The Federal SystemThe Federal System

References: References: Cummings and Wise, Cummings and Wise, Democracy Under Democracy Under

Pressure;Pressure;Fiorina, Peterson, and Voss, Fiorina, Peterson, and Voss, America’s America’s

New Democracy New Democracy

From Federalist 51 From Federalist 51 (Madison)(Madison)

““In a single republic, all the power surrendered by In a single republic, all the power surrendered by the people is submitted to the administration of a the people is submitted to the administration of a single government; and the usurpations are guarded single government; and the usurpations are guarded against by a division of the government into distinct against by a division of the government into distinct and separate departments. In the compound and separate departments. In the compound republic of America, republic of America, the power surrendered by the the power surrendered by the people is first divided between two distinct people is first divided between two distinct governmentsgovernments, and then the portion allotted to each , and then the portion allotted to each subdivided among distinct and separate subdivided among distinct and separate departments. Hence, a departments. Hence, a double securitydouble security arises to the arises to the rights of the people. The different governments will rights of the people. The different governments will control each other, at the same time that each will control each other, at the same time that each will be controlled by itself.” be controlled by itself.”

Alexis de Tocqueville Alexis de Tocqueville

““One can hardly imagine how much One can hardly imagine how much division of sovereignty contributes to division of sovereignty contributes to the well-being of each of the states the well-being of each of the states that compose the Union.” that compose the Union.”

FederalismFederalism

DefinitionDefinition – – the constitutional sharing the constitutional sharing of power by national and regional of power by national and regional units of governmentunits of government

Federalism – Division and Federalism – Division and Sharing of Powers Sharing of Powers

Some realms of authority belong Some realms of authority belong exclusively to the federal government, exclusively to the federal government, other belong exclusively to the states.other belong exclusively to the states.

Examples:Examples: Exclusive federal authorityExclusive federal authority – coin money; – coin money;

declare war; regulate interstate commercedeclare war; regulate interstate commerce Exclusive state authorityExclusive state authority – legislate for the – legislate for the

general welfare (“police power”) general welfare (“police power”)

Some realms of authority overlap, i.e., Some realms of authority overlap, i.e., they are exercised by both fed and they are exercised by both fed and state governments (state governments (concurrent concurrent powerspowers))

ExamplesExamples: tax and spend; take private : tax and spend; take private property for public use (eminent domain); property for public use (eminent domain); borrow money for public purposes borrow money for public purposes

Grodzins’s Federalism CakeGrodzins’s Federalism Cake

““layer cake federalismlayer cake federalism” (classic ” (classic model) – clear, distinct boundary model) – clear, distinct boundary between state and federal authority between state and federal authority and functions, little overlap or and functions, little overlap or cooperationcooperation

““marble cake federalismmarble cake federalism” – much ” – much cooperation across functional areascooperation across functional areas

Unitary governments (distinct Unitary governments (distinct from federal form)from federal form)

Central authority makes uniform policy Central authority makes uniform policy for entire nation (example: France)for entire nation (example: France) Smaller government units may exist, but are Smaller government units may exist, but are

used only for administrative purposes used only for administrative purposes (smaller units lack “sovereignty”) (smaller units lack “sovereignty”)

Quite unlike our federal system – in U.S. Quite unlike our federal system – in U.S. policy differs significantly between policy differs significantly between states, with some areas of policy made states, with some areas of policy made uniform by federal lawuniform by federal law

The case for and against The case for and against federalismfederalism

Pros:Pros: Federalism promotes diversity of viewpointsFederalism promotes diversity of viewpoints States are “laboratories of democracy” – settings States are “laboratories of democracy” – settings

in which different approaches to solving public in which different approaches to solving public problems can be tried (problems can be tried (policy innovationpolicy innovation) )

More levels of gov’t = enhanced democracy (more More levels of gov’t = enhanced democracy (more points of access to government)points of access to government)

Better protection of individual rights (more Better protection of individual rights (more sources of opposition to encroaching federal sources of opposition to encroaching federal power) power)

More effective delivery of services – customization More effective delivery of services – customization to local conditions, needsto local conditions, needs

Cons:Cons: May allow states to harbor various forms May allow states to harbor various forms

of discriminationof discrimination Local or special interests control policy Local or special interests control policy

making, frustrating efforts to solve making, frustrating efforts to solve national problems (e.g., poverty, energy national problems (e.g., poverty, energy shortages)shortages)

National unity may be difficult to achieveNational unity may be difficult to achieve Uneven application of law is possibleUneven application of law is possible

Federalism in the CourtsFederalism in the Courts

Pre-Civil War: some advocacy for the idea of Pre-Civil War: some advocacy for the idea of nullificationnullification

McCulloch v. MarylandMcCulloch v. Maryland (1819) ends (1819) ends nullification debate nullification debate U.S. Supreme Court will rule in cases where the U.S. Supreme Court will rule in cases where the

boundaries of state and national power are at issueboundaries of state and national power are at issue National supremacy, broad national powers National supremacy, broad national powers

founded in Art I, Sect. 8, Cl. 18 – necessary and founded in Art I, Sect. 8, Cl. 18 – necessary and proper clauseproper clause

Decision reflects U.S. Supreme Court’s power of Decision reflects U.S. Supreme Court’s power of judicial reviewjudicial review

The Rehnquist Court and The Rehnquist Court and FederalismFederalism

(1986-present)(1986-present) Conservative Court – restricts reach of federal authority, Conservative Court – restricts reach of federal authority,

“devolves” power to the states“devolves” power to the states Key decision: Key decision: U.S. v. LopezU.S. v. Lopez (1995) (1995)

Limits power of the federal government to regulate Limits power of the federal government to regulate interstate commerce interstate commerce

Court rules that federal government exceeded its Court rules that federal government exceeded its authority under the Commerce Clause when it authority under the Commerce Clause when it enacted law prohibiting the possession of a handgun enacted law prohibiting the possession of a handgun within 1000 ft. of a schoolwithin 1000 ft. of a school

Rehnquist Court also strikes down federal Violence Rehnquist Court also strikes down federal Violence Against Women Act - Against Women Act - U.S. v. MorrisonU.S. v. Morrison (2000) (2000)

Eras of FederalismEras of Federalism

Dual federalismDual federalism (19 (19thth century - until 1937) century - until 1937) Cooperative federalismCooperative federalism (1937- early 1960s) (1937- early 1960s)

New Deal through Kennedy yearsNew Deal through Kennedy years Creative federalismCreative federalism (Lyndon Johnson) (Lyndon Johnson)

Expanded role of federal governmentExpanded role of federal government New federalismNew federalism (Nixon) (Nixon)

Return fed tax $$ to state and local gov’tReturn fed tax $$ to state and local gov’t Regulatory federalismRegulatory federalism (recent years) (recent years)

Fed gov’t sets policy for states via fed Fed gov’t sets policy for states via fed regulationsregulations

Paradoxes of current federalism Paradoxes of current federalism debatedebate Public expects federal role in shaping Public expects federal role in shaping

economy, yet demands increased state economy, yet demands increased state and local control over the course of and local control over the course of public policypublic policy

Need to solve broad national policy Need to solve broad national policy problems in system of shared powers problems in system of shared powers with frequently contentious relationshipswith frequently contentious relationships

Constitutional Basis of Constitutional Basis of FederalismFederalism

Allocation of Allocation of FederalFederal Government Government Power under the ConstitutionPower under the Constitution Enumerated powers – Art I, Sect. 8Enumerated powers – Art I, Sect. 8 Implied powers – Art I, Sect. 8, Cl. 18 Implied powers – Art I, Sect. 8, Cl. 18

(necessary and proper clause)(necessary and proper clause) Inherent powers – derived from the fact Inherent powers – derived from the fact

that we are a nationthat we are a nation Concurrent (shared) powers – example: Concurrent (shared) powers – example:

taxationtaxation

Other key constitutional provisions shaping Other key constitutional provisions shaping scope of federal authority scope of federal authority

Article VI – Supremacy Clause Article VI – Supremacy Clause Commerce Clause (Art. I, Section 8) Commerce Clause (Art. I, Section 8)

1919thth century view – federal power to regulate commerce century view – federal power to regulate commerce extends to only exchanges across state linesextends to only exchanges across state lines

Modern view – expanded definition of interstate Modern view – expanded definition of interstate commerce; things that impact interstate commerce are commerce; things that impact interstate commerce are within Congress’s powers to regulate within Congress’s powers to regulate

Recent decisions – in U.S. v. Lopez (1995) Court rejects Recent decisions – in U.S. v. Lopez (1995) Court rejects expansive reading of federal commerce power expansive reading of federal commerce power

Taxing / Spending clause Taxing / Spending clause

The Tenth AmendmentThe Tenth Amendment

Text: “The powers not delegated to the United Text: “The powers not delegated to the United States by the Constitution, nor prohibited by it States by the Constitution, nor prohibited by it to the States, are to the States, are reserved reserved to the States to the States respectively, or to the people.” (emphasis mine)respectively, or to the people.” (emphasis mine)

How has the Court used the 10How has the Court used the 10thth Amend? Amend? 1836-1864 1836-1864 10 10thth Amend. invoked to protect state Amend. invoked to protect state

powers (narrowing scope of federal authority)powers (narrowing scope of federal authority) 1920s – 1930s 1920s – 1930s 10 10thth Amend. used to invalidate Amend. used to invalidate

federal laws aimed at preventing child labor, federal laws aimed at preventing child labor, regulating industry and agricultureregulating industry and agriculture

1937 1937 Court allows expansion of federal authority Court allows expansion of federal authority under the Commerce Clause (Art I, sect. 8) under the Commerce Clause (Art I, sect. 8)

1111thth Amendment Amendment

Protection of state governments Protection of state governments Citizen of one state may not sue another Citizen of one state may not sue another

state government in federal courts state government in federal courts (states are granted (states are granted sovereign immunitysovereign immunity) )

Limitations on State’s Authority Limitations on State’s Authority to Act and Legislate to Act and Legislate

Supremacy Clause of U.S. Constitution (Art. VI)Supremacy Clause of U.S. Constitution (Art. VI) National law is superior to state law National law is superior to state law

Constitution forbids states to act in areas of exclusive federal Constitution forbids states to act in areas of exclusive federal authorityauthority

interstate compacts (require congressional approval)interstate compacts (require congressional approval)

Article I, Section 10 Article I, Section 10 no state may pass a bill of attainder, ex post facto law, or law impairing no state may pass a bill of attainder, ex post facto law, or law impairing

the obligation of contracts the obligation of contracts States may not coin money or enter into treatiesStates may not coin money or enter into treaties State may not tax imports or exports State may not tax imports or exports States must have Congress’s approval before entering into inter-state States must have Congress’s approval before entering into inter-state

compacts compacts

1414thth Amendment (1868) Amendment (1868) Due process clause – key vehicle for incorporation of much of Bill of Due process clause – key vehicle for incorporation of much of Bill of

Rights; impact is to nationalize many civil liberties protections, thereby Rights; impact is to nationalize many civil liberties protections, thereby limiting state power in relationships with individual citizens limiting state power in relationships with individual citizens

Additional limitations on state Additional limitations on state authority authority

Art. IV of ConstitutionArt. IV of Constitution

Privileges and Immunities Clause – one Privileges and Immunities Clause – one state cannot discriminate against the state cannot discriminate against the citizens of another state citizens of another state

Full faith and credit clauseFull faith and credit clause States must observe the laws, records, judicial States must observe the laws, records, judicial

decisions of other states decisions of other states

Federalism TodayFederalism Today

Federal Aid of states, counties, local govtFederal Aid of states, counties, local govt 2001 – $305.6 Billion (reflects 2001 – $305.6 Billion (reflects dramatic dramatic

increaseincrease from the $2.3 Billion spent in 1950) from the $2.3 Billion spent in 1950) Federal Grants to states/municipalitiesFederal Grants to states/municipalities

Categorical GrantCategorical Grant – special purposes (e.g., – special purposes (e.g., Medicaid) [Medicaid) [Largest categoryLargest category]]

Examples: Johnson’s “War on Poverty” and the Examples: Johnson’s “War on Poverty” and the related programs of Head Start and Job Corpsrelated programs of Head Start and Job Corps

Use is consistent with cooperative and creative Use is consistent with cooperative and creative federalism ideas federalism ideas

Block GrantsBlock Grants – broad use (e.g., transportation) and – broad use (e.g., transportation) and maximum flexibility given to the states and local maximum flexibility given to the states and local governments governments

First broad use occurs during the Nixon yearsFirst broad use occurs during the Nixon years Reagan converted many categorical grants into block grants Reagan converted many categorical grants into block grants 1994 – Republican majority in Congress transferred AFDC into 1994 – Republican majority in Congress transferred AFDC into

block grants to statesblock grants to states Some strings attach to recipients eligibility for these dollars, Some strings attach to recipients eligibility for these dollars,

however. however.

General Purpose GrantsGeneral Purpose Grants – almost no restrictions on use – almost no restrictions on use (Nixon advocated use of general revenue sharing – return (Nixon advocated use of general revenue sharing – return of federal tax revenues to the states) of federal tax revenues to the states)

Key point – dollars spent in block grants decreased Key point – dollars spent in block grants decreased dramatically between 1977 and 1998dramatically between 1977 and 1998

General revenue sharing was eliminated in 1985General revenue sharing was eliminated in 1985 Community development block grant cut significantly Community development block grant cut significantly

Federal Grants to State and Federal Grants to State and Local Government Local Government

Where does it all go?Where does it all go? 43% 43% health care health care 22% 22% income security programs income security programs

Unemployment insurance, retirement, welfare to Unemployment insurance, retirement, welfare to work programswork programs

15.3% 15.3% education, job training programs education, job training programs 11.2% 11.2% transportation transportation

Highway maintenance, new constructionHighway maintenance, new construction 2.7% 2.7% community/urban renewal community/urban renewal

Housing, community rebuilding prgramsHousing, community rebuilding prgrams

Unfunded mandates issue:Unfunded mandates issue:- - Critics of unfunded mandates encourage Critics of unfunded mandates encourage devolutiondevolution of federal programs to state/local of federal programs to state/local authoritiesauthorities

- 1990s – debate over unfunded - 1990s – debate over unfunded mandates in mandates in 104th Congress (Contract 104th Congress (Contract W/Am) + Pres. Clinton’s W/Am) + Pres. Clinton’s actionaction

- Unfunded Mandates Reform Act (1995) – - Unfunded Mandates Reform Act (1995) – Congress must fund federal mandates in Congress must fund federal mandates in absence of vote not to do soabsence of vote not to do so

State and Local GovernmentState and Local Government

Key facts:Key facts: More than 73,000 local governments More than 73,000 local governments

20,000 municipalities 20,000 municipalities 35,000 special districts (responsible for one 35,000 special districts (responsible for one

or a few government services)or a few government services) More than ½ of all domestic expenditures More than ½ of all domestic expenditures

take place at the state and local level take place at the state and local level Roads, parks, police and fire protections, Roads, parks, police and fire protections,

health care, education, sanitationhealth care, education, sanitation

Trust in government? Perceptions of Trust in government? Perceptions of Government Waste?Government Waste?

Figure 3.4 in Fiorina, Peterson, and VossFigure 3.4 in Fiorina, Peterson, and Voss

Financing public educationFinancing public education 95% of costs of public education paid for out of 95% of costs of public education paid for out of

state / local budgets state / local budgets

Structure of state/local governments similar to Structure of state/local governments similar to that of federal government that of federal government

State legislatures vary in size from state to state State legislatures vary in size from state to state

Content of public policy varies much from state Content of public policy varies much from state to state. Why?to state. Why?

Variations in political culture and political settingVariations in political culture and political setting Variations in socioeconomic factorsVariations in socioeconomic factors

Trend toward competitive two-party politics Trend toward competitive two-party politics and divided government (seen at national and divided government (seen at national level) has emerged at state level.level) has emerged at state level.

Figure 3.6 in Fiorina, Peterson, and VossFigure 3.6 in Fiorina, Peterson, and Voss

State legislatures becoming more professional State legislatures becoming more professional (lower turnover rates, more staff, higher (lower turnover rates, more staff, higher salaries, longer sessions) salaries, longer sessions)

GovernorsGovernors Since 1950s, many states have strengthened the office Since 1950s, many states have strengthened the office

of governor of governor Longer terms, reducing term limitations, enhanced veto Longer terms, reducing term limitations, enhanced veto

power (line item veto available in most states) power (line item veto available in most states)

Budgetary collapseBudgetary collapse 2002 huge revenue shortfalls 2002 huge revenue shortfalls

Why did this occur?Why did this occur? Response: Tax cuts? Spending cuts? Program Response: Tax cuts? Spending cuts? Program

elimination? elimination? targets? <education> targets? <education>