1. Chapter Three Federalism

2. The Federalism song Copyright © Houghton Mifflin Company. All rights reserved.3 | 2 : ) : ) : ) : )

3. Why “Federalism” Matters Federalism is behind many things that matter to many people: Federalism is behind many things that matter to many people: Tax rates Tax rates Speed limits Speed limits Liquor laws Liquor laws School funding School funding Health insurance Health insurance Copyright © Houghton Mifflin Company. All rights reserved. 3 | 3

4. The Roots of Federalism Copyright © Houghton Mifflin Company. All rights reserved. 3 | 4 : ) : ) : ) : )

5. Governmental Structure Federalism: a political system where local government units can make final decisions regarding some governmental activities and whose existence is protected Federalism: a political system where local government units can make final decisions regarding some governmental activities and whose existence is protected Unitary System: local governments are subservient to the national government Unitary System: local governments are subservient to the national government Copyright © Houghton Mifflin Company. All rights reserved. 3 | 5

6. Figure 3.1: Lines of Power in Three Systems of Government Copyright © Houghton Mifflin Company. All rights reserved. 3 | 6

7. Figure 3.1: Lines of Power in Three Systems of Government Copyright © Houghton Mifflin Company. All rights reserved. 3 | 7

8. Figure 3.1: Lines of Power in Three Systems of Government Copyright © Houghton Mifflin Company. All rights reserved. 3 | 8

9. Federalism: A Bold New Plan No historical precedent No historical precedent Tenth Amendment was added as an afterthought to clarify the limits of the national government’s power Tenth Amendment was added as an afterthought to clarify the limits of the national government’s power Elastic language in Article I: Necessary and Proper Clause expands federal power Elastic language in Article I: Necessary and Proper Clause expands federal power Copyright © Houghton Mifflin Company. All rights reserved. 3 | 9

10. What is the 10 th Amendment? Copyright © Houghton Mifflin Company. All rights reserved.3 | 10 : ) : ) : ) : )

11. Federalism: Good or Bad? Bad: Bad: Source of confusion and/or controversy, particularly during times of crisis Source of confusion and/or controversy, particularly during times of crisis Impedes progress and caters to local interests Impedes progress and caters to local interests Good: Good: Contributes to governmental strength, political flexibility, and fosters individual liberty Contributes to governmental strength, political flexibility, and fosters individual liberty Federalist #10 - small political units allow all relevant interests to be heard Federalist #10 - small political units allow all relevant interests to be heard Federalism increases political activity Federalism increases political activity Copyright © Houghton Mifflin Company. All rights reserved. 3 | 11

12. Federalism as seen by PoliSci Pros Copyright © Houghton Mifflin Company. All rights reserved. 3 | 12 : ) : ) : ) : )

13. Debating the Meaning of Federalism McCulloch v. Maryland (1819) McCulloch v. Maryland (1819) Could Congress charter a national bank? Yes, even though this power is not explicitly in the Constitution (Necessary and Proper Clause) 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 ” Could states tax the national bank? No, because “the power to tax is the power to destroy ” Copyright © Houghton Mifflin Company. All rights reserved. 3 | 13

14. McCulloch vs. Maryland Copyright © Houghton Mifflin Company. All rights reserved. 3 | 14 : ) : ) : ) : )

15. Dual Federalism Belief that the national government is supreme in its sphere, but the states are equally supreme in theirs. Belief that the national government is supreme in its sphere, but the states are equally supreme in theirs. These spheres should be kept separate These spheres should be kept separate This idea was pretty much abandoned, particularly in the area of commerce. This idea was pretty much abandoned, particularly in the area of commerce. However, recent Supreme Court decisions have moved to strengthen states’ rights. However, recent Supreme Court decisions have moved to strengthen states’ rights. Copyright © Houghton Mifflin Company. All rights reserved. 3 | 15

16. Federal-State Relations Grants-in-aid: Grants-in-aid: Dramatically increased in scope in 20 th century Dramatically increased in scope in 20 th century Attractive to states for both economic and political reasons Attractive to states for both economic and political reasons Federal activists work with intergovernmental lobbying groups to determine how and when grants are awarded Federal activists work with intergovernmental lobbying groups to determine how and when grants are awarded Copyright © Houghton Mifflin Company. All rights reserved. 3 | 16

17. Federal-State Relations Categorical grants: for specific purposes defined by federal law; often require local matching funds Block grants: devoted to general purposes with few restrictions—states preferred block to categorical grants Revenue sharing: requires no matching funds and can be spent on almost any governmental purpose Copyright © Houghton Mifflin Company. All rights reserved. 3 | 17

18. Figure 3.2: The Changing Purpose of Federal Grants to State and Local Governments Copyright © Houghton Mifflin Company. All rights reserved. 3 | 18 Budget of the U.S. Government, Fiscal Year 2005, table 12.2.

19. Table 3.1 Federal Grants to State and Local Governments (Federal Fiscal Year 2006) Copyright © Houghton Mifflin Company. All rights reserved. 3 | 19

20. Federal Aid and Federal Control Mandates: federal rules that states or localities must obey, whether or not they accept federal grants Mandates: federal rules that states or localities must obey, whether or not they accept federal grants When the federal government spends less on a preferred policy, it will pressure the states to spend more in that area 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 Conditions of aid: tell state governments what they must do if they wish to receive grant money Copyright © Houghton Mifflin Company. All rights reserved. 3 | 20

21. 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. 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 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 Recent studies show that the success of devolution was limited Copyright © Houghton Mifflin Company. All rights reserved. 3 | 21

22. The Devolution Revolution Second-order devolution: the flow of power and money from the states to local governments 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 Third-order devolution: the increased role of nonprofit organizations and private groups in policy implementation Copyright © Houghton Mifflin Company. All rights reserved. 3 | 22

23. Preemption Express preemption: a federal law or regulation containing language explicitly displacing or superseding any conflicting state or local laws Express preemption: a federal law or regulation containing language explicitly displacing or superseding any conflicting state or local laws Implied preemption: a federal law or regulation that directly conflicts with existing state laws, in the areas of intent or implementation Implied preemption: a federal law or regulation that directly conflicts with existing state laws, in the areas of intent or implementation Copyright © Houghton Mifflin Company. All rights reserved. 3 | 23

24. Congress and Federalism Members of Congress represent conflicting constituencies Members of Congress represent conflicting constituencies The erosion of parties increases political competition The erosion of parties increases political competition Americans differ in the extent to which we like federal versus local decisions Americans differ in the extent to which we like federal versus local decisions Copyright © Houghton Mifflin Company. All rights reserved. 3 | 24