the Constitution says about division of power between national and state governments and states' obligations to each other, and trace the increasing importance of the national government. The Constitutional Basis of Federalism (cont.) States have obligations to give full faith and credit to the public acts, records, and civil judicial proceedings of other states, return a person charged with a crime in another state to that state, and accord citizens of other states the privileges and immunities enjoyed by their own citizens. To Learning Objectives

communication reciprocity honesty commerce LO 3.2 The “full faith and credit” clause in Article IV of the Constitution is primarily designed to ensure between states. The “full faith and credit” clause in Article IV of the Constitution is primarily designed to ensure between states. B. reciprocity (LO 3.2) communication reciprocity honesty commerce To Learning Objectives

communication reciprocity honesty commerce LO 3.2 The “full faith and credit” clause in Article IV of the Constitution is primarily designed to ensure between states. The “full faith and credit” clause in Article IV of the Constitution is primarily designed to ensure between states. B. reciprocity (LO 3.2) communication reciprocity honesty commerce To Learning Objectives

LO 3.3 Summary Intergovernmental Relations Today LO 3.3: Characterize the shift from dual to cooperative federalism and the role of fiscal federalism in intergovernmental relations today. Intergovernmental Relations Today States no longer have exclusive responsibility for those government functions that are within its sphere but instead share these responsibilities with the federal government. To Learning Objectives

LO 3.3 Summary Intergovernmental Relations Today (cont.) LO 3.3: Characterize the shift from dual to cooperative federalism and the role of fiscal federalism in intergovernmental relations today. Intergovernmental Relations Today (cont.) Through categorical and block grants, the federal government provides state and local governments with substantial portions of their budgets and it uses this leverage to influence policy by attaching conditions to receiving the grants. To Learning Objectives

LO 3.3 The shift from dual to cooperative federalism involved a gradual _____. The shift from dual to cooperative federalism involved a gradual ______. C. change in many policy areas, including education. (LO 3.3) devolution in federal influence over states. shift for the implementation of the New Deal. change in many policy areas, including education. shift from presidential to congressional dominance. To Learning Objectives

LO 3.3 The shift from dual to cooperative federalism involved a gradual _____. The shift from dual to cooperative federalism involved a gradual ______. C. change in many policy areas, including education. (LO 3.3) devolution in federal influence over states. shift for the implementation of the New Deal. change in many policy areas, including education. shift from presidential to congressional dominance. To Learning Objectives

LO 3.4 Summary Understanding Federalism LO 3.4: Assess the impact of federalism on democratic government and the scope of government. Understanding Federalism On the positive side, federalism reduces conflict at the national level, encourages acceptance of losing elections, and increases the opportunities for citizens to participate in government and see their policy preferences reflected in law. To Learning Objectives

LO 3.4 Summary Understanding Federalism (cont.) LO 3.4: Assess the impact of federalism on democratic government and the scope of government. Understanding Federalism (cont.) On the negative side, it may increase inequities between states with different levels of resources, discourage states from providing services, allow local interests to thwart national policy, and complicate efforts to make government responsive. To Learning Objectives

LO 3.4 Summary Understanding Federalism (cont.) LO 3.4: Assess the impact of federalism on democratic government and the scope of government. Understanding Federalism (cont.) The national government has grown in response to the demands of Americans for public services it can best provide, but it has not in any way supplanted the states. To Learning Objectives

LO 3.4 The federal government’s share of governmental expenditures has grown rapidly since the _____. The federal government’s share of governmental expenditures has grown rapidly since the _____. A. New Deal. (LO 3.4) New Deal. Civil War. Great War. Civil Rights Movement. To Learning Objectives

LO 3.4 The federal government’s share of governmental expenditures has grown rapidly since the _____. The federal government’s share of governmental expenditures has grown rapidly since the _____. A. New Deal. (LO 3.4) New Deal. Civil War. Great War. Civil Rights Movement. To Learning Objectives

Text Credits Office of Management and Budget, Budget of the United States Government, Fiscal Year 2011: Historical Tables (Washington, DC: U.S. Government Printing Office, 2010), Table 12.1. Office of Management and Budget, Budget of the United States Government, Fiscal Year 2011: Historical Tables (Washington, DC: U.S.Government Printing Office, 2010), Table 12.2. Office of Management and Budget, Budget of the United States Government, Fiscal Year 2011: Historical Tables (Washington, DC: U.S. Government Printing Office, 2010), Table 15.3.

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