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Federal-State Relations

Federal-State Relations. AP Government & Politics Mr. Minnich. History of Grants. Grants show how political realities modify authority Lands grants existed before Constitution Cash grants to states began in 1808 Grants increase substantially in 20 th century

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Federal-State Relations

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  1. Federal-State Relations AP Government & Politics Mr. Minnich

  2. History of Grants Grants show how political realities modify authority Lands grants existed before Constitution Cash grants to states began in 1808 Grants increase substantially in 20th century Government pre-1930’s could not spend money for purposes not authorized by Constitution (grants are a way around this)

  3. History of Grants • Grants attractive to state officials for various reasons • Federal budget surpluses (19th and early 20th centuries) • Federal income tax increased revenues • Federal control of money supply • Appeared as “free” money for state officials

  4. Grants-in-aid • 1960’s shift in grants-in-aid from states demanded to what federal officials considered important as national needs • Federal grants to state and local governments increased • Purpose of federal funds changed

  5. Lobbying for money • Hundreds of state and local officials lobby in Washington • The Big 7 • U.S. Conference of Mayors, National Governors Association, National Association of Counties, National League of Cities, Council of State Governments, International City/County Management Association, National Conference of State Legislatures

  6. Lobbying for money Purpose to get more money with fewer strings

  7. Categorical Grants • Made for specific purposes defined by federal law; they often require local matching funds • Examples: National Park Service’s American Battlefield Protection Grants and FEMA’s Flood Mitigation Assistance Grants

  8. Block Grants • Sometimes called special revenue sharing or broad-cased aid • Devoted to general purposes with few restrictions • Example: Community Development Block Grant, Social Services Block Grant, and Temporary Assistance to Needy Families • State prefer block grants to categorical grants • Why? • Neither grants give states more freedom in spending

  9. Rivalry Among the States • Intense debate regarding whether the federal government is helping some regions at the expense of others • Snowbelt vs. Sunbelt States debate • Focuses on allocation formulas written into federal laws • Why would Snowbelt states be unhappy with this formula? • Difficulty determining where funds are actually spent and their effect • With numerous grants distributed on the basis of population, the census takes on monumental importance

  10. Federal Control on State Activities • Conditions of aid: tell states governments what they must do if they wish to receive grant money • Example: You must raise your legal drinking age from 18 to 21 to receive highway maintenance money • Example: Follow No Child Left Behind Law to receive federal money for your school • Mandates: tell state governments what they must do • Example: Civil Rights, Environmental protection

  11. Devolution Revolution President Reagan asked Congress to consolidate numerous categorical grants into large block grants 1994 election of Republicans led to devolution initiatives to shift responsibilities of programs to the states. Reduce federal regulations Do you think this will concept will work? Why or why not?

  12. Results of Devolution Medicaid not converted to block grant Federal spending increased 2006 inflation-adjusted per household spending levels highest since World War II More, not fewer rules and regulations Little change in congressional preemptions of state laws

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