Ch 2 state and local government

Chapter 2 Federalism and the States

The Concept of Federalism The History of U.S. Federalism Models of Federalism Intergovernmental Relations Federal Purse Strings The Future of Federalism

Federalism

Federalism – a division of powers between the national and state governments.

What is the proper balance of power between these two entities, and how does it affect politics?

Power within a country can be explained in three different ways:

Unitary System ConfederacyFederal System

Unitary System

In a Unitary System of government, the majority of the power is given to the national/central government. If subgovernments are created by the central government, they can only exist as the central government allows them, and can only exercise powers given to them by the same central government.

This leads to a strong central government, and weak local or regional jurisdictions.

Examples of countries with a unitary system are France and Egypt.

Confederacy

In a confederacy, the regional governments of a nation are strong and the central government is relatively weak. This is the opposite of the Unitary System.

In a confederacy, the central government’s authority is severely restricted by the regional jurisdictions, and the central government exists mainly to deal with areas of mutual concern among the regional jurisdictions such as a common currency and national defense.

The southern states in the United States formed a confederacy following secession in 1881.

Federal System

The federal system divides its powers among the central and regional jurisdictions, and is between the unitary and confederate forms of government.

Both levels of government in a federal system have supreme powers assigned to them, and cannot be destroyed by the other authority.

In the United States, authority is divided between the central government and the states.

Advantages of Federalism:

It helps to manage social and political conflict by dispersing power within and among the various levels of government.

It promotes administrative efficiency by allowing the government closest to the problem to manage public programs for local needs.

It encourages innovation by allowing state and local governments to accommodate diverse demands and needs.

It maximizes political participation in government because citizens are given the opportunity to participate at all three levels of government.

It helps protect individual freedoms by having the states be the defenders of democracy against a strong central government.

Disadvantages to Federalism:

Although Federalism facilitates the management of conflict in some areas, in others it has led to more dangerous conflict.

Having the level of government closest to the people provide the appropriate services in essence promotes effectiveness and efficiency, but it can also hinder progress.

So many governments at the three levels can lead to duplication and confusion.

While state and local governments excel with innovations, this can hinder national governmental efforts.

A democracy calls for political participation, but can lead to local biases that are damaging to national interests.

The History of Federalism

The Constitution shaped during the Constitutional Convention in 1787 shaped the new republic that became our democratic nation.

The framers hoped the Constitution would control thelower masses while still allowing citizens to have a voice in laws they were compelled to obey.

James Madison was concerned that “factions” woulddevelop – groups that would pursue their own interestswithout concern for the interests of society as a whole.

Devices to Control Factions

The framers of the Constitution created three practical devices to control factions:

• The first device was a system of representative government in which citizens would elect individuals to filter and refine the views of the masses.

• The second was to divide the government into three branches: executive, legislative, and judicial

• The third device was to structure the federal government so the most dangerous faction – a majority – would be controlled by the sovereign states.

The Constitutional Convention

The framers set out to create a document that would control ‘lower forms’ of human behavior while still allowing citizens to have a voice in making the laws they were compelled to obey.

They wanted to create a document that would dictate the proper role of the various levels of government while focusing on the need for a strong central government.

Also decided at the Convention was the compromise that the Supreme Court would be the final arbiter in disputes between the states and the national government.

State- vs. Nation-centered Federalism

There was ideological conflict in the years following the creation of the Constitution.

Nation-centered federalism was the theory that the national government was dominant over the states.

State-centered federalism was the theory that the national government represented a voluntary compact between the states which retained a dominant position.

Followers of state-centered federalism believed the Constitution was a compact that allowed the states to maintain their sovereignty.

The Growth of National Power through the Constitution and the Judiciary

The National Supremacy Clause (Article VI of the Constitution) made national laws superior to state laws.

McCulloch v. Maryland (1819) led to an interpretation of the Necessary and Proper Clause, which authorized Congress to enact all laws ‘necessary and proper’ to carry out its responsibilities.

The Supreme Court decided that Implied Powers existed for Congress meaning that there were powers not expressly granted in the Constitution but that could still be inferred from the enumerated powers it was granted.

The Fourteenth Amendment

The Fourteenth Amendment was ratified by the states in 1868, and granted former slaves citizenship rights, in addition to due process and equal protection provisions that states applied to all citizens.

The federal courts have used the Fourteenth Amendment to increase national power over the states in the fields of civil rights, criminal rights and election practices.

The Growth of National Power Through Congress

Other amendments and laws were put into place to ensure the dominance of the national government over the states.

The Sixteenth Amendment granted the national government the power to levy income taxes.

Federal Preemption was also created through the National Supremacy Clause. Through federal preemption, whenever a state law conflicts with a national law, the national law is considered the dominant one.

Models of Federalism

Dual Federalism (1787-1932) – this theory holds that the national and state governments are sovereign and equal (separate and distinct) within their respective spheres of authority. Dual federalism meant that the federal government exercised all powers specifically designated to it, while all other powers were reserved for the states.

This type of federalism last for 145 years of federalism, although it was modified after such events as the Civil War.

Models of Federalism

Cooperative Federalism (1933-1964) – a model of federalism that stresses the sharing of responsibilities and arrangements between the three levels of government.

Due in part to the Great Depression, the national government began cooperating with the state and local governments to promote economic development and provide jobs and social welfare.

Models of Federalism

Creative Federalism – this model of federalism was created by President Johnson to promote his vision of a “Great Society.”

In this model, many new grants-in-aid, including direct national-local financial arrangements were made. States did not appreciate this arrangement where they were not involved in dictating how localities spent the money.

New Federalism – was initiated by President Nixon and embraced by President Reagan. It returned power and responsibilities to the states and shrunk the size of the national government.

Intergovernmental Relations

Interstate Cooperation – four formal provisions of cooperation exist among the states:

Full Faith and Credit Clause – binds every citizen of every state to the laws and policies of other states

Interstate Rendition Clause – Governors are required to return fugitives to the state in which they were found guilty

Privileges and Immunities Clause – is intended to prevent states from discriminating against citizens from other states who may be travelling outside of their own state’s borders

Interstate Compact Clause – authorizes states to negotiate compacts with other states.

Intergovernmental Financial Relations

Revenues for governments are earned through taxes, fees, and transfers of funds from other levels of government.

Grant-in-Aid: an intergovernmental transfer of funds or other assets, which are subject to specific conditions

Revenue Sharing: a ‘no strings’ form of financial aid from one level of government to another

Categorical grant: a form of financial aid from one level of government to another to be used for a narrowly defined purpose

Block grant: a form of financial aid from one level of government to another for use in a broad area

The Importance of Federal Funds

Federal Mandate: sometimes the federal government requires that a state or local government undertake specific activities or provide particular services as a condition of receiving funding from the national government.

The problem occurs when the federal government does not pay for the mandate – the state and local governments do.

Chapter Recap

What is the future of Federalism?

State and local governments have progressed rapidly with new innovations and policy implementations. Although they want to become more creative, circumstances also force them to be so. For example, how to implement and finance federal mandates.

State and local governments currently have a strong sense of power and responsibility.

Intergovernmental relations are a key ingredient of federalism.