Chapter Federalism National, State and Local Federalism Defined • Divides power between a central government and state and local governments – Framers favoured moving power from the states to a national government Copyright © Houghton Mifflin Company. All rights reserved. 1|2 THE EVOLUTION OF FEDERALISM • DUAL FEDERALISM (1787-1913) 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 Copyright © Houghton Mifflin Company. All rights reserved. 1|3 Principles of Dual Federalism Copyright © Houghton Mifflin Company. All rights reserved. 1|4 Mc Culloch v. Maryland • Chief Justice John Marshall use of "Necessary and Proper Clause,“ Copyright © Houghton Mifflin Company. All rights reserved. 1|5 Phase II Cooperative Federalism • (1913-1964) NATIONAL GOVERNMENT AND STATES EXERCISED RESPONSIBILITIES FOR WELFARE, HEALTH, HIGHWAYS, EDUCATION, AND CRIMINAL JUSTICE. Copyright © Houghton Mifflin Company. All rights reserved. 1|6 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 Copyright © Houghton Mifflin Company. All rights reserved. 1|7 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 Copyright © Houghton Mifflin Company. All rights reserved. 1|8 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 Copyright © Houghton Mifflin Company. All rights reserved. 1|9 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. Copyright © Houghton Mifflin Company. All rights reserved. 1 | 10 Federal, State, and Local Government Expenditures Budget of the United States Government: Historical Tables, Fiscal Year 2005; available at www.gpoaccess.gov/usbudget/fy05/hist.html. Copyright © Houghton Mifflin Company. All rights reserved. 1 | 11 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. Copyright © Houghton Mifflin Company. All rights reserved. 1 | 12 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 Copyright © Houghton Mifflin Company. All rights reserved. 1 | 13 FEDERAL STATE SHARE • Share of tax money significantly skewed to federal government • States in financial crisis: most facing bankruptcy. http://www.cbsnews.com/stories/2005/04/08/opinion/main686839.shtml • Consequences for public mounting – Case of public schools. Copyright © Houghton Mifflin Company. All rights reserved. 1 | 14 ABC News: Report Card • Case of Public Schools 1. 2. 3. 4. 5. 6. 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? http://nationalpriorities.org/index.php?option=com_wrapper&Itemid=182 Copyright © Houghton Mifflin Company. All rights reserved. 1 | 15