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The Politics of Modern Federalism

Explore the evolution of federalism structures, grants-in-aid systems, and mandates over the past 50 years, including categorical grants, block grants, and revenue sharing. Understand the impact on states and local governments and the challenges faced with federal control.

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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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