1. Mr. Plude
Chapter 4 Section 3

2. A Need for National Power

3. Fiscal Federalism Fiscal – Government Revenue
The use of funding to increase national power
9/11 results in increased national power
States need for money increased to improve security
Funding was required to meet national mandates

4. Fiscal Federalism Roots in Confederation
Fiscal federalism: power of national government to influence state policies within context of spending, taxing, and providing aid in federal system
Begins with Land Ordinance of 1785, took shape during 1900s
National government gave land to states for establishing schools

5. Morrill Act

6. Fiscal Federalism Latest Trend
20th century: power of national government expanded with increased use of grants-in-aid
Includes money, other resources national government provides to pay for state and local activities
Examples: Low-income housing, community arts programs, energy assistance, disaster preparedness

7. Types of Grants and Mandates
Categorical Grants
Most used Grant to supply aid
Specific use only
Examples: building new airport, crime-fighting in certain areas
Used to provide money to areas affected by natural disaster

8. Types of Grants and Mandates
Block Grants
Block grants: national grants given for more general purposes
States have greater discretion in how money spent
Examples: Welfare, public health, community development, education

10. Grants and Mandates
1980s, President Reagan increased block grants to increase State power
Effectively decreasing National government power & influence

11. Types of Grants and Mandates
Federal Mandates
National government often distributes money with strings attached.
Mandating (requiring) how money is to be used

12. Examples of Mandates
Civil Rights - School busing, desegregation, affirmative action
Environmental regulations - Clean Air Act of 1970: national mandate requiring states to meet national air-quality levels
Grant money made available to states to meet Clean Air Act & reduce pollution
Not meeting standards results in lost federal funding

15. Issues in Federalism Today
Poverty
1996: Congress passed welfare reform law - gave states authority to manage own systems
Results - number of people on welfare has decreased
Some credit narrowing of eligibility requirements ?
decrease represents strong economy?

16. Issues in Federalism Today
Environment
Environmental protection considered responsibility of national government
Congress has been asked to limit reach of EPA in favor of local efforts

17. Issues in Federalism Today
Immigration
National government handles policies, citizenship, border protection
States with international borders have greater immigration-related responsibility
education costs
health and social services
low-cost housing

18. Issues in Federalism Today
Health Care Crisis
Rising Costs
State & National governments seeking solutions to rising costs
Socialized Medicine or Free Market?
Which level should take lead on issues—state or national?

19. No More PPT For you!