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The Politics of Modern Federalism

Explore the dynamic relationship between national and state governments in modern federalism with a focus on grants-in-aid, categorical grants, block grants, and mandates. Understand the impact of federal funds and regulations on state policies.

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The Politics of Modern Federalism

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  1. The Politics of Modern Federalism

  2. Politics of Modern Federalism • The structures of the federal system have not changed much since the Constitution was written • Modern politics have changed the relationship between national and state governments, especially over the past 50 years or so

  3. The Politics of Modern Federalism • Today a major aspect of federalism is the grants-in-aid-system • National government provides millions of dollars for federal grants to states

  4. GRANTS-IN-AID • One of the national government’s most important tools for influencing policy at the state & local levels is the federal grant

  5. GRANTS-IN-AID • Congress authorizes grants, establishes rules for how grants may be used, and decides how much control the states have over federal funds

  6. GRANTS-IN-AID • Federal funds fall into three general types: • (1)Categorical grants • (2) Block grants • (3) Revenue sharing

  7. Categorical Grants • Appropriated by Congress for specific purposes • Highway funding, airport building, welfare, school lunches, etc. • Usually require the state to “match” (put up money for) the federal grants although matching funds can vary widely

  8. Categorical Grants • Many categorical grants • A few, including Medicaid, and Aid to Familieswith Dependent Children, account for almost 85% of total spending for categorical grants

  9. Categorical Grants • State & local officials complain that these grants are often too narrowand cannot be adapted easily to local needs

  10. Block Grants • Consolidate several categorical grants into a single “block” for broad activities, such as social services, health services, or public education

  11. Block Grants • This type of grant was promoted by Ronald Reagan • During the early 1980s, Congress consolidated a number of categorical grants into block grants

  12. Block Grants • Later Presidents have advocated that more consolidation occur, but Congress has been reluctant to do so

  13. Block Grants • Give Congress less control over how money is used • Representatives cannot take credit for grants to their particular districts

  14. Why have state governors generally supported block grants?

  15. Block Grants • State governors generally have supported block grants because they give states wide control of how & where the money is spent

  16. Why have city mayors tended to oppose block grants?

  17. Block Grants • City mayors have tended to oppose them because cities must rely on state governments to determinefunding rules & amounts

  18. Revenue Sharing • Grant system that no long exists • More permissive than block grants • States & localities were given federal funds with no requirement for matching funds • Freedom to spend the money on almost anything

  19. Block Grants • In the late 1980s federal deficits grew so large that revenue sharing was terminated • National government claimed that it had “no revenue to share”

  20. GRANTS-IN-AID • Today, even though block grants still exist, Congress is always tempted to add “strings” that set requirements for how federal grants are to be spent • As a result, block grants gradually become more categorical, a phenomenon known as “creeping categorization”

  21. MANDATES • Federal control on the activities of state & local governments • Rule that tells states what they must do in order to comply with federal guidelines

  22. MANDATES • Often the mandates are tied to federal grants, but sometimes the mandates have nothing to do with federal aid

  23. MANDATES • Most apply to civil rights & environmental protection • State programs may not discriminate against specific groups of people, no matter who pays for them

  24. MANDATES • Today, anti-discrimination rules apply to race, sex, age, ethnicity, and physical and mental disabilities • States must comply with federal laws and standards regarding the environment, as well

  25. MANDATES • Mandates have been criticized strongly by state & local governments • From their point of view, it is easy enough for Congress to pass mandates when the states must pay the bills (“unfunded mandates”)

  26. MANDATES • 1986 Handicapped Children’s Protection Act provided federal regulations meant to assure equal access & opportunity for disabled children

  27. MANDATES • Federal guidelines included requirements for public schools to build access ramps & elevators, provide special buses & personnel, & widen hallways—all with no federal money to help schools comply

  28. MANDATES • Examples of federal mandates for States & Local Governments: • 1983 - Social Security Amendments • 1984 – Hazardous & Solid Waste Amendments, Highway Safety Amendments

  29. MANDATES • 1986 – Asbestos Emergency Response Act, Handicapped Children’s Protection Act, Safe Drinking Water Act Amendments • 1988 – Drug Free Workplace Acts, Ocean Dumping Ban Act • 1990 – Clean Air Amendments, Americans with Disabilities Act

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