Federalism
The Relationship between the States
and the Federal Government
Objectives
•
Define Federalism and
compare to unitary and
confederal forms of
government.
• 2) Identify and describe the
importance for McCulloch v
Maryland.
• 3) What are the benefits of
our federal system?
• 4) How has the federal
government gained power over
the states?
1)
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Identify and describe
mandates, direct orders, crosscutting requirements, cross-over
sanctions, preemption, block grants
and project grants. How has each
affected the balance of power
between the federal government
and the states?
6)
Identify state responsibilities
versus federal responsibilities.
7)
How much do individuals
trust the federal government versus
the state government? What is the
reason for that?
5)
3 Forms of Government
• Unitary
• Centralized
• Little to no delegate of
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power to the localities.
Confederal (Confederate)
Loose Alliance of
Independent States
States are Sovereign
Federal
Power is shared between
States and Central Gov’t
Power is delegated to
localities (Dillon’s Rule)
Benefits/ Consequences of
Federalism
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Benefits;
Flexibility
Strength
Higher political activity
Lowers the cost of
politics.
• Local solutions/local
problems
• National
solutions/national issues
• Consequences;
• Can block progress
(civil rights
movement)
• Promoted racism
• Varying laws and
enforcement of laws
Balancing Act of Power
• Who has more power?
• Power has recently
shifted from states to
the national
government
• Political ideology of
Presidents can
influence these
changes.
Methods Fed has used to gain
power.
• Supremacy Clause
• McCulloch v.
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Maryland
Mandates (often
unfunded)
Cross-cutting
requirements
Cross-over sanctions.
Preemption.
How can the Federal Government
th
override states’ rights and the 10
Amendment?
• Easy answer….
• MONEY MONEY
MONEY
• States depend of
FREE money from the
Federal Government.
• Why?
• Grants-in-aide
Money and Federalism
The Federal Government has access to
more.
• Federal government can
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print more money.
Can borrow money easier.
States compete with other
states, so they like to keep
taxes low
National Gov raises
money from Income taxes
States raise money from
license fees and property
taxes.
• Federal Government can
raise more money in taxes
• Control the Fed reserve
• Borrow money to cover
deficits.
• States and localities can
go bankrupt. (They have a
credit rating just like
citizens.)
Fiscal Federalism
• Money is the basis of
the relationship
between the States and
the Federal
Government.
• The “Carrot and
Stick” approach.
• Grants in Aid.
Carrot and Stick explained
• The Carrots;
• Grants in aid
• Money paid from one
level of government to
another level of
government to be
spent for a purpose.
• Types of Grants;
• Categorical – grants given
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for specific purposes. (2
Types)
Formula – distributed by a
formula
Project – competitive won
for a specific purpose,
usually through a federal
agency.
Block – grants for general
purposes.
Revenue Sharing –
shared tax dollars “no
strings attached”
The Stick
• The stick is Preemption
• Removal of area of
authority from a state to
the federal government.
• Example; Clean Air and
Water acts of 1990
• These often take state
authority and cost money
in the form of unfunded
mandates.
• Partial Preemption.
• Government establishes
minimums for the states to
uphold.
• In this case states have to
set and enforce the
standards
• 350 of these have been
passed since ratification.
• More than half have
occurred in the last 20
years.
The carrot and stick combined
• In order for states to get the
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money they need, the must
comply with the rules.
Crosscutting requirements.
Attached to all grants
Pertain to nondiscrimination,
environmental protection, labor
standards, and public access to
gov’t information.
60 Rules that “cut across” all
grants.
• Cross-over sanctions
• Penalties in one area
for an infraction in the
other.
• Example (Drinking
age and highway
money)
• Cigarette advertising.
How do states feel about this loss
of power? What can they do?
• They often complain that
they are unfair, costly, and
do not take local
conditions into account.
• Some states and localities
get more federal money
than others.
• Why do they follow them?
• Self-interest…..need that
money.
Balance of Power
• It is clear that since the
passage of the 16th
Amendment the Federal
Government has gained
power over the states.
• However, in the 1990’s
many Americans showed a
great deal of distrust in the
Federal Government
Compared to the states.
Devolution/GOP Revolution.
• In 94’ the GOP took over
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control of both houses of
congress.
Devolution – federal
power sent back to states
in the form of block grants
(Welfare)
2nd Order Devolution
(States to localities)
3rd order Devolution
States to private firms.