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Federalism

Federalism. 9/12/2011 Lecture 4. Clearly Stated Learning Objectives. Upon completion of this course, students will be able to: understand and interpret the United States Constitution and apply it to present policy dilemmas. 

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Federalism

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  1. Federalism 9/12/2011 Lecture 4

  2. Clearly Stated Learning Objectives • Upon completion of this course, students will be able to: • understand and interpret the United States Constitution and apply it to present policy dilemmas.  • understand why our national government works and why the American system of government is unique.

  3. Office Hours • Tomorrow 8-12 • Wednesday 8-10:30 • Free Constitutions for anyone who stops by

  4. Concurrent Powers • Power shared by Federal and State Governments • Power To Tax • Make laws protecting Public safety

  5. Income Taxes By State

  6. Interstate Relations :Privileges and Immunities

  7. Interstate Relations: Full Faith and Credit of Public Records

  8. The evolution of federalism

  9. 10th AmendmentThe powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

  10. So How many governments are there? The Federal Government Ok, That’s one

  11. What Else? 50 State Governments

  12. What Else are there? • 3,034 County Governments • 36,000 Local Governments • 13,000 School Districts • 37,000 Special Districts • Utility Districts- PEC • Hospital Districts • Transit Districts- e.g. CAP Metro • Park Districts • Water Districts- e.g. LCRA • And more!

  13. What Does This Mean? • There are roughly 89,500 governments that have legal authority over policymaking. • Some governments are impotent in certain policy areas, while extremely powerful in others.

  14. Things Not Mentioned By the Constitution • Health Care • Education • Police Power • The Environment

  15. Metaphors of Federalism

  16. Dual and Cooperative Federalism

  17. How Things Get Done Federalism Today

  18. Federalism Today Relies on • Implied Powers • 16th Amendment • 14th Amendment

  19. What is Fiscal Federalism • Providing Financial incentives for states to pursue national policy goals • Come in the Form of Grants-in-aid

  20. How important?

  21. Sources

  22. Block Grants • Few Strings Attached • States like these

  23. Categorical Grants • 90% of All Grant Money • Most require state matching funds • Less Freedom

  24. Project Grants • A Type of Categorical Grant • Competitive

  25. Formula Grants • Based on specific income or population formulas • Often census based

  26. Medicaid • The Biggest Categorical Grant (a formula grant) • Health Insurance for the Poor • Demand has increased as have costs

  27. Entitlements

  28. Entitlements • Provide resources directly to individuals • If You are eligible, you receive the resource • Bypasses the states altogether.

  29. These are Very Expensive

  30. Social Security • The Largest Single Federal Program • A program that everyone loves • A Program that tracks baby names

  31. Why do we love it? • Almost everyone gets it- 54 million people were receiving benefits. • It has very basic goals that are easy to reach • The average worker gets $1,164 a month

  32. How Do We pay for it? • Payroll Taxes • I Pay 4.2% of my salary For 2011 • St. Edward’s matches this • There is an upper limit on taxes… for Now (the most you can pay is $4,485.60 ) • The most you can get in benefits is $2366

  33. SOCIAL SECURITY IS IN FINANCIAL TROUBLE

  34. America is Getting Older

  35. Americans are living Longer

  36. There are Fewer Workers

  37. The 2011 Numbers In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2036 the Social Security Trust Fund will be exhausted* and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits.

  38. Baby Boomers and Recession (2011)

  39. Bankrupt vs. Broke • Bankrupt- not being able to meet your obligations • Broke- not having any money Either way, we need policy change

  40. How to Solve the Problem? • There are many solutions • All involve risk and create winners and losers • Your primary targets are voting constituents

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