Types of Federalism

Objectives

• Characterize the shift from dual to cooperative federalism and the role of fiscal federalism in intergovernmental relations

• Explain the consequences of federalism for diversity in public policies among the states

Essential Questions

• What does fiscal federalism mean?

• How do dual and cooperative federalism differ?

• What are the characteristics of categorical grants and block grants, and what effect do they have on decision making at the state and local levels?

Federalism

The Constitution created a system of government in which power is shared between a central government and the state governments.

Delegated Powers: Powers that belong only to the federal government. (coin money, declare war) Article I

Reserved Powers: Powers that are reserved to the states. (regulate licenses, public education, running elections) Tenth Amendment

Concurrent Powers: Powers that the federal government and the state governments exercise at the same time. (taxation)

Implied powers: powers not listed but implied

Federalism

Federalism has evolved over the course of American history. At different points in time, the balance and boundaries between the national government and state government have changed substantially.

There are three distinct periods in the evolution of federalism:

• Dual Federalism (1789 – 1930)

• Cooperative Federalism (1930-1969)

• New Federalism (1969 – Present)

Federalism

Luckily for us political scientists use cake as an example of what these types of federalism “look” like:

Dual Federalism – Layer Cake

• There are two distinct and separate levels of government.

• The federal government deals only with national issues (defense, foreign policy, commerce, mail)

• The state governments deal with local matters (economic regulation, criminal law, services)

• Each level of government is supreme in its own sphere and the two should be kept separate (like the layers of a cake).

Cooperative Federalism – Marble Cake

• Over the past 60 years federal and state authority have become more intertwined.

• State and local governments now administer many federal programs. (head start, medicare and medicaid)

• States depend on federal funds to support their own programs.

Cooperative Federalism: New Deal and Growth of National Government

• The New Deal (1933-1939)– Intense governmental activity on the national level

– Response to Great Depression required the exercise of tremendous national authority

• New agencies and programs

– Supreme Court worried about scope of these programs in terms of regulating commerce and the economy

• Court-packing plan response to anti-New Deal court decisions

– New programs required cooperation across all levels of government.

New Federalism - Cupcakes

• Since the early 1970’s some have argued that the federal government has grown too powerful and that power should be given back to the states.

• Although there is disagreement on the details, most support the general principle of giving power to the states.

Thinking Slide

• Has the federal government become so powerful? – Think about

• Obamacare

• Same sex marriage

New Federalism: Returning Power to the States

• Federalism Under the Bush Administration– Budget shortfalls at federal and state level– States raised taxes and cut services; received aid from

federal government– Federal government expanded post 9/11

• Department of Homeland Security• No Child Left Behind

– Example of preemption– Viewed by many as an unprecedented usurpation of state and

local powers

Devolution

• Process in which states are given power and responsibility for some programs initiated by the federal government.

• Aid to Families with Dependent Children (AFDC) is funded by the federal government but the states have the power to decide exactly how to distribute the benefits in their states.

• This idea is championed most by conservatives who rail against “big government”.

Federalism in Practice

• Money plays a key role in the federal government’s relationship to the states.

• Since the Great Depression and the New Deal states have come to rely even more on this money and the federal government relies on states to administer its programs.

• This practice is called fiscal federalism.

• Fiscal federalism- the pattern of spending, taxing, and providing grants in the federal system

• The amount of money spent on grants has grown significantly since the 90’s

Grants-in-Aid

Refers to the federal government giving money to the states for a particular purpose. There are two general types:

• Block Grants: money given for a fairly broad purpose with few strings attached.

• Categorical Grants: Money given for a specific purpose that comes with restrictions concerning how the money should be spent (strings attached).

Strings Attached

Refers to the tactics used by the federal government to compel the states to follow its policies and guidelines.

• Applying Pressure: Threats to withhold funds from disobedient states (drinking age fight in mid-1980’s).

• Mandates: Federal government (Congress) orders states to take certain actions (obey laws). If states don’t take those actions they don’t receive funding.

• Unfunded Mandates: Congress orders states to take certain actions (obey laws) but provides no funding (Americans with Disabilities Act).

• Preemption: Because of the Supremacy Clause federal laws take priority over state laws. The national government can override state laws if there is a compelling national interest.

Pro’s and Con’s of Federalism

Pro’s:

• Fosters state loyalties: Because states have powers all their own citizens feel closely connected to their states.

• Practices Pragmatism: Each state is unique and state and local government can more efficiently respond to unique local issues.

• Laboratories of Democracy: State governments can experiment with policies and other states and the federal government can learn from their success and failures.

• Political Stability: By removing the federal government from some contentious policy areas federalism allows the government to achieve and maintain stability.

Pro’s and Con’s of Federalism

Pro’s:

• Encourages pluralism: Allows citizens multiple points of access and influence in government (local, state, national).

• Ensures separation of powers and prevents tyranny: Even if one person or group (faction) took control of all three branches of the federal government federalism ensures that state governments would still function independently (Federalist #10 and Federalist #51).

Pro’s and Con’s of Federalism

Con’s:

• Prevents creation of national policy: The United States often doesn’t have a single policy on issues; it often has 51 policies. (marijuana, gay marriage)

• Leads to a lack of accountability: The overlap of responsibilities makes it hard to assign blame or find the roots of failure in policies.

• Citizen Ignorance: Since most Americans know very little about their state and local governments and turnout in these elections is typically less than 25%, citizens often ignore the level of government that has the greatest ability to affect their lives.