1. The Evolution of Federalism

2. Federalist #51 Defends the Constitution
Explains why a strong gov’t is necessary
“If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary.”
Defends separation of powers between state and national gov’t

3. Defining Federalism Federalism
Constitutional arrangement whereby power is distributed between a central government and subdivisional governments called states in the United States. The national and the subdivisional governments exercise direct authority over individuals
“Look, the American people don’t want to be bossed around by federal bureaucrats. They want to be bossed around by state bureaucrats”

4. Advantages of Federalism
Federalism allows for experimentation/diversity
Multiple levels of government provide flexibility
Citizens can choose where to live
Citizens have many ways to influence their gov’t
Provides additional checks & balances

5. Disadvantages of Federalism
The complexity of the federal system
Larger bureaucracy/duplication
Coordination confusion
Slow to respond to crisis
Complex tax system
Federalism is expensive
Potential for inequality in services & policies

6. Versions of Federalism
Dual Federalism (Layer Cake Federalism)
Views the Constitution as giving a limited list of powers to the national government, leaving the rest to sovereign states
Cooperative Federalism (Marble Cake Federalism)
Federalism as a cooperative system of intergovernmental relations in delivering goods and services to the people
“As the colors are mixed in a marble cake, so functions are mixed in the American federal system.”

7. The Significance of the 10th 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.
The 10th Amendment was seen as a reservoir of reserved powers for state governments
However, it’s rarely had much significance since McCulloch v. Maryland in 1819
The doctrine of implied national powers, and the “necessary and proper” clause have undercut the words and apparent intent of the 10th Amendment

8. Why Divide Authority in the First Place?
The Constitution may have never been ratified if the Framers had pushed for a unitary system
Federalism was a compromise, allowing the states to maintain their independence
Why?
Prevent tyranny
Provision for increased participation
Uses states for experimentation for new policies/programs

10. The Evolution of Federalism
“State-Centered Federalism”
1787 to 1868
From the adoption of the Constitution to the end of the Civil War, the states were the most important units of the American Federal System
McCulloch v. Maryland decided during this phase
Construes “necessary and proper” to favor expansion of national authority

11. McCulloch v. Maryland (1819)
Doctrine of Implied National Powers
It determined that Congress had not only the powers expressly conferred upon it by the Constitution but also all authority “appropriate” to carry out such powers
Doctrine of National Supremacy
The national supremacy principle states that all federal laws (including the Constitution itself) are superior to any conflicting state or local laws, such that the federal laws will always take precedence.

12. Evolution of Federalism
Doctrine of Nullification
Each state could declare any laws or actions of the national government “null and void” (ruled unconstitutional)
Doctrine of Secession
States could chose to withdraw from the United States if they wanted
Used by the Confederate States in the Civil War

13. Gibbons v. Ogden (1824) 1824 – aka “The Steamboat Case”
Ogden received a state licensed monopoly to run a ferry across the Hudson River
Gibbons also saw the potential of the traffic between NJ and NY and obtained a federal license.
Ogden sued saying he had the valid state license, even though Gibbons had US license

14. Gibbons v. Ogden (1824) Result – Gibbons wins
Expanded national power in all areas of commerce law because nation overruled state in interstate trade issues
Fed Gov’t gets STRONGER
All trade today is primarily controlled by national law

15. Commerce Clause Who cares? Why is it important?
Gibbons v. Ogden ruling makes a loop hole giving Congress power to take control over any issue involving the movement of people, or things
Fed gov’t power increased

16. 2 Federalisms Cooperative Federalism – Marble Cake TWO METAPHORS…
Dual Federalism – Layer Cake
Federal
State
Cooperative Federalism – Marble Cake

17. The Evolution of Federalism
“Dual Federalism”
1868 to 1913
In this phase, the national government narrowly interpreted its delegated powers and the states continued to decide most domestic policy issues. Believed the national government shouldn’t exceed enumerated powers

18. Evolution of Federalism
After the Civil War, industrialization and urbanization created new challenges for the federal system

19. The Evolution of American Federalism
“Cooperative Federalism”
1913 to 1964
The system was likened to a marble cake in that “as the colors are mixed in a marble cake, so functions are mixed in the American federal system.”

20. “Cooperative Federalism” 1913-1964
New Deal= centralized response to national crisis, become nationally-based welfare state
Many social programs remain under state control
Congress controls commerce leading up to and during WWII

21. Fiscal Federalism Fiscal means $
Q – How do you get the states to do things they normally wouldn’t do?
A – Money
Q – What is the answer to any question ever asked?

22. Grants-in-Aid
Money paid from one level of government to another to be spent for a specific purpose
Categorical Grants - target specific purposes and “strings attached.” (States receive funds if state raised age to 21 and lowered BAC to .08)
Block Grants – given for broad, general purposes and allow more discretion on how the money is spent (ex. Welfare reform)

23. Mandates
A requirement that a state undertake an activity or provide a service
Most apply to Civil Rights and the Environment
Often times the states or local gov’ts have to pay the bill of the mandate set by Congress

24. Mandates
1986 – Asbestos Emergency Response Act, Handicapped Children’s Protection Act
1988 – Drug-free Workplace Acts, Ocean Dumping Ban Act
1990 – Clean Air Act
EX – Columbus, OH spends 23% of the city budget trying to meet environmental mandates (including testing for pesticides used on rice and pineapple)
EX – Public schools have to use Internet filtering or schools lose e-rate subsidies

25. Change in Spending 17% 23% 60% 47% 30% 64% 19% 66% 15% 1929 1939 1960
Shift towards Federal Gov’t Spending
Federal
State
Local (City)
1929
17%
23%
60%
1939
47%
30%
1960
64%
19%
1997
66%
15%

26. The Evolution of American Federalism
“Centralized” or “Creative” Federalism
The presidency of Lyndon B. Johnson ( ) marked a critical point in the evolution of federalism
Federal government clearly had its own national goals

27. The Great Society and Creative Federalism
Johnson’s “Great Society”
War on Poverty
Civil Rights Acts
Federal funds were directed to states, local government, and a wide variety of social programs

28. The Great Society and Creative Federalism

29. The Great Society and Creative Federalism

30. New Federalism
Ronald Reagan sought to return more power and responsibility to the states
Block grants and revenue sharing reduce federal requirements
“Government is not the solution; it’s the problem”
-Ronald Reagan

31. Devolution (Beginning in 1995)
The Republican “Contract with America” called for devolution-- the transfer of political and economic power to the states (with decreased federal funding)
1996 Welfare Reform devolved the program to states

32. The Supreme Court’s Shift in Perspective
Beginning in 1995, justices interested in granting more deference to state authority gained a slim five-to-four majority in the Supreme Court
The Constitutional Counterrevolution
A return to an older version of federalism not embraced since the constitutional crisis over the New Deal in the 1930s
United States v. Lopez (1995)
Printz v. United States (1997)
United States v. Morrison (2000)

33. The Changing Nature of Federal Grants
In 1996 there was a shift from Categorical Grants to Block Grants
2 types of Categorical Grants (Grants-in-Aid):
Formula grants
Project grants
Block Grants (Revenue-sharing Grants)
Far more flexible

34. The Changing Nature of Federal Grants
Grants-in-Aid
Federal funds given to state and local governments on the condition that the money be spent for specified purposes, defined by officials in Washington
Such funds are usually accompanied by requirements and standards set by the governing body for how they are to be spent. An example of this would be how the United States Congress required states to raise the drinking age for alcohol from 18 to 21 in order for the individual states to continue to qualify for federal funds for interstate highways located within each state.

35. The Future of Federalism
The persistence of international terrorism, the war in Afghanistan, and rising deficits all ensure a substantial role for the national government in the years to come

36. The Future of Federalism
TARP (Troubled Asset Relief Program)
Health Care Law
No Child Left Behind

37. No Child Left Behind Example
Problem= declining student performance
Solution= federal funding requires tough performance standards
Unintended consequences: localities forced to make huge investment to implement testing requirements
Localities sue states--> unfunded mandate
States opting out of federal funds (& performance standards)