Federalism 1/26/2012

Clearly Communicated Learning Objectives Upon completion of this course, students will be able to: – understand and interpret the United States Constitution and apply it to present policy dilemmas. – understand why our national government works and why the American system of government is unique.

Opportunities to Discuss Course Content Today 11-2 Monday 10-2 Free Constitutions for anyone who stops by

Readings Federalist 10 – Chapter 3- Federalism

THE CONSTITUTIONAL BASIS OF FEDERALISM

Problems of the Articles States took advantage of each other States could ignore national law States were unwilling to give up their power

The Constitution addresses this Enumerated Powers Implied Powers Denying Powers to the States and Federal Govt

Enumerated Powers Powers expressly given to the National Government Most listed in Article I Section 8 of the Constitution

Implied Powers Stem from the Elastic Clause (Article I, Sec 8) The Congress shall have Power - 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.

Application of Elastic Clause McCulloch v. Maryland (1819) Upholds the elastic clause

Powers Denied to the Federal Government Article I Section 9 Slavery Regulation Keep trade flowing between the states Titles of nobility

The Supremacy Clause (Article I, Sec 4) National law is supreme Immigration Battles Food

POWERS DENIED TO THE STATES

Things the States Gave Up Article I Sec 9 Have a standing army or navy Printing paper currency

Things Prohibited to the States Bill of Attainder Ex Post Facto Laws

Gibbons v. Ogden (1824) The States Lost the Power to Regulate Interstate Commerce Federal Government has this exclusive right

Concurrent Powers Power shared by Federal and State Governments – Power To Tax – Make laws protecting Public safety Public safety

Income Taxes By State

Interstate Relations :Privileges and Immunities

Interstate Relations: Full Faith and Credit of Public Records

THE EVOLUTION OF FEDERALISM

10 th Amendment 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.

So How many governments are there? The Federal Government Ok, That’s one

What Else? 50 State Governments

What Else are there? 3,034 County Governments 36,000 Local Governments 13,000 School Districts 37,000 Special Districts – Utility Districts- PEC – Hospital Districts – Transit Districts- e.g. CAP Metro – Park Districts – Water Districts- e.g. LCRA – And more!

What Does This Mean? There are roughly 89,500 governments that have legal authority over policymaking. Some governments are impotent in certain policy areas, while extremely powerful in others.

Things Not Mentioned By the Constitution Health Care Education Police Power The Environment

Metaphors of Federalism

Dual and Cooperative Federalism

FEDERALISM TODAY How Things Get Done

Federalism Today Relies on Implied Powers 16 th Amendment 14 th Amendment

What is Fiscal Federalism Providing Financial incentives for states to pursue national policy goals Come in the Form of Grants-in-aid

How important?

Sources

Block Grants Few Strings Attached States like these

Categorical Grants 90% of All Grant Money Most require state matching funds Less Freedom

Project Grants A Type of Categorical Grant Competitive

Formula Grants Based on specific income or population formulas Often census based

Medicaid The Biggest Categorical Grant (a formula grant) Health Insurance for the Poor Demand has increased as have costs

ENTITLEMENTS

Entitlements Provide resources directly to individuals If You are eligible, you receive the resource Bypasses the states altogether.

These are Very Expensive

Social Security The Largest Single Federal Program A program that everyone loves A Program that tracks baby namesnames

Why do we love it? Almost everyone gets it- 54 million people were receiving benefits. It has very basic goals that are easy to reach The average worker gets $1,164 a month

How Do We pay for it? Payroll Taxes – I Pay 4.2% of my salary For 2011 – St. Edward’s matches this There is an upper limit on taxes… for Now (the most you can pay is $4, ) The most you can get in benefits is $2366

SOCIAL SECURITY IS IN FINANCIAL TROUBLE

America is Getting Older

Americans are living Longer

There are Fewer Workers

The 2011 Numbers In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2036 the Social Security Trust Fund will be exhausted* and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits.

Baby Boomers and Recession (2011)

Bankrupt vs. Broke Bankrupt- not being able to meet your obligations Broke- not having any money Either way, we need policy change

How to Solve the Problem? There are many solutions All involve risk and create winners and losers Your primary targets are voting constituents