The Politics of The Politics of Modern Modern

FederalismFederalism

Politics of Modern Politics of Modern FederalismFederalism

•The structures of the federal The structures of the federal system have not changed much system have not changed much since the Constitution was writtensince the Constitution was written

•Modern politics have changed the Modern politics have changed the relationship between national and relationship between national and state governments, especially over state governments, especially over the past 50 years or sothe past 50 years or so

The Politics of Modern The Politics of Modern FederalismFederalism

•Today a major aspect of Today a major aspect of federalism is the federalism is the grants-in-grants-in-aid-systemaid-system

•National government National government provides millions of provides millions of dollars for federal grants dollars for federal grants to statesto states

GRANTS-IN-AIDGRANTS-IN-AID

•One of the national One of the national government’s most important government’s most important tools for influencing policy at tools for influencing policy at the state & local levels is the the state & local levels is the federal grantfederal grant

GRANTS-IN-AIDGRANTS-IN-AID

•Congress authorizes Congress authorizes grants, establishes rules grants, establishes rules for how grants may be for how grants may be used, and decides how used, and decides how much control the states much control the states have over federal fundshave over federal funds

GRANTS-IN-AIDGRANTS-IN-AID

•Federal funds fall into Federal funds fall into three general types:three general types:

•(1)(1) Categorical grantsCategorical grants•(2) Block grants(2) Block grants•(3) Revenue sharing(3) Revenue sharing

Categorical GrantsCategorical Grants•Appropriated by Congress for Appropriated by Congress for

specific purposesspecific purposes•Highway funding, airport building, Highway funding, airport building,

welfare, school lunches, etc.welfare, school lunches, etc.•Usually require the state to Usually require the state to

“match” (put up money for) the “match” (put up money for) the federal grants although matching federal grants although matching funds can vary widelyfunds can vary widely

Categorical GrantsCategorical Grants

•Many categorical grantsMany categorical grants•A few, including A few, including MedicaidMedicaid, ,

and and Aid to FamiliesAid to Families with with Dependent ChildrenDependent Children, , account for almost 85% of account for almost 85% of total spending for categorical total spending for categorical grantsgrants

Categorical GrantsCategorical Grants

•State & local officials State & local officials complain that these grants complain that these grants are often are often tootoo narrow narrow and and cannot be adapted cannot be adapted easily to local needseasily to local needs

Block GrantsBlock Grants

•Consolidate several Consolidate several categorical grants into a categorical grants into a single “block” for broad single “block” for broad activities, such as social activities, such as social services, health services, or services, health services, or public educationpublic education

Block GrantsBlock Grants

•This type of grant was This type of grant was promoted by Ronald Reaganpromoted by Ronald Reagan

•During the early 1980s, During the early 1980s, Congress consolidated a Congress consolidated a number of categorical grants number of categorical grants into block grantsinto block grants

Block GrantsBlock Grants

•Later Presidents have Later Presidents have advocated that more advocated that more consolidation occur, but consolidation occur, but Congress has been reluctant Congress has been reluctant to do soto do so

Block GrantsBlock Grants

•Give Congress less control Give Congress less control over how money is used over how money is used

•Representatives cannot take Representatives cannot take credit for grants to their credit for grants to their particular districtsparticular districts

Why have state Why have state governors governors generally generally

supported block supported block grants?grants?

Block GrantsBlock Grants

•State governors generally State governors generally have supported block grants have supported block grants because they give states wide because they give states wide control of how & where the control of how & where the money is spentmoney is spent

Why have city Why have city mayors tended to mayors tended to

oppose block oppose block grants?grants?

Block GrantsBlock Grants

•City mayors have tended to City mayors have tended to oppose them because cities oppose them because cities must rely on state must rely on state governments to determinegovernments to determine funding rules & amountsfunding rules & amounts

Revenue SharingRevenue Sharing•Grant system that no long existsGrant system that no long exists•More permissive than block More permissive than block

grantsgrants•States & localities were given States & localities were given

federal funds with no requirement federal funds with no requirement for matching fundsfor matching funds

•Freedom to spend the money on Freedom to spend the money on almost anythingalmost anything

Block GrantsBlock Grants

•In the late 1980s federal In the late 1980s federal deficits grew so large that deficits grew so large that revenue sharing was revenue sharing was terminatedterminated

•National government claimed National government claimed that it had “no revenue to that it had “no revenue to share”share”

GRANTS-IN-AIDGRANTS-IN-AID• Today, even though block grants still Today, even though block grants still

exist, Congress is always tempted to exist, Congress is always tempted to add “strings” that set requirements add “strings” that set requirements for how federal grants are to be for how federal grants are to be spentspent

• As a result, block grants gradually As a result, block grants gradually become more categorical, a become more categorical, a phenomenon known as phenomenon known as “creeping “creeping categorization”categorization”

MANDATESMANDATES

•Federal control on the Federal control on the activities of state & local activities of state & local governmentsgovernments

•Rule that tells states what Rule that tells states what they must do in order to they must do in order to comply with federal comply with federal guidelinesguidelines

MANDATESMANDATES

•Often the mandates are Often the mandates are tied to federal grants, but tied to federal grants, but sometimes the mandates sometimes the mandates have nothing to do with have nothing to do with federal aidfederal aid

MANDATESMANDATES

•Most apply to civil rights & Most apply to civil rights & environmental protectionenvironmental protection

•State programs may not State programs may not discriminate against specific discriminate against specific groups of people, no matter groups of people, no matter who pays for themwho pays for them

MANDATESMANDATES•Today, anti-discrimination rules Today, anti-discrimination rules

apply to race, sex, age, apply to race, sex, age, ethnicity, and physical and ethnicity, and physical and mental disabilitiesmental disabilities

•States must comply with federal States must comply with federal laws and standards regarding laws and standards regarding the environment, as wellthe environment, as well

MANDATESMANDATES•Mandates have been criticized Mandates have been criticized

strongly by state & local strongly by state & local governmentsgovernments

•From their point of view, it is From their point of view, it is easy enough for Congress to easy enough for Congress to pass mandates when the states pass mandates when the states must pay the bills (“unfunded must pay the bills (“unfunded mandates”)mandates”)

MANDATESMANDATES

•1986 Handicapped Children’s 1986 Handicapped Children’s Protection Act provided Protection Act provided federal regulations meant to federal regulations meant to assure equal access & assure equal access & opportunity for disabled opportunity for disabled childrenchildren

MANDATESMANDATES•Federal guidelines included Federal guidelines included

requirements for public schools requirements for public schools to build access ramps & to build access ramps & elevators, provide special elevators, provide special buses & personnel, & widen buses & personnel, & widen hallways—all with no federal hallways—all with no federal money to help schools money to help schools complycomply

MANDATESMANDATES•Examples Examples of federal mandates of federal mandates

for States & Local Governments:for States & Local Governments:•19831983 - Social Security - Social Security

AmendmentsAmendments•1984 1984 – Hazardous & Solid Waste – Hazardous & Solid Waste

Amendments, Highway Safety Amendments, Highway Safety AmendmentsAmendments

MANDATESMANDATES• 19861986 – Asbestos Emergency – Asbestos Emergency

Response Act, Handicapped Response Act, Handicapped Children’s Protection Act, Safe Children’s Protection Act, Safe Drinking Water Act AmendmentsDrinking Water Act Amendments

• 19881988 – Drug Free Workplace Acts, – Drug Free Workplace Acts, Ocean Dumping Ban ActOcean Dumping Ban Act

• 1990 1990 – Clean Air Amendments, – Clean Air Amendments, Americans with Disabilities ActAmericans with Disabilities Act