Federalism        Paul Johnson, University of Kansas  copyright  2007
Table of Contents
   Federalism: Pros and Cons
   Why does national power grow? 
   Legal authority of national government 
   Fiscal Power of the National Government
  Can the States Be Revived?

Federalism: Pros and Cons
 What is Federalism?
  Definition: Two or more governments exercise  authority over the same people/land 
 You can be arrested by a Lawrence Policieman. Or an FBI  agent. Or a State Trooper

Varieties of Federalism
* "dual" federalism: extreme separation of roles of governments 
* cooperative (or shared) federalism: local and  national governments   "work together" on policy issues.
* Federalism may mean one level of government becomes dominant

Pros and Cons 
  Pros
  * Experimentation/  * Flexibility /  * Checks on national government / * "Closer to the People" 
  Cons
  * Inequality across states /  * Policy implementation difficult / * Local government oppressive/corrupt

National Power Grows Because....
* Political urge to impose a "good" policy throughout the country 
  * Drinking age/drunk driving guidelines 
  * Ban on racial discrimination 
* Protect states from competing with each other   (give-aways to corporations) 
* Cross-state problems require national solutions 
  * Environmental protection

Legal authority of national government 
Example: Federal Crimes & Law Enforcement

Gangsters and Hoodlums
* Crime was seen as a strictly local problem before 1910. 
* Lawlessness of 1920s-1930s "gangsters" changed that.
Al Capone/Famous gangster/prosecuted for Fedl Crimes of failing to file income taxes & appear as a witness

Nationalization of Kidnapping!
  * Kidnapping Wave: 
    * Mobsters hurt by depression & end of prohibition   turned to kidnapping. 
  * Outrage led to national action (FBI, federal crime laws).
  
Clyde Barrow and Bonnie Parker
* 1932-34 Crime spree: / 13 murders / more than 100 robberies
* Posed for many silly photos along the way
* Sought for interstate car theft investigation
* Killed in Louisiana by a team led by 2 Texas Sheriffs

Example: Economic Regulation 
The Elastic Clause
Step 1. The National Bank
* Congress created a National Bank
* McCulloch v Maryland (1819) upheld Bank against  Constitutional challenges
    * National Government has powers beyond those  specifically stated in the constitution
  * Really Important: The "Elastic" clause (necessary & proper)

The Expansion of the Commerce Clause
Step 2. Regulation of "private" economy as interstate commerce 
* 1930s Depression: National gov't tries to regulate  manufacturing
* Sup. Ct. struck down several new laws
* 1937: Sup. Ct. gives in to pressure, allows  regulation of local manufacturers 
  * because there is an "effect on interstate commerce" 

Economic Regulation Expanded to "apparently local" business
* 1966: Ban on discrimination in hotels/restaraunts upheld by Court 
* 1985: local bus company regulated by Nat'l minimum wage

"Environmental Regulation" 
* 1970+: Environmental Regulation Nat'l standards  adopted for clean air/water
* Sup. Ct. upholds as valid exercise of commerce clause power
* States can enforce, but are overseen by EPA.
* EPA can directly take control if a states refuses to   enforce anti-pollution laws

Fiscal Power of the National Government
Types of programs 
  Categorical grants: "We will pay if you administer a program to do x"
  Block grants: "Here's a bunch of money of money to   spend on x,y, or z"
  Revenue sharing: "Here's some money" (eliminated in 1986)

Fiscal Pressure of "Optional Programs" 

* Many of these programs are "optional", like  "highways", "welfare" or "urban development"
* But states and cities want the money. 
* Two levels of "extortion"
  * AID TYING: Offer extra money to states that meet  rules (1965: 10% extra to beautify highways
  * CROSSOVER sanction: Take away money for X unless a  state does Y. (Reagan: drinking age)

Unfunded Mandates 
* Federal rules require states to provide benefits or programs. 
* Unfunded: The benefits are not paid for by National Governments.
* Unfunded Mandates major target of 1994 "Contract with America"
  * 1995 law "reformed" Congressional procedure.

Can the States Be Revived?  New Federalism (Reagan+) 
* "De-nationalize" policy control 
* Cut federal programs where feasible 
* Use Block grants, not categorical grants 
* Eliminate revenue sharing

Politicians Push National Approaches
* Politicians often call for more state control, 
* BUT also implement stricter national standards Welfare reform .
  Example: Family/Medical Leave Act 

Mysterious Supreme Court Changes?
* Sup. Ct. has usually said 10th amendment lacks any legal power
* But today's court is different! 
  * 1995: Struck down federal law banning guns near public schools 
  * 1999: Struck down federal law on age discrimination by state governments