1. 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 –two or more levels of government have formal authority over the same land and people.
Unitary governments –all power in the central government.
Confederation – A nation in which the national government is weaker than the states. (ex. EU)

2. 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.

3. 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 – It’s up to the states or the people if it isn’t in the Constitution or prohibited by the Constitution
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4. 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) Congress has powers not listed
Commerce Power - Gibbons v. Ogden (1824) just about all forms of commercial activity.
National power increased with industrialization, expansion of individual rights, and social services.
National government has more resources to pay for issues/agencies
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5. 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.
Lincoln never recognized secession
Martial law in border states such as KY
Military districts during Reconstruction
The Struggle for Racial Equality – Brown v. Board of Education (1954) outlawed segregation in the public schools.
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6. 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 - example states allow you to drive their roads with any “full” state license
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7. 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 – if you commit a crime in KY and run to OH, then OH has to send you back to KY for trial
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8. 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…same sex marriage?
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9. 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.
Voting qualifications (prior to 15th and 19th amdmts)
Segregation (prior to Brown v Board)

10. 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 – 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.
Ex. KY is among many states that have either passed or are considering making drug testing mandatory for welfare recipients
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11. 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.
Grants increased in 2010 and 2011 due to the stimulus package.
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12. LO 3.3 To Learning Objectives
Figure 3.1 Fiscal Federalism: Federal Grants to State and Local Governments
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Copyright © 2011 Pearson Education, Inc. Publishing as Longman

13. 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.
Race to the Top
Block grants support programs in community development and social services.
Title I
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14. 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 regardless of need
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.
Desegregation of schools
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15. 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.
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16. 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.
Having so many governments (89,527 American governments) makes it difficult to know which governments are doing what.
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17. 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.
National government has more resources to pay for issues/agencies
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