1. 2003 short response question
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2. Chapter Three
Federalism

3. Why “Federalism” Matters
Federalism is behind many things that matter to many people:
Tax rates
Speed limits
Liquor laws
School funding
Health insurance
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4. Governmental Structure
Federalism: a political system in which ultimate authority is shared between a central government and a state or regional governments.
Unitary System: local governments are subservient to the national government
Confederal/Confederation: a political system in which states or regional governments retain ultimate authority except for those powers that they expressly delegate to a central government.
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5. Figure 3.1: Lines of Power in Three Systems of Government
Insert figure 3.1, but just the drawing of the federal system (the one in the middle)
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6. Figure 3.1: Lines of Power in Three Systems of Government
Insert figure 3.1, but just the drawing of the federal system (the one in the middle)
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7. Figure 3.1: Lines of Power in Three Systems of Government
Insert figure 3.1, but just the drawing of the federal system (the one in the middle)
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8. Federalism: Good or Bad?
Source of confusion and/or controversy, particularly during times of crisis
Impedes progress and caters to local interests
Good:
Contributes to governmental strength, political flexibility, and fosters individual liberty
Federalist #10 - small political units allow all relevant interests to be heard
Federalism increases political activity
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9. Federalism: A Bold New Plan
No historical precedent
Tenth Amendment was added as an afterthought to clarify the limits of the national government’s power
“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.”
Elastic language in Article I: “Necessary and Proper” Clause expands federal power
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10. Debating the Meaning of Federalism
McCulloch v. Maryland (1819)
In McCulloch v. Maryland (1819) the Supreme Court ruled that Congress had implied powers under the Necessary and Proper Clause of Article I, Section 8 of the Constitution to create the Second Bank of the United States and that the state of Maryland lacked the power to tax the Bank. Arguably Chief Justice John Marshall's finest opinion, McCulloch not only gave Congress broad discretionary power to implement the enumerated powers, but also repudiated, in ringing language, the radical states' rights arguments presented by counsel for Maryland.
-Could Congress charter a national bank?
Yes, even though this power is not explicitly in the Constitution (Necessary and Proper Clause)
-Could states tax the national bank?
No, because “the power to tax is the power to destroy”
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11. Expanding Federal Power
Article I, Section 8, Clause 3:
“ [The Congress shall have power] To regulate commerce with foreign nations, and among the several states, and with the Indian tribes; ” The Commerce Clause Power is often amplified by the Necessary and Proper Clause which states that this Commerce Clause power, and all of the other enumerated powers may, be implemented by the power "To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.“
“ The Commerce Clause emerged as the Framers' response to the central problem giving rise to the Constitution itself: the absence of any federal commerce power under the Articles of Confederation. For the first century of our history, the primary use of the Clause was to preclude the kind of discriminatory state legislation that had once been permissible. Then, in response to rapid industrial development and an increasingly interdependent national economy, Congress “ushered in a new era of federal regulation under the commerce power,” beginning with the enactment of the Interstate Commerce Act in 1887 and the Sherman Antitrust Act in ” The Commerce Clause represents one of the most fundamental powers delegated to the Congress by the founders. The outer limits of the Commerce Clause power has been the subject of long, intense political controversy. Interpretation of the sixteen words of the Commerce Clause has helped define the balance of power between the federal government and the states and the balance of power between the two elected branches of the Federal government and the Judiciary. As such, it has a direct impact on the lives of American citizens.
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12. Dual Federalism
Belief that the national government is supreme in its sphere, but the states are equally supreme in theirs.
These spheres should be kept separate
This idea was pretty much abandoned, particularly in the area of commerce.
However, recent Supreme Court decisions have moved to strengthen states’ rights.
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14. The intentions of the framers are clearly communicated by the Tenth Amendment.  However, this relationship has changed over time. 
During the early national period the Supreme Court settled many early conflicts in favor of the federal government. 
Today, the relationship among states and federal government reflects a shift of responsibility toward the states--the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (the welfare reform act) is an important example of this trend. 
In the current era, the federal government is increasingly seen as the rule-maker and the state governments as the implementer/enforcer
This has led states to demand more funding from the federal government--where the states feel that insufficient funds have been supplied by the federal government, the states accuse the federal government of issuing “unfunded mandates”.
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15. Federal-State Relations
Grants-in-aid:
-> federal funds provided for states/localities
Dramatically increased in scope in 20th century
Attractive to states for both economic and political reasons
Federal activists work with intergovernmental lobbying groups to determine how and when grants are awarded
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16. Federal-State Relations
Categorical grants: for specific purposes defined by federal law; often require local matching funds (Head Start, Food Stamps, Medicaid). Used most often.
Block grants: devoted to general purposes with few restrictions—states preferred block to categorical grants (education, law enforcement, community development) Reagan increased.
Revenue sharing: requires no matching funds and can be spent on almost any governmental purpose…intended to send $ to poorer, heavily taxed states (ended in 1986)
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17. Budget of the U.S. Government, Fiscal Year 2005, table 12.2.
Figure 3.2: The Changing Purpose of Federal Grants to State and Local Governments
Insert figure 3.2
Budget of the U.S. Government, Fiscal Year 2005, table 12.2.
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18. Table 3.1 Federal Grants to State and Local Governments (Federal Fiscal Year 2006)
Insert figure 3.3
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19. Federal Aid and Federal Control
Mandates: federal rules that states or localities must obey, whether or not they accept federal grants (not always funded eg. class sizes)
When the federal government spends less on a preferred policy, it will pressure the states to spend more in that area
Conditions of aid: tell state governments what they must do if they wish to receive grant money
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20. A Devolution Revolution?
During Reagan’s presidency, efforts were made to consolidate categorical grants and change them to larger “block grants”, which have fewer strings attached to them.
This was the beginning of the devolution effort, which aimed to pass down many federal functions to the states
Recent studies show that the success of devolution was limited
Welfare was successfully changed from a federal entitlement program to a state-run program funded by block grants.
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21. The Devolution Revolution
Second-order devolution: the flow of power and money from the states to local governments
Third-order devolution: the increased role of nonprofit organizations and private groups in policy implementation
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22. Preemption
Express preemtion: a federal law or regulation containing language explicitly displacing or superceding any conflicting state or local laws
Implied preemtion: a federal law or regulation that directly conflicts with existing state laws, in the areas of intent or implementation
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23. Congress and Federalism
Members of Congress represent conflicting constituencies
The erosion of parties increases political competition
Americans differ in the extent to which we like federal versus local decisions
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