Key Figures of Federalism

1. Key Figures of Federalism By George Smith

2. George Bush • Many thought he’d continue the decentralisation. • However, Bush presided over the largest overall increase in inflation-adjusted federal government spending since Lyndon Johnson’s “Great Society” programme of the mid-1960s. • Andrew Cline (2006) – “When Americans handed Republicans the reins of government, they thought they were getting a conservative regime, one that would be honest, frugal and competent. Instead, they got a big government regime that has been dishonest, profligate and incompetent.”

3. Total federal government spending grew by 33% in Bush’s first term. Federal spending under Bush increased by 18%, from $1.62 trillion to $1.79 trillion. An 11% increase in real spending over the Clinton administration • The federal budget share of the economy grew from 18.4% in 2000, to 20.5% in 2008. • Bush created new federal government departments – the Department of Homeland Security. • Stephen Slivinski (2005) – “the republicans in Congress and the White House have become defenders of big government” • 4 areas which grew under Bush – education, Medicare, homeland security and national defence, and the economy and jobs.

4. Education • Large turnaround from Republican presidents – Reagan (1981-89) pledged to abolish the federal Department of Education. Spending on education rose by 165% in 5 years. • Early signs that Bush would not confirm the standard model of republican federalism - No specific reference to federalism in his 2001 inauguration speech. He was a social conservative, keener than most to use the power of government to promote traditional morals. "No Child Left Behind" Act 2001 - set a national criteria for school performance and sanctions for failure, to increase progress, national rules for testing established. 20% increase in funding for the poorest, inner city schools. Bush – “Federal Government will not micromanage how schools are run.” • “No Child Left Behind” - Some people were unhappy as it was the biggest expansion of federal influence in education since the 1960s. Bush had extended federal power into an area traditionally played out locally. These federal requirements were only partly funded by the government.

5. Medicare • December 2003 Bush signed a major Medicare expansion bill into law (included a new prescription drug benefit). • This cost $400bn in its first 10 years. • A number of Republicans were critical, 25 in the House and 9 in the Senate voted “no” in its final passage.

6. Homeland Security and defence • 2001-09, spending by the Department of Defence increased from $291m to $651m, an increase of 125%. 2001-06 spending on homeland security increased over five times form $13m to $69m. Defence spending rose from 15% of the federal budget to 21% under Bush. • 9/11 increased Federalism as it lead to the creation of Homeland Security, national ID cards and the 2001 Patriot Act (expanded federal authority in the surveillance of suspected terrorists. • Hurricane Katrina in 2005 - exposed many problems with the federal structure. 2007 Defence Reorganisation Act (federalise National Guard) - this move was opposed by the governors of all 50 states in a letter sent to Congress in 2006, it was passed anyway. Federal Housing Finance Agency created.

7. Economy • Economy and jobs – September 2008, Bush authorised the Secretary of the Treasury to take control of the two troubled privately owned companies – the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. • This gave the Federal Government half of the US mortgage Market. • Paulson – “Not since the early days of the FDR administration has the government taken such a direct role in the workings of the financial system.” • $700bn bail-out package to Wall Street – passed through congress mainly by Democrats.

8. Conclusion • Many see Bush as a big government conservative because of the increase of federal programmes and spending, the revival of mandates, creation of new agencies and massive federal bailouts in response to the credit crunch. • As the Governor of Texas for 6 years, Bush may not have been happy about the increase of Federal powers under his presidency. However, whilst Bush was a Governor there were no national crisis that required federal intervention like what was needed after 9/11 and Hurricane Katrina.

9. Rick Perry (Governor of Texas) • Calls for state sovereignty and a limited federal encroachment on “liberty”. - “States are best positioned to deal with state issues.” • In his most recent book, Fed Up!, Perry makes clear that his focus on a limited federal government is about more than policy. “The preservation of liberty requires a government located closest to the people,” he writes, before quoting from James Madison in Federalist 45. “The powers reserved for the several states,” Madison wrote, “will extend to all the objects which, in the ordinary course of affairs, concern the lives, liberties and properties of the people.” • Though states have the power to restrict and condition abortion, as Perry has in Texas, they do not have the power to outlaw it altogether.

10. Marriage • Gay marriage - Perry did not hesitate when he was asked on July 23 what he thought about New York state legalizing gay marriage. “That is their call,” he said. “If you believe in the 10th Amendment, stay out of their business.” • A few days later, there was no quaver in his voice when asked if states should be able to allow abortion. “You either have to believe in the 10th Amendment or you don’t,” Perry said.  “You can’t believe in the 10th Amendment for a few issues and then [for] something that doesn’t suit you say, ‘We’d rather not have states decide that.’” • He now says he supports a federal constitutional amendment that would effectively nullify the New York legislature’s ability to enact same-sex marriage. • Perry argued that his support for a federal marriage amendment was consistent with his federalist view, because the amendment would prevent courts from imposing recognition of same sex marriage onto unwilling states. “Indeed to not pass the federal marriage amendment would impinge on Texas,” • This would mean that the people of the state of New York would no longer be able to define liberty  in their own lives. This runs contrary, in spirit, to Perry’s stated views.

11. Social Security • Social Security, Perry writes, is an example of the federal government’s “violently tossing aside any respect for our founding principles of federalism and limited government.” • Perry doesn’t just want to roll back regulations. He wants to make it impossible for them to exist in the first place.  • Perry’s wants to get rid of Social Security or bank regulation. This would mean public pension systems and bank regulation vary state by state. This would looks less like the United States of America and a whole lot more like the European Union.

12. Bill Clinton • Supported “New Federalism” • New Federalism - a gradual return of power to the states. • Increase of block grants (started by Reagan) - freeing state governments to spend the money at their own discretion. • However, Clinton's first Federalism executive order gave federal agencies power over state and local government agencies. • On May 14, 1998, without much fanfare or public attention, the White House released a new executive order on federalism. President Bill Clinton's Executive Order 13083 revokes E.O. 12612, issued by President Ronald Reagan in 1987 • Thierersaid Clinton's Federalism order is a push to dismantle Reagan's federal structure. • "The executive order on federalism I signed will strengthen our partnership with State and local governments and ensure that executive branch agencies are able to do their work on behalf of the American people” - Clinton

14. Barack Obama • Bush focussed on war and terrorism, Obama from 2009-12 more focussed on domestic policy. • By 2012, the ratio of state and local government employees to federal employees was the highest since before President Roosevelt’s New Deal in the 1930s. • Federal Government assistance to the states increased from 3.7% of GDP in the last year of the Bush administration to 4.6% of GDP in the first year of the Obama administration. • Money from the federal government was 25% of state government spending in 2008, this rose to 30% in 2009. • Bush’s economic stimulus package (2003) - $20bn went to the states. • Obama’s economic stimulus package (2009) - $245bn went to or through the states.

16. Programmes increasing Federalism • This increase came partly under the re-authorisation of the State Children’s Health Insurance Programme (S-CHIP) in 2009; the expansion of Medicare; and over $4bn invested in the Race to the Top programme to boost education in the states; Pell Grants for university education. • Healthcare reform legislation (Affordable Care Act) – many Republicans saw this as “the end of federalism” and the Tea Party Movement accused Obama being more socialist than federalist.

17. Conclusion • In the 2010 exit polls of the mid-term elections, 74% of Republicans and 60% of independents agreed that the “federal government is doing too many things better left to business and individuals”. • Obama’s expansive view of the federal government was somewhat curbed by the Supreme Court’s refusal to allow this legislation to stand under an expansive reading of the commerce clause, but only under Congress’s power to levy taxes.

18. Thank you for listening xoxoxoxo