1. Federalism National Government vs. State Governments

2. Federalism and the Constitution • Federalism as a Madisonian device • A way to limit federal authority (see Federalist 10 and 51) • The division of powers between two sovereign governments • It helps to address the diverse nature of our country (allows for local control) • State governments were well established and people trusted them

3. Explanation for federalism • “…it clearly appears, that the same advantage which a republic has over a democracy, in controlling the effects of faction, is enjoyed by a large over a small republic-is enjoyed by the Union over the States composing it…The influence of factious leaders may kindle a flame within their particular States, but will be unable to spread a general conflagration through the other States.” Madison Federalist #10

4. Constitutional Basis of federalism • A strong national government • Article I, Section 8 grants government many broad powers, • but government also given powers to create all laws “necessary and proper” (elastic clause) • Article VI establishes the supremacy of the Constitution • Powers prohibited to the states • States denied from doing things that conflict with national government such enter treaties, coin money, keep troops or navies, make war levy import, export taxes • States left with the local powers of governing the welfare, health, safety and morals of its people • National government limited • Article I, Section 9 establishes powers denied to federal government • 10th Amendment grants states powers not granted by the Constitution to the national government (who wins if a conflict between the elastic clause and 10th Amendment)

5. Division of Power • Expressed Powers—delegated to National Government • Lay and collect taxes, coin money, regulate trade, declare war, maintain armed forces • Powers to the President; 16th Amendment • Implied Powers—necessary and proper clause • Interstate highway system, kidnapping across state lines, banning racial discrimination (power to regulate commerce) • Powers denied—Bill of Rights, silence of Constitution

6. Division of Powers

7. Layer Cake vs. Marble Cake Federalism People States Federal gov’t

8. Fiscal Federalism-spending, taxing and producing grants in the federal system • Categorical grants-money given to states for a specific purpose, but there are conditions • Interstate Highway Act-governments pay 80% of cost of highway construction, but must be built to government specifications • States must establish a highway beautification program or lose 10% of its funding • Or Cross over sanctions • Funds withheld for highway construction unless the drinking ages of the states are raised (South Dakota v. Dole) • Block grants-money given to states, but less strings attached • Giving money to states to decrease emissions • Money given to the states for welfare, but the states come up with the system that helps them best • Revenue Sharing-money given to states with tax revenue and no strings attached (1972-1987)

9. The National Government’s Contributions toState and Local Government Expenditures

10. Trends in National GovernmentGrants to States and LocalitiesThe Issue: Health Costs!

11. Devolution Advantages Disadvantages • Local control • Experimentation • Local governments able to adapt to local needs leading to greater efficiency • Traditional interpretation of the states’ power to regulate health, welfare and safety • Regional disunity • Fiscal responsibility of Congress • Oversight • “Irresponsibility” of states • Need to accomplish national goals with federal dollars

12. Interstate Relations • Article IV—Full faith and Credit Clause • Any legal decision, record and public acts of a State has to be recognized by other States • Marriages • Drivers licenses • Birth certificates • Divorces • Damage award • Extradition • Privileges and Immunities—states can’t play favorites between their citizens and out of state citizens • Except • Holding public office • Professional licenses • Hunting licenses • In-state/out-of-state tuition