1. Federalism 1/26/2012

2. Clearly Communicated Learning Objectives Upon completion of this course, students will be able to: – understand and interpret the United States Constitution and apply it to present policy dilemmas. – understand why our national government works and why the American system of government is unique.

3. Opportunities to Discuss Course Content Today 11-2 Monday 10-2 Free Constitutions for anyone who stops by

4. Readings Federalist 10 – http://www.constitution.org/fed/federa10.htm http://www.constitution.org/fed/federa10.htm Chapter 3- Federalism

5. THE CONSTITUTIONAL BASIS OF FEDERALISM

6. Problems of the Articles States took advantage of each other States could ignore national law States were unwilling to give up their power

7. The Constitution addresses this Enumerated Powers Implied Powers Denying Powers to the States and Federal Govt

8. Enumerated Powers Powers expressly given to the National Government Most listed in Article I Section 8 of the Constitution

9. Implied Powers Stem from the Elastic Clause (Article I, Sec 8) The Congress shall have 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.

10. Application of Elastic Clause McCulloch v. Maryland (1819) Upholds the elastic clause

11. Powers Denied to the Federal Government Article I Section 9 Slavery Regulation Keep trade flowing between the states Titles of nobility

12. The Supremacy Clause (Article I, Sec 4) National law is supreme Immigration Battles Food

13. POWERS DENIED TO THE STATES

14. Things the States Gave Up Article I Sec 9 Have a standing army or navy Printing paper currency

15. Things Prohibited to the States Bill of Attainder Ex Post Facto Laws

16. Gibbons v. Ogden (1824) The States Lost the Power to Regulate Interstate Commerce Federal Government has this exclusive right

17. Concurrent Powers Power shared by Federal and State Governments – Power To Tax – Make laws protecting Public safety Public safety

18. Income Taxes By State

19. Interstate Relations :Privileges and Immunities

20. Interstate Relations: Full Faith and Credit of Public Records

21. THE EVOLUTION OF FEDERALISM

22. 10 th 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.

23. So How many governments are there? The Federal Government Ok, That’s one

24. What Else? 50 State Governments

25. What Else are there? 3,034 County Governments 36,000 Local Governments 13,000 School Districts 37,000 Special Districts – Utility Districts- PEC – Hospital Districts – Transit Districts- e.g. CAP Metro – Park Districts – Water Districts- e.g. LCRA – And more!

26. What Does This Mean? There are roughly 89,500 governments that have legal authority over policymaking. Some governments are impotent in certain policy areas, while extremely powerful in others.

27. Things Not Mentioned By the Constitution Health Care Education Police Power The Environment

28. Metaphors of Federalism

29. Dual and Cooperative Federalism

30. FEDERALISM TODAY How Things Get Done

31. Federalism Today Relies on Implied Powers 16 th Amendment 14 th Amendment

32. What is Fiscal Federalism Providing Financial incentives for states to pursue national policy goals Come in the Form of Grants-in-aid

33. How important?

34. Sources

35. Block Grants Few Strings Attached States like these

36. Categorical Grants 90% of All Grant Money Most require state matching funds Less Freedom

37. Project Grants A Type of Categorical Grant Competitive

38. Formula Grants Based on specific income or population formulas Often census based

39. Medicaid The Biggest Categorical Grant (a formula grant) Health Insurance for the Poor Demand has increased as have costs

40. ENTITLEMENTS

41. Entitlements Provide resources directly to individuals If You are eligible, you receive the resource Bypasses the states altogether.

42. These are Very Expensive

43. Social Security The Largest Single Federal Program A program that everyone loves A Program that tracks baby namesnames

44. Why do we love it? Almost everyone gets it- 54 million people were receiving benefits. It has very basic goals that are easy to reach The average worker gets $1,164 a month

45. How Do We pay for it? Payroll Taxes – I Pay 4.2% of my salary For 2011 – St. Edward’s matches this There is an upper limit on taxes… for Now (the most you can pay is $4,485.60 ) The most you can get in benefits is $2366

46. SOCIAL SECURITY IS IN FINANCIAL TROUBLE

47. America is Getting Older

48. Americans are living Longer

49. There are Fewer Workers

50. The 2011 Numbers In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2036 the Social Security Trust Fund will be exhausted* and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits.

51. Baby Boomers and Recession (2011)

52. Bankrupt vs. Broke Bankrupt- not being able to meet your obligations Broke- not having any money Either way, we need policy change

53. How to Solve the Problem? There are many solutions All involve risk and create winners and losers Your primary targets are voting constituents