1. National, State and Local
Chapter Federalism
National, State and Local

2. Federalism Defined
Divides power between a central government and state and local governments
Framers favoured moving power from the states to a national government

3. THE EVOLUTION OF FEDERALISM
DUAL FEDERALISM ( )
STATES AND NATIONAL GOVTS DIVIDE FUNCTIONS.
Congress handled enumerated powers (Art.1; Sec. 8)
States handled reserved powers (Amend 10)
Congress and states both handled concurrent powers

4. Principles of Dual Federalism

5. Mc Culloch v. Maryland
Chief Justice John Marshall use of "Necessary and Proper Clause,“

6. Phase II Cooperative Federalism
( ) NATIONAL GOVERNMENT AND STATES EXERCISED RESPONSIBILITIES FOR WELFARE, HEALTH, HIGHWAYS, EDUCATION, AND CRIMINAL JUSTICE.

7. Why Cooperative Federalism?
INDUSTRIAL REVOLUTION
DEVELOPMENT OF A NATIONAL ECONOMY
FEDERAL INCOME TAX SHIFTS $$ TO NATIONAL GOVERNMENT (Amend. 16)
TWO WORLD WARS AND THE GREAT DEPRESSION. MAJOR SHIFT IN FDR ERA

8. Cooperative Federalism in Action
GRANTS IN AID
Combined federal funding with state administration
Funds provided by one level of government to another for specific purposes
States are required to put up some of their own money: matching grants

9. Phase III: Creative Federalism 1964-70
THE NATIONAL GOVERNMENT DOMINATES STATE GOVERNMENTS
LBJ and War on Poverty, Civil Rights, etc.
Categorical grants which required recipients to apply for funding under specific categories detailing how money would be spent
Bypass States and urban governments to fund organization with Democratic base

10. Phase IV New Federalism 1970-80s
Nixon
Backlash to Creative Federalism
More autonomy with states/local govts.
Initially REVENUE SHARING (1972) --
Later BLOCK GRANTS - funding for policy area, such as community development, education -- let states decide how funds are used.

11. Federal, State, and Local Government Expenditures
Budget of the United States Government: Historical Tables, Fiscal Year 2005; available at

12. Phase V Modern Federalism 1980s>
Devolution
More powers to state/local governments
BUT Pre-emption
Federal government assumes total or partial control in areas of concurrent responsibility
AND Unfunded mandates
Federal government requires states and localities to provide certain services but no federal money to cover the costs.

13. State Governments Laboratories of democracy
Governors may have more control over state bureaucracies
State legislatures reflect population
State legislatures more professional
Civil right provision have strengthened government; legal barriers to minority voting nearly eliminated

14. FEDERAL STATE SHARE
Share of tax money significantly skewed to federal government
States in financial crisis: most facing bankruptcy.
Consequences for public mounting
Case of public schools.

15. ABC News: Report Card Case of Public Schools
Federal, state, concurrent power?
Quality of Education in America?
Problems in Education today?
Role of State/Local?
Role of Federal?
Role of federalism in dilemma?