Federalism

1. Federalism

2. Federalism & The Concept of Constitutional Powers Federalism is a way of organizing a nation so that two or more levels of government have formal authority over the land and the people The basis is that the federal government would cover big blanket issues while state governments resolve local issues; this would allow state and local governments to experiment with new ideas Delegated Powers Granted to national gov’t in Constitution

3. Federalism & The Concept of Constitutional Powers

4. The Elastic Clause of the Constitution The “Necessary and Proper Clause” – Article 1, Section 8, Clause 18 “The Congress shall have Power – To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.” It is impossible to predict all the powers that Congress will need to function, but at times, we may allow Congress extra powers to fulfill their delegated powers Is the Bank of the US constitutional? YES. Implied powers to carry out delegated powers– U.S. needs a bank to borrow, lend, hold money, etc. • McCulloch v. Maryland (1819) • A branch of the Bank of the U.S. operated in Maryland • Maryland did not want the branch to operate; it was competition and it was unfair • Maryland taxed the bank to put it out of business • McCulloch, a BofUS employee, refused to pay the state tax John Marshall reaffirms the Supremacy Clause and the Elastic Clause; the federal government gets stronger as a result Can a state tax the federal gov’t? NO. Federal gov’t is supreme. Since the BUS is constitutional, only the feds can tax it.

5. The Commerce Clause of the Constitution Article 1, Section 8, Clause 3 “The Congress shall have power – To regulate commerce with foreign nations, and among the several states, and with the Indian tribes.”; combined with the Elastic Clause, Congress has used this to stretch their power Commerce is the “buying and selling of goods and services.”; Congress controls business law.

6. Federalism • Establishing National Supremacy • Implied Powers • Enumerated Powers • Commerce Powers • The Civil War • The Struggle For Racial Equality • States’ Obligations to Each Other • Full Faith and Credit • Extradition • Privileges and Immunities

7. The Historical Evolution of Federalism • 1789 – 1933 • Dual Federalism • The federal role was limited to enumerated powers; all other powers rested with the state • Referred to as “layer cake” model – each level of government (national/state) was supreme within its domain of responsibility • There was a separation of powers b/w national and state levels; no interference • Federal and state governments were competitive, but it was state centered • 1964 - 1980 • Creative Federalism • Federal role expanded to deal with local governments and bypass the states (did so through categorical grants of Great Society) • “Picket fence” model – federal gov’t deals with local gov’t in housing, transportation, health care, poverty, etc. • Creative b/c of categorical grants that deal with local gov’ts • Direct link b/w federal and local gov’t; weaker states as a result • 1980 – Present • Competitive Federalism • Federal role is changed when states change categorical grants into block grants, thus giving state and local gov’ts more power • “Pineapple upside down cake” model – federal gov’t deals with local gov’ts, but state and local gov’t have more discretion • Competitive due to competition b/w state/local gov’ts for business and workers • Governments are competitive in their relationships • 1933 - 1964 • Cooperative Federalism • Federal powers expanded in the Great Depression, using the 14th Amendment • “Marble cake” federalism – federal gov’t provided resources (during New Deal, federal gov’t supported New Deal programs of FDR) • There was a sharing of powers between the national and state governments • Federal and state governments cooperate, but overall is nation centered

8. Fiscal Federalism The model of spending, taxing, & providing grants in the federal government system The national government’s primary means of influencing state governments is giving money to the states in form of grants-in-aid States need funding for projects and programs  federal gov’t provides funding but requires federal regulation The carrot (the funding in the form of grants-in-aid) & the stick (regulation and compliance of federal mandates) Categorical Grants – funds targeted for a specific purpose (roads, schools, urban development); come with stipulations/regulations Project Grants – competitive and create economic opportunities for states (water projects, government facilities, research grants); less dictatorial and gives states more discretion on how they’re spent Formula Grants – give money according to a defined set of rules; as an example, more urban development $’s go to areas where there are higher urban populations (Head Start, food stamps, Medicaid) Block Grants – large sums of money granted to state & local governments with only general provisions on how it is spent (not as strict as categorical grant); allow state & local gov’ts to experiment with different ways of spending with the same goal in mind; disadvantage is that gov’ts can collect through their own taxation system and spend without any regulations Minimum wages, speed limits, handicap accessibility, etc.

9. The Mandate Problems • The Mandate Blues • Mandates direct states or local governments to comply with federal rules under the threat of penalties or as a condition of receipt of a federal grant • Unfunded mandates will emerge – requirements placed on state and local governments, but without the money to fund (example – No Child Left Behind education reform • Questions to Consider • Which level of government is best able to solve a particular problem? • Which level of government is best able to fund solutions to the problem?

10. Examples of Mandates 1986 – Asbestos Emergency Response Act; Handicapped Children’s Protection Act 1988 – Drug-Free Workplace Acts; Ocean Dumping Ban Act 1990 – Clean Air Act Example of impact – Columbus, Ohio spends 23% of the city budget in an attempt to meet environment mandates (including testing for pesticides that are used on rice and pineapple) Example of impact – public schools have to use internet filtering or schools lose e-rate subsidies

11. The Shift to Federal Spending

12. Devolution of Federalism • Devolution began during the Clinton administration and is defined as the scaling back of the size and activities of the national government  instead placing the burden of domestic programs on state governments • Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (welfare reform) • Eliminated welfare at the national level and instead transferred the money to states as block grants • States received a large degree of latitude on how to administer “workfare” but with the knowledge that Congress was counting on anti-poverty spending • Some strings were attached: head of family must work or lose benefit, lifetime benefits are limited to five years, unmarried mothers under 18 only receive $$$ if they stay in school or live with an adult, immigrants are ineligible for five years

13. Two Sides to the Coin of Federalism • Federalism is good… • It is built on compromise and promotes the idea of unity • It allows responsibilities to be split up • It brings government closer to the people • It allows for state governments to address issues that are unique to them • It allows states to experiment with a policy before it takes hold at the federal level (Vermont free health care for children; Affordable Care Act in Massachusetts) • Federalism is bad… • States can impede the progress of the nation as a whole • States are unequal. • States have different policies. • It is easier for states to be dominated by interest groups (think Madison).