1. Federalism

2. Constitutional Basis
Federalism – political system where the national (federal) government shares power with local (state, regional, municipal) governments

3. The US, Canada, Australia, India and Germany are federal systems.
France, GB, Italy, and Sweden are unitary systems
Their local gov’ts can be altered or abolished by national gov’t

4. Devolution – process of giving the states more power over welfare, health care, and job training
Congressmen vote to give states block grants – money from Congress that states can use at their discretion within broad guidelines

5. We think our federal government is huge and self-serving
We forget they give much of their money and enforce much of the laws on local governments

6. These are the things they regulate in states:
Large part of welfare system
Interstate highways system
Programs to improve cities
Much of the effort to provide jobs to unemployed
All of cleaning up the water
Most of the military manpower

7. Things that fall to the states:
Policing
Education
Local land-use

8. Federalism: Good or Bad?
To some, federalism means allowing states to block action, prevent progress, upset national plans, and cater to self-interested politicians.
To others, federalism means the ability to develop and maintain things that are vital to our unique nation, political flexibility and individual liberty

9. Opportunity to exercise political control in 50 states and about 3000 counties
These places and people will do things for different purposes
In some places people will use this to maintain segregation, protect interests and facilitate corruption
The opposite is also true

10. The smaller the political unit, the more likely it is to be dominated by a single political faction
Madison (Federalist #10) said that only in a large republic would there be a place for all interests to be heard

11. Increased Political Activity
The most obvious effect of devolution has been to get more people involved in politics
Also, decentralization of political authority lowers the cost of government

12. Founders weren’t really clear on how the federal system was to work
We have had to work that out since then, sometimes bitterly

13. A Bold New Plan
Our federal republic gets its power from the people – as do state and local gov’ts
Founders wanted to make sure neither the state gov’ts nor federal gov’t had supreme power over the other
Federalist 46 (Madison) said both gov’ts are different and given different powers

14. Founders believed the federal gov’t would only have the powers the Constitution gave it.
Constitution doesn’t spell out the rights of states
10th amendment says that powers not delegated to the US, nor prohibited by it to the states, are given to the states, or people

15. Elastic Language
Article I gives Congress the power to “make all laws which shall be necessary and proper for carrying into execution the forgoing powers”
Framers knew they couldn’t make a list of everything the federal government was allowed to do
So they included the “elastic clause”

16. For example: Congress given the power to regulate commerce “among the several states”
Didn’t say where commerce among the states ended and commerce within a state began
Supreme Court tried to figure that out for 100 years before giving up

17. Alexander Hamilton believed in a “loose interpretation” of the Constitution
Jefferson and Madison believed in a “strict interpretation”
Madison Federalist 45 – powers given to gov’t are “few and defined” – those to the states are “numerous and indefinite”

18. Debate on the Meaning of Federalism
Civil War fought partly over states’ rights
Settled with the national government as supreme
Supreme Court tried to settle issue during formative years
Led by Chief Justice John Marshall
He and court powerfully defended the “national supremacy” view

19. McCulloch v. Maryland – case over national bank being taxed by a state
1st question – did Congress have the right to set up a bank or any corporation?
Congress given power to manage money so it was “necessary and proper”

20. 2nd question – could a federal bank be lawfully taxes by a state?
Marshall argued that the only way for national power to be supreme was for them to be immune from state challenges and protected

21. Nullification
Congress passed laws in 1798 to punish newspaper editors who wrote critical stories about the government
VA & KY Resolutions – suggested that states should have right to nullify federal laws they think violate the Constitution
Law expired before issue could be settled in court

22. John C. Calhoun brought up nullification again in the 1830’s because of the tariff, then efforts to restrict slavery
settled by war
Northern victory determined once and for all that the union could not be dissolved
Nor could states declare acts of Congress unconstitutional

23. Dual Federalism
After war, the debate on meaning of federalism focused on the commerce clause
Thus dual federalism developed
Although the national gov’t was supreme in its sphere, states were equally supreme in theirs
the two spheres of action should be kept separate

24. Interstate shipments of lottery tickets, prostitute, liquor, harmful foods and drug upheld by court as regulated by federal gov’t
Intrastate commerce like manufacturing, insurance, and farming were regulated by state gov’ts
Product based decisions proved hard to sustain

25. Question – when shipping goods from state to state, how long is it interstate commerce (federal law) and when does it become intrastate commerce (state law)
Debated several times by the courts
Finally, they decided that pretty much everything – farming and manufacturing - was interstate commerce and regulated by federal gov’t

26. State Sovereignty States down but not out
US v. Lopez (1995) – SC said Congress had exceeded its commerce clause power by prohibiting guns in school

27. Reaffirmed that view with US v. Morrison (5-4)
Overturned Violence Against Women Act (1994)
Law allowed women to sue attacker motivated by gender
SC said attacks against women are not and do not affect interstate commerce and so Congress cannot pass the law (states can)

28. 11th amendment
Alden v. Maine (1999) – helped protect states against lawsuits by people who said that state regulations created unfair economic competition

29. One accepted state power is “police power”
States make and enforce criminal codes
Make kids go to school
Make people be vaccinated
Restrict access to pornographic materials
Restrictions on driving and roads

30. Most states allow more direct democracy:
Initiative – lets voters put measures on the ballot
Referendum – lets voters reject a measure adopted by the legislature
Recall (20 states) – voters can remove an elected official from office.

31. Existence of states guaranteed by Constitution
Cannot be divided without its consent
Counties, towns and cities exist because of the states – can be abolished

32. Grants-in-Aid First came before the constitution
Land grants given to the states to fund education
State universities were built with this money
Land grants also made to build roads, canals, RR and flood control
By 2001, $300 billion a year went to states for grants

34. Four reasons grants are so popular with state officials
1. the US government had plenty of money
2. the federal income tax
3. the US government could make more money
4. politics

35. If the federal government wants to send money to one state, they must send money to all states
Example: – Lyndon B. Johnson wanted to give money to cities with problems “Model Cities”
Senator from Maine wouldn’t vote for it until his cities got money also

36. Intergovernmental Lobby
Some states actually “lobby” Congress for money for their states
More than 31 states and dozens of counties have offices in Washington, DC in order to do this
They want more money with fewer strings

37. Categorical grants go towards a specific purpose like a college, or hospital
Many times states are required to “match” funds
Most states don’t like the regulations put on them

38. Revenue sharing – a “no string attached” form of aid to state and local governments
Can be used for most any project but never to exceed more than two percent of revenues

39. Mandates – requirements that are imposed by the national gov’t on the state and local gov’ts
Example: Americans with Disabilities Act (1990)
Mandates that all public buildings be accessible to people

40. All mandates are not created equal
Federal courts have helped the growth of mandates
10th amendment does not provide any protection for states against mandates
Most well known mandates are for school desegregation

41. SC decided in 1980 (that a law passed in 1870) allowed citizens to sue local officials if they were deprived of anything they were entitled to under federal law

42. Conditions of Aid
Most important federal restriction on state action are the strings attached to the grants
If states need it for their budget, they have to accept it
Some conditions are specific to particular programs
Building – study of environmental impact – prevailing wage – contractors have nondiscriminatory hiring practices, etc.

43. These rules are to prevent states from misspending federal tax money
State officials say rules don’t take into account the diverse local conditions
“free” money isn’t quite so “free”

44. Entitlements
Entitlements - A government program that guarantees and provides benefits to a particular group
Example: Medicaid & AFDC
Each state gets money based on amount it paid to poor families and people

45. Possibly federal welfare programs have triggered:
Second-order devolution – flow of power and responsibility from states to local gov’ts.
Third-order devolution – increased role of nonprofit organizations and private groups in policy implementation

46. Congress and Federalism
Unclear whether the devolution movement will gain strength, stall, or reverse
Whatever, the US will not become a wholly centralized country
There is more political and policy diversity in American than any other nation