FEDERALISMRyan D. Williamson

27 January 2015

Agenda

• Attendance• Quiz 1 grades on ELC• Lecture on Federalism• Reading for Thursday

Questions?

Objectives

• Describe how federalism works.• Identify the pros and cons of using federalism to provide a solution to collective dilemmas.

What is Federalism?

• System of shared powers between two or more levels of governments.

• Lower level of government enjoys constitutional protection from national government.

• National government can compel action.• Example: United States under the Constitution

Contrast to Confederation

• System of shared powers between two or more levels of government

• Lower-level governments retain sovereignty• National government cannot compel action• Example: United States under the Articles of Confederation

Contrast to Unitary System

• All power is centralized within the national government

• Lower-level governments (if they exist) only have powers if the central government delegates

• Example: United Kingdom• Power centralized in London• Powers delegated to subnational parliaments in

Northern Ireland, Scotland, and Wales

Centralization of Political Control

Dynamics of Federalism• Dual Federalism

• Each level of government has own policy area, operate largely independent of each other (layer cake federalism)

• Federal: control over national and international issues

• State: control over intrastate issues

Dynamics of Federalism• Cooperative Federalism

• Different levels of government are active in nearly all policy areas, share authority (marble cake federalism)

• Results in multiple levels of government being involved in policies that influence you everyday

Dynamics of Federalism

• Intergovernmentalism• Mixture of dual and cooperative federalism• Shared spheres in particular policy areas

Responsibility of Governments

The Many Levels of Government

Have you driven a car in the last week?

National Government: provides federal highway funds, coordinates interstate system, safety regulations

State Government: state highway system, responsible for maintenance of federal and state roads, determines speed limits on federal and state roads, fuel efficiency standards

Local Government: maintenance of local roads, determines speed limits within its own boarders

The Many Levels of Government

Have you purchased food/groceries in the last week?

National Government: USDA sets food quality standards, FDA issues food recalls

State Government: collects 4% tax on prepared foods and goods, issues licenses for retail food sales, inspections to enforce state food laws

County/Local Government: collects and additional 3% tax on prepared food and goods, 3% mixed drink sales tax, regulates liquor sales (e.g. Sunday sales)

Limits of Federalism

• The Constitution sets some clear limits• States cannot coin money or negotiate treaties• Supremacy clause holds that national laws trump state

laws if in conflict

• The Constitution also creates ambiguities• Necessary and proper clause• Commerce clause

• Court interpretation has changed over time

• Tenth Amendment

Federalism and the Courts

Tenth Amendment: “The 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.”• Most explicit endorsement of federalism in the Constitution.• Legal challenges by the states are usually based on this

amendment

It has not played a major role in fending off national authority• Failure due to the powerful combination of the Supremacy and the

Necessary and Proper Clauses

McCulloch v. Maryland (1819)

Background:• In 1816, Congress re-chartered a national bank. • Maryland is one of the states that is not happy about this

new bank and it decides to levy a 2% tax on it.• James McCulloch, a bank agent, refuses to pay the tax.Questions Before the Court1. Can Congress charter a bank?2. Can a state tax a federal entity?

McCulloch v. Maryland (1819)

Court Ruling:

1. Yes. The creation of a national bank is a constitutional exercise of federal power under the Necessary and Proper Clause

2. No. • Tenth Amendment only reserves to the states powers not delegated

to federal government, Constitution gives federal government power to tax.

• Supremacy Clause means that Maryland cannot interfere with bank’s operation by taxing it.

Gibbons v. Ogden (1824)

Background:• NY State legislature gives Ogden a steamboat

monopoly.• Gibbons, from NJ, also tries to operate in NY waters • Ogden is upset, pressures NY into banning Gibbons.

Questions before the Court:

1. Can the federal government regulate navigation?

2. Is the NY monopoly constitutional under the Tenth Amendment or does this violate the Commerce Clause?

Gibbons v. Ogden (1824)

Court Ruling:

1. Yes. • Commerce is more than just buying and selling.• While the power to regulate commerce within a state belongs to

the state, commerce among the states does not stop at the border.

2. No. The NY monopoly is unconstitutional because the Supremacy Clause gives the federal government’s laws precedent despite the Tenth Amendment.

Courts and Nationalization

Overall, federal court rulings have shifted power from the states to the federal government.

Arguments based on the Tenth Amendment usually lose once a case reaches the Supreme Court.

State Governments

• Most are similar in structure to federal government• Bicameral (exception: Nebraska)• Gubernatorial powers vary by state• Professionalization of legislatures varies by state• Key distinction is presence of direct democracy—

initiative, referendum, recall

State Governments• Initiative: an election in which citizens vote directly on a

proposition raised by a group of fellow citizens• Referendum: an election in which citizens vote directly on

whether to overturn a bill or constitutional amendment that has been passed by the legislature

• Recall: an election during the term of an elected government official in which citizens vote directly on whether to remove the individual from office

Local Governments

• More variation than state governments• Mayoral—large cities, mayor has considerable power• Council-manager—small-to-medium cities• Commission—declining in number due to collective

action problems• We will discuss these in more detail on Thursday.

Questions?

Increased Federal Authority Can Help Solve Collective Dilemmas• Prisoner’s dilemma

• Prevent states/units from going to war with each other

• Collective action problem• Protect states/units from outside aggression

• Free rider problem• Set national standards for labor and environmental laws

Air Polluters in Georgia

Federalism and Competition

• Competition and innovation across states has mixed effects

• Experimentation in states can produce evidence for new, effective policies

• Competition for industry can reduce tax base• Race to the top/bottom

The Emergence of State Lotteries

Federalism and Competition

Federal Influence on State Spending• Grants-in-Aid

• General programs (e.g., infrastructure)

• Categorical Grants• School lunches

• Revenue Sharing• Interstate highways

• Block Grants• 1995 welfare reform

• Contrast: Unfunded Mandates• All Handicapped Children Act of 1975

Issues in Federalism

Federal law prohibits the cultivation, sale, distribution, or possession of marijuana

To date, Colorado, Oregon, Alaska, and Washington have all legalized the recreational use of marijuana

What constitutional provision do these state laws arguably violate?

Issues in FederalismWhy have these laws not been overturned?• Federal government has not acted to enforce the law• Regulatory issues are still being sorted out • Colorado Governor on legalization: “You don't want to be the first

person to do something like this”

Washington D.C. also passed an initiative to legalize possession on of marijuana, but it has not fared as well

• D.C. can elect a local government, but Congress must review and approve any law passed by the local government

• Congress can also district laws though its budgeting process

Issues in Federalism

The supremacy of federal law requires at least one of the following:

1. Enforcement by the federal government

2. Legal challenge to a state law

Fifteenth Amendment (1870)

Voting Rights Act (1965)

Questions?

For next time…

• Read Bullock and Gaddie Ch. 8